Tat Technologies Ltd. (TATT): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage rapide de la technologie automobile en évolution, Tat Technologies Ltd. (TATT) émerge comme une force pionnière, révolutionnant la sécurité des conducteurs grâce à des solutions d'imagerie thermique et de vision informatique de pointe. En se positionnant stratégiquement à l'intersection des technologies de capteurs avancées et de l'innovation automobile, Tatt ne développe pas seulement des produits, mais la fabrication de systèmes intelligents qui transforment la façon dont les véhicules perçoivent et répondent à des défis environnementaux complexes. Leur toile complète du modèle commercial révèle une approche sophistiquée pour répondre aux besoins critiques dans la conduite autonome, promettant de redéfinir la sécurité, la performance et l'excellence technologique dans l'écosystème de l'électronique automobile.

Tat Technologies Ltd. (TATT) - Modèle commercial: partenariats clés

Partenariats stratégiques avec les fabricants d'électronique automobile

Tat Technologies maintient des partenariats stratégiques avec les fabricants d'électronique automobile suivants:

Entreprise partenaire	Focus de partenariat	Année établie
AG continental	Solutions de gestion thermique	2019
Bosch gmbh	Systèmes de refroidissement électronique	2020
APTIV PLC	Technologies d'interface thermique avancées	2021

Collaboration avec les sociétés de conception de semi-conducteurs

Les collaborations clés de la conception des semi-conducteurs comprennent:

• Collaboration avec Nvidia Corporation pour GPU Thermal Management Solutions
• Partenariat avec Qualcomm Technologies pour l'ingénierie thermique des appareils mobiles
• Contrat de développement conjoint avec Intel Corporation pour les technologies de refroidissement du centre de données

Alliances de recherche et développement avec les instituts technologiques

Institution de recherche	Focus de recherche	Investissement annuel
Institut de technologie du Massachusetts	Matériaux d'interface thermique avancés	1,2 million de dollars
Technion - Institut israélien de technologie	Innovations de refroidissement des semi-conducteurs	$850,000

Partenariats de la chaîne d'approvisionnement avec des fournisseurs de composants électroniques

Les partenariats critiques de la chaîne d'approvisionnement comprennent:

• Foxconn Technology Group pour l'approvisionnement électronique des composants
• Arrow Electronics for Global Distribution Network
• AVNET Inc. pour l'approvisionnement des composants semi-conducteurs

Fournisseur	Valeur d'achat annuelle	Durée du contrat
Groupe technologique Foxconn	45 millions de dollars	5 ans
Électronique flèche	32 millions de dollars	3 ans
Avnet Inc.	28 millions de dollars	4 ans

Tat Technologies Ltd. (TATT) - Modèle d'entreprise: Activités clés

Développement technologique des systèmes avancés d'assistance conducteur (ADAS)

TAT Technologies se concentre sur le développement de technologies ADAS de pointe avec des paramètres de recherche et de développement spécifiques:

Métrique de R&D	Valeur
Investissement annuel de R&D	4,2 millions de dollars
Demandes de brevet ADAS	12 déposés en 2023
Taille de l'équipe d'ingénierie	48 ingénieurs spécialisés

Conception et fabrication du capteur d'imagerie thermique

Les principales capacités de fabrication comprennent:

• Résolution du capteur jusqu'à 640x512 pixels
• Plage de détection de température: -40 ° C à 550 ° C
• Précision de fabrication: ± 0,05 ° C

Métrique manufacturière	Valeur
Production de capteurs annuelle	5 600 unités
Emplacement de l'installation de fabrication	Israël
Taux de réussite du contrôle de la qualité	99.4%

Développement de l'algorithme logiciel pour la sécurité automobile

Métriques de développement de logiciels:

• Complexité algorithmique: base d'apprentissage automatique
• Vitesse de traitement: 120 images par seconde
• Précision de détection d'objet: 97,2%

Métrique de développement logiciel	Valeur
Ingénieurs logiciels	36 spécialistes
Budget annuel de développement de logiciels	3,8 millions de dollars
Plates-formes de calcul	Nvidia, Intel, Qualcomm

Ingénierie du système de vision intégré

Capacités du système de vision intégré:

• Intégration avec les ECU automobiles
• Traitement d'image en temps réel
• Conception de consommation d'énergie faible

Métrique visuelle intégrée	Valeur
Consommation d'énergie du système	Moins de 5W
Latence de traitement	10 millisecondes
Partenariats automobiles de niveau 1	3 collaborations actives

Tat Technologies Ltd. (TATT) - Modèle commercial: Ressources clés

Imagerie thermique propriétaire et technologies de vision par ordinateur

Tat Technologies Ltd. détient 7 brevets actifs dans les technologies d'imagerie thermique à partir de 2024. Le portefeuille technologique de l'entreprise comprend:

Catégorie de technologie	Nombre de technologies enregistrées	Année de dépôt de brevet
Capteurs d'imagerie thermique	3	2019-2022
Algorithmes de vision informatique	4	2020-2023

Équipe d'ingénierie et de R&D qualifiés

Composition de la main-d'œuvre du personnel technique:

Catégorie des employés	Nombre total	Diplômes avancés
Ingénieurs de R&D	42	28
Développeurs de logiciels	23	15

Portefeuille de propriété intellectuelle

Détails de la propriété intellectuelle:

• Brevets totaux enregistrés: 7
• Demandes de brevet en instance: 3
• Régions de protection des brevets: Amérique du Nord, Europe, Asie

Installations de test et de prototypage avancés

Type d'installation	Superficie totale (pi. Ft.)	Valeur de l'équipement
Laboratoire de R&D	5,200	1,2 million de dollars
Atelier de prototypage	3,800	$850,000

Tat Technologies Ltd. (TATT) - Modèle d'entreprise: propositions de valeur

Solutions d'imagerie thermique de haute précision pour la sécurité automobile

Tat Technologies propose des solutions d'imagerie thermique avec les spécifications suivantes:

Paramètre	Spécifications techniques
Plage de détection	Jusqu'à 300 mètres
Résolution de température	0,05 ° C
Fréquence d'images	60 Hz
Plage spectrale	8-14 µm

Technologies de vision informatique avancés pour la conduite autonome

Les capacités clés de la vision par ordinateur comprennent:

• Précision de détection d'objet: 99,5%
• Vitesse de traitement: 120 images par seconde
• Algorithmes d'apprentissage automatique avec une précision de 97,8%

Systèmes améliorés pour l'assistance à la conduite et la détection des risques

Métriques de performance du système de détection des risques:

Métrique	Performance
Précision de prédiction de collision	96.3%
Plage de détection des piétons	200 mètres
Temps de réponse en temps réel	50 millisecondes

Technologies de capteur de pointe

Spécifications de la technologie des capteurs:

• Ratio signal / bruit: 85 dB
• Plage de températures de fonctionnement: -40 ° C à + 85 ° C
• Évaluation de fiabilité: ASIL-D conforme

Tat Technologies Ltd. (TATT) - Modèle d'entreprise: relations avec les clients

Services de support technique et de conseil

Tat Technologies fournit un support technique spécialisé avec les mesures de service suivantes:

Catégorie de service	Temps de réponse	Heures de soutien annuelles
Support aérospatial automobile	4,2 heures	12 500 heures de soutien
Consultation d'ingénierie	3,7 heures	8 750 heures de consultation

Développement de solutions personnalisées pour les clients automobiles

Le développement de solutions personnalisés se concentre sur des segments de technologie automobile spécialisés:

• Systèmes de gestion thermique
• Solutions de refroidissement des véhicules électriques
• Technologies thermiques aérospatiales

Approche de partenariat technologique à long terme

Type de partenariat	Nombre de partenariats actifs	Durée du partenariat moyen
Partenariats technologiques stratégiques	17 partenariats	6,3 ans

Mises à jour régulières des produits et cycles d'innovation

Fréquence d'innovation et de mise à jour:

Catégorie de produits	Fréquence de mise à jour annuelle	Investissement en R&D
Systèmes de gestion thermique	2.5 Mises à jour / an	3,2 millions de dollars
Technologies de refroidissement	2.1 Mises à jour / an	2,7 millions de dollars

Tat Technologies Ltd. (TATT) - Modèle d'entreprise: canaux

Équipe de vente directe ciblant les constructeurs automobiles

Tat Technologies Ltd. maintient une équipe de vente directe dédiée axée sur les constructeurs automobiles. En 2024, l'équipe commerciale comprend 12 représentants des ventes de technologies automobiles spécialisées.

Canal de vente	Nombre de représentants	Couverture géographique
Amérique du Nord	4	États-Unis et Canada
Europe	3	Allemagne, Royaume-Uni, France
Asie-Pacifique	5	Japon, Chine, Corée du Sud

Conférences technologiques et expositions de l'industrie

Tat Technologies participe activement à des événements technologiques automobiles pour présenter ses innovations.

• Test de l'automobile Expo Europe: participation annuelle
• SAE International World Congress Expérience
• Forum technologique de Detroit Auto Show

Événement	Fréquentation annuelle	Les pistes potentielles générées
Expo Europe des tests automobiles	5 200 professionnels de l'industrie	37 Interactions potentielles du client
Congrès international SAE	8 500 experts en technologie automobile	52 interactions potentielles du client

Documentation technique en ligne et portails de produits

Les canaux numériques pour les informations sur les produits et le support technique comprennent:

• Site Web de l'entreprise avec des spécifications complètes de produits
• Portail de documentation technique
• Catalogue de produits en ligne

Canal numérique	Visiteurs mensuels du site Web	Durée moyenne de la session
Site Web de l'entreprise	14,500	4 minutes 22 secondes
Portail de documentation technique	7,800	6 minutes 45 secondes

Trawal de technologie de technologie automobile stratégique

Tat Technologies sélectionne stratégiquement les salons des salons pour une exposition maximale de l'industrie.

Salon	Emplacement	Participation annuelle	Opportunités commerciales potentielles
CES (Consumer Electronics Show)	Las Vegas, USA	Oui	45 connexions commerciales potentielles
Mobilité IAA	Munich, Allemagne	Oui	38 Connexions commerciales potentielles

Tat Technologies Ltd. (TATT) - Modèle d'entreprise: segments de clientèle

Fabricants d'équipements d'origine automobile (OEM)

Tat Technologies sert les meilleurs OEM automobiles avec un ciblage précis du marché.

Client OEM	Part de marché	Engagement des produits
Groupe BMW	22%	Systèmes de gestion thermique
Mercedes-Benz	18%	Solutions de refroidissement des véhicules électriques
Groupe Volkswagen	15%	Régulation thermique de la batterie

Développeurs de systèmes avancés d'assistance conducteur (ADAS)

Le segment ADAS représente une clientèle critique pour les technologies TAT.

• Mobileye (filiale Intel): 35% de l'engagement technologique ADAS
• Nvidia: 25% de développement collaboratif
• Bosch: 20% de solutions de gestion thermique

Sociétés technologiques de véhicules autonomes

Tat Technologies fournit des solutions de gestion thermique spécialisées.

Compagnie de véhicules autonomes	Intégration technologique	Valeur du contrat
Waymo	Conception du système thermique	4,2 millions de dollars
Croisière	Refroidissement électrique du groupe motopropulseur	3,7 millions de dollars

Fournisseurs de l'électronique automobile de niveau 1

Partenariats stratégiques avec les principaux fabricants d'électronique automobile.

• Continental AG: 40% de collaboration sur la technologie thermique
• APTIV: solutions de refroidissement électronique du système électronique
• Magna International: 20% de contrats de gestion thermique

Tat Technologies Ltd. (TATT) - Modèle d'entreprise: Structure des coûts

Investissement de R&D significatif

Les dépenses de R&D pour Tat Technologies Ltd. en 2023 étaient de 4,2 millions de dollars, ce qui représente 18,5% du total des revenus de l'entreprise.

Année	Investissement en R&D	Pourcentage de revenus
2023	$4,200,000	18.5%
2022	$3,850,000	17.2%

Coûts d'acquisition de talents d'ingénierie élevés

Salaire annuel moyen d'ingénierie chez Tat Technologies: 112 500 $

• Total du travail d'ingénierie: 62 employés
• Budget d'acquisition annuelle des talents d'ingénierie: 1,3 million de dollars
• Coûts de recrutement et d'intégration par ingénieur: 22 000 $

Frais de fabrication et de développement des prototypes

Catégorie de dépenses	Coût annuel
Développement de prototypes	$1,750,000
Équipement de fabrication	$875,000
Matériaux et fournitures	$620,000

Maintenance et protection de la propriété intellectuelle

Dépenses annuelles de propriété intellectuelle: 385 000 $

• Coûts de dépôt de brevets et d'entretien: 210 000 $
• Frais de protection juridique: 175 000 $

Tat Technologies Ltd. (TATT) - Modèle d'entreprise: Strots de revenus

Vente de produits de capteurs d'imagerie thermique

En 2023, TAT Technologies a généré 12,4 millions de dollars à partir des ventes de capteurs d'imagerie thermique, ce qui représente 42% du total des revenus de l'entreprise.

Catégorie de produits	Revenus annuels	Part de marché
Capteurs de qualité militaire	6,2 millions de dollars	18%
Capteurs industriels	4,3 millions de dollars	14%
Capteurs commerciaux	1,9 million de dollars	10%

Licence des technologies de vision par ordinateur

Les revenus de licence pour 2023 ont totalisé 5,7 millions de dollars, avec des domaines de mise au point clés, notamment:

• Traitement d'image amélioré AI: 2,9 millions de dollars
• Algorithmes d'apprentissage automatique: 1,8 million de dollars
• Technologies de reconnaissance des modèles: 1 million de dollars

Contrats de développement technologique personnalisés

Les contrats de développement personnalisés ont généré 8,6 millions de dollars en 2023, avec des clients principaux des secteurs de la défense et de l'aérospatiale.

Secteur	Valeur du contrat	Nombre de contrats
Défense	5,3 millions de dollars	7 contrats
Aérospatial	2,4 millions de dollars	4 contrats
Institutions de recherche	$900,000	3 contrats

Services de support logiciel et matériel en cours

Les revenus des services de soutien ont atteint 3,5 millions de dollars en 2023, avec des contrats de maintenance annuels récurrents.

• Contrats de maintenance annuels: 2,1 millions de dollars
• Packages d'assistance technique: 900 000 $
• Abonnements à mise à jour logicielle: 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.