TAT Technologies Triples Israeli Defense Contracts Amid Soaring Demand

30 July, 2025

The company reports $22 million in local deals so far this year—driven by increased Air Force procurement and strategic positioning as a key supplier.

[Image above: Israeli Air Force F-35 fighter jet, manufactured by Lockheed Martin. Photo: IDF Spokesperson]

TAT Technologies announced on Tuesday a new $10 million contract with an Israeli defense company for the supply of components intended for military aircraft operated by the Israeli Air Force.

With this new agreement, TAT’s total contracts with Israel’s defense industry since the beginning of the year now reach $22 million. This includes both the supply of OEM components and the provision of maintenance and repair services.

The company’s local defense activity has seen a dramatic increase compared to the years preceding the war in the region. Prior to the conflict, TAT’s annual revenues from Israeli clients remained relatively stable: $7.7 million in 2021, $7.2 million in 2022, and $7.7 million again in 2023—representing roughly 7–10% of the company’s total revenue. The 2024 data is not yet available. The 2023 breakdown shows a balance between component sales ($3.5 million) and MRO (maintenance, repair, and overhaul) services, which totaled $4.2 million.

This means that Israeli revenues in 2025 to date represent a threefold increase, with the year still underway. The sharp rise points to a surge in local demand for TAT’s solutions, driven by rising defense budgets and the company’s growing role as a strategic supplier. Since the start of the year, TAT’s stock—traded in both Tel Aviv and on Nasdaq—has risen 26%, giving it a market cap of $439 million.

TAT supplies OEM components for the aerospace and defense industries, with a focus on thermal management, flow control, and environmental control systems. Its flagship products include heat exchangers, cold plates, electronics cooling systems, and specialized valves for fuel and fluid flow. These components are manufactured at the company’s facility in Gedera, Israel, and are integrated into airborne and ground platforms around the world.

TAT also operates MRO centers providing maintenance, repair, and overhaul services for aviation components such as heat exchangers, landing gear systems, environmental control systems, and auxiliary power units (APUs). These services are offered at the company’s sites in the U.S. and Israel, ensuring operational readiness, life extension, and compliance with strict safety regulations.

 

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Posted in: Aerospace & Defense , News

Posted in tags: IAF , TAT