- The stock price of TAT Technologies Ltd. (NASDAQ: TATT) increased by 60% during after hours trading. This is why it happened.
The stock price of TAT Technologies Ltd. (NASDAQ: TATT) increased by 60% during after hours trading. Investors are responding positively to the company announcing TAT Piedmont (a fully owned subsidiary) signed an additional new strategic MRO and lease agreement with Honeywell for the maintenance repair and overhaul of Honeywell’s 131 Series of Auxiliary Power Units.
The 131 Series is considered the leading APU manufactured by Honeywell and serves the Boeing 737 and Airbus 319/320/321 among other aircraft types with more than 16,000 engines worldwide and additional units to be produced in the future.
The combined contracts — which include the 36, 85/95, 331-200/250, 331-500 (MRO and Lease bank) and now the 131 Series APUs (MRO and Lease) — enables TAT to offer its services to numerous airlines and aircraft platforms which are expected to be in operations in the coming decade.
“The 131 Series APU is the most common APU in the world. The Company believes that due to the execution of the new strategic agreement with Honeywell, its addressable market size in the MRO segment is expected to grow in a substantial manner, and therefore opens the door to TAT for potentially significant revenue growth in the MRO segment. Over the last nine months TAT signed several strategic long-term contracts with Honeywell which position TAT as a key global authorized vendor for the maintenance repair and overhaul as well as leasing of Honeywell’s APU.”
“We expect to see a major increase in revenues in the coming years as the industry will recover from COVID19.”
— Igal Zamir, CEO and President of TAT Technologies
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