Jim Cramer on TAT Technologies (TATT): “I Think That That Is Exactly Where To Be”

Yeah, that is simply a truly absorbing stock. I cognize it’s moved up a lot, and I similar Howmet. I deliberation you’re successful a bully one, though, if you’re successful TAT. I deliberation that that is precisely wherever to be. We privation to be, we’re successful Honeywell and successful Boeing for the Charitable Trust.

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TAT Technologies Ltd. (NASDAQ:TATT) designs aerospace parts similar vigor exchangers, cooling systems, and pitchy motor components for the subject and commercialized aviation sectors. Prosper Stars & Stripes stated the pursuing regarding TAT Technologies Ltd. (NASDAQ:TATT) successful its third 4th 2025 capitalist letter:

TAT Technologies Ltd. (NASDAQ:TATT) was the apical contributor successful the agelong publication during the 3rd 4th of 2025. As an underfollowed aerospace Original Equipment Manufacturer (“OEM”) and Maintenance, Repair, and Operations (“MRO”) work provider, TATT operates successful 4 niche categories: thermal solutions (~41% of revenues), auxiliary powerfulness units (~27%), landing cogwheel (~5%) and leasing & trading (~14%). We judge the landing cogwheel conception is entering into a large MRO cycle, and TATT already has 2 strategical agreements successful spot with Embraer for their E170 and E175 craft and Gulfstream for their G400 and G500 concern jets. We judge the astir important maturation conception is the auxiliary powerfulness units (“APUs”), peculiarly for the B737 and A320 household of craft and the B777. According to the company, these “platforms” person a Total Addressable Market (“TAM”) of astir $2.5 billion, and TAT Technologies has little than 1% stock contiguous with a extremity of reaching 5 to 10% share. The company’s presumption successful the manufacture is supported by a licence statement with Honeywell, the OEM for the powerfulness units. Although determination are a mates non-licensed APU MRO providers, TATT becomes Honeywell’s approved supplier of aftermarket work and support. Recent results enactment our multi-year thesis connected the sanction with Q2 2025 revenues expanding 18% year-on-year, and the backlog expanding $85m to scope $524m oregon astir 3x existent yearly sales. Gross margins person sequentially improved for 4 consecutive quarters and EBITDA margins reached 14% successful Q2. We judge the marketplace underestimates TATT’s multi-year maturation potential. We deliberation our $39m of FY27 EBITDA is simply a conservate estimate. At a tenable 15x multiple, just worth is successful the debased $50s per stock and we expect TATT to leverage its level for further concern wins and acquisitions that volition adhd much worth to the banal arsenic it develops.