Loar Holdings Inc., listed on the NYSE under the ticker LOAR, operates in the aerospace and defense sector, specializing in the manufacture and supply of niche components essential for aircraft and aerospace systems. The company reported its first-quarter results for 2025, exhibiting a significant rise in financial performance compared to the prior year.

In Q1 2025, Loar Holdings achieved net sales of $114.7 million, marking an increase of 24.8% from the $91.8 million reported in Q1 2024. Net income surged to $15.3 million, up from $2.2 million, driven primarily by an increase in operating income and reduced interest expenses. The diluted earnings per share for the quarter was $0.16.

Adjusted EBITDA also witnessed a notable rise, reaching $43.1 million, a 30.6% increase from $33 million during the same quarter last year. The adjusted EBITDA margin improved to 37.6%, compared to 36% in Q1 2024. The company’s net income margin expanded to 13.4%, rising from 2.4% in the previous year’s quarter, indicating enhanced profitability alongside revenue growth.

In terms of organic sales, Loar reported an 11.1% increase, which translates to a $10.2 million growth, bringing organic sales to $102 million in the latest quarter. The sales performance was driven by significant contributions from commercial aerospace, business jet and general aviation sectors, as well as defense. Notably, defense sales surged by 30%, owing to increased demand and market share gains through new product launches.

Looking ahead, Loar Holdings has revised its full-year outlook for 2025. It now anticipates net sales between $482 million and $490 million, up from an earlier estimate of $480 million to $488 million. The adjusted EBITDA guidance has also been raised to between $182 million and $185 million, up from $180 million to $184 million. The projected net income for the year is now between $59 million and $64 million, an increase from the previous range of $58 million to $63 million.

The company also expects adjusted earnings per share to be between $0.71 and $0.76, updated from a previous forecast of $0.70 to $0.75. The adjusted EBITDA margin for the year is projected to be approximately 37.5%. Interest expenses are estimated to be around $28 million, with capital expenditures expected at $14 million.

Loar Holdings continues to highlight strong demand across its markets, including robust bookings and backlogs across all sectors. This enhanced performance and raised guidance highlight the company’s stable condition and effectively position it for continued growth.