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TATT vs. AIR: Which Aerospace Services Stock is the Better Buy in 2025?
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Key Takeaways
TAT Technologies surged 118.2% in a year, outpacing AIR's 32.1% rise.
AIR reported 27.1% EPS growth and acquired American Distributors for $146M.
TATT's lower leverage and $43M cash boost its solvency versus AIR's higher debt load.
With the global aerospace services market expanding rapidly, driven by growing air traffic, rising fleet utilization and strong demand in the Maintenance, Repair and Overhaul (MRO) market, service providers like TAT Technologies (TATT - Free Report) and AAR Corp. (AIR - Free Report) stand to benefit immensely. Airlines, cargo operators and defense organizations are investing heavily to ensure fleet readiness and operational efficiency, which is fueling demand for specialized aerospace services.
While TATT brings niche expertise in thermal management systems, APUs and component MRO, AIR leverages its diversified presence across MRO, supply-chain solutions and logistics support. With global maintenance requirements intensifying, both companies are strategically positioned to capture opportunities from this industry uptrend. In this article, we will examine TATT and AIR’s achievements, financial profiles and challenges to determine which stock could be the better investment choice in 2025.
Key Takeaways for TATT
Recent Achievements: In September 2025, the company announced the unification of its business units - TAT Limco, TAT Piedmont and TAT Israel under a single brand, TAT Technologies. The consolidation is aimed at improving customer experience, streamlining communication and enhancing capabilities across thermal solutions, landing gear and APU MRO services while reinforcing the company’s focus on quality and innovation.
In August 2025, TATT secured a $12 million contract to provide MRO services for the GTCP331-500 Auxiliary Power Unit on Boeing 777 aircraft. This agreement should not only expand TATT’s footprint in the APU services market but also reinforce its reputation as a reliable partner for leading commercial airlines.
Financial Stability: TATT ended the second quarter with a cash and cash equivalent of $43 million. Its current debt was $2 million, while its long-term debt totaled $10 million. This indicates that the company maintains a solid solvency position, enabling it to continue investing in advanced aerospace solutions.
Challenges to Note: Despite strong growth potential, TAT Technologies faces several industry-specific risks. Ongoing supply-chain disruptions and rising costs of raw materials could impact the company’s ability to deliver products and services on schedule while maintaining healthy margins. Persistent inflation and higher labor expenses may also put pressure on profitability over time.
Geopolitical risks remain a factor as well, given the company’s operations in Israel. Regional instability could create uncertainties in operations and logistics, potentially causing delays in customer projects or disruptions to business activities.
Key Takeaways for AIR
Recent Achievements: In September 2025, AIR reported its first-quarter of fiscal 2026 adjusted earnings of $1.08 per share, which increased 27.1% year over year, backed by strong profit. The company’s net sales of $739.6 million also registered solid year-over-year growth of 11.8%. Such impressive quarterly results are indicative of the solid demand that AIR’s products enjoy in the broader market.
In the same month, AAR completed the acquisition of American Distributors Holding Company for $146 million. This acquisition expands AAR’s parts distribution business by adding new product lines and strengthening relationships with OEMs. The acquired operations have been integrated into AAR’s Parts Supply segment, further enhancing the company’s ability to serve commercial and government customers.
Financial Stability: As of Aug. 31, 2025, AAR’s cash and cash equivalents (including restricted cash) amounted to $92 million. Its long-term debt totaled $1,022 million at the end of first-quarter fiscal 2026. Its cash and cash equivalents were considerably lower than its long-term debt level. However, its current debt was nil. Hence, we can safely conclude that the stock holds a solid liquidity position, which should help AIR to invest in expanding its manufacturing capacity and meet the growing demand for aircraft parts, at least in the near term.
Challenges to Note: AAR Corp. faces ongoing supply-chain challenges that could impact the timely delivery of its finished products. Delays in obtaining critical raw materials and components may slow production and affect cash flow for its parts and MRO operations.
Additionally, the company is also exposed to workforce constraints, as an aging talent pool and high early-career attrition in the aerospace sector could create skill shortages, potentially affecting manufacturing and operational efficiency.
How do Zacks Estimates Compare for TATT & AIR?
The Zacks Consensus Estimate for TATT’s 2025 sales indicates a surge of 17.3% from the year-ago quarter’s reported figure, while that for its earnings per share also implies a solid improvement of 45%. The stock’s near-term bottom-line estimates have improved over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AIR’s fiscal 2026 sales implies a year-over-year improvement of 5.1%, while that for its earnings per share implies a solid improvement of 15.1%. The stock’s near-term bottom-line estimates have moved north over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: TATT vs. AIR
TATT (up 31%) has outperformed AIR (up 25.5%) over the past three months and has done the same in the past year. Shares of TATT and AIR have surged 118.2% and 32.1%, respectively, in a year.
Image Source: Zacks Investment Research
Valuation of AIR More Attractive Than TATT
AIR is trading at a trailing 12-month Price/Book of 2.50X, below TATT’s trailing 12-month Price/Book of 3.03X.
Image Source: Zacks Investment Research
TATT Less Leveraged Than AIR
TATT has a lower long-term debt-to-capital ratio of 5.86, while AIR’s ratio is 45.00, indicating TATT carries less debt.
Conclusion
The rising global air traffic, expanding fleet and strong demand for MRO and aerospace solutions should continue to support solid growth for service providers like TAT Technologies and AAR Corp.
While both companies report healthy revenue and earnings growth estimates, TAT Technologies’ attractive combination of strong stock performance, lower leverage and solid solvency position makes it a more compelling investment option over AIR. Investors seeking a balance of growth and value in the aerospace sector may find TAT Technologies a better investment choice compared with AIR.
Image: Bigstock
TATT vs. AIR: Which Aerospace Services Stock is the Better Buy in 2025?
Key Takeaways
With the global aerospace services market expanding rapidly, driven by growing air traffic, rising fleet utilization and strong demand in the Maintenance, Repair and Overhaul (MRO) market, service providers like TAT Technologies (TATT - Free Report) and AAR Corp. (AIR - Free Report) stand to benefit immensely. Airlines, cargo operators and defense organizations are investing heavily to ensure fleet readiness and operational efficiency, which is fueling demand for specialized aerospace services.
While TATT brings niche expertise in thermal management systems, APUs and component MRO, AIR leverages its diversified presence across MRO, supply-chain solutions and logistics support. With global maintenance requirements intensifying, both companies are strategically positioned to capture opportunities from this industry uptrend. In this article, we will examine TATT and AIR’s achievements, financial profiles and challenges to determine which stock could be the better investment choice in 2025.
Key Takeaways for TATT
Recent Achievements: In September 2025, the company announced the unification of its business units - TAT Limco, TAT Piedmont and TAT Israel under a single brand, TAT Technologies. The consolidation is aimed at improving customer experience, streamlining communication and enhancing capabilities across thermal solutions, landing gear and APU MRO services while reinforcing the company’s focus on quality and innovation.
In August 2025, TATT secured a $12 million contract to provide MRO services for the GTCP331-500 Auxiliary Power Unit on Boeing 777 aircraft. This agreement should not only expand TATT’s footprint in the APU services market but also reinforce its reputation as a reliable partner for leading commercial airlines.
Financial Stability: TATT ended the second quarter with a cash and cash equivalent of $43 million. Its current debt was $2 million, while its long-term debt totaled $10 million. This indicates that the company maintains a solid solvency position, enabling it to continue investing in advanced aerospace solutions.
Challenges to Note: Despite strong growth potential, TAT Technologies faces several industry-specific risks. Ongoing supply-chain disruptions and rising costs of raw materials could impact the company’s ability to deliver products and services on schedule while maintaining healthy margins. Persistent inflation and higher labor expenses may also put pressure on profitability over time.
Geopolitical risks remain a factor as well, given the company’s operations in Israel. Regional instability could create uncertainties in operations and logistics, potentially causing delays in customer projects or disruptions to business activities.
Key Takeaways for AIR
Recent Achievements: In September 2025, AIR reported its first-quarter of fiscal 2026 adjusted earnings of $1.08 per share, which increased 27.1% year over year, backed by strong profit. The company’s net sales of $739.6 million also registered solid year-over-year growth of 11.8%. Such impressive quarterly results are indicative of the solid demand that AIR’s products enjoy in the broader market.
In the same month, AAR completed the acquisition of American Distributors Holding Company for $146 million. This acquisition expands AAR’s parts distribution business by adding new product lines and strengthening relationships with OEMs. The acquired operations have been integrated into AAR’s Parts Supply segment, further enhancing the company’s ability to serve commercial and government customers.
Financial Stability: As of Aug. 31, 2025, AAR’s cash and cash equivalents (including restricted cash) amounted to $92 million. Its long-term debt totaled $1,022 million at the end of first-quarter fiscal 2026. Its cash and cash equivalents were considerably lower than its long-term debt level. However, its current debt was nil. Hence, we can safely conclude that the stock holds a solid liquidity position, which should help AIR to invest in expanding its manufacturing capacity and meet the growing demand for aircraft parts, at least in the near term.
Challenges to Note: AAR Corp. faces ongoing supply-chain challenges that could impact the timely delivery of its finished products. Delays in obtaining critical raw materials and components may slow production and affect cash flow for its parts and MRO operations.
Additionally, the company is also exposed to workforce constraints, as an aging talent pool and high early-career attrition in the aerospace sector could create skill shortages, potentially affecting manufacturing and operational efficiency.
How do Zacks Estimates Compare for TATT & AIR?
The Zacks Consensus Estimate for TATT’s 2025 sales indicates a surge of 17.3% from the year-ago quarter’s reported figure, while that for its earnings per share also implies a solid improvement of 45%. The stock’s near-term bottom-line estimates have improved over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AIR’s fiscal 2026 sales implies a year-over-year improvement of 5.1%, while that for its earnings per share implies a solid improvement of 15.1%. The stock’s near-term bottom-line estimates have moved north over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: TATT vs. AIR
TATT (up 31%) has outperformed AIR (up 25.5%) over the past three months and has done the same in the past year. Shares of TATT and AIR have surged 118.2% and 32.1%, respectively, in a year.
Image Source: Zacks Investment Research
Valuation of AIR More Attractive Than TATT
AIR is trading at a trailing 12-month Price/Book of 2.50X, below TATT’s trailing 12-month Price/Book of 3.03X.
Image Source: Zacks Investment Research
TATT Less Leveraged Than AIR
TATT has a lower long-term debt-to-capital ratio of 5.86, while AIR’s ratio is 45.00, indicating TATT carries less debt.
Conclusion
The rising global air traffic, expanding fleet and strong demand for MRO and aerospace solutions should continue to support solid growth for service providers like TAT Technologies and AAR Corp.
While both companies report healthy revenue and earnings growth estimates, TAT Technologies’ attractive combination of strong stock performance, lower leverage and solid solvency position makes it a more compelling investment option over AIR. Investors seeking a balance of growth and value in the aerospace sector may find TAT Technologies a better investment choice compared with AIR.
TATT currently sports a Zacks Rank #1 (Strong Buy) at present, while AIR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.