Loar Holdings Inc., a diversified manufacturer and supplier of niche aerospace and defense components, reported strong growth in its financial results for the fourth quarter and full year ending December 31, 2024. The company achieved record sales of $110.4 million in Q4 2024, reflecting a 27.8% increase compared to the same quarter in 2023. This growth trend is indicative of Loar’s rise in the market, driven by strong demand across defense and commercial sectors.

Net income for Q4 totaled $3.7 million, a significant improvement of $4.3 million from a net loss of $0.6 million in Q4 2023. The diluted earnings per share reached $0.04 for the quarter. Moreover, adjusted EBITDA increased to $40.2 million, up 37.4% compared to the prior year’s quarter. The adjusted EBITDA margin for Q4 was 36.4%, an increase from 33.8% in the fourth quarter of 2023.

For the full year, Loar reported net sales of $402.8 million, an increase of 26.9% from the prior year. The company’s net income rose to $22.2 million, compared to a net loss of $4.6 million in the previous year, demonstrating a full recovery from losses. Adjusted EBITDA for 2024 totaled $146.3 million, reflecting a 29.8% increase from 2023, with an adjusted EBITDA margin of 36.3% compared to 35.5% in 2023.

The company noted that its organic sales for the fourth quarter increased by 14.9%, driven by a robust performance in the aircraft’s commercial aftermarket and defense sectors. Loar’s revenue growth was supported by strong demand for its products across various platforms in the aerospace and defense industries, including a 39% increase in defense sales.

Looking ahead, Loar has raised its guidance for 2025. It now expects net sales to be between $480 million and $488 million, an increase from previous expectations of $470 million to $480 million. Projected net income has also been revised up to a range between $58 million and $63 million. The adjusted EBITDA guidance has been adjusted upwards to between $180 million and $184 million, with an expected adjusted EBITDA margin of approximately 37.5%.

Loar expects continued growth in its sales driven by high single-digit growth in its commercial OEM and aftermarket segments, and high double-digit growth in its defense sector. The strong uptick in demand across these segments aligns with the company’s upward revisions to its 2025 targets, reinforcing its strong market position.