Supply Chain

TAT Continues to Grow, but Supply Chain Disruptions Weigh on Momentum

Posted on by Techtime

[Image: TAT CEO Igal Zamir alongside power modules supplied by the company for F-16 aircraft]

TAT Technologies reported record results for 2025, continuing its growth trajectory in revenue, profitability, and backlog — but also warned that ongoing and worsening supply chain disruptions could weigh on near-term performance.

According to the company’s annual report released last week, fourth-quarter revenue reached $46.5 million, up 13% year-over-year. For the full year, revenue grew 17% to $178 million, alongside a sharp improvement in profitability: net income rose by about 50% to $16.8 million, while adjusted EBITDA reached $25.5 million, representing 14.3% of revenue.

Demand trends remained strong. The company’s backlog and long-term agreements increased to approximately $550 million, up from $429 million at the end of 2024. Management noted that the growth in backlog was driven בעיקר by new contracts and long-term agreements, rather than deferred work.

At the same time, TAT continues to shift toward maintenance, repair, and overhaul (MRO) services, which now account for more than 71% of revenue. This reflects broader industry dynamics, including extended aircraft lifecycles and delays in new aircraft deliveries, which are driving sustained demand for maintenance services.

The Bottleneck: Supply Chain Constraints

Beneath the strong financial performance, however, lies a significant operational challenge. During the earnings call, management emphasized that supply chain disruptions — which had shown signs of improvement earlier in 2025 — worsened again in the fourth quarter and continue into 2026.

According to CEO Igal Zamir, the impact is most pronounced in two key areas: auxiliary power units (APUs) and landing gear — both complex systems that depend on the availability of numerous components and sub-parts.

“In the last quarter, it completely reversed,” Zamir said. “All of a sudden, we are facing challenges again, especially in APUs and landing gear, with dramatically extended lead times and no advance warning.”

He added that the issue is not necessarily a broad shortage, but rather the unavailability of specific parts — which can delay entire systems:

“When it comes to an engine, there are hundreds of different parts that we need… all it takes is one bolt or one seal or one screw that we need to replace, and we cannot send the engine.”

The implications are both operational and financial. In some cases, the company is forced to procure parts on the open market at higher prices than under contractual terms, putting pressure on margins. Longer turnaround times can also delay revenue recognition.

In addition, management pointed to another structural constraint: a shortage of teardown aircraft, which typically supply used serviceable material (USM). These refurbished components are a key element in the economics of APU maintenance. As airlines continue to keep older aircraft in service, the supply of such parts remains limited.

Looking Ahead: Strong Demand, Supply-Dependent Execution

Despite these challenges, TAT remains optimistic about 2026. The company reported strong intake levels at the start of the year, with demand for MRO services continuing to grow.

The outlook is supported by several factors: a record backlog, newly signed long-term agreements, and a global aviation market that continues to expand while relying more heavily on existing fleets. In addition, TAT’s financial position — including over $50 million in cash and low debt — provides flexibility to invest in growth and pursue acquisitions.

However, management made clear that while demand is not a constraint, execution remains closely tied to supply chain conditions.

“We do not yet see a broad recovery in overall supply chain performance,” Zamir said, adding that the company nonetheless enters 2026 “from a position of strength.”

Windward launched a solution for maritime container tracking

Posted on by Techtime

Nowadays, majority of the global supply chain scene is taking place in the sea. Estimations are that around 90% of the global trade volume is lead by the shipping industry. In the last two years, the maritime supply chain has experienced a significant storm. On the one hand, the COVID-19 crisis has led to traffic restrictions and even closure of ports, and on the other hand the international trade volume has increased by 1,500%. In addition, the current crisis in Ukraine is threatening to disrupt maritime traffic, as some shipping companies have already announced they halt shipments to Russia. 

These factors create bottlenecks and huge delays in the arrival of transport ships to their destination. According to the data, only 30%-40% of the shipments reach their destination in the undertaken time. The uncertainty and the low reliability of arrival times make it very difficult to operate, and also disrupt risk management of companies along the supply chain – starting from exporters and shipping companies, to end customers and financial bodies such as banks and insurance companies. 

Windward Company from Israel, founded in 2010, has developed an AI based technology that provides information regarding global vessel traffic. Windward’s platform integrates data from various sources such as digital information systems of the global maritime trade, vessel’s ownership structure, company’s history, location details provided by AIS (Automatic Identification System), weather condition data, ports’ capacity and more. All this data is integrated in order to provide a snapshot regarding the current location of the ship at any given moment, and to also generate an AI-based forecast regarding expected ETA. Currently, without this system, it is required to ask the shipper for the vessel’s location, and as said – most data regarding arrival times is not reliable.   

Container level monitoring

Ami Daniel [pictured above], CEO and co-founder of Windward estimates in a conversation with Techtime that the current crisis is not going to disappear. “The current crisis is the result of a combination of factors, not all of them derived from the COVID-19 pandemic. At the one hand, there are more shipments, while at the other hand infrastructure upgrades are not keeping up with the increasing volume. Larger ships have been built, docks at the ports were expanded, but the infrastructure that handles all the goods has not made the leap – starting from the amount of cranes and tugs in the ports to trucks and trains that supposed to transport the goods to the end customer”. 

Windward, which started to be traded on the London Stock Exchange last year, has around 80 clients, to include government companies, energy companies, shipping companies, exporters and financial bodies such as banks and insurance companies that use the system as an instrument for pricing insurance policies. The company lately announced the launch of a new solution, which provides the ability to track the global maritime trade traffic at even a higher resolution – the container level, and not only the ship.

The system, Ocean Freight Visibility, is based on the container number that is included in the Bill of Lading (BOL). Using this number, it is possible to track the container’s location and to alert at real time regarding delays, which allows for the operator to take action in front of its customer. The technology provides daily insights and alerts through emails, and is also capable of being integrated with existing organizational IT systems.

According to the company, the solution is based on analyzing billions of data and databases points from various sources, in order to produce insights and forecasts for the shipping company, and to also provide a complete view of the supply chain. Daniel: “Maritime shippers are the key to effective supply chain, but without the suitable tools they are positioned as responders, as opposed to proactively initiate actions in order to manage predicted faults”.