Loar Holdings Inc. Reports Q1 2025 Record Results and Upward Revision to 2025 Outlook

About this update from Loar Holdings Inc.

WHITE PLAINS, NY / ACCESS Newswire / May 13, 2025 / Loar Holdings Inc. (NYSE:LOAR) (the "Company," "Loar," "we," "us" and "our"), reported record results for the first quarter of 2025. First Quarter 2025 "We began 2025 with excellent momentum from strong demand across our end-markets," stated Dirkson Charles, Loar CEO and Executive Co-Chairman of the Board of Directors. "In the quarter, sales to our Original Equipment, Commercial Aftermarket and Defense markets were all records for any quarter in Loar's history. In addition, Adjusted EBITDA reached a record $43.1 million, marking our 11 th consecutive quarter of Adjusted EBITDA growth. This strong start and continued execution of our value drivers is setting us up well for an outstanding year." Loar reported net sales for the quarter of $114.7 million, an increase of $22.8 million or 24.8% over the prior year's quarter. Organically (1) net sales increased 11.1% or $10.2 million, to $102.0 million. Net income for the quarter increased $13.1 million to $15.3 million from a net income of $2.2 million in the comparable quarter a year ago. The increase in net income for the quarter was primarily driven by lower interest and an increase in operating income, partially offset by a higher tax provision. Adjusted EBITDA for the quarter was $43.1 million, an increase of 30.6% or $10.1 million compared to the prior year's quarter. Adjusted EBITDA as a percentage of net sales was 37.6%, compared to 36.0% in the first quarter of the prior year. The increase in Adjusted EBITDA as a percentage of net sales was due to the execution of our strategic value drivers and the accretive impact of increased sales of higher margin products, partially offset by higher infrastructure costs of being a public company. Full Year 2025 Outlook - Revised* "Strong demand and operational execution in the first quarter resulted in operating cash flow of $28.4 million. Operating cash flow net of capital expenditures of $1.8 million, which is less than 2% of sales, highlights the cash generation capabilities of our portfolio," stated Glenn D'Alessandro, Loar Treasurer and CFO. "As we look to the balance of the year, we expect the current demand environment to continue and have revised our guidance upward as a result." * 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 May 13, 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 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: 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 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 in Part I, Item 1A of the Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 31, 2025, 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 [email protected] Loar Holdings Inc. Table 1: - Condensed Consolidated Balance Sheets (Unaudited, amounts in thousands except share amounts) Loar Holdings Inc. Table 2: Condensed Consolidated Statements of Operations (Unaudited, amounts in thousands except per common share and per common unit amounts) Loar Holdings Inc. Table 3: - Condensed Consolidated Statements of Cash Flows (Unaudited, amounts in thousands) Loar Holdings Inc. Table 4: Reconciliation of Net income to EBITDA and Adjusted EBITDA (Unaudited, amounts in thousands) Loar Holdings Inc. Table 5: Sales by End-Market (Unaudited, amounts in thousands) Loar Holdings Inc. Table 6: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share (Unaudited, amounts in thousands except per share amounts) SOURCE: Loar Group Inc. View the original press release on ACCESS Newswire

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