Jim Cramer Calls TAT Technologies Ideal on Aging Fleet and Boeing Backlog
Jim Cramer recommended TAT Technologies, citing its exposure to an aging global aircraft fleet and Boeing’s backlog boosting demand for its aerospace parts. TAT reported Q2 2025 revenues up 18% year-on-year, an $85 million backlog increase to $524 million and four straight quarters of gross margin gains.
1. Jim Cramer Endorses TAT Technologies
Jim Cramer highlighted TAT Technologies as a prime aerospace play, noting that its product mix positions it to capitalize on an aging global aircraft fleet and a significant Boeing order backlog. He affirmed that TAT’s recent move higher aligns with a broader investment strategy in aerospace names like Honeywell and Boeing within his Charitable Trust.
2. Business Segments and Growth Drivers
TAT operates four niche segments: thermal solutions (41% of revenues), auxiliary power units (27%), landing gear (5%) and leasing & trading (14%). It holds strategic MRO agreements with Embraer for E170/E175 jets and Gulfstream for G400/G500 business aircraft, while pursuing a licensing partnership with Honeywell to expand APU aftermarket share in a $2.5 billion TAM.
3. Financial Performance and Outlook
In Q2 2025, TAT’s revenues rose 18% year-on-year, backlog grew by $85 million to $524 million, and gross margins improved for a fourth consecutive quarter. EBITDA margin reached 14%, supporting a multi-year growth thesis that could justify a $50-plus share valuation at a 15× multiple on projected FY27 EBITDA.