Loar Holdings Inc. · NYSE:LOAR
Loar — Q4 2024 Earnings Presentation
18 slides from Loar's earnings presentation, Mar 31, 2025
Slide 1: Loar Holdings Inc. Q4 & Full Year 2024 Earnings Presentation
Loar Holdings Inc. Q4 & Full Year 2024 Earnings Presentation Proprietary and Confidential 1
Slide 2: Agenda
Agenda • Our Value Drivers, Our Portfolio, Today’s Speakers: and Our Products • Dirkson Charles – CEO and Executive Co-Chairman of the Board of Directors • Q4 Earnings Highlights • Brett Milgrim – Executive Co- Chairman of the Board of Directors • Full Year 2024 Earnings • Glenn D’Alessandro – CFO a
Slide 3: Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information
Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information Forward-Looking Statements This presentation includes express or implied forward-looking statements. Forward-looking statements include all statements that are not historical facts including those that reflect o
Slide 4: Simple Approach to Driving Value…
Simple Approach to Driving Value… Value Drivers Net Sales $403 $318 L $239 Launching New Products $189 $183 $165 $113 $94 $76 $39 $42 O $9 $23 Optimizing Productivity 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 $146 Adj. EBITDA A $113 Achieving Price Above Inflation $83 $63 $61
Slide 5: Margin Expansion
Margin Expansion Loar’s Growth Algorithm Adjusted EBITDA Margin 38.0% 37.5% Secular Growth Industry 37.0% +120bps 36.3% +80bps 36.0% +80bps 35.5% 35.0% 34.7% Winning Profitable New Business 34.0% +250bps 33.0% 32.2% 32.0% +130bps Value-Based Pricing 30.9% 31.0% 30.0% 2020 2021 2022 2023 2024 Guide 2
Slide 6: Our Portfolio
Our Portfolio Loar Group specializes in the design, manufacture, and sale of niche aerospace and defense components that are essential for today’s aircraft and aerospace and defense systems, across 250+ total aircraft platforms. Our business focuses on mission-critical, highly engineered solutions w
Slide 7: Our Disciplined Approach– LMB Fan’s & Motors
Our Disciplined Approach– LMB Fan’s & Motors Niche Markets and/or Strong Proprietary Significant Long-Standing Aerospace & Market Content and/or Aftermarket Cross-Sell Customer Defense Focus Positions Processes Opportunity Opportunity Relationships Proprietary and Confidential 7
Slide 8: Our Products
Our Products Diverse Portfolio Offering With Over 20,000+ Products Offered Mission critical nature of Angle of Attack Flight Control 2 & 3 Point Seat Water Purification Waste Mgmt. products with high monetary Sensors / Systems Computers Lap-belt Airbags Belts Systems Systems Cockpit Door Barrier Win
Slide 9: Results by End Market – Pro Forma
Results by End Market – Pro Forma(1) End Market Drivers Pro Forma(1) Net Sales Total Commercial OEM: Q4 2024 vs • Improving production environment for Commercial End Market Q4 2023 2024 vs. 2023 OEMs Total Commercial +16% +19% Total Commercial Aftermarket: OEM • Strong demand for passenger travel To
Slide 10: Quarterly Financial Results
Quarterly Financial Results Q4 Q4 $thousands 2024 2023 ∆ Net Sales 110,441 86,435 27.8% • Net sales up 14.9% organically • Execution of productivity and pricing initiatives and our fixed Gross Profit 53,962 40,126 34.5% overhead costs supporting higher production and sales levels Margin 48.9% 46.4%
Slide 11: Full Year Financial Results
Full Year Financial Results $thousands 2024 2023 ∆ Net Sales 402,819 317,477 26.9% • Net sales up 15.0% organically Gross Profit 198,825 154,264 28.9% • Execution of productivity and pricing initiatives and our fixed Margin 49.4% 48.6% overhead costs supporting higher production and sales levels Net
Slide 12: Organic Growth Drivers
Organic Growth Drivers Loar’s Growth Algorithm Organic Growth 20.0% Secular Growth Industry 18.0% 17.5% 16.0% 15.0% 13.8% 14.0% 14.0% 12.0% Winning Profitable New Business 10.0% 8.0% 6.0% 4.0% Value-Based Pricing 2.0% 0.0% 2021 2022 2023 2024 Consistently Delivering Mid-teen Organic Growth… New Prod
Slide 13: 2025 Market Assumptions
2025 Market Assumptions Commercial, Business Jet, Commercial, Business Jet, and General Aviation - and General Aviation – Defense OEM Aftermarket High Single-Digit Growth High Single-Digit Growth High Double-Digit* Growth *17% - 20% No Change From Previous Guidance Proprietary and Confidential 13
Slide 14: Full Year 2025 Outlook – Revised
Full Year 2025 Outlook – Revised Previous Revised 2025 Outlook* 2025 Outlook* Issued 2/20/2025 Issued 3/31/2025 $millions except for share count & Earnings Low High Low High $millions except for share count & Earnings Per Share Per Share Net Sales $470 $480 Net Sales $480 $488 Adjusted EBITDA $176 $
Slide 15: Full Year 2025 – Outlook – Assumptions
Full Year 2025 – Outlook – Assumptions Full Year 2025 Outlook Capital Expenditures ~ $14 million Full Year Interest Expense ~ $28 million Full Year Effective Tax Rate ~ 30% Depreciation and Amortization ~ $51 million Non-Cash Stock-Based Compensation ~ $15 million Diluted Share Count ~ 97 million sh
Slide 16: Appendix – Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Appendix – Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (in thousands unless otherwise indicated) 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 5
Slide 17: Appendix – Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
Appendix – Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (in thousands unless otherwise indicated) Year Ended Year Ended Twelve Oct. 2, 2017, Jan. 1, 2017, December December December December December December December Months through December December December December December t
Slide 18: Appendix – Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
Appendix – Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (1) For the period January 1, 2017, through October 1, 2017 (“Predecessor Period”), the Company is referred to as the “Predecessor.” For the period October 2, 2017, through December 31, 2017 (“Successor Period”), the Compan