How is TATT Targeting the eVTOL Market With New Thermal Systems?

TAT Technologies Ltd. TATT is expanding its presence in the fast-growing electric vertical takeoff and landing (eVTOL) industry by applying its expertise in thermal management and environmental control systems. As next-generation aircraft move closer to commercial service, TAT aims to become a key supplier of solutions that address one of the sector’s biggest challenges, which is reliable heat management.

The company provides systems for battery cooling, avionics and motor thermal control and cabin environmental management. These products are lightweight, compact and modular, so they can meet the strict efficiency requirements of eVTOL platforms. They are built to established aerospace standards such as the RTCA DO-160 environmental testing standard. The systems also include Internet of Things-based monitoring and predictive maintenance, which help operators track performance in real time and improve reliability.

Since eVTOL aircraft depend on high voltage batteries, managing thermal loads during vertical takeoff, hover and landing is essential for safe operations. TAT’s scalable solutions are designed to meet these demands while supporting efficiency, safety and passenger comfort.

Instead of building aircraft itself, TAT is focusing on supplying critical components to a wide range of manufacturers. This strategy reduces risk while expanding opportunities to work with multiple aircraft programs. With urban air mobility expected to grow quickly in the coming years, TAT’s experience in thermal systems places it in a strong position to benefit from the expansion of the eVTOL market and contribute to the successful adoption of next-generation aircraft.

Rising Competition in the eVTOL Space

Alongside suppliers like TATT, other defense companies like Joby Aviation Inc. JOBY and Embraer ERJ are making notable progress in the eVTOL market.

Joby is advancing rapidly with its air taxi program. The company has completed more than 40,000 miles of test flights and now operates six aircraft in its test fleet.

Embraer’s Eve Air Mobility is also moving forward with an eVTOL design that is more focused on regional transport. The company is also working on urban air traffic management systems to support the safe integration of eVTOLs into city airspace.

TATT’s Price Performance, Valuation and Estimates

Shares of TATT have gained 134.3% in the past year compared with the industry’s 34.5% growth.

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The company’s shares are trading at a discount on a relative basis, with its trailing 12-month Price/Book being 3.15X compared with its industry’s average of 16.63X.

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Image Source: Zacks Investment Research

The Zacks Consensus Estimate for TATT’s 2025 and 2026 earnings has improved over the past 60 days.

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Image Source: Zacks Investment Research

TATT stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report

TAT Technologies Ltd. (TATT) : Free Stock Analysis Report

Joby Aviation, Inc. (JOBY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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