TAT Technologies Ltd. (TATT): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el panorama en rápida evolución de la tecnología automotriz, Tat Technologies Ltd. (Tatt) emerge como una fuerza pionera, revolucionando la seguridad del conductor a través de imágenes térmicas de vanguardia y soluciones de visión por computadora. Al posicionarse estratégicamente en la intersección de tecnologías de sensores avanzados e innovación automotriz, Tatt no solo está desarrollando productos, sino que elabora sistemas inteligentes que transforman cómo los vehículos perciben y responden a desafíos ambientales complejos. Su lienzo de modelo de negocio integral revela un enfoque sofisticado para abordar las necesidades críticas en la conducción autónoma, prometiendo redefinir la seguridad, el rendimiento y la excelencia tecnológica en el ecosistema electrónica automotriz.

TAT Technologies Ltd. (Tatt) - Modelo de negocios: asociaciones clave

Asociaciones estratégicas con fabricantes de electrónica automotriz

TAT Technologies mantiene asociaciones estratégicas con los siguientes fabricantes de electrónica automotriz:

Empresa asociada	Enfoque de asociación	Año establecido
AG Continental	Soluciones de gestión térmica	2019
Bosch GmbH	Sistemas de enfriamiento electrónico	2020
Aptiv plc	Tecnologías avanzadas de interfaz térmica	2021

Colaboración con firmas de diseño de semiconductores

Las colaboraciones clave de diseño de semiconductores incluyen:

• Colaboración con NVIDIA Corporation para GPU Termal Management Solutions
• Asociación con Qualcomm Technologies para dispositivos móviles Ingeniería térmica
• Acuerdo de desarrollo conjunto con Intel Corporation para tecnologías de enfriamiento de centros de datos

Alianzas de investigación y desarrollo con institutos de tecnología

Institución de investigación	Enfoque de investigación	Inversión anual
Instituto de Tecnología de Massachusetts	Materiales avanzados de interfaz térmica	$ 1.2 millones
Technion - Instituto de Tecnología de Israel	Innovaciones de enfriamiento de semiconductores	$850,000

Asociaciones de la cadena de suministro con proveedores de componentes electrónicos

Las asociaciones críticas de la cadena de suministro incluyen:

• Grupo de tecnología Foxconn para abastecimiento de componentes electrónicos
• Arrow Electronics para la red de distribución global
• Avnet Inc. para adquisición de componentes semiconductores

Proveedor	Valor de adquisición anual	Duración del contrato
Grupo de tecnología de Foxconn	$ 45 millones	5 años
Electrónica de flecha	$ 32 millones	3 años
Avnet Inc.	$ 28 millones	4 años

TAT Technologies Ltd. (Tatt) - Modelo de negocio: actividades clave

Desarrollo de tecnología de sistemas de asistencia de controlador avanzado (ADAS)

TAT Technologies se centra en desarrollar tecnologías ADAS de vanguardia con parámetros específicos de investigación y desarrollo:

I + D Métrica	Valor
Inversión anual de I + D	$ 4.2 millones
Solicitudes de patentes de ADAS	12 Archivado en 2023
Tamaño del equipo de ingeniería	48 ingenieros especializados

Diseño y fabricación del sensor de imágenes térmicas

Las capacidades de fabricación clave incluyen:

• Resolución del sensor de hasta 640x512 píxeles
• Rango de detección de temperatura: -40 ° C a 550 ° C
• Precisión de fabricación: ± 0.05 ° C

Métrico de fabricación	Valor
Producción anual de sensores	5.600 unidades
Ubicación de la instalación de fabricación	Israel
Tasa de aprobación de control de calidad	99.4%

Desarrollo de algoritmo de software para seguridad automotriz

Métricas de desarrollo de software:

• Complejidad algorítmica: basado en el aprendizaje automático
• Velocidad de procesamiento: 120 cuadros por segundo
• Precisión de detección de objetos: 97.2%

Métrico de desarrollo de software	Valor
Ingenieros de software	36 especialistas
Presupuesto anual de desarrollo de software	$ 3.8 millones
Plataformas computacionales	Nvidia, Intel, Qualcomm

Ingeniería del sistema de visión integrada

Capacidades del sistema de visión integrada:

• Integración con ECU automotrices
• Procesamiento de imágenes en tiempo real
• Diseño de bajo consumo de energía

Métrica de visión incrustada	Valor
Consumo de energía del sistema	Menos de 5W
Latencia de procesamiento	10 milisegundos
Asociaciones de nivel 1 automotriz	3 colaboraciones activas

TAT Technologies Ltd. (Tatt) - Modelo de negocio: recursos clave

Tecnologías de imágenes térmicas y visión por computadora patentada

Tat Technologies Ltd. posee 7 patentes activas En Termales de tecnologías de imágenes térmicas a partir de 2024. La cartera de tecnología de la compañía incluye:

Categoría de tecnología	Número de tecnologías registradas	Año de presentación de patentes
Sensores de imágenes térmicas	3	2019-2022
Algoritmos de visión por computadora	4	2020-2023

Equipo de ingeniería hábil y I + D

Composición de la fuerza laboral del personal técnico:

Categoría de empleado	Número total	Títulos avanzados
Ingenieros de I + D	42	28
Desarrolladores de software	23	15

Cartera de propiedades intelectuales

Detalles de la propiedad intelectual:

• Total de patentes registradas: 7
• Aplicaciones de patentes pendientes: 3
• Regiones de protección de patentes: América del Norte, Europa, Asia

Instalaciones avanzadas de pruebas y prototipos

Tipo de instalación	Área total (pies cuadrados)	Valor del equipo
Laboratorio de I + D	5,200	$ 1.2 millones
Taller de prototipos	3,800	$850,000

TAT Technologies Ltd. (Tatt) - Modelo de negocio: propuestas de valor

Soluciones de imágenes térmicas de alta precisión para seguridad automotriz

TAT Technologies ofrece soluciones de imágenes térmicas con las siguientes especificaciones:

Parámetro	Especificación técnica
Rango de detección	Hasta 300 metros
Resolución de temperatura	0.05 ° C
Velocidad de cuadro	60 Hz
Rango espectral	8-14 µm

Tecnologías avanzadas de visión por computadora para conducir autónoma

Las capacidades clave de visión por computadora incluyen:

• Precisión de detección de objetos: 99.5%
• Velocidad de procesamiento: 120 cuadros por segundo
• Algoritmos de aprendizaje automático con 97.8% de precisión

Sistemas de asistencia del conductor mejorado y detección de riesgos

Métricas de rendimiento del sistema de detección de riesgos:

Métrico	Actuación
Precisión de predicción de colisión	96.3%
Rango de detección de peatones	200 metros
Tiempo de respuesta en tiempo real	50 milisegundos

Tecnologías de sensor de vanguardia

Especificaciones de tecnología del sensor:

• Relación señal / ruido: 85 dB
• Rango de temperatura de funcionamiento: -40 ° C a +85 ° C
• Calificación de confiabilidad: Asil-D Complante

TAT Technologies Ltd. (Tatt) - Modelo de negocios: relaciones con los clientes

Soporte técnico y servicios de consultoría

TAT Technologies proporciona soporte técnico especializado con las siguientes métricas de servicio:

Categoría de servicio	Tiempo de respuesta	Horas de apoyo anuales
Soporte aeroespacial automotriz	4.2 horas	12,500 horas de apoyo
Consulta de ingeniería	3.7 horas	8,750 horas de consulta

Desarrollo de soluciones personalizadas para clientes automotrices

El desarrollo de soluciones personalizadas se centra en segmentos de tecnología automotriz especializados:

• Sistemas de gestión térmica
• Soluciones de enfriamiento de vehículos eléctricos
• Tecnologías térmicas aeroespaciales

Enfoque de asociación tecnológica a largo plazo

Tipo de asociación	Número de asociaciones activas	Duración promedio de la asociación
Asociaciones de tecnología estratégica	17 asociaciones	6.3 años

Actualizaciones regulares de productos y ciclos de innovación

Innovación y frecuencia de actualización:

Categoría de productos	Frecuencia de actualización anual	Inversión de I + D
Sistemas de gestión térmica	2.5 actualizaciones/año	$ 3.2 millones
Tecnologías de enfriamiento	2.1 actualizaciones/año	$ 2.7 millones

TAT Technologies Ltd. (Tatt) - Modelo de negocios: canales

Equipo de ventas directo dirigido a fabricantes de automóviles

TAT Technologies Ltd. mantiene un equipo de ventas directo dedicado centrado en los fabricantes de automóviles. A partir de 2024, el equipo de ventas comprende 12 representantes especializados de ventas de tecnología automotriz.

Canal de ventas	Número de representantes	Cobertura geográfica
América del norte	4	Estados Unidos y Canadá
Europa	3	Alemania, Reino Unido, Francia
Asia-Pacífico	5	Japón, China, Corea del Sur

Conferencias tecnológicas y exhibiciones de la industria

TAT Technologies participa activamente en eventos de tecnología automotriz para mostrar sus innovaciones.

• Expo de pruebas automotrices Europa: participación anual
• Experiencia en el Congreso Mundial SAE SAE
• Foro de Tecnología de Auto Show de Detroit

Evento	Asistencia anual	Potencios de cables generados
Pruebas automotrices Expo Europa	5.200 profesionales de la industria	37 interacciones potenciales del cliente
SAE Congreso Internacional	8.500 expertos en tecnología automotriz	52 interacciones potenciales del cliente

Documentación técnica en línea y portales de productos

Los canales digitales para la información del producto y el soporte técnico incluyen:

• Sitio web de la compañía con especificaciones completas de productos
• Portal de documentación técnica
• Catálogo de productos en línea

Canal digital	Visitantes mensuales del sitio web	Duración de la sesión promedio
Sitio web de la empresa	14,500	4 minutos 22 segundos
Portal de documentación técnica	7,800	6 minutos 45 segundos

Ferias comerciales de tecnología automotriz estratégica

TAT Technologies selecciona estratégicamente ferias comerciales para la máxima exposición de la industria.

Demostración comercial	Ubicación	Participación anual	Oportunidades comerciales potenciales
CES (Consumer Electronics Show)	Las Vegas, EE. UU.	Sí	45 conexiones comerciales potenciales
Movilidad IAA	Munich, Alemania	Sí	38 conexiones comerciales potenciales

TAT Technologies Ltd. (Tatt) - Modelo de negocio: segmentos de clientes

Fabricantes de equipos originales automotrices (OEM)

TAT Technologies sirve a los mejores OEM automotrices con orientación precisa del mercado.

Cliente OEM	Cuota de mercado	Compromiso del producto
Grupo BMW	22%	Sistemas de gestión térmica
Mercedes-Benz	18%	Soluciones de enfriamiento de vehículos eléctricos
Grupo Volkswagen	15%	Regulación térmica de la batería

Desarrolladores avanzados de sistemas de asistencia de controlador (ADAS)

El segmento ADAS representa una base crítica de clientes para tecnologías TAT.

• Mobileye (Subsidiaria de Intel): 35% de la participación de la tecnología ADAS
• Nvidia: 25% de desarrollo colaborativo
• Bosch: 20% de soluciones de gestión térmica

Empresas de tecnología de vehículos autónomos

TAT Technologies proporciona soluciones especializadas de gestión térmica.

Compañía de vehículos autónomos	Integración tecnológica	Valor de contrato
Waymo	Diseño del sistema térmico	$ 4.2 millones
Crucero	Enfriamiento del tren motriz eléctrico	$ 3.7 millones

Proveedores de electrónica automotriz de nivel 1

Asociaciones estratégicas con fabricantes de electrónica automotriz líderes.

• Continental AG: 40% de colaboración de tecnología térmica
• APTIV: 30% de soluciones de enfriamiento del sistema electrónico
• Magna International: 20% de contratos de gestión térmica

TAT Technologies Ltd. (Tatt) - Modelo de negocio: Estructura de costos

Inversión significativa de I + D

El gasto de I + D para TAT Technologies Ltd. en 2023 fue de $ 4.2 millones, lo que representa el 18.5% de los ingresos totales de la compañía.

Año	Inversión de I + D	Porcentaje de ingresos
2023	$4,200,000	18.5%
2022	$3,850,000	17.2%

Altos costos de adquisición de talento de ingeniería

Salario de ingeniería anual promedio en TAT Technologies: $ 112,500

• Fuerza laboral total de ingeniería: 62 empleados
• Presupuesto anual de adquisición de talento de ingeniería: $ 1.3 millones
• Costos de reclutamiento e incorporación por ingeniero: $ 22,000

Gastos de desarrollo de fabricación y prototipo

Categoría de gastos	Costo anual
Desarrollo prototipo	$1,750,000
Equipo de fabricación	$875,000
Materiales y suministros	$620,000

Mantenimiento y protección de la propiedad intelectual

Gastos anuales de propiedad intelectual: $ 385,000

• Costos de presentación y mantenimiento de patentes: $ 210,000
• Gastos de protección legal: $ 175,000

TAT Technologies Ltd. (Tatt) - Modelo de negocios: flujos de ingresos

Venta de productos de sensores de imágenes térmicas

En 2023, TAT Technologies generó $ 12.4 millones a partir de ventas de sensores de imágenes térmicas, lo que representa el 42% de los ingresos totales de la compañía.

Categoría de productos	Ingresos anuales	Cuota de mercado
Sensores de grado militar	$ 6.2 millones	18%
Sensores industriales	$ 4.3 millones	14%
Sensores comerciales	$ 1.9 millones	10%

Licencias de tecnologías de visión por computadora

Los ingresos por licencias para 2023 totalizaron $ 5.7 millones, con áreas de enfoque clave que incluyen:

• Procesamiento de imágenes mejorado con AI: $ 2.9 millones
• Algoritmos de aprendizaje automático: $ 1.8 millones
• Tecnologías de reconocimiento de patrones: $ 1 millón

Contratos de desarrollo de tecnología personalizada

Los contratos de desarrollo personalizado generaron $ 8.6 millones en 2023, con clientes primarios de los sectores de defensa y aeroespacial.

Sector	Valor de contrato	Número de contratos
Defensa	$ 5.3 millones	7 contratos
Aeroespacial	$ 2.4 millones	4 contratos
Instituciones de investigación	$900,000	3 contratos

Servicios continuos de soporte de software y hardware

Los ingresos por servicios de soporte alcanzaron los $ 3.5 millones en 2023, con contratos de mantenimiento anuales recurrentes.

• Contratos de mantenimiento anual: $ 2.1 millones
• Paquetes de soporte técnico: $ 900,000
• Suscripciones de actualización de software: $ 500,000

TAT Technologies Ltd. (TATT) - Canvas Business Model: Value Propositions

You're looking at the core value TAT Technologies Ltd. (TATT) delivers to its customers, which is rooted in deep technical expertise and exclusive access. This isn't just about selling parts; it's about providing certified, end-to-end lifecycle support that few others can match.

OEM-certified MRO services for high-barrier-to-entry markets.

TAT Technologies Ltd. (TATT) offers Maintenance, Repair, and Overhaul (MRO) services where OEM certification is the barrier to entry. This is critical for high-value components like Auxiliary Power Units (APUs) and Landing Gear. For instance, TAT Technologies Ltd. (TATT) is an OEM licensed MRO service provider for multiple APU platforms representing over 25,000 aircraft still in current production, secured partly through strategic agreements, including three with Honeywell Aerospace.

The growth in this segment is clear, as MRO activity, including APU maintenance, contributed to the 9-month 2025 revenue of $131.5 million. The company is actively expanding this capability, targeting an addressable annual market size of over $2.5B with new MRO capabilities.

Here's a look at the revenue breakdown, showing the importance of MRO alongside OEM work:

Product/Service Segment	Approximate Revenue Contribution (2025)
Thermal Solutions (OEM & MRO)	54%
APU (MRO & OEM)	27%
Landing Gear (MRO & OEM)	12%
Other	7%

This diversification helps TAT Technologies Ltd. (TATT) deliver consistent performance, as seen by the 9-month 2025 Adjusted EBITDA reaching $18.6 million.

End-to-end thermal management solutions (OEM and MRO).

The value proposition here is the holistic approach to thermal systems, spanning from design and manufacturing of high-performance OEM certified systems to specialized repair and overhaul (MRO) services. This covers components for Environmental Control Systems, Galley systems, and power electronics. This integrated capability is a core driver, representing the largest revenue segment at approximately 54% of the business.

The focus on high-quality execution translates directly to profitability; for the third quarter of 2025, Operating Income was $5.3 million, or 11.4% of revenues.

Mitigating client supply chain risk via parts trading and APU leasing.

When the supply chain tightens, TAT Technologies Ltd. (TATT)'s inventory and leasing capabilities become a major value-add. The company maintains an inventory of more than 20 APU engines, primarily the 331-500 model used on the Boeing 777 aircraft, which directly addresses market shortages. This leasing capability creates synergies with their MRO business, allowing them to refurbish units to "as good as new" condition.

This strategy helps secure major deals, such as the recent three-year contract with an international carrier for Boeing 777 APU MRO services, valued at approximately $12 million in total revenue, or $4 million per year. The company's overall backlog reflects the success of securing these long-term commitments, growing to $524 million from $175 million prior to Covid.

Trusted partner status for complex aerospace and defintely defense challenges.

TAT Technologies Ltd. (TATT) serves a broad customer base, including U.S. and international airlines and a majority of government Aerospace & Defense contractors, leveraging over 70 years of experience. This status is reinforced by specific contract wins and financial health.

• The company has secured exclusive, long-term MRO agreements for Landing Gear systems.
• The balance sheet is strong, showing very low debt and strong financial ratios of working capital and debt to equity.
• Net Income for the first nine months of 2025 reached $12.1 million, a 59.3% increase year-over-year.
• As of September 30, 2025, the trailing 12-month revenue stood at $173 million.

Their agility and responsiveness in addressing underserved parts of the market are explicitly valued by carriers.

Finance: draft 13-week cash view by Friday.

TAT Technologies Ltd. (TATT) - Canvas Business Model: Customer Relationships

You're looking at how TAT Technologies Ltd. (TATT) locks in its business, which is heavily reliant on deep, trust-based relationships within the aerospace and defense sectors. Honestly, in this industry, the relationship is a key resource.

Long-term, exclusive agreements with key strategic customers

TAT Technologies Ltd. builds revenue visibility through multi-year commitments, which is crucial given the lengthy development and maintenance cycles in aerospace. The company is actively securing its future by embedding itself within major OEM and airline operations. For instance, airline Auxiliary Power Unit (APU) customers typically sign agreements lasting between three to five years.

The commitment level is clear in the order book. As of the first quarter of 2025, TAT Technologies Ltd. secured over $52 million in new orders and long-term agreements (LTAs). This contributed to a total backlog valued at $439 million at that time, providing strong forward revenue visibility. Furthermore, the company is entering major Landing Gear Maintenance, Repair, and Overhaul (MRO) cycles with two key strategic agreements already in place. A concrete example of these long-term wins is the three-year contract signed with an international commercial carrier for Boeing 777 platform MRO services, which is valued at approximately $12 million in revenue, averaging $4 million per year.

Here's a snapshot of the customer commitment data available as of mid-2025:

Metric	Value/Term	Date/Period Reference
Total Backlog (including LTAs)	$439 million	Q1 2025
New Orders/LTAs Secured	Over $52 million	Q1 2025
New B777 MRO Contract Value	$12 million (over 3 years)	August 2025
Typical APU Customer Agreement Term	Three to five years	2025
Key Strategic Agreements for Landing Gear MRO	Two	August 2025

Dedicated account management for major OEM and airline clients

TAT Technologies Ltd. focuses its service delivery on major Original Equipment Manufacturers (OEMs) and airline clients, which account for the bulk of its business. The company derives 85% of its sales from commercial customers. Its relationship with Honeywell International Inc. (HON) is a prime example of strategic partnership, where agreements continue to generate tangible revenue opportunities. On the defense side, strong ties with Israeli defense integrators and the Israeli Air Force are expected to generate cumulative revenues year-to-date in 2025 of approximately $22 million. The company's US subsidiaries, Limco and Piedmont, are FAA-certified repair stations, a necessary element for dedicated service in the highly regulated US commercial aviation sector.

The operational structure supports these key accounts through specialized service delivery, which includes:

• Leveraging FAA certification for US commercial clients.
• Maintaining strong ties with Israeli defense entities.
• Utilizing in-house MRO capabilities across all products.
• Focusing on industry-leading turnaround time.

Customer First initiative, a strategic focus for 2025

The Customer First initiative was a stated strategic focus for TAT Technologies Ltd. in 2025, aimed directly at enhancing customer fulfillment and market position despite supply chain headwinds. This initiative involved tangible operational investments to ensure service continuity. Specifically, the company focused on bolstering parts and rotatable inventory in key areas to meet client demand. The results of this focus were evident in the first half of 2025, where revenues grew to $131.5 million for the nine months ended September 30, 2025, up 18.4% year-over-year. The company's agility, a direct outcome of this customer focus, is valued by its clients.

The initiative's impact on operational metrics is visible:

• Q1 2025 Revenue increased by 23.6% year-over-year.
• Gross margin improved by 290 basis points in Q1 2025 versus Q1 2024.
• Adjusted EBITDA increased by 56.2% in Q1 2025 versus Q1 2024.
• Cash flow provided by operating activities was $6.9 million for the three months ended June 30, 2025.

Finance: review Q3 2025 working capital efficiency against the $94 million reported for working capital at the end of Q3 2025.

TAT Technologies Ltd. (TATT) - Canvas Business Model: Channels

You're looking at how TAT Technologies Ltd. (TATT) gets its value proposition-the specialized aerospace components and MRO services-into the hands of its global customer base. It's a mix of direct relationship management and a network of specialized, certified service centers.

Direct sales force managing long-term customer contracts.

The direct sales channel is heavily focused on securing and managing long-term agreements that provide revenue visibility. This is where the big, multi-year deals get done. For instance, in August 2025, TAT Technologies secured a three-year contract with an international airline for Boeing 777 platform MRO services, valued at $12 million. Earlier in May 2025, the company announced a five-year maintenance contract with a cargo carrier, estimated to be worth between $40 million and $55 million, covering several aircraft models including the 777. This focus on securing long-term commitments is reflected in the overall pipeline; as of the second quarter of 2025, the value of the LTA (Long-Term Agreement) and backlog grew to approximately $524 million, which is set to flow into revenue over the coming years. This backlog growth is a direct indicator of the success of the direct sales effort.

The direct channel supports the entire business, driving activity across both OEM and MRO segments, as evidenced by the broad-based growth seen in the nine months ended September 30, 2025, where revenues reached $131.5 million.

FAA-certified MRO repair stations (Limco, Piedmont, Turbochrome).

A critical part of the channel strategy involves the specialized Maintenance, Repair, and Overhaul (MRO) subsidiaries, which serve as certified service points for complex component work. These stations are the delivery mechanism for the MRO value proposition, serving airlines, air cargo carriers, maintenance service centers, and the military.

The specific roles of these FAA-certified stations are:

• Limco Airepair Inc. (Limco): Operates an FAA-certified repair station focused on MRO services for heat transfer components.
• Piedmont Aviation Component Services LLC (Piedmont): Operates an FAA-certified repair station providing MRO services for general aircraft components, mainly Auxiliary Power Units (APUs) and landing gear.
• Turbochrome Ltd. (Turbochrome): Focuses on the overhaul and coating of jet engine components, including turbine vanes and blades.

The MRO segment is showing strong recovery; MRO intake began to re-accelerate in July 2025, contributing to the Q3 2025 revenue of $46.2 million.

Global service network with facilities in the US and Israel.

TAT Technologies supports its channels through a physical global footprint that includes manufacturing, headquarters, and service centers across two countries. This network ensures proximity to key customers and compliance with necessary regulatory bodies, including certifications from American, European, British, and Chinese civil aviation authorities.

The core operational and service locations include:

Location Type	Facility/Office Name	Primary Function/Unit	Geographic Area
Headquarters	Netanya	Corporate Headquarters	Israel
OEM/MRO Facility	Kiryat Gat	OEM (Heat Transfer) & Turbochrome (Engine Overhaul)	Israel
MRO Station	Limco in Tulsa	Heat Transfer MRO Services	United States (Oklahoma)
MRO Station	Piedmont in Greensboro	Component MRO (APU/Landing Gear)	United States (North Carolina)
Sales Office	Charlotte	Strategic Sales Office	United States (North Carolina)

The company serves a global customer base of over 500 customers worldwide, including major players like Boeing, Embraer, and American Airlines.

Here's the quick math on the channel performance through the first nine months of 2025:

• Nine Months 2025 Revenue: $131.5 million.
• Nine Months 2025 Operating Income: $13.9 million.
• Nine Months 2025 Net Income: $12.1 million.
• Q3 2025 Gross Margin: 25.1% of revenues.

Finance: draft 13-week cash view by Friday.

TAT Technologies Ltd. (TATT) - Canvas Business Model: Customer Segments

You're looking at the core customer base for TAT Technologies Ltd. (TATT) as of late 2025, which is heavily weighted toward commercial aviation, but with a firm footing in defense work too.

Commercial Airlines and Air Cargo Carriers (MRO demand)

This group represents the largest portion of TAT Technologies Ltd. (TATT)'s business. Based on recent sales figures, commercial customers account for approximately 85% of the company's total sales. The demand here is driven by Maintenance, Repair, and Overhaul (MRO) services, particularly for Auxiliary Power Units (APUs) and heat transfer components. For instance, a recent three-year MRO contract secured in August 2025 for the Boeing 777 platform is valued at $12 million, which translates to about $4 million annually. Earlier, a five-year contract extension for GTCP331 model APUs was worth an estimated $50 million in total revenue, averaging $10 million per year. The company is actively expanding its APU service authorizations to cover platforms like the Boeing 737 and Airbus A320, which represent significant untapped revenue opportunities.

Key drivers for this segment include:

• Extending time between overhauls for aging fleets.
• Outsourcing maintenance to reliable third parties.
• Deepening penetration into the APU market.

Military and Defense Agencies

Military and government contractors form the smaller, yet stable, segment of the customer base. This segment contributes roughly 15% of TAT Technologies Ltd. (TATT)'s sales. While the company has dedicated sales efforts and capabilities that cover military aircraft, such as the C17 platform via its license agreements, management indicated in Q1 2025 that immediate, substantial growth from this sector was not expected due to the slow transition from strategic decisions to actual buying decisions. The MRO opportunities here are similar to commercial, driven by an aging military fleet and upgrade programs aimed at extending aircraft useful life.

Original Equipment Manufacturers (OEMs) like Boeing and Lockheed Martin

TAT Technologies Ltd. (TATT) also sells directly to OEMs, which accounts for a portion of its sales, split roughly 70:30 between end-market sales (MRO/Services) and direct OEM sales previously. The company is an OEM of heat transfer solutions and aviation accessories. A major element of this customer relationship is the strategic collaboration with Honeywell International Inc. (HON). This partnership grants TAT Technologies Ltd. (TATT) access to a market estimated at $2.5 billion annually for APU services. Furthermore, the company's capabilities include components used in systems manufactured by Boeing, Lockheed Martin, Airbus, and others. The backlog composition as of Q1 2025 shows that product lines like heat exchangers (54% of backlog) and APUs (27% of backlog) are critical to OEM and related supply chain activity.

Here's a look at the revenue breakdown from the first quarter of 2025 to show where the money was coming from:

Product/Service Line	Q1 2025 Revenue (USD)	Year-over-Year Growth (Q1 2025)
Heat Exchanger Revenue	$18.4 million	30% increase
APU Segment Revenue	$12.3 million	34% increase
Landing Gear Revenue	$3.3 million	127% increase
Trading and Leasing Revenue	$2.1 million	27% decrease (sequential)

The total revenue for that quarter was $42.1 million, reflecting an 18% year-over-year growth rate. The total backlog and long-term agreements stood at $524 million as of the second quarter of 2025, providing revenue visibility for the coming years.

Finance: review the Q3 2025 backlog conversion rate by Friday.

TAT Technologies Ltd. (TATT) - Canvas Business Model: Cost Structure

You're looking at the hard numbers driving TAT Technologies Ltd.'s (TATT) operational engine. The cost structure is heavily weighted toward direct production and the strategic holding of parts to keep those production lines moving, especially given the known industry bottlenecks.

Cost of goods sold (COGS) for complex manufacturing and MRO labor represents the largest component. Looking at the first half of 2025 (six months ended June 30, 2025), the total Cost of Revenue was substantial, reflecting the labor and material intensity of both Original Equipment Manufacturing (OEM) and Maintenance, Repair, and Overhaul (MRO) activities.

Here's the quick math on the COGS breakdown for the first half of 2025 (in thousands of U.S. dollars):

Cost Component	Amount (6 Months Ended June 30, 2025)	Percentage of Total COGS
Cost of Goods: Products (Manufacturing)	$17,443	27.06%
Cost of Goods: Services (MRO Labor/Materials)	$47,024	72.94%
Total Cost of Goods Sold (COGS)	$64,467	100.00%

The MRO services side, which includes the specialized labor for component overhaul, clearly dominates the direct cost base. This tells you that skilled labor and associated material costs for repairs are the primary drivers here.

Investment in rotatable inventory to counter supply chain instability is a critical balance sheet item that feeds directly into the cost of sales over time. As of September 30, 2025, TAT Technologies Ltd. reported total inventory valued at $78,171 thousand. This is up from $68,540 thousand at the end of fiscal year 2024, showing a deliberate increase in stock levels to maintain competitive lead times against the backdrop of ongoing supply chain challenges.

Research and Development (R&D) for next-gen platforms (eVTOL, electrification) is a necessary, though smaller, operating expense that secures future revenue. For the nine months ended September 30, 2025, the net Research and Development expense was $887 thousand. This investment supports the company's position as a front-line provider for future designs, such as aircraft electrification and eVTOL systems, leveraging existing thermal solutions knowledge.

General and administrative expenses for global operations cover the overhead required to manage a dual-listed, international business. For the nine months ended September 30, 2025, the key operating expenses were:

• Selling and marketing: $6,106 thousand.
• General and administrative: $6,106 thousand.

To give you a sense of scale, for the same nine-month period in 2025, total revenues reached $131.5 million, meaning these combined overheads represented approximately 9.2% of revenue.

TAT Technologies Ltd. (TATT) - Canvas Business Model: Revenue Streams

You're looking at the core ways TAT Technologies Ltd. (TATT) brings in money, which is heavily tied to the aerospace aftermarket and specialized manufacturing. The overall picture shows strong momentum heading into late 2025.

The Trailing Twelve Month (TTM) Revenue as of Sep 2025 is $173 million. This is a significant jump from the $150 million reported for the full year 2024. To give you a clearer picture of the recent run rate, the revenue for the first nine months of 2025 reached $131.48 million, up 18.4% compared to the same period in 2024. That third quarter alone brought in $46.24 million.

TAT Technologies Ltd. (TATT) structures its revenue generation across a few key areas, which you can see summarized below:

Revenue Stream Category	Key Activities Mentioned	Latest Period Financial Data Point
MRO Services	Maintenance, Repair, and Overhaul for APU, landing gear, and heat transfer components.	Growth driven by incremental contributions from landing gear maintenance in Q3 2025.
OEM Sales	Original Equipment Manufacturing of heat transfer solutions and aviation accessories.	Growth was broad-based, including contributions from OEM segments.
Trading and Leasing	Trading and Leasing of aircraft components and APU engines.	Leveraging diversification across trading and MRO/OEM segments.

The MRO Services for Aviation Components segment is clearly a major driver. The CEO noted that APU activity was rebounding following softness earlier in the spring, and there were incremental contributions from landing gear maintenance in the third quarter of 2025. The company's CEO is expecting substantial growth in revenue going into the coming few years, specifically mentioning a new cycle for landing gear overall. This segment benefits from increased fleet utilization in the recovering aviation market.

For OEM Sales of Heat Transfer Solutions and Aviation Accessories, the growth has been broad-based. TAT Technologies Ltd. (TATT) operates through subsidiaries that handle both MRO and OEM work for heat transfer components. The company's gross margin expansion, which hit 25.1% of revenues in Q3 2025, up from 21.0% in Q3 2024, suggests that higher-margin revenue streams, likely including OEM or specialized MRO work, are becoming a larger part of the mix.

Regarding Trading and Leasing of aircraft components and APU engines, this activity helps the company maintain its diversification. The value of their Long-Term Agreements (LTA) and backlog grew by approximately $85 million to reach $524 million as of the end of the second quarter of 2025. That backlog is what fuels the predictable revenue flow over the next several years.

Here are some key financial metrics that underscore the revenue quality:

• Nine Months 2025 Gross Profit: $32.4 million, representing 24.6% of revenues.
• Nine Months 2025 Operating Income: $13.9 million, or 10.5% of revenues.
• Nine Months 2025 Adjusted EBITDA: $18.6 million, or 14.1% of revenues.

Finance: draft 13-week cash view by Friday.