Tat Technologies Ltd. (Tatt): Modelo de negócios Canvas [Jan-2025 Atualizado]

No cenário em rápida evolução da tecnologia automotiva, a Tat Technologies Ltd. (TATT) surge como uma força pioneira, revolucionando a segurança do motorista por meio de soluções de imagem térmica de ponta e visão computacional. Ao se posicionar estrategicamente na interseção de tecnologias avançadas de sensores e inovação automotiva, a Tatt não está apenas desenvolvendo produtos, mas criando sistemas inteligentes que transformam como os veículos percebem e respondem a desafios ambientais complexos. Seu modelo abrangente de negócios de negócios revela uma abordagem sofisticada para atender às necessidades críticas na direção autônoma, prometendo redefinir a segurança, o desempenho e a excelência tecnológica no ecossistema de eletrônicos automotivos.

Tat Technologies Ltd. (Tatt) - Modelo de negócios: Parcerias -chave

Parcerias estratégicas com fabricantes de eletrônicos automotivos

A TAT Technologies mantém parcerias estratégicas com os seguintes fabricantes de eletrônicos automotivos:

Empresa parceira	Foco em parceria	Ano estabelecido
Continental AG	Soluções de gerenciamento térmico	2019
Bosch GmbH	Sistemas de refrigeração eletrônica	2020
Aptiv plc	Tecnologias avançadas de interface térmica	2021

Colaboração com empresas de design de semicondutores

As principais colaborações de design de semicondutores incluem:

• Colaboração com a NVIDIA Corporation for GPU Thermal Management Solutions
• Parceria com a Qualcomm Technologies para engenharia térmica de dispositivos móveis
• Contrato de Desenvolvimento Conjunto com a Intel Corporation for Data Center Refrigeing Technologies

Pesquisa e desenvolvimento alianças com institutos de tecnologia

Instituição de pesquisa	Foco na pesquisa	Investimento anual
Instituto de Tecnologia de Massachusetts	Materiais avançados de interface térmica	US $ 1,2 milhão
Technion - Instituto de Tecnologia de Israel	Inovações de resfriamento semicondutor	$850,000

Parcerias da cadeia de suprimentos com fornecedores de componentes eletrônicos

As parcerias críticas da cadeia de suprimentos incluem:

• Grupo de tecnologia FoxConn para fornecimento de componentes eletrônicos
• Arrow Electronics for Global Distribution Network
• Avnet Inc. para compras de componentes semicondutores

Fornecedor	Valor anual de compras	Duração do contrato
Grupo de Tecnologia Foxconn	US $ 45 milhões	5 anos
Arrow Electronics	US $ 32 milhões	3 anos
Avnet Inc.	US $ 28 milhões	4 anos

Tat Technologies Ltd. (Tatt) - Modelo de negócios: Atividades -chave

Desenvolvimento de Tecnologia Avançado de Assistiações de Driver (ADAS)

A TAT Technologies se concentra no desenvolvimento de tecnologias de ponta do ADAS com parâmetros específicos de pesquisa e desenvolvimento:

Métrica de P&D	Valor
Investimento anual de P&D	US $ 4,2 milhões
Aplicações de patentes do ADAS	12 arquivado em 2023
Tamanho da equipe de engenharia	48 engenheiros especializados

Design e fabricação do sensor de imagem térmica

Os principais recursos de fabricação incluem:

• Resolução do sensor até 640x512 pixels
• Faixa de detecção de temperatura: -40 ° C a 550 ° C
• Precisão de fabricação: ± 0,05 ° C.

Métrica de fabricação	Valor
Produção anual de sensores	5.600 unidades
Localização da instalação de fabricação	Israel
Taxa de passagem de controle de qualidade	99.4%

Desenvolvimento de algoritmo de software para segurança automotiva

Métricas de desenvolvimento de software:

• Complexidade algorítmica: aprendizado de máquina baseado
• Velocidade de processamento: 120 quadros por segundo
• Precisão de detecção de objetos: 97,2%

Métrica de Desenvolvimento de Software	Valor
Engenheiros de software	36 especialistas
Orçamento anual de desenvolvimento de software	US $ 3,8 milhões
Plataformas computacionais	Nvidia, Intel, Qualcomm

Engenharia do sistema de visão incorporada

Recursos incorporados do sistema de visão:

• Integração com ECUs automotivo
• Processamento de imagem em tempo real
• Projeto de baixo consumo de energia

Métrica de visão incorporada	Valor
Consumo de energia do sistema	Menos de 5w
Latência de processamento	10 milissegundos
Parcerias de Nível Automotivo 1	3 colaborações ativas

Tat Technologies Ltd. (Tatt) - Modelo de negócios: Recursos -chave

Tecnologias proprietárias de imagem térmica e visão computacional

Tat Technologies Ltd. Holds 7 patentes ativas Nas tecnologias de imagem térmica a partir de 2024. O portfólio de tecnologia da empresa inclui:

Categoria de tecnologia	Número de tecnologias registradas	Ano de arquivamento de patentes
Sensores de imagem térmica	3	2019-2022
Algoritmos de visão computacional	4	2020-2023

Engenharia qualificada e equipe de P&D

Composição da força de trabalho do pessoal técnico:

Categoria de funcionários	Número total	Graus avançados
Engenheiros de P&D	42	28
Desenvolvedores de software	23	15

Portfólio de propriedade intelectual

Detalhes da propriedade intelectual:

• Total de patentes registradas: 7
• Aplicações de patentes pendentes: 3
• Regiões de proteção de patentes: América do Norte, Europa, Ásia

Instalações avançadas de teste e prototipagem

Tipo de instalação	Área Total (Sq. Ft.)	Valor do equipamento
Laboratório de P&D	5,200	US $ 1,2 milhão
Oficina de prototipagem	3,800	$850,000

Tat Technologies Ltd. (Tatt) - Modelo de negócios: proposições de valor

Soluções de imagem térmica de alta precisão para segurança automotiva

A Tat Technologies oferece soluções de imagem térmica com as seguintes especificações:

Parâmetro	Especificação técnica
Faixa de detecção	Até 300 metros
Resolução de temperatura	0,05 ° C.
Taxa de quadros	60 Hz
Faixa espectral	8-14 µm

Tecnologias avançadas de visão computacional para direção autônoma

Os principais recursos de visão computacional incluem:

• Precisão de detecção de objetos: 99,5%
• Velocidade de processamento: 120 quadros por segundo
• Algoritmos de aprendizado de máquina com 97,8% de precisão

Assistência aprimorada para o motorista e sistemas de detecção de risco

Métricas de desempenho do sistema de detecção de risco:

Métrica	Desempenho
Precisão de previsão de colisão	96.3%
Faixa de detecção de pedestres	200 metros
Tempo de resposta em tempo real	50 milissegundos

Tecnologias de sensores de ponta

Especificações da tecnologia do sensor:

• Relação sinal-ruído: 85 dB
• Faixa de temperatura operacional: -40 ° C a +85 ° C
• Classificação de confiabilidade: compatível com ASIL-D

Tat Technologies Ltd. (Tatt) - Modelo de negócios: Relacionamentos do cliente

Serviços técnicos de suporte e consultoria

A Tat Technologies fornece suporte técnico especializado com as seguintes métricas de serviço:

Categoria de serviço	Tempo de resposta	Horário de apoio anual
Suporte aeroespacial automotivo	4,2 horas	12.500 horas de apoio
Consulta de engenharia	3,7 horas	8.750 horas de consulta

Desenvolvimento de soluções personalizadas para clientes automotivos

O desenvolvimento de soluções personalizado se concentra em segmentos especializados de tecnologia automotiva:

• Sistemas de gerenciamento térmico
• Soluções de resfriamento de veículos elétricos
• Tecnologias térmicas aeroespaciais

Abordagem de parceria de tecnologia de longo prazo

Tipo de parceria	Número de parcerias ativas	Duração média da parceria
Parcerias de tecnologia estratégica	17 parcerias	6,3 anos

Atualizações regulares de produtos e ciclos de inovação

Inovação e frequência de atualização:

Categoria de produto	Frequência anual de atualização	Investimento em P&D
Sistemas de gerenciamento térmico	2.5 Atualizações/ano	US $ 3,2 milhões
Tecnologias de refrigeração	2.1 Atualizações/ano	US $ 2,7 milhões

Tat Technologies Ltd. (Tatt) - Modelo de Negócios: Canais

Equipe direta de vendas direcionando fabricantes automotivos

A Tat Technologies Ltd. mantém uma equipe de vendas direta dedicada focada nos fabricantes de automóveis. A partir de 2024, a equipe de vendas compreende 12 representantes especializados de vendas de tecnologia automotiva.

Canal de vendas	Número de representantes	Cobertura geográfica
América do Norte	4	Estados Unidos e Canadá
Europa	3	Alemanha, Reino Unido, França
Ásia-Pacífico	5	Japão, China, Coréia do Sul

Conferências de Tecnologia e Exposições da Indústria

A TAT Technologies participa ativamente de eventos de tecnologia automotiva para mostrar suas inovações.

• Expo de teste automotivo Europa: participação anual
• Experiência do Congresso Mundial Internacional da SAE
• Fórum de Tecnologia de Detroit Auto Show

Evento	Participação anual	Leads potenciais gerados
Testes automotivos Expo Europe	5.200 profissionais do setor	37 Interações potenciais do cliente
Congresso Internacional da SAE	8.500 especialistas em tecnologia automotiva	52 Interações potenciais do cliente

Documentação técnica online e portais de produtos

Os canais digitais para informações do produto e suporte técnico incluem:

• Site da empresa com especificações abrangentes do produto
• Portal de documentação técnica
• Catálogo de produtos on -line

Canal digital	Visitantes mensais do site	Duração média da sessão
Site da empresa	14,500	4 minutos 22 segundos
Portal de documentação técnica	7,800	6 minutos 45 segundos

Feiras de tecnologia automotiva estratégica

A TAT Technologies seleciona estrategicamente feiras para a exposição máxima do setor.

Feira de feira	Localização	Participação anual	Oportunidades de negócios em potencial
CES (show de eletrônicos de consumo)	Las Vegas, EUA	Sim	45 conexões comerciais em potencial
Mobilidade IAA	Munique, Alemanha	Sim	38 conexões comerciais em potencial

Tat Technologies Ltd. (Tatt) - Modelo de negócios: segmentos de clientes

Fabricantes de equipamentos originais automotivos (OEMs)

A TAT Technologies serve os principais OEMs automotivos com direcionamento preciso do mercado.

Cliente OEM	Quota de mercado	Engajamento do produto
Grupo BMW	22%	Sistemas de gerenciamento térmico
Mercedes-Benz	18%	Soluções de resfriamento de veículos elétricos
Grupo Volkswagen	15%	Regulação térmica da bateria

Desenvolvedores avançados de sistemas de assistência ao motorista (ADAS)

O segmento ADAS representa uma base crítica de clientes para tecnologias TAT.

• Mobileye (subsidiária da Intel): 35% do engajamento da tecnologia ADAS
• Nvidia: 25% de desenvolvimento colaborativo
• Bosch: 20% de soluções de gerenciamento térmico

Empresas de tecnologia de veículos autônomos

A TAT Technologies fornece soluções especializadas de gerenciamento térmico.

Empresa de veículos autônomos	Integração de tecnologia	Valor do contrato
Waymo	Projeto do sistema térmico	US $ 4,2 milhões
Cruzeiro	Resfriamento do trem de força elétrico	US $ 3,7 milhões

Fornecedores de eletrônicos automotivos de nível 1

Parcerias estratégicas com os principais fabricantes de eletrônicos automotivos.

• Continental AG: 40% de colaboração de tecnologia térmica
• Aptiv: 30% de soluções de resfriamento do sistema eletrônico
• Magna International: contratos de gerenciamento térmico de 20%

Tat Technologies Ltd. (Tatt) - Modelo de negócios: estrutura de custos

Investimento significativo em P&D

A despesa de P&D para a Tat Technologies Ltd. em 2023 foi de US $ 4,2 milhões, representando 18,5% da receita total da empresa.

Ano	Investimento em P&D	Porcentagem de receita
2023	$4,200,000	18.5%
2022	$3,850,000	17.2%

Altos custos de aquisição de talentos de engenharia

Salário médio anual de engenharia na Tat Technologies: US $ 112.500

• Força de trabalho total de engenharia: 62 funcionários
• Orçamento anual de aquisição de talentos de engenharia: US $ 1,3 milhão
• Custos de recrutamento e integração por engenheiro: US $ 22.000

Despesas de desenvolvimento de fabricação e protótipo

Categoria de despesa	Custo anual
Desenvolvimento de protótipo	$1,750,000
Equipamento de fabricação	$875,000
Materiais e suprimentos	$620,000

Manutenção e proteção de propriedade intelectual

Despesas anuais de propriedade intelectual: US $ 385.000

• Custos de arquivamento e manutenção de patentes: US $ 210.000
• Despesas de proteção legal: US $ 175.000

Tat Technologies Ltd. (Tatt) - Modelo de negócios: fluxos de receita

Vendas de produtos de sensores de imagem térmica

Em 2023, a TAT Technologies gerou US $ 12,4 milhões em vendas de sensores de imagem térmica, representando 42% da receita total da empresa.

Categoria de produto	Receita anual	Quota de mercado
Sensores de nível militar	US $ 6,2 milhões	18%
Sensores industriais	US $ 4,3 milhões	14%
Sensores comerciais	US $ 1,9 milhão	10%

Licenciamento de tecnologias de visão computacional

As receitas de licenciamento de 2023 totalizaram US $ 5,7 milhões, com as principais áreas de foco, incluindo:

• Processamento de imagem aprimorado da AI-Ai: US $ 2,9 milhões
• Algoritmos de aprendizado de máquina: US $ 1,8 milhão
• Tecnologias de reconhecimento de padrões: US $ 1 milhão

Contratos de desenvolvimento de tecnologia personalizada

Os contratos de desenvolvimento personalizados geraram US $ 8,6 milhões em 2023, com clientes primários dos setores de defesa e aeroespacial.

Setor	Valor do contrato	Número de contratos
Defesa	US $ 5,3 milhões	7 contratos
Aeroespacial	US $ 2,4 milhões	4 contratos
Instituições de pesquisa	$900,000	3 contratos

Serviços em andamento de software e hardware

A receita dos Serviços de Suporte atingiu US $ 3,5 milhões em 2023, com contratos de manutenção anuais recorrentes.

• Contratos de manutenção anual: US $ 2,1 milhões
• Pacotes de suporte técnico: US $ 900.000
• Assinaturas de atualização 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.