TATT - Supply Chain Remains a Watch-Item; Demand Remains Healthy with Record Backlog

研报英文原文证据摘录

TATT - Supply Chain Remains a Watch-Item; Demand Remains Healthy with Record Backlog

quivalents ($M) 51 supply chain issues. Potential solutions to alleviate the pressure include PMA or sourcing

Total Debt ($M) 11 from alternative parts of the market that may have additional inventory. We note that PMA

opportunities would be dependent on the product-line and relationship to the OEM.

5 Page Document APU continues to win business as demand persists. Despite the supply chain issues,

APU won new business and added additional customers in the quarter. Management has

seen parts supply improvements that will allow the company to convert their work to revenue.

Reasons for this report Management is confident that their market position is unchanged given their status as an

authorized shop and limited competition.

✓ Earnings Recap

✓ Updating Estimates Landing gear is in an earlier stage of resolution. Management is not waiting for the issue

to resolve itself, they are in dialogue with OEM partners to deliver a solution. Landing gear

is a smaller portion of the overall business, but we are still keeping a watch-item on landing

gear as the supply chain issues may last longer.

M&A opportunities. The company has been building a team with industry relationships and

operational experience to source and execute a transaction. The pipeline is expanding, and

they are in the process of evaluating opportunities. Internal processes have been developed

to close and integrate an M&A opportunity once acquired. The team is in the process

of engaging directly with targets and private equity firms, which reflects the company is

positioning themselves to complete a transaction in 2026 by taking these steps.

Updating estimates. We are slightly raising our 2026 revenue estimate to $195.2M (from