T.A.T. Technologies Ltd. (NASDAQ: TATT), through its subsidiary TAT Piedmount, entered into an MRO and lease agreement for repair maintenance and overhaul of Honeywell’s Auxilliary Power Units with Honey Well.
Addressable market size is expected to grow: Honeywell is a leading producer of 131 series APU and serves Airbus 319/320/321 and Boeing 737, among other aircraft. It is the most common APU globally. T.A.T. Technologies believes, with the execution of the new MRO agreement with Honeywell, the addressable market size is likely to increase for the company substantially and opens the company’s door to increase its revenue and profitability of the MRO segment in the future.
A strong relationship with Honeywell augurs well: In the last eight to nine months, T.A.T. Technologies has signed several agreements with Honeywell, which has helped T.A.T to position itself as a vital global vendor for maintenance, repair and overhaul and also leasing of Honeywell Auxillairy Power Units. With the new contract, T.A.T. Technologies can provide its services to number of airlines and aircraft, which is expected to become operational in the time to come. As a result, the new agreement will help the company increase its customer base and improve its operating efficiency. Moreover, it will further strengthen T.A.T. Technologies position in the airline industry in terms of maintenance repair and overhaul.
As history suggests, T.A.T. Technologies operates in four different segments, including heat transfer solution – where company design, manufacture and develop a range of heat transfer solutions; MRO services for aviation components and overhaul and coating of jet engine components. The company services. With the improvement in the hospitality industry, the travelers are expected to increase in the time to come, as vaccine roll-out begins smoothly. Higher the usage of aircraft, higher the maintenance of the same, and increased air traffic, it is expected T.A.T. Technologies to see a sharp increase in the revenue.