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Highlights

  • TAT Technologies secures a five-year extension to its existing MRO agreement, expanding support from U.S. to global fleet.
  • New platforms added include B737 and A300, with the 777 APU contract awarded for seven years.
  • Total contract value projected between USD 40 million and USD 55 million over five years.

TAT Technologies Ltd. (NASDAQ: TATT, TASE: TAT Tech) TAT Technologies Ltd. provides products and services for the commercial and military aerospace and defence sectors across four segments: OEM heat transfer solutions (Gedera), MRO and OEM services (Limco), aviation component MRO (Piedmont), and jet engine overhaul and coating (Turbochrome). It is controlled by FIMI Private Equity Fund.

The company has announced the signing of an extended and expanded maintenance, repair, and overhaul (MRO) agreement with a leading global cargo airline. The agreement, which builds on an existing contract, covers auxiliary power unit (APU) repairs and is now broadened to include the carrier’s international fleet.

The updated five-year contract extends TAT’s existing APU repair services for the U.S. fleet of Boeing 767 and 757 aircraft and now includes global fleet coverage. The scope has also been expanded to add repair services for two additional APU platforms: Boeing 737 and Airbus A300. In addition to these expansions, TAT has also been awarded a separate contract to service the Boeing 777 APU platform, which will span a seven-year period. The 777 APU contract is expected to be formally signed by mid-2025.

According to TAT, the total estimated value of these agreements is expected to fall between USD 40 million and USD 55 million over the next five years. The services will be provided through TAT’s Piedmont Components Services subsidiary.

The announcement reflects the continuation of a long-term collaboration between TAT and the cargo carrier. The expanded scope indicates a broader service role, including newer platforms, and reflects operational adjustments by the cargo airline to centralize and streamline its maintenance support across aircraft models and regions.

The new agreement includes both ongoing service responsibilities and new repair programs for APU components, which are vital systems that provide energy for aircraft operations during ground handling and in-flight support. With this expansion, TAT is set to manage APU systems across a wider range of aircraft, which suggests greater operational coordination with the customer’s technical and logistics teams.

The deal comes amid continued demand for third-party MRO services, especially in sectors like cargo aviation where fleet utilization remains high and long-term maintenance planning is essential. The addition of new aircraft platforms under the agreement reflects efforts by airlines to consolidate maintenance providers and align long-term service plans with fleet expansion or renewal strategies.