Loar Holdings (LOAR) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 net sales of $114.7M, up 24.8% year-over-year, with 11.1% organic growth and net income rising to $15.3M (13.4% margin), driven by strong demand across defense, commercial aftermarket, and OEM segments.

• Adjusted EBITDA increased 30.6% year-over-year to $43.1M, with margin expanding to 37.6%.

• All major end-markets posted record sales for any quarter in company history.

• The company completed its IPO in April 2024 and a follow-on offering in December 2024, raising over $637M in net proceeds.

• Diverse portfolio of over 20,000 proprietary aerospace and defense products, with strong aftermarket exposure and broad customer base.

Financial highlights

• Gross profit for Q1 2025 was $59.7M, up 34.4% year-over-year, with gross margin improving to 52.1%.

• Net income margin improved to 13.4% from 2.4% in Q1 2024.

• Adjusted EBITDA margin reached 37.6% in Q1 2025, up from 36.0% in Q1 2024.

• Operating cash flow was $28.4M; capital expenditures were $1.8M, less than 2% of sales.

• Interest expense for Q1 2025 was $6.5M; full-year 2025 guidance is ~$28M.

Outlook and guidance

• Raised 2025 guidance: net sales $482M–$490M, adjusted EBITDA $182M–$185M (~37.5% margin), net income $59M–$64M, and adjusted EPS $0.71–$0.76.

• 2025 market assumptions: high single-digit OEM growth, low double-digit aftermarket growth, and high double-digit (17–20%) defense growth.

• Guidance excludes impact of pending LMB Fans & Motors acquisition, expected to close Q3 2025.

• Inflation and supply chain disruptions are not expected to materially impact 2025 results.

• Commercial OEM, aftermarket, and defense segments all expected to contribute to growth.