As a result of these factors, we cannot assure you that the forward-looking statements in this presentation will prove to be accurate. You should understand that it is not possible to predict or identify all such factors. We operate in a competitive and rapidly changing environment. New factors emerge from time to time, and it is not possible to predict the impact of all of these factors on our business, financial condition or results of operations. Furthermore, if our forward-looking statements prove to be ...

Core Insights - The global aerospace services market is rapidly expanding due to increasing air traffic, fleet utilization, and strong demand in the Maintenance, Repair and Overhaul (MRO) sector, benefiting companies like TAT Technologies (TATT) and AAR Corp. (AIR) [1] - Both TATT and AIR are strategically positioned to capture growth opportunities in the MRO market, with TATT focusing on thermal management systems and AIR leveraging its diversified presence [2] TAT Technologies (TATT) - Recent Achievements: TATT unified its business units under a single brand to enhance customer experience and streamline operations in thermal solutions and MRO services [3] - Contract Acquisition: TATT secured a $12 million contract for MRO services on Boeing 777 aircraft, expanding its footprint in the APU services market [4] - Financial Stability: TATT ended Q2 with $43 million in cash and cash equivalents, $2 million in current debt, and $10 million in long-term debt, indicating a solid solvency position [5] - Challenges: TATT faces industry-specific risks such as supply-chain disruptions, rising raw material costs, and geopolitical risks due to its operations in Israel [6][7] AAR Corp. (AIR) - Recent Achievements: AIR reported Q1 fiscal 2026 adjusted earnings of $1.08 per share, a 27.1% increase year-over-year, with net sales of $739.6 million, reflecting an 11.8% growth [8] - Acquisition: AIR acquired American Distributors Holding Company for $146 million, enhancing its parts distribution business and relationships with OEMs [9] - Financial Stability: As of August 31, 2025, AIR had $92 million in cash and cash equivalents but a long-term debt of $1,022 million, indicating a higher debt load compared to TATT [11] - Challenges: AIR faces ongoing supply-chain challenges and workforce constraints that could impact production and operational efficiency [12] Comparative Analysis - Stock Performance: TATT's stock surged 118.2% over the past year, outperforming AIR's 32.1% increase [10] - Valuation: AIR has a trailing Price/Book ratio of 2.50X, which is more attractive than TATT's 3.03X [17] - Leverage: TATT has a lower long-term debt-to-capital ratio of 5.86 compared to AIR's 45.00, indicating less debt [20] Conclusion - The growth in global air traffic and MRO demand supports solid growth for TATT and AIR, but TATT's strong stock performance, lower leverage, and solid solvency position make it a more compelling investment option [21][22]

Core Insights - Rising air passenger traffic and an expanding global fleet are driving demand for aerospace service stocks like Astronics Corporation (ATRO) and HEICO Corporation (HEI) [1][2] - Increased defense budgets due to geopolitical tensions are boosting demand for advanced avionics and electronics supplied by these companies [1] Company Overview - Astronics specializes in advanced technologies in electrical power, lighting, connectivity, and cabin electronics for both commercial and military clients [3] - HEICO is one of the largest independent aerospace parts manufacturers globally, supplying jet engines and aircraft components [3] Financial Stability & Growth Drivers - Astronics ended June 2025 with cash and cash equivalents of $13 million and long-term debt of $159 million, indicating solid liquidity to meet capital expenditure targets of $40-$50 million in 2025 [5] - HEICO's cash and cash equivalents totaled $0.26 billion as of July 31, 2025, with long-term debt of $2.44 billion, providing flexibility for its acquisition strategy [6] - Both companies are experiencing sales growth due to rising global air passenger traffic, with Astronics reporting a 3.3% year-over-year increase in sales in Q2 2025 and HEICO's Flight Support Group achieving 18% sales growth in Q3 2025 [7] - Military sales for Astronics rose 11% year-over-year in Q2 2025, while HEICO's Electronic Technologies Group saw a 7% organic sales increase in Q3 2025 [8] Stock Performance & Valuation - Astronics outperformed HEICO with a stock increase of 111.9% over the past year compared to HEICO's 20.5% [10] - ATRO trades at a lower forward P/E of 21.55X versus HEI's 61.87X, indicating a more attractive valuation [10][18] - Astronics has a lower long-term debt-to-capital ratio of 36.97 compared to HEICO's 40.62, suggesting less leverage [19] - Return on Equity (ROE) for Astronics is 22.89%, higher than HEICO's 16.29%, indicating better efficiency in generating profits [21] Conclusion - The aerospace services industry is expected to benefit from rising global air traffic, fleet expansion, and increased defense spending [22] - Astronics presents a more compelling investment option due to its attractive valuation metrics, better ROE, and lower leverage compared to HEICO [22]