Loar Holdings (LOAR) Q4 2024 earnings summary

Executive summary

• Achieved record net sales and Adjusted EBITDA in 2024, with net sales of $402.8M, up 26.9% year-over-year, and 15% organic growth, marking a third consecutive year of mid-teen organic growth.

• Adjusted EBITDA reached $146.3M, a 29.8% increase, with margin expanding to 36.3%.

• Aftermarket sales represented 55% of total sales, with diversified end markets: commercial (42%), business/general aviation (27%), defense (24%).

• Defense segment expanded to 24% of business, up from 19-20% last year, with a 39% increase in sales due to new product launches and market share gains.

• Recent acquisitions, including Applied Avionics and pending LMB Fans & Motors, support portfolio diversification and future growth.

Financial highlights

• Q4 2024 net sales reached $110.4M, up 27.8% year-over-year; full year net sales were $402.8M, up 26.9%.

• Q4 gross profit margin rose by 250 basis points to 48.9%; full year gross margin reached 49.4%.

• Q4 net income was $3.7M, a $4.3M increase from prior year; full year net income was $22.2M, up $27M.

• Adjusted EBITDA for 2024 was $146.3M, up $34M from 2023, with Q4 Adjusted EBITDA margin at 36.4%.

• Free cash flow conversion exceeded 200% for 2024.

Outlook and guidance

• 2025 guidance: net sales of $480–$488M, Adjusted EBITDA of $180–$184M, Adjusted EBITDA margin ~37.5%, net income of $58–$63M, Adjusted EPS of $0.70–$0.75.

• CapEx expected at $14M, interest expense at $28M, effective tax rate ~30%, D&A at $51M, and non-cash stock-based compensation at $15M.

• Guidance excludes any benefit from the pending LMB Fans & Motors acquisition.

• Commercial OEM and aftermarket expected to grow high single digits; defense to grow 17–20% in 2025.

• 2025 diluted EPS forecasted at $0.60–$0.65; net income margin ~12%.