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Document 1

EX-99.1 2 ck0002000178-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

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

March 31, 2025

WHITE PLAINS, NY., March 31, 2025 /ACCESSWIRE/ -- 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 $85.3million 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.

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

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

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

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Net income margin – approximately 12%.

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

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Adjusted EBITDA Margin – approximately 37.5%.

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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:

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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.

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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.

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

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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

[email protected]

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.