TAT Technologies Ltd. (TATT) shares surged 53.59% in after-hours on Thursday, July 1, 2021, and closed the business at $9.10. Earlier in the morning session, TATT’s stock lost 0.59% to close Thursday’s session at $5.93 per share. TATT shares have risen 49.62% over the last 12 months, and they have moved up 2.33% in the past week. Over the past three months, the stock has gained 15.50%, while over the past six months, it has declined 31.08%.

Let’s see why TATT stock rallied in the after-hours on Thursday?

New Partnership with Honeywell

On July 1, 2021, TAT Piedmont which is a fully owned subsidiary of TAT Technologies Ltd, signed an additional new strategic MRO and lease agreement with Honeywell for the maintenance repair and overhaul of Honeywell’s 131 Series of Auxiliary Power Units.

Honeywell’s 131 SeriesAPU serves the Boeing 737 and Airbus 319/320/321 among other aircraft types with over 16,000 engines worldwide and additional units to be produced in the future.

Partnership with Lufthansa Technik Shenzhen

On May 19, 2021, TAT Technologies Ltd signed a partnership with Lufthansa Technik Shenzhen to establish a leading repair facility in China for Maintenance, Repair, and Overhaul of aircraft heat transfer components. The facility will support operators in the Asia Pacific region. The companies have already begun supporting operators in China through TAT Technologies on an interim basis.

Recent financial results announcement

On May 13, 2021, TAT Technologies Ltd released its unaudited results for the three months ended March 31, 2021.

Q1 2021 financial highlights

• TAT Technologies Ltd reported increased revenue of $18.3 million in Q1 2021 compared to6 million in Q1 2020.
• For Q1 2021, gross profit was $3.4 million compared to$4.6 million in Q1 2020.
• The gross margin was 18.6% for Q1 2021 compared to 18.5% in Q1 2020.
• Adjusted EBITDA was $1.6 million in Q1 2021 compared to$2.5 million in Q1 2020.
• The company earned a net income of $0.6 million in Q1 2021 compared to a net income of $0.4 million in Q1 2020.

FY 2020 financial results announcement

On March 30, 2021, TAT Technologies Ltd released its audited results for the twelve months ended December 31, 2020.

FY 2020 financial highlights

• TAT Technologies reported revenue of $75.3 million for FY 2020 compared to $97.4 million for the twelve months ended December 31, 2019.
• Gross profit was $8.4 million for FY 2020 compared to $15.3 million in FY 2019.

• Adjusted EBITDA was $1.1 million in FY 2020 compared to $7.1 million in FY 2019.

• The company suffered a GAAP net loss of $3.5 million from continued operations in FY 2020 compared to GAAP net income of $1.5 million in FY 2019.

Conclusion

The new partnership news with Honeywell took the TATT stock towards the positivity in the after-hours on Thursday. TATT can close the weekly trading by continuing its surge on Friday as well.