TAT Technologies (TATT) investor relations material

Strategic transformation and business focus

• Shifted strategy in 2019 to focus on three core product lines: APUs, landing gear, and thermal components, streamlining operations and customer base.

• Consolidated four independent companies into one, invested in modern production capabilities, and signed strategic agreements with major industry players during COVID.

• Maintained and grew workforce during industry downturn, positioning for rapid growth as the market recovered.

• Achieved record-breaking revenue, profitability, and backlog, with backlog rising from $180–$200 million to over $620 million in recent years.

• Expanded M&A activity to drive inorganic growth alongside organic expansion.

Market position and product lines

• OEM for thermal components, supplying major aircraft manufacturers and supporting a global aftermarket customer base of nearly 300 airlines.

• Largest aftermarket provider for thermal components, servicing units from multiple OEMs and supporting major airlines and MRO organizations worldwide.

• Exclusive and strategic partner with Honeywell for APU MRO services, covering key platforms like Boeing 757/767, 777, and the 131 APU used in Boeing 737 and Airbus 320.

• Provides landing gear overhaul for Gulfstream, Embraer, and ATR fleets, with all business lines experiencing strong demand.

Growth drivers and market opportunities

• APUs represent the fastest-growing segment, with a multi-billion dollar addressable market and significant long-term growth potential as Honeywell offloads more work.

• Holds half the global market share for older APU platforms and is expanding share in newer platforms, with opportunities to double or triple business size in coming years.

• Industry-wide supply chain challenges and long aircraft delivery wait times are driving increased demand for MRO services on aging fleets.

• Strategic inventory management and rapid turnaround times provide a competitive edge, supporting 20% CAGR over five years, outpacing industry growth.