Loar Holdings (LOAR) investor relations material

Executive summary

• Achieved record annual and Q4 sales, Adjusted EBITDA, Adjusted EBITDA margin, and free cash flow for 2025, exceeding all key financial goals, with consistent outperformance of guidance and strong execution since IPO.

• Strong performance driven by robust demand in commercial aftermarket, OEM, and defense segments, with significant contributions from new product introductions, recent acquisitions, and portfolio diversification.

• Completed acquisitions of LMB Fans & Motors and Harper Engineering, expanding proprietary aerospace and defense components and international presence.

• Demonstrated disciplined M&A strategy, adding brands annually and integrating Applied Avionics and Beadlight.

• Entered 2026 with confidence, supported by a $600 million pipeline of new product opportunities over five years.

Financial highlights

• Full-year 2025 net sales rose 23.2% to $496.3M; Q4 sales up 19.3% year-over-year to $131.8M, with organic growth of 12.7%.

• Q4 adjusted EBITDA was $49.8M (+23.9%); full year adjusted EBITDA was $189.1M (+29.2%), with margin improvement to 38.1%.

• Net income for 2025 was $72.1M, up from $22.2M in 2024; Q4 net income was $12.5M, up 239.5% year-over-year.

• Q4 gross margin was 52.1%, full-year gross margin 52.7%, both up over prior year.

• Free cash flow conversion reached 160% for 2025 (138% including a one-time item).

Outlook and guidance

• 2026 net sales expected between $640–$650M; Adjusted EBITDA $253–$258M; margin ~40%.

• Net income guidance $59–$63M; adjusted EPS $0.76–$0.80, reduced due to higher interest expense from acquisition debt.

• Capital expenditures projected at ~$19M (3% of sales); interest expense to rise to ~$80M; effective tax rate ~25%; D&A ~$75M; stock-based comp ~$17M; share count 97M.

• Market assumptions: low double-digit growth for commercial OEM and aftermarket, mid-single digit for defense.

• Guidance assumes no further acquisitions, but M&A activity expected to remain high.