TAT Technologies Eyes Electric and Autonomous Aviation

12 August, 2025

TAT Technologies is sustaining its rapid growth trajectory with a $500 million order backlog, while already investing in advanced thermal systems for electric and autonomous aircraft

[In the photo above: TAT CEO Yigal Zamir alongside power modules supplied by the company for F-16 aircraft]

TAT Technologies reported today strong second-quarter 2025 results, showing improvements across all key metrics. Revenue rose 18% year-over-year to $43.1 million, with first-half revenue up 21% to $85.2 million. Gross profit climbed 36% to $10.8 million, lifting the margin from 21.9% to 25.1%. Operating profit jumped 62% to $4.4 million, and net income increased 32% to $3.4 million.

TAT noted a significant expansion in its long-term contracts and order backlog, reaching approximately $524 million, providing multi-year revenue visibility. During the quarter, it also completed a $45 million capital raise, bolstering cash reserves and enhancing financial flexibility.

One of the standout developments this year has been the surge in contracts with Israel’s defense sector. Since January, TAT has signed deals worth roughly $22 million with domestic defense customers—triple the value of previous years—driven by increased Israel Air Force requirements and expanded defense activities. These now account for 7–10% of the company’s annual revenue.

Core business segments continue to fuel growth: the Thermal Solutions division maintains double-digit growth; APU MRO/OEM operations are expanding thanks to exclusive agreements with Honeywell; and the Trading & Leasing business has seen a 200% jump in revenue. Landing Gear MRO activity remains stable but is poised for growth as major maintenance cycles approach.

TAT serves over 300 global customers, including tier-one aircraft manufacturers, system integrators, airlines, and government operators. The company employs around 440 people in the United States and 194 in Israel.

Future Growth Engines in Next-Generation Aviation

In its latest quarterly presentation, TAT highlighted advanced thermal solutions for electric and autonomous aircraft as a key future growth driver. Electric aircraft (eAircraft or eVTOL) run on electric motors rather than jet or piston engines, reducing emissions, lowering fuel and maintenance costs, and enabling quieter operations—an important factor for urban use. Autonomous aircraft can operate without a human pilot in the cockpit, relying on advanced control systems, sensors, and AI for flight management.

Thermal systems are critical in both domains, ensuring optimal operating temperatures for batteries, electronics, electric motors, and control systems, with overheating posing risks to performance and safety. Leveraging decades of experience in heat exchangers and environmental control systems (ECS), TAT aims to address these complex thermal challenges in next-generation platforms.

The company is developing customized cooling systems for both civilian electric aircraft and large unmanned platforms, including military applications. It is also integrating advanced manufacturing techniques such as 3D printing of complex metal geometries and embedding cooling systems directly into engine heads (“Full Thermal Solutions to Engine Heads”) to improve energy efficiency and reduce weight.

While no firm deployment timelines have been disclosed, the company notes that with the eVTOL and electric aviation sectors moving through regulatory approvals and advanced testing, its systems are likely to be adopted in commercial platforms in the second half of this decade. TAT views this domain as a strategic opportunity to expand its addressable market and secure a position at the forefront of emerging aviation technology.

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Posted in: Aerospace & Defense , News

Posted in tags: TAT Technologies

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