TAT Technologies Raises $46M To Fuel Expansion

TAT Technologies has engineered a remarkable transformation, evolving from an established but previously dispersed and relatively unknown company into a rapidly growing powerhouse that dominates its core fields of activity. Riding the momentum of three consecutive years of double-digit revenue and profit growth and armed with a robust backlog and long-term agreements exceeding $524 million, the company secured $46 million in equity funding in June 2025, accelerating the company into its next phase of strategic expansion across aviation, aerospace, and defense markets.

The funding, predominantly backed by U.S.-based institutional investors, positions TAT as a formidable new force in the American market, with strong access to the aviation Original Equipment Manufacturers (OEM) supply chain, Maintenance, Repair Overhaul (MRO) services, and the financial community.

From Domestic Defense Origins to Global Leadership

Founded in the 1970s as an Original Equipment Manufacturer for defense aviation, the company has evolved from a niche supplier to a dominant manufacturer and service provider in global aviation maintenance, repair, and overhaul (MRO). This transformation accelerated through strategic acquisitions in the early 2000s that opened doors to the civil aviation sector, enabling the company to expand its expertise in Thermal systems and components to include support and maintenance of auxiliary power units (APUs) and landing gear components.

The COVID-19 pandemic became a defining period that demonstrated the company’s resilience and strategic agility. While the aviation supply chain faced unprecedented challenges, TAT executed a strategic pivot by signing agreements for maintenance services and supply chains with leading aerospace OEMs, like Honeywell. As the industry navigated the pandemic’s impact, the company obtained certification for Honeywell APUs and acquired a fleet of APUs from the manufacturer. This agreement solidified TAT’s position as a trusted MRO partner and unlocked access to a serviceable market of approximately 22,000 aircraft, representing an annual addressable market size of around $2.5 billion.

Strategic Portfolio Optimization

Concurrent with these growth initiatives, the company streamlined its operations by discontinuing low-volume legacy items and consolidating its Israeli manufacturing footprint into modern facilities, alongside its two facilities in the U.S. This strategic rebalancing has focused resources on high-growth, high-value product lines—thermal-management systems, APUs, and landing gear—where the company now competes directly with the largest OEMs and leading independent service providers worldwide.

As TAT was streamlining its offering, it was simultaneously investing in core offerings, like its established expertise in thermal systems, to bolster its competitive advantages. TAT’s research and development department drives innovation of new thermal systems for Next Gen aircraft, such as Electric Take Off and Landing (eVTOL), and also for complete thermal solutions for aviation rather than just a heat exchanger component. This ongoing innovation initiative is key to optimizing the company’s offerings for the global aviation industry.

Expanding Customer Base and Market Reach

Today’s client portfolio reflects this strategic evolution, encompassing airframe manufacturers such as Boeing, Embraer, and Textron, over 100 commercial carriers, including American Airlines, Japan Airlines, LATAM, and Korean Air, as well as cargo operators like FedEx, UPS, and DHL. Military and government clients include air forces worldwide, as well as OEMs and integrators such as Lockheed Martin, Boeing Defense, and RTX.

The company’s customer-focused approach has yielded significant contract wins, including a five-year extension of an APU MRO service agreement with a leading global Cargo carrier. The agreement, initially covering the customer’s U.S. fleet of Boeing 767 and 757 aircraft, has been expanded to encompass the carrier’s global fleet, including Boeing 777, 737, and Airbus A320 aircraft. This contract is valued between $40 million and $55 million over the five-year term, with an exceptional lead time for the customer.

Focused Growth Strategy

The fresh capital will fuel both organic expansion and targeted acquisition activity, with a clear vision to extend market leadership and seize opportunities in new geographies and technologies. To support this ambition, TAT has established a group management team headquartered in Charlotte, North Carolina.

Charlotte’s selection as the U.S. headquarters leverages the city’s thriving aerospace ecosystem and talent pool, making it an ideal base for expanded American operations. The company has implemented a comprehensive employee development program, investing in training and skill development to support both individual growth and enterprise advancement. This strategic positioning enhances TAT’s ability to pursue long-term contracts and opportunities with both existing customers and new prospects in the world’s largest aerospace market.

Investment Thesis Validation

The company’s financial performance has validated its strategic approach, delivering growth that has outpaced the broader industry recovery. This track record, combined with a strengthened balance sheet from the recent funding round, creates compelling value propositions for multiple stakeholder groups.

For prospective customers, these developments translate to enhanced confidence in TAT’s ability to deliver comprehensive MRO solutions at scale. The expanded U.S. presence and enhanced financial resources ensure service continuity and the capacity to handle larger, more complex maintenance programs.

The stronger balance sheet also positions the company for potential inorganic growth opportunities. For prospective acquisition targets and merger partners, TAT represents a well-capitalized platform.

Looking Forward

With fresh resources, an expanded U.S. footprint, and a proven track record of strategic execution, TAT Technologies stands ready to capitalize on the sector’s growth trajectory.

The combination of nearly seven decades of aerospace OEM heritage and comprehensive MRO capabilities—now enhanced by fresh capital and a sharpened strategic focus—creates a unique market position. As fleets age and maintenance requirements grow more complex, the company’s deep technical expertise in thermal management systems, APUs, and landing gear is further bolstered by its pioneering work in Innovative Systems.

As a leader in developing next generation universal cooling solutions for electric, hybrid, and hydrogen-powered platforms, the company is helping shape the future of aerospace. Backed by strong financial resources and an expanding U.S. footprint, TAT is poised to capture significant value across commercial and defense markets.

For more information, please visit TAT Technologies’ website.