TAT Technologies Ltd. (NASDAQ:TATT) experienced a notable rise in its share price on Wednesday, advancing 9.6% after the company announced a set of long-term maintenance, repair and overhaul contracts valued at about $45 million. The agreements, entered with international commercial and cargo airline customers, extend across terms of 5 to 10 years.
The announced scope of work includes support for auxiliary power unit platforms provided under TAT's original equipment manufacturer authorization, in addition to MRO services for heat exchangers. The company highlighted that the contracts are long-duration arrangements, designed to provide sustained service engagement with airline clients.
Separately, TAT disclosed it has sold its minority interest in an unconsolidated entity. That transaction is expected to produce a one-time pre-tax gain of approximately $4 million in the second quarter of 2026.
In a statement, Igal Zamir, TAT's chief executive officer and president, said these new agreements mark an important milestone for the company's global sales efforts. He pointed to continued demand across TAT's MRO operations and cited healthy booking activity together with growing engagement from both existing and new airline customers worldwide.
Zamir emphasized that the contracts strengthen the company's revenue visibility and backlog while expanding its presence across key international airline programs. He also stated the company believes the momentum will enable TAT to deliver anticipated revenue growth and EBITDA expansion throughout 2026 and in subsequent years.
Company commentary framed the contract awards as reinforcing TAT's positioning within the global commercial aviation aftermarket. The combination of multi-year service agreements and the forthcoming one-time gain were presented as contributors to the firm's near-term financial profile and backlog composition.
Investors reacted positively to the package of news, reflected in the share price move following the announcement. The long-term nature of the MRO contracts and the discrete pre-tax gain together were highlighted internally as factors that improve near-term earnings visibility and backlog strength.
Note: The article reports only the facts disclosed by the company regarding contract value, term length, scope of services, the expected one-time pre-tax gain and the executive comments; it does not introduce additional financial projections or analysis beyond those statements.