Record 2025 for Loar (NYSE: LOAR) but 2026 profit outlook softens
Rhea-AI Filing Summary
Loar Holdings Inc. reported record results for Q4 and full year 2025, driven by strong aerospace and defense demand and recent acquisitions. Net sales for 2025 reached $496.3 million, up 23.2%, while net income rose to $72.1 million, up 224.5% from the prior year. Adjusted EBITDA increased to $189.1 million, up 29.2%, with net income margin improving to 14.5% and Adjusted EBITDA Margin to 38.1%. Q4 net sales were $131.8 million and net income $12.5 million, with Adjusted EBITDA of $49.8 million.
The company completed the LMB Fans & Motors and Harper Engineering acquisitions and borrowed an incremental $685 million under its credit agreement, contributing to higher debt and interest costs. For full year 2026, Loar now expects net sales between $640 million and $650 million, Adjusted EBITDA between $253 million and $258 million, and Adjusted EBITDA Margin of about 40%. However, projected net income has been revised to $59–63 million and diluted EPS to $0.60–0.65, with net income margin around 9%, reflecting an expected increase in interest expense to approximately $80 million.
Positive
- Record 2025 performance and margin expansion: Net sales rose to $496.3 million (up 23.2% year over year), net income reached $72.1 million (up 224.5%), and Adjusted EBITDA increased to $189.1 million with margin improving to 38.1% from 36.3%.
- Higher 2026 revenue and EBITDA outlook: The company raised full-year 2026 guidance to net sales of $640–650 million and Adjusted EBITDA of $253–258 million, with an expected Adjusted EBITDA Margin of about 40%, reflecting confidence in demand and recent acquisitions.
Negative
- Leverage and interest expense weigh on 2026 earnings: To fund acquisitions, Loar borrowed an incremental $685 million, and now expects interest expense of about $80 million in 2026, leading to lower guided net income of $59–63 million and diluted EPS of $0.60–0.65 despite higher sales.
- 2026 net income margin guided lower: The company’s outlook calls for net income margin of approximately 9%, down from about 15% in the prior guidance range, indicating that financing costs will significantly constrain GAAP profitability.
Insights
Loar posts strong 2025 growth and higher 2026 EBITDA, but guides to lower GAAP earnings due to heavier interest costs.
Loar delivered sizeable top- and bottom-line growth in 2025. Net sales grew 23.2% to $496.3 million and net income more than tripled to $72.1 million. Adjusted EBITDA rose 29.2% to $189.1 million, with margin expanding to 38.1%, indicating improved operating efficiency and mix.
The company also executed on its acquisition strategy, adding LMB Fans & Motors and Harper Engineering. To fund these deals, it borrowed an incremental $685 million, pushing long-term debt, net, to $711.3 million at December 31, 2025. Management expects this new debt to carry around $55 million of additional interest expense.
The revised 2026 outlook highlights this trade-off. Loar now targets higher net sales of $640–650 million and Adjusted EBITDA of $253–258 million with roughly 40% margin, but lower net income of $59–63 million and diluted EPS of $0.60–0.65, as interest expense is projected to rise to about $80 million. The guidance assumes low-double-digit commercial growth and mid-single-digit defense growth, so actual performance will depend on end-market demand and integration of the new acquisitions.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 26, 2026, Loar Holdings Inc. announced its financial results for the quarter and year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference.
The information in Item 2.02 and in the accompanying Exhibit 99.1 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number |
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Description |
99.1 |
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Press release issued by Loar Holdings Inc. on February 26, 2026 |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Date: |
February 26, 2026 |
By: |
/s/ Glenn D’Alessandro |
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Glenn D’Alessandro |
Exhibit 99.1
Loar Holdings Inc. Reports Q4 2025 and Full Year 2025 Record Results, and Upward Revisions to Full Year 2026 Outlook
February 26, 2026
WHITE PLAINS, NY., February 26, 2026 /ACCESSWIRE/ -- Loar Holdings Inc. (NYSE: LOAR) (the “Company,” “Loar,” “we,” “us” and “our”), reports record results for the fourth quarter and full year of 2025 and upward revisions to the full year 2026 outlook.
“As we close the year, I am pleased to report that Loar once again delivered record results across key financial metrics, including Net Sales, Adjusted EBITDA, and Adjusted EBITDA Margin,” said Dirkson Charles, Loar CEO and Executive Co‑Chairman of the Board of Directors. “Driven by favorable end‑market dynamics and disciplined execution across the organization, our team delivered strong operating performance while advancing our long‑term value creation strategy. These results underscore the scalability and resilience of our business model and reinforce Loar’s position as a leading aerospace and defense component supplier. We also successfully completed the acquisitions of LMB Fans & Motors and Harper Engineering, further strengthening our portfolio and expanding our growth platform as we enter the next phase of the company’s evolution."
Fourth Quarter 2025
Loar reported net sales for the quarter of $131.8 million, an increase of $21.3 million or 19.3% over the prior year’s quarter. Organically(1), net sales increased 16.9% or $18.7 million, to $129.1 million.
Net income for the quarter increased $8.8 million to $12.5 million from $3.7 million in the comparable quarter a year ago. The increase in net income for the quarter was primarily driven by the contribution from higher sales and improved gross margins and lower interest expense, partially offset by higher income tax expense.
Adjusted EBITDA for the quarter was $49.8 million, an increase of 23.9% or $9.6 million compared to the prior year’s quarter. Adjusted EBITDA as a percentage of net sales was 37.8%, compared to 36.4% in the fourth 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, accretive impact of increased sales of higher margin products, and the leveraging impact of higher sales on operating costs.
During the fourth quarter we borrowed $445 million under our existing credit agreement to fund the acquisition of LMB Fans & Motors.
Full Year 2025
Net sales for the twelve months ended December 31, 2025, were $496.3 million, an increase of $93.5 million or 23.2% over the prior year. Organically(1), net sales increased 12.7% or $51.4 million, to $454.2 million.
Net income for the year ended December 31, 2025 increased $49.9 million to $72.1 million from a net income of $22.2 million for the prior year.
Adjusted EBITDA for the twelve months of 2025 was $189.1 million, an increase of 29.2% or $42.8 million over the prior year. Adjusted EBITDA as a percentage of net sales was 38.1% for 2025, compared to 36.3% for 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 year period. |
Full Year 2026 Outlook – Revised
“We revised our outlook for net sales, Adjusted EBITDA, and Adjusted EBITDA Margin upward to include the impact of the LMB Fans & Motors and Harper Engineering acquisitions as well as the underlying strength of our business. We remain highly positive on end-market demand and our team’s ability to execute on our strategic value drivers, delivering returns our stakeholders have come to expect,” stated Mr. Charles.
“In conjunction with the acquisitions of LMB Fans & Motors and Harper Engineering, we borrowed an incremental $685 million of debt under our existing credit agreement,” noted Glenn D’Alessandro, Chief Financial Officer and Treasurer. “This additional debt carries approximately $55 million of incremental interest expense.” Mr. D'Alessandro then added that he expects "both acquisitions to be accretive to Loar's earnings within the year following the acquisition."
Adjusted EBITDA, Adjusted Earnings Per Share and Adjusted EBITDA Margin are non-GAAP financial measures provided in the "Full Year 2026 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 February 26, 2026. 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 2026 Outlook – Revised" are 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; 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, 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
IR@loargroup.com
Loar Holdings Inc.
Table 1: Consolidated Balance Sheets
(Unaudited, amounts in thousands except share amounts)
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December 31, 2025 |
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December 31, 2024 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
84,827 |
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$ |
54,066 |
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Accounts receivable, net |
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88,026 |
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63,834 |
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Inventories |
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109,036 |
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92,639 |
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Other current assets |
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11,123 |
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9,499 |
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Income taxes receivable |
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5,486 |
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632 |
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Total current assets |
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298,498 |
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220,670 |
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Property, plant and equipment, net |
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82,536 |
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76,605 |
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Finance lease assets |
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1,894 |
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2,171 |
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Operating lease assets |
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6,229 |
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5,584 |
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Other long-term assets |
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25,935 |
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17,389 |
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Intangible assets, net |
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606,406 |
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434,662 |
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Goodwill |
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1,008,377 |
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693,537 |
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Total assets |
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$ |
2,029,875 |
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$ |
1,450,618 |
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Liabilities and stockholders' equity |
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Current liabilities: |
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Accounts payable |
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$ |
18,606 |
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$ |
12,086 |
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Current portion of long-term debt, net |
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4,362 |
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— |
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Current portion of finance lease liabilities |
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279 |
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232 |
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Current portion of operating lease liabilities |
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818 |
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603 |
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Income taxes payable |
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3,022 |
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1,984 |
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Accrued expenses and other current liabilities |
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36,419 |
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26,901 |
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Total current liabilities |
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63,506 |
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41,806 |
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Deferred income taxes |
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68,377 |
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32,892 |
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Long-term debt, net |
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711,338 |
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277,293 |
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Finance lease liabilities |
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2,891 |
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3,170 |
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Operating lease liabilities |
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5,605 |
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5,136 |
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Other long-term liabilities |
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3,405 |
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1,816 |
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Total liabilities |
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855,122 |
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362,113 |
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Commitments and contingencies |
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Stockholders' equity: |
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Preferred stock, $0.01 par value, 1,000,000 shares authorized, and no shares issued or outstanding |
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— |
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— |
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Common stock, $0.01 par value, 485,000,000 shares authorized; 93,622,471 and 93,556,071 issued and outstanding at December 31, 2025 and 2024, respectively |
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936 |
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936 |
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Additional paid-in capital |
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1,125,015 |
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1,108,225 |
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Retained earnings (accumulated deficit) |
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51,586 |
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(20,560 |
) |
Accumulated other comprehensive loss |
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(2,784 |
) |
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(96 |
) |
Total stockholders' equity |
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1,174,753 |
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1,088,505 |
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Total liabilities and stockholders' equity |
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$ |
2,029,875 |
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$ |
1,450,618 |
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Loar Holdings Inc.
Table 2: Consolidated Statements of Net Income
(Unaudited, amounts in thousands except per common share amounts)
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Three Months Ended December 31, |
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Years Ended December 31, |
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2025 |
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2024 |
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2025 |
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2024 |
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Net sales |
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$ |
131,750 |
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$ |
110,441 |
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$ |
496,283 |
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$ |
402,819 |
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Cost of sales |
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63,108 |
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56,479 |
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234,958 |
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203,994 |
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Gross profit |
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68,642 |
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53,962 |
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261,325 |
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198,825 |
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Selling, general and administrative expenses |
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37,884 |
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31,893 |
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143,642 |
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112,255 |
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Transaction expenses |
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6,991 |
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841 |
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11,281 |
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3,390 |
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Other (expense) income |
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(5 |
) |
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11 |
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(159 |
) |
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4,452 |
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Operating income |
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23,762 |
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21,239 |
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106,243 |
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87,632 |
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Interest expense, net |
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6,713 |
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13,780 |
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25,665 |
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52,112 |
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Refinancing costs |
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— |
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4,814 |
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— |
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6,459 |
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Income before income taxes |
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17,049 |
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2,645 |
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80,578 |
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29,061 |
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Income tax (provision) benefit |
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(4,538 |
) |
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1,040 |
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(8,432 |
) |
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(6,830 |
) |
Net income |
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$ |
12,511 |
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$ |
3,685 |
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$ |
72,146 |
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$ |
22,231 |
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Net income per common share: |
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Basic |
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$ |
0.13 |
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$ |
0.04 |
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$ |
0.77 |
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$ |
0.25 |
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Diluted |
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$ |
0.13 |
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$ |
0.04 |
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$ |
0.75 |
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$ |
0.24 |
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Weighted average common shares outstanding: |
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Basic |
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93,622 |
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90,541 |
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93,597 |
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89,366 |
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Diluted |
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95,813 |
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93,242 |
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95,893 |
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91,684 |
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Loar Holdings Inc.
Table 3: Consolidated Statements of Cash Flows
(Unaudited, in thousands)
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Years Ended December 31, |
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2025 |
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2024 |
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Operating activities |
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Net income |
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$ |
72,146 |
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$ |
22,231 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation |
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11,935 |
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11,244 |
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Amortization of intangible and other long-term assets |
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39,065 |
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31,826 |
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Amortization of debt issuance costs |
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948 |
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1,344 |
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Recognition of inventory step-up |
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45 |
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1,102 |
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Stock-based compensation |
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14,931 |
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11,103 |
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Deferred income taxes |
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3,681 |
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(1,552 |
) |
Non-cash lease expense |
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790 |
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553 |
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Refinancing costs |
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— |
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6,459 |
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Adjustment to contingent consideration liability |
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— |
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(2,861 |
) |
Changes in assets and liabilities, net of acquisitions: |
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Accounts receivable |
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(16,607 |
) |
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(2,105 |
) |
Inventories |
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(6,878 |
) |
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(12,051 |
) |
Other assets |
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(9,650 |
) |
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(3,367 |
) |
Accounts payable |
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1,276 |
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(1,238 |
) |
Income taxes payable |
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(3,718 |
) |
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(4,046 |
) |
Accrued expenses and other current liabilities |
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5,074 |
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(2,083 |
) |
Environmental liabilities |
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— |
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(1,078 |
) |
Operating lease liabilities |
|
|
(758 |
) |
|
|
(510 |
) |
Net cash provided by operating activities |
|
|
112,280 |
|
|
|
54,971 |
|
|
|
|
|
|
|
|
||
Investing activities |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(13,023 |
) |
|
|
(8,871 |
) |
Payment for acquisitions, net of cash acquired |
|
|
(507,854 |
) |
|
|
(383,260 |
) |
Net cash used in investing activities |
|
|
(520,877 |
) |
|
|
(392,131 |
) |
|
|
|
|
|
|
|
||
Financing activities |
|
|
|
|
|
|
||
Net proceeds from issuance of common stock |
|
|
1,859 |
|
|
|
636,969 |
|
Proceeds from issuance of long-term debt |
|
|
446,500 |
|
|
|
360,000 |
|
Payments of long-term debt |
|
|
— |
|
|
|
(617,881 |
) |
Financing costs and other, net |
|
|
(8,900 |
) |
|
|
(8,876 |
) |
Payments of finance lease liabilities |
|
|
(232 |
) |
|
|
(190 |
) |
Net cash provided by financing activities |
|
|
439,227 |
|
|
|
370,022 |
|
|
|
|
|
|
|
|
||
Effect of translation adjustments on cash and cash equivalents |
|
|
131 |
|
|
|
(285 |
) |
Net increase in cash, cash equivalents and restricted cash |
|
|
30,761 |
|
|
|
32,577 |
|
|
|
|
|
|
|
|
||
Cash, cash equivalents and restricted cash, beginning of period |
|
|
54,066 |
|
|
|
21,489 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
84,827 |
|
|
$ |
54,066 |
|
|
|
|
|
|
|
|
||
Supplemental information |
|
|
|
|
|
|
||
Interest paid during the period, net of capitalized amounts |
|
$ |
25,369 |
|
|
$ |
52,049 |
|
Income taxes paid during the period, net |
|
$ |
9,394 |
|
|
$ |
12,567 |
|
Loar Holdings Inc.
Table 4: Reconciliation of Net income to EBITDA and Adjusted EBITDA
(Unaudited, dollars in thousands)
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net income |
$ |
12,511 |
|
|
$ |
3,685 |
|
|
$ |
72,146 |
|
|
$ |
22,231 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
6,713 |
|
|
|
13,780 |
|
|
|
25,665 |
|
|
|
52,112 |
|
Refinancing costs |
|
— |
|
|
|
4,814 |
|
|
|
— |
|
|
|
6,459 |
|
Income tax (benefit) provision |
|
4,538 |
|
|
|
(1,040 |
) |
|
|
8,432 |
|
|
|
6,830 |
|
Operating income |
|
23,762 |
|
|
|
21,239 |
|
|
|
106,243 |
|
|
|
87,632 |
|
Depreciation |
|
3,061 |
|
|
|
3,061 |
|
|
|
11,935 |
|
|
|
11,244 |
|
Amortization |
|
10,005 |
|
|
|
9,577 |
|
|
|
39,065 |
|
|
|
31,826 |
|
EBITDA |
|
36,828 |
|
|
|
33,877 |
|
|
|
157,243 |
|
|
|
130,702 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||
Recognition of inventory step-up (1) |
|
— |
|
|
|
826 |
|
|
|
45 |
|
|
|
1,102 |
|
Other (income) expense (2) |
|
5 |
|
|
|
(11 |
) |
|
|
159 |
|
|
|
(4,452 |
) |
Transaction expenses (3) |
|
6,991 |
|
|
|
841 |
|
|
|
11,281 |
|
|
|
3,390 |
|
Stock-based compensation (4) |
|
4,314 |
|
|
|
3,535 |
|
|
|
14,931 |
|
|
|
11,103 |
|
Acquisition and facility integration costs (5) |
|
1,626 |
|
|
|
1,110 |
|
|
|
5,465 |
|
|
|
4,491 |
|
Adjusted EBITDA |
$ |
49,764 |
|
|
|
40,178 |
|
|
$ |
189,124 |
|
|
$ |
146,336 |
|
Net sales |
$ |
131,750 |
|
|
$ |
110,441 |
|
|
$ |
496,283 |
|
|
$ |
402,819 |
|
Net income margin |
|
9.5 |
% |
|
|
3.3 |
% |
|
|
14.5 |
% |
|
|
5.5 |
% |
Adjusted EBITDA Margin |
|
37.8 |
% |
|
|
36.4 |
% |
|
|
38.1 |
% |
|
|
36.3 |
% |
Loar Holdings Inc.
Table 5: Sales by End-Market
(Unaudited, amounts in thousands)
|
|
Three Months Ended December 31, |
|
|
Years Ended December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Commercial Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial aerospace OEM |
|
$ |
21,228 |
|
|
$ |
18,695 |
|
|
$ |
77,391 |
|
|
$ |
65,011 |
|
Commercial aerospace aftermarket |
|
|
39,060 |
|
|
|
28,204 |
|
|
|
144,468 |
|
|
|
109,305 |
|
Total commercial aerospace |
|
|
60,288 |
|
|
|
46,899 |
|
|
|
221,859 |
|
|
|
174,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Business jet & general aviation OEM |
|
|
17,568 |
|
|
|
16,542 |
|
|
|
74,745 |
|
|
|
70,098 |
|
Business jet & general aviation aftermarket |
|
|
12,936 |
|
|
|
9,853 |
|
|
|
49,376 |
|
|
|
39,106 |
|
Total business jet & general aviation |
|
|
30,504 |
|
|
|
26,395 |
|
|
|
124,121 |
|
|
|
109,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total commercial OEM |
|
|
38,796 |
|
|
|
35,237 |
|
|
|
152,136 |
|
|
|
135,109 |
|
Total commercial aftermarket |
|
|
51,996 |
|
|
|
38,057 |
|
|
|
193,844 |
|
|
|
148,411 |
|
Total commercial |
|
|
90,792 |
|
|
|
73,294 |
|
|
|
345,980 |
|
|
|
283,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Defense Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total defense OEM |
|
|
16,160 |
|
|
|
11,523 |
|
|
|
55,970 |
|
|
|
38,316 |
|
Total defense aftermarket |
|
|
17,442 |
|
|
|
17,951 |
|
|
|
66,669 |
|
|
|
50,632 |
|
Total defense |
|
|
33,602 |
|
|
|
29,474 |
|
|
|
122,639 |
|
|
|
88,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total other OEM |
|
|
3,947 |
|
|
|
3,269 |
|
|
|
12,783 |
|
|
|
13,996 |
|
Total other aftermarket |
|
|
3,409 |
|
|
|
4,404 |
|
|
|
14,881 |
|
|
|
16,355 |
|
Total other |
|
|
7,356 |
|
|
|
7,673 |
|
|
|
27,664 |
|
|
|
30,351 |
|
Net Sales |
|
$ |
131,750 |
|
|
$ |
110,441 |
|
|
$ |
496,283 |
|
|
$ |
402,819 |
|
Loar Holdings Inc.
Table 6: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
(Unaudited, amounts in thousands except per share amounts)
|
|
Three Months Ended December 31, |
|
|
|
Year Ended December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
|
2025 |
|
|
2024 |
|
||||
Reported earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
12,511 |
|
|
$ |
3,685 |
|
|
|
$ |
72,146 |
|
|
$ |
22,231 |
|
Denominator for basic and diluted earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding—basic |
|
|
93,622 |
|
|
|
90,541 |
|
|
|
|
93,597 |
|
|
|
89,366 |
|
Effect of dilutive common shares |
|
|
2,191 |
|
|
|
2,701 |
|
|
|
|
2,296 |
|
|
|
2,318 |
|
Weighted average common shares outstanding—diluted |
|
|
95,813 |
|
|
|
93,242 |
|
|
|
|
95,893 |
|
|
|
91,684 |
|
Net income per common shares—basic |
|
$ |
0.13 |
|
|
$ |
0.04 |
|
|
|
$ |
0.77 |
|
|
$ |
0.25 |
|
Net income per common shares—diluted |
|
$ |
0.13 |
|
|
$ |
0.04 |
|
|
|
$ |
0.75 |
|
|
$ |
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
12,511 |
|
|
$ |
3,685 |
|
|
|
$ |
72,146 |
|
|
$ |
22,231 |
|
Refinancing costs |
|
|
— |
|
|
|
4,814 |
|
|
|
|
— |
|
|
|
6,459 |
|
Gross adjustments to EBITDA |
|
|
12,936 |
|
|
|
6,301 |
|
|
|
|
31,881 |
|
|
|
15,634 |
|
Tax adjustment (1) |
|
|
(370 |
) |
|
|
(4,976 |
) |
|
|
|
(4,001 |
) |
|
|
(5,856 |
) |
Adjusted net income |
|
$ |
25,077 |
|
|
$ |
9,824 |
|
|
|
$ |
100,026 |
|
|
$ |
38,468 |
|
Adjusted Earnings Per Share—diluted |
|
$ |
0.26 |
|
|
$ |
0.11 |
|
|
|
$ |
1.04 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings per share to Adjusted Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income per common share—diluted |
|
$ |
0.13 |
|
|
$ |
0.04 |
|
|
|
$ |
0.75 |
|
|
$ |
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 |
|
|
0.07 |
|
|
|
0.01 |
|
|
|
|
0.12 |
|
|
|
0.04 |
|
Stock-based compensation |
|
|
0.04 |
|
|
|
0.04 |
|
|
|
|
0.15 |
|
|
|
0.12 |
|
Acquisition and facility integration costs |
|
|
0.02 |
|
|
|
0.01 |
|
|
|
|
0.06 |
|
|
|
0.05 |
|
Tax adjustment (1) |
|
|
— |
|
|
|
(0.05 |
) |
|
|
|
(0.04 |
) |
|
|
(0.06 |
) |
Adjusted Earnings Per Share—diluted |
|
$ |
0.26 |
|
|
$ |
0.11 |
|
|
|
$ |
1.04 |
|
|
$ |
0.42 |
|