TAT Technologies (NASDAQ: TATT) lands $14M, 3-year MRO contract
Rhea-AI Filing Summary
TAT Technologies Ltd. reported a new multi‑year maintenance contract with a U.S.-based commercial airline to service landing gear for the carrier’s Embraer E‑170/5 fleet. The agreement runs for three years with an expected value of about $14 million, and includes an option for an additional year that would bring the total contract value to roughly $19 million.
All work will be carried out at TAT’s landing gear MRO facility in Greensboro, North Carolina. Management notes that this contract fits the company’s existing operating plans and reflects the early stages of a long-term overhaul cycle for the E‑170/5 fleet, where maintenance needs are expected to rise gradually over time.
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Insights
TAT secures a planned $14M, three-year MRO contract with upside to $19M.
TAT Technologies has signed a three-year landing gear maintenance, repair and overhaul agreement with a U.S. commercial airline covering Embraer E‑170/5 aircraft. The contract is valued at approximately
The company emphasizes that this agreement is consistent with its planned landing gear MRO order activity and aligns with the E‑170/5 fleet’s long-term, scheduled overhaul cycle. As this fleet enters the early phase of that cycle, maintenance needs typically increase gradually, which can support a steadier flow of work rather than a one-off spike. Management also highlights expanded capabilities at Greensboro and its experience with Embraer regional aircraft as reasons for winning the business.
While the precise impact on overall revenue is not quantified, this contract adds visible work over the next three years, with potential extension to a fourth year. Future disclosures in company filings may provide more context on how this agreement contributes to segment performance and capacity utilization at the Greensboro facility.
FAQ
What contract did TAT Technologies (TATT) announce on its latest 6-K?
TAT Technologies announced a new three-year contract with a U.S.-based commercial airline to provide landing gear maintenance, repair and overhaul services for the airline’s fleet of Embraer E‑170/5 aircraft.
What is the value and potential size of TAT Technologies' new MRO contract?
The contract is valued at approximately $14 million over three years and includes an option to extend for an additional year, which would increase the total contract value to about $19 million.
Where will TAT Technologies perform the landing gear MRO work under this contract?
The landing gear MRO work will be performed at TAT’s facility in Greensboro, North Carolina, where the company has expanded capabilities to support this program.
How does this contract fit into TAT Technologies' operating plans?
The company states that the agreement is consistent with its planned level of landing gear MRO order activity and reflects the early stages of the scheduled overhaul cycle for the Embraer E‑170/5 fleet.
Why did the airline select TAT Technologies for this landing gear MRO contract?
According to TAT’s CEO, important factors in the airline’s selection included TAT’s experience with Embraer regional aircraft, its in-house technical resources, its expanded Greensboro capabilities, and its long-standing relationship with the customer.
What forward-looking statement risks does TAT Technologies highlight regarding this contract?
The company notes that statements about the contract’s expected value and duration, its market position, and its ability to execute on the agreement are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially.