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Loar Holdings Inc. Reports Q4 2024 and Full Year 2024 Results and Upward Revision to 2025 Guidance

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Loar Holdings Inc. (NYSE:LOAR) reported strong Q4 and full-year 2024 results, with significant improvements across key metrics. Q4 2024 saw net sales rise 27.8% to $110.4 million, with net income reaching $3.7 million and Adjusted EBITDA up 37.4% to $40.2 million.

For full-year 2024, net sales increased 26.9% to $402.8 million, with net income of $22.2 million, up $26.8 million from prior year. The company achieved 15.0% organic growth, marking its third consecutive year of mid-teen organic growth.

Loar has revised its 2025 guidance upward, projecting net sales between $480-488 million, net income of $58-63 million, and Adjusted EBITDA of $180-184 million. The outlook is supported by strong demand across end-markets and progress in productivity initiatives.

Loar Holdings Inc. (NYSE:LOAR) ha riportato risultati solidi per il Q4 e l'intero anno 2024, con miglioramenti significativi in tutti i principali indicatori. Nel Q4 2024, le vendite nette sono aumentate del 27,8% a 110,4 milioni di dollari, con un reddito netto di 3,7 milioni di dollari e un EBITDA rettificato in crescita del 37,4% a 40,2 milioni di dollari.

Per l'anno intero 2024, le vendite nette sono aumentate del 26,9% a 402,8 milioni di dollari, con un reddito netto di 22,2 milioni di dollari, in aumento di 26,8 milioni rispetto all'anno precedente. L'azienda ha registrato una crescita organica del 15,0%, segnando il terzo anno consecutivo di crescita organica a due cifre.

Loar ha rivisto al rialzo le sue previsioni per il 2025, prevedendo vendite nette comprese tra 480 e 488 milioni di dollari, un reddito netto di 58-63 milioni di dollari e un EBITDA rettificato di 180-184 milioni di dollari. Le prospettive sono supportate da una forte domanda nei mercati finali e dai progressi nelle iniziative di produttività.

Loar Holdings Inc. (NYSE:LOAR) reportó resultados sólidos para el Q4 y el año completo 2024, con mejoras significativas en todos los principales indicadores. En el Q4 2024, las ventas netas aumentaron un 27.8% a 110.4 millones de dólares, con un ingreso neto de 3.7 millones de dólares y un EBITDA ajustado que creció un 37.4% a 40.2 millones de dólares.

Para el año completo 2024, las ventas netas aumentaron un 26.9% a 402.8 millones de dólares, con un ingreso neto de 22.2 millones de dólares, un incremento de 26.8 millones respecto al año anterior. La compañía logró un crecimiento orgánico del 15.0%, marcando su tercer año consecutivo de crecimiento orgánico en cifras medias.

Loar ha ajustado al alza su guía para 2025, proyectando ventas netas entre 480 y 488 millones de dólares, un ingreso neto de 58-63 millones de dólares y un EBITDA ajustado de 180-184 millones de dólares. Las perspectivas están respaldadas por una fuerte demanda en los mercados finales y avances en iniciativas de productividad.

로아 홀딩스 주식회사 (NYSE:LOAR)는 2024년 4분기 및 연간 실적을 발표하며 주요 지표에서 상당한 개선을 보였습니다. 2024년 4분기에는 순매출이 27.8% 증가하여 1억 1,040만 달러에 달했으며, 순이익은 370만 달러, 조정 EBITDA는 37.4% 증가하여 4,020만 달러에 도달했습니다.

2024년 전체로는 순매출이 26.9% 증가하여 4억 2,800만 달러에 이르렀고, 순이익은 2,220만 달러로 전년 대비 2,680만 달러 증가했습니다. 회사는 15.0%의 유기적 성장을 달성하였으며, 이는 중간 수준의 유기적 성장이 3년 연속 이어진 것입니다.

로아는 2025년 가이드를 상향 조정했습니다, 순매출을 4억 8천만에서 4억 8천 8백만 달러로, 순이익을 5천 8백만에서 6천 3백만 달러로, 조정 EBITDA를 1억 8천만에서 1억 8천 4백만 달러로 예상하고 있습니다. 이러한 전망은 최종 시장에서의 강한 수요와 생산성 이니셔티브의 진전을 바탕으로 하고 있습니다.

Loar Holdings Inc. (NYSE:LOAR) a annoncé des résultats solides pour le 4ème trimestre et l'année complète 2024, avec des améliorations significatives dans tous les principaux indicateurs. Au 4ème trimestre 2024, les ventes nettes ont augmenté de 27,8 % pour atteindre 110,4 millions de dollars, avec un bénéfice net de 3,7 millions de dollars et un EBITDA ajusté en hausse de 37,4 % à 40,2 millions de dollars.

Pour l'année complète 2024, les ventes nettes ont augmenté de 26,9 % pour atteindre 402,8 millions de dollars, avec un bénéfice net de 22,2 millions de dollars, en hausse de 26,8 millions par rapport à l'année précédente. L'entreprise a réalisé une croissance organique de 15,0 %, marquant sa troisième année consécutive de croissance organique à deux chiffres.

Loar a révisé à la hausse ses prévisions pour 2025, projetant des ventes nettes entre 480 et 488 millions de dollars, un bénéfice net de 58 à 63 millions de dollars et un EBITDA ajusté de 180 à 184 millions de dollars. Les perspectives sont soutenues par une forte demande sur les marchés finaux et des progrès dans les initiatives de productivité.

Loar Holdings Inc. (NYSE:LOAR) hat starke Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 gemeldet, mit erheblichen Verbesserungen in allen wichtigen Kennzahlen. Im 4. Quartal 2024 stiegen die Nettoumsätze um 27,8% auf 110,4 Millionen Dollar, während der Nettogewinn 3,7 Millionen Dollar erreichte und das bereinigte EBITDA um 37,4% auf 40,2 Millionen Dollar anstieg.

Für das gesamte Jahr 2024 stiegen die Nettoumsätze um 26,9% auf 402,8 Millionen Dollar, mit einem Nettogewinn von 22,2 Millionen Dollar, was einem Anstieg von 26,8 Millionen Dollar im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte ein organisches Wachstum von 15,0%, was das dritte aufeinanderfolgende Jahr mit organischem Wachstum im mittleren zweistelligen Bereich markiert.

Loar hat seine Prognose für 2025 nach oben korrigiert und erwartet Nettoumsätze zwischen 480 und 488 Millionen Dollar, einen Nettogewinn von 58-63 Millionen Dollar und ein bereinigtes EBITDA von 180-184 Millionen Dollar. Die Aussichten werden durch eine starke Nachfrage in den Endmärkten und Fortschritte bei den Produktivitätsinitiativen unterstützt.

Positive
  • Record Q4 net sales up 27.8% to $110.4M
  • Full-year net income improved by $26.8M to $22.2M
  • Q4 Adjusted EBITDA margin increased to 36.4% from 33.8%
  • Third consecutive year of mid-teen organic growth (15.0%)
  • Upward revision of 2025 guidance across all metrics
Negative
  • Higher infrastructure costs due to being a public company
  • Significant interest expense expected ($28M for 2025)

Insights

Loar Holdings has delivered exceptional financial performance in both Q4 and full-year 2024, demonstrating strong momentum across all key metrics. The company's net sales increased by 26.9% for the full year, reaching $402.8 million, with an impressive 15.0% organic growth rate - marking their third consecutive year of mid-teen organic growth.

The most striking aspect of these results is Loar's dramatic profitability improvement. The company has successfully transitioned from a net loss of $4.6 million in 2023 to a net income of $22.2 million in 2024 - a $26.8 million positive swing. Their Adjusted EBITDA growth of 29.8% outpaced revenue growth, indicating enhanced operational efficiency and expanding margins.

Equally encouraging is management's upward revision to 2025 guidance across all metrics. The projected 12% net income margin for 2025 represents a substantial improvement from the 5.5% achieved in 2024, suggesting significant operating leverage in their business model. This higher guidance appears well-supported by their continued execution on productivity and pricing initiatives.

The pending LMB acquisition (not reflected in the guidance) creates additional potential upside. With $58-63 million in net income projected for 2025, substantial cash flow should be available for both acquisition integration and debt servicing on their $28 million interest expense.

Their market assumptions for 2025 appear reasonable given current aerospace demand trends, with the high double-digit growth projected for their defense segment particularly promising amid increasing global defense spending.

Loar's strong performance reflects the broader recovery and growth trends in the aerospace sector, but their results are outpacing general industry metrics. Their 15% organic growth demonstrates effective positioning across key market segments and successful execution in capturing market share.

What's particularly notable is their diversified exposure across commercial, business aviation, and defense markets. This balanced portfolio is proving advantageous as different aerospace segments experience varying growth trajectories. The company's forecast of high double-digit growth in their defense segment for 2025 is especially significant given increasing defense budgets globally and the current geopolitical climate.

The expansion of EBITDA margins to 36.3% is exceptional for the aerospace supply chain sector, where many competitors operate in the 15-25% range. This suggests Loar has established strong positioning in high-value components and systems where they face competition and can command premium pricing.

The aerospace aftermarket growth expectation is particularly positive as this segment typically delivers higher margins than OEM production. With commercial aviation traffic now exceeding pre-pandemic levels and aging fleets requiring increased maintenance, Loar's aftermarket exposure positions them for continued growth.

While the results don't detail specific product lines driving growth, the magnitude of margin improvement suggests successful execution on both the revenue and cost sides. Their ability to implement pricing initiatives without apparent customer pushback indicates they're manufacturing highly engineered, mission-critical components where price sensitivity is lower than commodity aerospace parts.

WHITE PLAINS, NY / ACCESS Newswire / March 31, 2025 / Loar Holdings Inc. (NYSE:LOAR) (the "Company," "Loar," "we," "us" and "our"), reported record results for the fourth quarter and full year of 2024.

Fourth Quarter 2024

  • Net sales of $110.4 million, up 27.8% compared to the prior year's quarter.

  • Net income of $3.7 million, up $4.3 million compared to the prior year's quarter.

  • Diluted earnings per share of $0.04.

  • Adjusted EBITDA of $40.2 million, up 37.4% compared to the prior year's quarter.

  • Net income margin for the quarter improved to 3.3% from the prior year's quarter net loss margin of 0.7%.

  • Adjusted EBITDA Margin for the quarter was 36.4% compared to 33.8% for the prior year's quarter.

  • Adjusted Earnings Per Share of $0.11.

Full Year 2024

  • Net sales of $402.8 million, up 26.9% compared to the prior year.

  • Net income of $22.2 million, up $26.8 million compared to the prior year.

  • Diluted earnings per share of $0.24.

  • Adjusted EBITDA of $146.3 million, up 29.8% compared to the prior year.

  • Net income margin for the year improved to 5.5% from the prior year's net loss margin of 1.4%.

  • Adjusted EBITDA Margin for the year was 36.3% compared to 35.5% for the prior year.

  • Adjusted Earnings Per Share of $0.42.

"We capped off the year with record net sales and Adjusted EBITDA for both the fourth quarter and full year," stated Dirkson Charles, Loar CEO and Executive Co-Chairman of the Board of Directors. "For the year we delivered 15.0% organic growth, which makes 2024 our third consecutive year of mid-teen organic growth."

Loar reported net sales for the quarter of $110.4 million, an increase of $24.0 million or 27.8% over the prior year's quarter. Organically(1), net sales increased 14.9% or $12.9 million, to $99.3 million.

Net income for the quarter increased $4.3 million to $3.7 million from a net loss of $0.6 million in the comparable quarter a year ago. The increase in net income for the quarter was primarily driven by an increase in operating income and lower taxes.

Adjusted EBITDA for the quarter was $40.2 million, an increase of 37.4% or $10.9 million compared to the prior year's quarter. Adjusted EBITDA as a percentage of net sales was 36.4%, compared to 33.8% in the fourth quarter of the prior year. The increase in Adjusted EBITDA as a percentage of net sales was due to the execution of productivity and pricing initiatives, the effect of our fixed overhead costs supporting higher production and sales levels, partially offset by higher infrastructure costs of being a public company.

Full Year

Net sales for the full year ended December 31, 2024, were $402.8 million, an increase of $85.3 million or 26.9% over the prior year. Organically(1), net sales increased 15.0% or $47.4 million, to $364.9 million.

Net income for the year increased $26.8 million to $22.2 million from a net loss of $4.6 million in the prior year.

Adjusted EBITDA for the full year was $146.3 million, an increase of 29.8% or $33.6 million over the prior year. Adjusted EBITDA as a percentage of net sales was 36.3%, compared to 35.5% for the prior year.

Please see the attached Table 4 for a reconciliation of net income (loss) to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin and the attached Table 6 for a reconciliation of earnings per share to Adjusted Earnings Per Share for the periods discussed in this press release.

(1)

Net organic sales represent net sales from our existing businesses for comparable periods and exclude net sales from acquisitions. We include net sales from new acquisitions in net organic sales from the 13th month after the acquisition on a comparative basis with the prior period.

Full Year 2025 Outlook - Revised*

"Looking out over the year we continue to see strong demand across our end-markets, in addition to solid progress being made against our key productivity and value pricing initiatives. As a result, we are revising our guidance upward to align with our current view," stated Mr. Charles.

  • Net sales - between $480 million and $488 million up from between $470 million and $480 million.

  • Net income - between $58.0 million and $63.0 million up from between $55 million and $60 million.

  • Adjusted EBITDA - between $180 million and $184 million up from between $176 million and $180 million.

  • Diluted Earnings per share - between $0.60 and $0.65 up from between $0.57 and $0.62.

  • Net income margin - approximately 12%.

  • Adjusted Earnings Per Share -between $0.70 and $0.75 up from between $0.67 and $0.72.

  • Adjusted EBITDA Margin - approximately 37.5%.

  • Interest expense - approximately $28 million.

  • Market Assumptions - Full year outlook is based on the following assumptions:

    • Commercial, Business Jet, and General Aviation OEM growth of high single-digits.

    • Commercial, Business Jet, and General Aviation aftermarket growth of high single-digits.

    • Defense growth of high double-digits.

*Full Year 2025 Outlook - Revised does not include the impact of the pending LMB acquisition.

Adjusted EBITDA, Adjusted Earnings Per Share and Adjusted EBITDA Margin are non-GAAP financial measures provided in the "Full Year 2025 Outlook - Revised*" section on a forward-looking basis. The Company does not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with GAAP because to do so would be potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.

Earnings Conference Call

A conference call will be held at 10:30 a.m., Eastern Time on March 31, 2025. To participate in the call telephonically please dial +1 877-407-0670 / +1 215-268-9902. International participants can find a list of toll-free numbers here. A live audio webcast will also be available at the following link as well as through the Investor section of Loar Holdings website; https://ir.loargroup.com.

The webcast will be archived and available for replay later in the day.

About Loar Holdings Inc.

Loar Holdings Inc. is a diversified manufacturer and supplier of niche aerospace and defense components that are essential for today's aircraft and aerospace and defense systems. Loar has established relationships across leading aerospace and defense original equipment manufacturers and Tier Ones worldwide.

Non-GAAP Supplemental Information

We present in this press release certain financial information based on our EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share. References to "EBITDA" mean earnings before interest, taxes, depreciation and amortization, references to "Adjusted EBITDA" mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income (loss) to EBITDA and Adjusted EBITDA, and references to "Adjusted EBITDA Margin" refer to Adjusted EBITDA divided by net sales. References to "Adjusted Earnings Per Share" mean net income plus certain adjustments as set forth in the reconciliations below to derive Adjusted EBITDA from EBITDA, less the tax effect of these adjustments. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share are not measurements of financial performance under U.S. GAAP. We present EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share because we believe they are useful indicators for evaluating operating performance. In addition, our management uses Adjusted EBITDA to review and assess the performance of the management team in connection with employee incentive programs and to prepare its annual budget and financial projections. Moreover, our management uses Adjusted EBITDA of target companies to evaluate acquisitions.

Although we use EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share as measures to assess the performance of our business and for the other purposes set forth above, the use of non-GAAP financial measures as analytical tools has limitations, and you should not consider any of them in isolation, or as a substitute for analysis of our results of operations as reported in accordance with U.S. GAAP. Some of these limitations are:

  • EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin do not reflect the significant interest expense, or the cash requirements necessary to service interest payments on our indebtedness.

  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and the cash requirements for such replacements are not reflected in EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin.

  • EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share exclude the cash expense we have incurred to integrate acquired businesses into our operations, which is a necessary element of certain of our acquisitions.

  • The omission of the substantial amortization expense associated with our intangible assets further limits the usefulness of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin.

  • EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin do not include the payment of taxes, which is a necessary element of our operations.

Because of these limitations, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share should not be considered as measures of cash available to us to invest in the growth of our business. Management compensates for these limitations by not viewing EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share in isolation and specifically by using other U.S. GAAP measures, such as net sales and operating profit, to measure our operating performance. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share are not measurements of financial performance under U.S. GAAP, and they should not be considered as alternatives to net income (loss) or cash flow from operations determined in accordance with U.S. GAAP. Our calculations of EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share may not be comparable to the calculations of similarly titled measures reported by other companies.

Future Looking Statements

This press release includes express or implied forward-looking statements. Forward-looking statements include all statements that are not historical facts including those that reflect our current views with respect to, among other things, our operations and financial performance. The words "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "seek," "foreseeable," the negative version of these words or similar terms and phrases may identify forward-looking statements in this press release, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this press release, including, but not limited to, the statements under the heading "Full Year 2025 Outlook - Revised*" is based on management's current expectations and are not guarantees of future performance. Our expectations and beliefs are expressed in management's good faith, and we believe there is a reasonable basis for them, however, the forward-looking statements are subject to various known and unknown risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to the following: the almost exclusive focus of our business on the aerospace and defense industry; our heavy reliance on certain customers for a significant portion of our sales; our ability to timely close on the LMB acquisition; the fact that we have in the past consummated acquisitions and our intention to continue to pursue acquisitions, and that our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired operations; and the other risks and uncertainties described under "Risk Factors" of the Company's prospectus dated December 10, 2024 filed with the Securities and Exchange Commission ("SEC") on December 12, 2024, as well as the Company's Annual Report on Form 10-K that will be filed following this earnings release, and other periodic reports filed by the Company from time to time with the SEC.

These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in the forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date of this press release and is expressly qualified in its entirety by the cautionary statements included in this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable law.

Contact

Ian McKillop
Loar Holdings Inc. Investor Relations
IR@loargroup.com

Loar Holdings Inc.
Table 1: - Consolidated Balance Sheets
(in thousands, except share amounts)

December 31, 2024

December 31, 2023

Assets

Current assets:

Cash and cash equivalents

$

54,066

$

21,489

Accounts receivable, net

63,834

59,002

Inventories

92,639

77,962

Other current assets

9,499

11,830

Income taxes receivable

632

393

Total current assets

220,670

170,676

Property, plant and equipment, net

76,605

72,174

Finance lease assets

2,171

2,448

Operating lease assets

5,584

6,297

Other long-term assets

17,389

11,420

Intangible assets, net

434,662

316,542

Goodwill

693,537

470,888

Total assets

$

1,450,618

$

1,050,445

Liabilities and equity

Current liabilities:

Accounts payable

$

12,086

$

12,876

Current portion of long-term debt, net

-

6,896

Current portion of finance lease liabilities

232

190

Current portion of operating lease liabilities

603

609

Income taxes payable

1,984

6,133

Accrued expenses and other current liabilities

26,901

24,776

Total current liabilities

41,806

51,480

Deferred income taxes

32,892

36,785

Long-term debt, net

277,293

528,582

Finance lease liabilities

3,170

3,401

Operating lease liabilities

5,136

5,802

Environmental liabilities

-

1,145

Other long-term liabilities

1,816

5,109

Total liabilities

362,113

632,304

Commitments and contingencies

Equity:

Preferred stock, $0.01 par value, 1,000,000 shares authorized, and no shares issued or outstanding

-

-

Common stock, $0.01 par value, 485,000,000 shares authorized; 93,556,071 issued and outstanding at December 31, 2024

936

-

Additional paid-in capital

1,108,225

-

Accumulated deficit

(20,560

)

-

Accumulated other comprehensive loss

(96

)

-

Member's equity

-

418,141

Total equity

1,088,505

418,141

Total liabilities and equity

$

1,450,618

$

1,050,445

Loar Holdings Inc.
Table 2: Consolidated Statements of Operations
(in thousands, except per common share and per common unit amounts)

Three Months Ended December 31,

Years Ended December 31,

2024

2023

2024

2023

Net sales

$

110,441

$

86,435

$

402,819

$

317,477

Cost of sales

56,479

46,309

203,994

163,213

Gross profit

53,962

40,126

198,825

154,264

Selling, general and administrative expenses

31,893

21,931

112,255

82,141

Transaction expenses

841

768

3,390

3,394

Other income

11

279

4,452

762

Operating income

21,239

17,706

87,632

69,491

Interest expense, net

13,780

17,929

52,112

67,054

Refinancing costs

4,814

-

6,459

-

Income before income taxes

2,645

(223

)

29,061

2,437

Income tax benefit (provision)

1,040

(350

)

(6,830

)

(7,052

)

Net income (loss)

$

3,685

$

(573

)

$

22,231

$

(4,615

)

Net income per common share:

Basic

$

0.04

n/a

$

0.25

n/a

Diluted

$

0.04

n/a

$

0.24

n/a

Weighted average common shares outstanding:

Basic

90,541

n/a

89,366

n/a

Diluted

93,242

n/a

91,684

n/a

Net loss per common unit - basic and diluted

n/a

$

(2,820.64

)

n/a

$

(22,620.18

)

Weighted average common units outstanding
- basic and diluted

n/a

204

n/a

204

Loar Holdings Inc.
Table 3: - Consolidated Statements of Cash Flows
(in thousands)

Years Ended December 31,

2024

2023

Operating activities

Net income (loss)

$

22,231

$

(4,615

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation

11,244

9,938

Amortization of intangible and other long-term assets

31,826

28,086

Amortization of debt issuance costs

1,344

2,583

Recognition of inventory step-up

1,102

603

Stock-based compensation

11,103

372

Deferred income taxes

(1,552

)

(3,757

)

Non-cash lease expense

553

871

Refinancing costs

6,459

-

Adjustment to contingent consideration liability

(2,861

)

-

Changes in assets and liabilities, net of acquisitions:

Accounts receivable

(2,105

)

(13,734

)

Inventories

(12,051

)

(11,171

)

Other assets

(3,367

)

(1,848

)

Accounts payable

(1,238

)

808

Income taxes payable

(4,046

)

4,507

Accrued expenses and other current liabilities

(2,083

)

1,053

Environmental liabilities

(1,078

)

(80

)

Operating lease liabilities

(510

)

(803

)

Net cash provided by operating activities

54,971

12,813

Investing activities

Capital expenditures

(8,871

)

(12,134

)

Payment for acquisitions, net of cash acquired

(383,260

)

(60,423

)

Net cash used in investing activities

(392,131

)

(72,557

)

Financing activities

Net proceeds from issuance of common stock

636,969

-

Proceeds from issuance of long-term debt

360,000

53,000

Payments of long-term debt

(617,881

)

(6,070

)

Financing costs and other, net

(8,876

)

(1,060

)

Payments of finance lease liabilities

(190

)

(153

)

Net cash provided by financing activities

370,022

45,717

Effect of translation adjustments on cash and cash equivalents

(285

)

19

Net increase (decrease) in cash, cash equivalents and restricted cash

32,577

(14,008

)

Cash, cash equivalents and restricted cash, beginning of period

21,489

35,497

Cash, cash equivalents and restricted cash, end of period

$

54,066

$

21,489

Supplemental information

Interest paid during the period, net of capitalized amounts

$

52,049

$

64,214

Income taxes paid during the period, net

$

12,567

$

5,044

Loar Holdings Inc.
Table 4: Reconciliation of Net income (Loss) to EBITDA and Adjusted EBITDA
(Unaudited, in thousands)

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

Net income (loss)

$

3,685

$

(573

)

$

22,231

$

(4,615

)

Adjustments:

Interest expense, net

13,780

17,929

52,112

67,054

Refinancing costs

4,814

-

6,459

-

Income tax provision

(1,040

)

350

6,830

7,052

Operating income

21,239

17,706

87,632

69,491

Depreciation

3,061

2,641

11,244

9,938

Amortization

9,577

7,217

31,826

28,086

EBITDA

33,877

27,564

130,702

107,515

Adjustments:

Recognition of inventory step-up (1)

826

402

1,102

603

Other income (2)

(11

)

(279

)

(4,452

)

(762

)

Transaction expenses (3)

841

767

3,390

3,394

Stock-based compensation (4)

3,535

94

11,103

372

Acquisition and facility integration costs (5)

1,110

704

4,491

1,621

Adjusted EBITDA

$

40,178

29,252

$

146,336

$

112,743

Net sales

$

110,441

86,435

$

402,819

$

317,477

Net income (loss) margin

3.3

%

(0.7

)%

5.5

%

(1.4

)%

Adjusted EBITDA Margin

36.4

%

33.8

%

36.3

%

35.5

%

  1. Represents accounting adjustments to inventory associated with acquisitions of businesses that were charged to cost of sales when inventory was sold.

  2. Represents a $2.9 million reduction in the estimated contingent purchase price for the CAV acquisition and $1.7 million of proceeds from the settlement of buyer-side representations and warranties insurance covering the acquisition of DAC during the year ended December 31, 2024 and in 2023 represents a grant from the U.S. Department of Transportation under the Aviation Manufacturing Jobs Protection Program.

  3. Represents third party transaction-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses, and valuation costs that are required to be expensed as incurred.

  4. Represents the non-cash compensation expense recognized by the Company for equity awards.

  5. Represents costs incurred to integrate acquired businesses and product lines into our operations, facility relocation costs and other acquisition-related costs.

Loar Holdings Inc.
Table 5: Sales by End-Market
(Unaudited, in thousands)

Years Ended December 31,

2024

2023

OEM
Net Sales

Aftermarket
Net Sales

Total
Net Sales

OEM
Net Sales

Aftermarket
Net Sales

Total
Net Sales

Commercial Aerospace

$

65,011

$

109,305

$

174,316

$

54,726

$

89,204

$

143,930

Business Jet & General Aviation

70,098

39,106

109,204

47,016

29,028

76,044

Total Commercial

135,109

148,411

283,520

101,742

118,232

219,974

Defense

38,316

50,632

88,948

30,399

28,839

59,238

Other

13,996

16,355

30,351

21,045

17,220

38,265

Total

$

187,421

$

215,398

$

402,819

$

153,186

$

164,291

$

317,477

Three Months Ended December 31,

2024

2023

OEM
Net Sales

Aftermarket
Net Sales

Total
Net Sales

OEM
Net Sales

Aftermarket
Net Sales

Total
Net Sales

Commercial Aerospace

$

18,695

$

28,204

$

46,899

$

14,239

$

22,188

$

36,427

Business Jet & General Aviation

16,542

9,853

26,395

15,625

8,512

24,137

Total Commercial

35,237

38,057

73,294

29,864

30,700

60,564

Defense

11,523

17,951

29,474

7,853

7,783

15,636

Other

3,269

4,404

7,673

5,722

4,513

10,235

Total

$

50,029

$

60,412

$

110,441

$

43,439

$

42,996

$

86,435

Loar Holdings Inc.
Table 6: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
(Unaudited, in thousands except per share amounts)

Three Months Ended December 31, 2024

Year Ended December 31, 2024

Reported earnings per share

Net income

$

3,685

$

22,231

Denominator for basic and diluted earnings per common share:

Weighted-average common shares outstanding-basic

90,541

89,366

Effect of dilutive common shares

2,701

2,318

Weighted average common shares outstanding-diluted

93,242

91,684

Net income per common shares-basic

$

0.04

$

0.25

Net income per common shares-diluted

$

0.04

$

0.24

Adjusted Earnings Per Share

Net income

$

3,685

$

22,231

Refinancing costs

4,814

6,459

Gross adjustments to EBITDA

6,301

15,634

Tax adjustment (1)

(4,976

)

(5,856

)

Adjusted net income

$

9,824

$

38,468

Adjusted Earnings Per Share-diluted

$

0.11

$

0.42

Diluted earnings per share to Adjusted Earnings Per Share

Net income per common share-diluted

$

0.04

$

0.24

Adjustments to diluted earnings per share:

Refinancing costs

0.05

0.07

Other income

-

(0.05

)

Recognition of inventory step-up

0.01

0.01

Transaction expenses

0.01

0.04

Stock-based compensation

0.04

0.12

Acquisition and facility integration costs

0.01

0.05

Tax adjustment (1)

(0.05

)

(0.06

)

Adjusted Earnings Per Share-diluted

$

0.11

$

0.42

  1. The tax adjustment represents the tax effect of the adjustments at the applicable effective tax rate. To determine the applicable effective tax rate, refinancing costs, other income, transaction expenses, stock-based compensation, and acquisition and facility integration costs are excluded from adjusted net income and therefore we have excluded the impact those items have on the effective tax rate.

SOURCE: Loar Group Inc.



View the original press release on ACCESS Newswire

FAQ

What were Loar Holdings (LOAR) key financial results for Q4 2024?

In Q4 2024, LOAR reported net sales of $110.4M (+27.8% YoY), net income of $3.7M, and Adjusted EBITDA of $40.2M (+37.4% YoY).

How much organic growth did LOAR achieve in 2024?

LOAR achieved 15.0% organic growth in 2024, marking its third consecutive year of mid-teen organic growth.

What is LOAR's revised net sales guidance for 2025?

LOAR revised its 2025 net sales guidance upward to $480-488 million from the previous $470-480 million range.

What is LOAR's projected net income margin for 2025?

LOAR projects approximately 12% net income margin for 2025.

What are LOAR's market growth assumptions for 2025?

LOAR expects high single-digit growth in Commercial, Business Jet, and General Aviation sectors, and high double-digit growth in Defense.
Loar Holdings Inc.

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