Slide 1: Investor Presentation - May 2025
MAY 1 INVESTOR PRESENTATION - MAY 2025 2025
Slide 2: Disclaimer
DISCLAIMER TAT Technologies Ltd. (together with its subsidiaries, the “Company”, “we”, “our” or “us”) has filed a registration statement (including a preliminary prospectus) with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this presentation relates. The registra
Slide 3: Disclaimer (cont.)
DISCLAIMER (cont.) Non-U.S.-GAAP Financial Measures This presentation includes certain financial information that is not presented in accordance with The U.S. GAAP, including Adjusted EBITDA and Adjusted EBITDA Margin. We refer to these measures as “non-U.S. GAAP” financial measures. We present thes
Slide 4: Key Strategic Product & Service Offerings
KEY STRATEGIC PRODUCT & SERVICE OFFERINGS Thermal APU Landing Gear Solutions MRO Authorized MRO • Honeywell • Gulfstream • Embraer • ATR Thermal Solutions APU Honeywell Partnership with Market Leader Licensee Gulfstream MRO & OEM MRO Landing Gear MRO 60+ years of experience Leasing & Trading 10-year
Slide 5: Experienced And Proven Leadership
EXPERIENCED AND PROVEN LEADERSHIP Experienced senior management team with significant depth, longevity and industry experience. AMOS MALKA IGAL ZAMIR EHUD BEN YAIR JASON LEWANDOWSKI CHAIRMAN OF THE BOARD PRESIDENT & CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER CHIEF OPERATING OFFICER Since 2016 S
Slide 6: TAT Substantial Offerings
TAT SUBSTANTIAL OFFERINGS THERMAL SOLUTIONS Thermal components for power electronics THERMAL SOLUTIONS Thermal components THERMAL SOLUTIONS for Galley Thermal components for Environmental Control Systems APU MRO THERMAL SOLUTIONS Thermal components for fuel inerting system LANDING GEAR MRO THERMAL S
Slide 7: Global Presence
GLOBAL PRESENCE 194 Israel Employees 440 U.S. Employees 7 INVESTOR PRESENTATION - MAY 2025
Slide 8: Value Proposition
VALUE PROPOSITION ON AN UPWARD TREND High Growth Rates ($M) Annual Strategic Capabilities Supporting Future Growth Strong Demand for Products & Services Proven Leadership Team *1 *1 Trusted Partner with 300+ Customers Including Tier 1 aircraft manufacturers, system integrators and airlines $439M Bac
Slide 9: Aerospace Market Outlook
AEROSPACE MARKET OUTLOOK New Aircraft Deliveries on an Upward Trend 9 INVESTOR PRESENTATION - MAY 2025 Sources: Oliver Wyman
Slide 10: Aerospace Market Outlook
AEROSPACE MARKET OUTLOOK High Demand for Component MRO ($B) TAT Growth Vs. Component MRO Growth Year-over-Year change in Revenue 10 INVESTOR PRESENTATION - MAY 2025 Sources: Oliver Wyman
Slide 11: Key Growth Engines Drive Near-Term And Future Growth
KEY GROWTH ENGINES DRIVE NEAR-TERM AND FUTURE GROWTH APU – Entering a +$2B market through new OEM certifications. The Company is well-positioned against competition and supply chain challenges. SEVERAL PILLARS Landing Gear MRO Cycle – Entering the major MRO cycles with two key strategic agreements i
Slide 12: Backlog
BACKLOG Value of Long-Term Agreements (LTAs) and Backlog LTAs and Backlog ($M)(1) Q1-2025 LTAs & BACKLOG 12 INVESTOR PRESENTATION - MAY 2025 (1) Value of LTAs calculated by taking the average annual order quantity for OEM components and MRO services for each customer and multiplying by prior year av
Slide 13: Appendix
APPENDIX 13 INVESTOR PRESENTATION - MAY 2025
Slide 14: Product And Service Offerings
PRODUCT AND SERVICE OFFERINGS 14 INVESTOR PRESENTATION - MAY 2025
Slide 15: Thermal Solutions Overview
THERMAL SOLUTIONS OVERVIEW OEM Solutions & MRO Services REVENUE ($M) $63M FY 2024: $46M FY 2023: KEY CUSTOMERS Delivers end-to-end thermal solutions: • Design and manufacturing of high-performance OEM-certified systems and products for tier 1 aircraft and system manufacturers • Specialized MRO servi
Slide 16: Thermal Solutions Addressable Market
THERMAL SOLUTIONS Addressable Market Short Term: • The “After COVID” effect increased demand for flights, and a constrained supply of new aircraft is creating strong demand for Aviation MRO services • Close and long-lasting relationships with clients and our multi- product offering as an OEM and MRO
Slide 17: APU Services Overview
APU SERVICES OVERVIEW Maintenance, Repair & Overhaul (MRO) REVENUE ($M) $43M FY 2024: $31M FY 2023: KEY CUSTOMERS OEM and licensed MRO service provider for multiple APU platforms representing over 25,000 aircraft still in production As a Honeywell authorized service partner, the Company is one of a
Slide 18: APU Services Addressable Market
APU SERVICES Addressable Market 331-20X STRATEGIC AGREEMENTS (1) (1) 331-500 (1) (1) 131 (1) (2) 18 INVESTOR PRESENTATION - MAY 2025 (1) From publicly available data provided by Boeing and Airbus, accessed as of April 2025 and Company management estimates (2) As stated in the disclaimer slides, mark
Slide 19: Landing Gear Overview
LANDING GEAR OVERVIEW MRO Services Provider of landing gear MRO services for systems REVENUE ($M) across multiple platforms utilized in commercial $8.5M $8.0M airline, business jet and military markets FY 2023: FY 2024: Maintain strategic agreements with and certifications from OEMs that ensure acce
Slide 20: Landing Gear Addressable Market
LANDING GEAR Addressable Market Growing demand for MRO services in landing gear • Full in-house capabilities in MRO - Machining services - Plating services • Resulting in lower cost 20 INVESTOR PRESENTATION - MAY 2025
Slide 21: Trading & Leasing
REVENUE ($M) TRADING & LEASING Leasing: Lease inventory of +20 APU engines, including 331-500 utilized on the Boeing 777 $13.9M aircraft FY 2024: This service enables the Company to meet $8.4M growing demand of our customers by FY 2023: helping them overcome the market shortage for APUs and related
Slide 22: Trading & Leasing Addressable Market
TRADING & LEASING Addressable Market • Leasing – Leverage in-house MRO capabilities for APUs, enabling the Company to refurbish a variety of APUs until “as good as new” and increase the fleet of APUs on-hand for leasing • Trading – As the industry suffers from supply chain challenges, the Company’s
Slide 23: Other Capabilities
OTHER CAPABILITIES • Nearly 50 years of experience developing fluid controls and accessories for defense REVENUE ($M) and commercial platforms $24M FY 2024: • Provides highly qualified, durable and $20M FY 2023: affordable Environmental Control Systems (ECS) for defense applications • Utilizes advan
Slide 24: New Technologies
NEW TECHNOLOGIES Future Drivers THERMAL SYSTEMS FOR ELECTRIC ADDITIVE MANUFACTURING FULL THERMAL SOLUTIONS AIRCRAFT & AUTONOMOUS AIRCRAFT & 3D PRINTING TO ENGINE HEADS 24 INVESTOR PRESENTATION - MAY 2025
Slide 25: Financial
Financial 25 INVESTOR PRESENTATION - MAY 2025
Slide 26: Solid Start To 2025
Q1 2025 RESULTS Key Indicators Solid Start To 2025 $M Q1-25 Q1-24 ∆ Q1 YOY Revenue 42.1 34.1 ↑ 24% Gross Profit 10.0 7.1 ↑ 41% Gross Margin 23.6% 20.7% ↑ 290bp Operating Profit (1) 4.2 2.2 ↑ 89% Operating Margin 9.9% (1) 6.5% ↑ 340bp Adjusted EBITDA (1) 5.7 3.7 ↑ 56% Adjusted EBITDA Margin(1) 13.6%
Slide 27: Growth Across All Key Performance Metrics
Q1 2025 RESULTS Key Indicators Growth Across All Key Performance Metrics TAT P&L ($M) Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q1 YOY Revenue 34.1 36.5 40.5 41.0 42.1 24% Gross Profit 7.1 8.0 8.5 9.5 10.0 41% Gross Margin 20.7% 21.9% 21.0% 23.2% 23.6% 290bp Operating Profit 2.2 2.7 3.4 4.2 4.2 89% Operating Ma
Slide 28: Strategic Growth Engines Have Diversified Revenue Streams
REVENUE BY PRODUCT Strategic Growth Engines Have Diversified Revenue Streams Revenue By Product Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q1 YOY ($M) Heat Exchange 14.2 15.8 16.6 16.6 18.4 30% APU 9.2 10.7 10.5 13.0 12.3 34% Trading & Leasing 2.9 2.0 5.7 3.3 2.1 -27% Landing Gears 1.5 2.0 1.8 2.8 3.3 127% Other
Slide 29: Upward Trending Revenue
UPWARD TRENDING REVENUE Double-Digit Revenue Growth 29 INVESTOR PRESENTATION - MAY 2025
Slide 30: Improving Gross Profit And Gross Profit Margin
IMPROVING GROSS PROFIT AND GROSS PROFIT MARGIN 30 INVESTOR PRESENTATION - MAY 2025
Slide 31: Expanding Margins And Profitability
OPERATING PROFIT, NET PROFIT Expanding Margins And Profitability 31 INVESTOR PRESENTATION - MAY 2025
Slide 32: Reconciliation Of Net Income To Adjusted EBITDA
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (NON-GAAP) (UNAUDITED) $M Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Net Income 0.66 1.48 2.15 0.39 2.11 2.62 2.87 3.58 3.81 Adjustments: Affiliated Companies (0.07) (0.15) (0.13) (0.16) (0.20) (0.23) (0.17) (0.21) (0.29) Taxes on Income (0.