TAT Technologies Ltd. (NASDAQ:TATT) has announced the signing of a five-year maintenance, repair, and overhaul (MRO) agreement with a North American cargo carrier. The total contract value throughout the agreement is estimated at approximately $17 million.
Under this deal, TAT will provide services for the auxiliary power units (APUs) of the carrier's Boeing Company 757 and 767 aircraft.
Igal Zamir, President and CEO of TAT, emphasized the significance of this contract, noting it strengthens TAT's position as a leader in the APU cargo carrier market.
In a press release, Zamir also highlighted the company's best-in-class repair capabilities, competitive cost structure, and high level of customer service.
This agreement adds to the existing MRO contracts TAT holds with major cargo carriers in North America, further solidifying its market presence.
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In its recently reported third-quarter earnings for 2024, TAT Technologies reported a 35.2% increase in revenue, reaching $40.5 million compared to $29.9 million in the year-ago period.
Year-to-date revenue grew by 36%, amounting to $111.1 million, up from $82.0 million last year.
Gross profit also saw a strong increase of 45.9%, totaling $8.5 million in the third quarter, representing 21% of revenues, compared to $5.8 million (19.4% of revenues) in the same period last year.
In November, Zamir noted that demand for TAT's products and services continues to grow, with the company's order and long-term agreement (LTA) backlog now at $423 million.
Despite challenges in the supply of parts for APUs and landing gears, TAT is ramping up inventory to better support customer needs.
Price Action: TATT shares are trading lower by 0.19% to $26.18 premarket at last check Thursday.
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