Here’s What Boosted TAT Technologies (TATT) in Q3

3 weeks ago 13

Soumya Eswaran

Thu, November 27, 2025 astatine 8:02 AM CST 4 min read

Sands Capital, an concern absorption company, released its “Sands Capital Select Growth Strategy” Q3 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. U.S. large-cap maturation equities continued to retrieve from a crisp sell-off successful aboriginal April. Strong firm earnings, capitalist enthusiasm astir artificial quality (AI), and increasing expectations for Federal Reserve argumentation easing drove the robust gains. The portfolio returned 6.3% successful the quarter, outperforming the benchmark Russell 1000 Growth Index’s 10.5% gain. You tin cheque the fund’s apical 5 holdings to cognize much astir its champion picks for 2025.

In its third-quarter 2025 capitalist letter, Sands Capital Select Growth Strategy highlighted stocks specified arsenic TAT Technologies Ltd. (NASDAQ:TATT). TAT Technologies Ltd. (NASDAQ:TATT) provides solutions and services to the commercialized and subject aerospace and crushed defence industries. The one-month instrumentality of TAT Technologies Ltd. (NASDAQ:TATT) was -11.81%, and its shares gained 73.27% of their worth implicit the past 52 weeks. On November 26, 2025, TAT Technologies Ltd. (NASDAQ:TATT) banal closed astatine $38.24 per share, with a marketplace capitalization of $495.232 million.

Sands Capital Select Growth Strategy stated the pursuing regarding TAT Technologies Ltd. (NASDAQ:TATT) successful its 3rd 4th 2025 capitalist letter:

"TAT Technologies Ltd. (NASDAQ:TATT) was the apical contributor successful the agelong publication during the 3rd 4th of 2025. As an underfollowed aerospace Original Equipment Manufacturer (“OEM”) and Maintenance, Repair, and Operations (“MRO”) work provider, TATT operates successful 4 niche categories: thermal solutions (~41% of revenues), auxiliary powerfulness units (~27%), landing cogwheel (~5%) and leasing & trading (~14%). We judge the landing cogwheel conception is entering into a large MRO cycle, and TATT already has 2 strategical agreements successful spot with Embraer for their E170 and E175 craft and Gulfstream for their G400 and G500 concern jets. We judge the astir important maturation conception is the auxiliary powerfulness units (“APUs”), peculiarly for the B737 and A320 household of craft and the B777. According to the company, these “platforms” person a Total Addressable Market (“TAM”) of astir $2.5 billion, and TAT Technologies has little than 1% stock contiguous with a extremity of reaching 5 to 10% share. The company’s presumption successful the manufacture is supported by a licence statement with Honeywell, the OEM for the powerfulness units. Although determination are a mates non-licensed APU MRO providers, TATT becomes Honeywell’s approved supplier of aftermarket work and support. Recent results enactment our multi-year thesis connected the sanction with Q2 2025 revenues expanding 18% year-on-year, and the backlog expanding $85m to scope $524m oregon astir 3x existent yearly sales. Gross margins person sequentially improved for 4 consecutive quarters and EBITDA margins reached 14% successful Q2. We judge the marketplace underestimates TATT’s multi-year maturation potential. We deliberation our $39m of FY27 EBITDA is simply a conservate estimate. At a tenable 15x multiple, just worth is successful the debased $50s per stock and we expect TATT to leverage its level for further concern wins and acquisitions that volition adhd much worth to the banal arsenic it develops."