Loar Holdings (LOAR) Registration Filing summary

Company overview and business model

• Designs, manufactures, and sells niche, mission-critical aerospace and defense components with high intellectual property content, serving commercial aerospace, business jet/general aviation, and defense markets.

• 85% of 2023 net sales were from proprietary products; 52% from aftermarket, providing recurring, high-margin revenue.

• Diversified customer base; no single customer >14% of 2023 net sales, and no single platform >6%.

• Growth driven by organic initiatives and 17 strategic acquisitions since 2012, targeting companies with valuable IP and aftermarket exposure.

• High barriers to entry due to rigorous product qualification and long-standing customer relationships.

Financial performance and metrics

• 2023 net sales: $317.5M (32.6% YoY growth); 9M 2024 net sales: $292.4M (26.5% YoY growth).

• 2023 net loss: $4.6M; 2023 Adjusted EBITDA: $112.7M (35.5% margin); 9M 2024 net income: $18.5M; 9M 2024 Adjusted EBITDA: $106.2M (36.3% margin).

• Capital expenditures averaged 3% of net sales (2021–2023); low capital intensity.

• Recent acquisitions: Applied Avionics, DAC Engineered Products, and CAV Systems Group.

Use of proceeds and capital allocation

• Net proceeds of ~$277.2M (at $92/share) to be used primarily to repay borrowings under the Credit Agreement; any remainder for general corporate purposes, including working capital.

• No proceeds from shares sold by selling stockholders.