Loar Holdings Inc. Reports Q2 2025 Record Results and Upward Revision to 2025 Outlook and Announces the Acquisition of Beadlight Ltd.

About this update from Loar Holdings Inc.

WHITE PLAINS, NY / ACCESS Newswire / August 13, 2025 / Loar Holdings Inc. (NYSE:LOAR) (the "Company," "Loar," "we," "us" and "our"), reports record results for the second quarter of 2025, upward revision to 2025 guidance, and announces the acquisition of Beadlight Ltd. ("Beadlight"). "Strong execution of our value drivers, combined with the rich proprietary content of our diversified portfolio of capabilities aligned perfectly to achieve these record results in the second quarter," stated Dirkson Charles, Loar CEO and Executive Co-Chairman of the Board of Directors. "Each of our end markets experienced record sales, with Commercial OEM being up 18%, Commercial Aftermarket up 29%, and Defense growing 51% as compared to the second quarter of 2024. In addition, I am excited to welcome the team at Beadlight Ltd. to Loar. Beadlight is our 18th completed acquisition since inception in 2012." Second Quarter 2025 Loar reported net sales for the quarter of $123.1 million, an increase of $26.1 million or 26.9% over the prior year's quarter. Organically (1) , net sales increased 11.3% or $11.0 million, to $108.0 million. Net income for the quarter increased $9.1 million to $16.7 million from a net income of $7.6 million in the comparable quarter a year ago. The increase in net income for the quarter was primarily driven by lower interest expense and an increase in operating income, partially offset by a higher tax provision. Adjusted EBITDA for the quarter was $47.1 million, an increase of 34.5% or $12.1 million compared to the prior year's quarter. Adjusted EBITDA as a percentage of net sales was 38.3%, compared to 36.1% in the second quarter of the prior year. The increase in Adjusted EBITDA as a percentage of net sales was due to the continued execution of our strategic value drivers and accretive impact of increased sales of higher margin products, partially offset by additional costs associated with being a public company, including Sarbanes-Oxley Act compliance and additional organizational costs. Year-to-Date "Execution of our strategic value drivers has delivered 200 basis points of Adjusted EBITDA Margin expansion for the six months ended June 30, 2025, as compared to the same period a year ago." stated Glenn D'Alessandro, Loar Treasurer and CFO. "This execution allows us to improve our Adjusted EBITDA Margin guidance for 2025 to approximately 38%." Net sales for the first six months ended June 30, 2025, were $237.8 million, an increase of $48.9 million or 25.9% over the comparable period of the prior year. Organically (1) , net sales increased 11.2% or $21.2 million, to $210.1 million. Net income year-to-date increased $22.1 million to $32.0 million from a net income of $9.9 million for the comparable period a year ago. Adjusted EBITDA for the first six months of 2025 was $90.3 million, an increase of 32.6% or $22.2 million over the comparable period a year ago. Adjusted EBITDA as a percentage of net sales was 38.0%, compared to 36.0% for the first six months of the prior year. Please see the attached Table 4 for a reconciliation of net income to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin 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. Beadlight Ltd. Acquisition On July 28, 2025, we completed the acquisition of Beadlight Ltd. For over 25 years Beadlight has designed, developed, and manufactured illumination solutions, air filtration systems, and human-machine interface products from its facility in Witney, England. Boasting the first ever LED reading light for a commercial airliner, Beadlight is known industry wide for its ability to deliver bespoke lighting solutions for the premium cabin. Through its "Beadlight diffusion," Beadlight, enhances the passenger experience by providing unique light spread, color temperature and positioning. Nearly all Beadlight's revenue is derived from its portfolio of proprietary products which are primarily delivered into the commercial aerospace end market. In recognition of its success, Beadlight was awarded the King's Award for Enterprise in 2025. "Beadlight represents a great fit for Loar strategically. With its niche capabilities, approximately half of its revenues derived from the aftermarket, and proprietary offering, we are excited to incorporate Beadlight into the broader Loar family, accelerating our collective growth," stated Mr. Charles. Credit Agreement Amendment On August 1, 2025, we amended our credit agreement pursuant to which the interest rate was reduced by 50 basis points. At our election, interest on loans will accrue at the Secured Overnight Financing Rate (SOFR) plus the applicable margin of 4.25% as long as the Company maintains a leverage ratio of less than 5.5 to 1. Full Year 2025 Outlook - Revised* "We have revised our guidance upward as a result of the increasing demand for our products, the success of executing along all of our value drivers, and the impact of the acquisition of Beadlight," stated Mr. D'Alessandro. * 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 August 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 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, dollars in thousands) (1) For the three and six months ended June 30, 2024, represents the reduction in the estimated contingent purchase price for the CAV acquisition. (2) 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. During the three and six months ended June 30, 2025, approximately $0.9 million of costs related to the secondary stock offering from which we did not receive any proceeds were also included in transaction expenses. (3) Represents the non-cash compensation expense recognized by the Company for equity awards. (4) 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, 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) (1) The tax adjustment represents the tax effect of the adjustments at the applicable effective tax rate. To determine the applicable effective tax rate, 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

View stock analysis, news, and events for Loar Holdings Inc.