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Sep 30, 2024

Loar Holdings Inc Q3 2024 Earnings Report

Loar Holdings Inc. reported record results, driven by strong demand in commercial and defense end-markets, and provided upward revision to 2024 and initial 2025 guidance.

Key Takeaways

Loar Holdings Inc. reported a strong Q3 2024 with record net sales of $103.5 million, a 25.0% increase compared to the prior year's quarter. Net income also rose to $8.7 million, up from $2.9 million in the same quarter last year. Adjusted EBITDA reached $38.1 million, a 31.8% increase year-over-year. The company revised its full-year 2024 guidance upward and provided initial guidance for 2025, reflecting confidence in continued growth.

Net sales increased by 25.0% to $103.5 million compared to the prior year’s quarter.

Net income increased to $8.7 million, up from $2.9 million in the prior year’s quarter.

Adjusted EBITDA increased by 31.8% to $38.1 million compared to the prior year’s quarter.

Adjusted Earnings Per Share of $0.15.

Total Revenue
$104M
Previous year: $82.8M
+25.0%
EPS
$0.15
Previous year: $14K
-100.0%
Organic Sales Growth
16.5%
Gross Profit
$52.9M
Previous year: $40.6M
+30.2%
Cash and Equivalents
$55.2M
Free Cash Flow
$7.52M
Previous year: -$1.66M
-552.8%
Total Assets
$1.47B

Loar Holdings Inc

Loar Holdings Inc

Loar Holdings Inc Revenue by Segment

Forward Guidance

Loar Holdings Inc. revised its full-year 2024 guidance upward and provided initial guidance for 2025.

Positive Outlook

  • Net sales between $390 and $394 million for 2024.
  • Adjusted EBITDA between $141 and $143 million for 2024.
  • Commercial, Business Jet, and General Aviation OEM growth of high double-digits for 2024.
  • Commercial, Business Jet, and General Aviation aftermarket growth of mid double-digits for 2024.
  • Defense growth of high double-digits for 2024.

Challenges Ahead

  • Net income between $19.0 and $20.0 million for 2024.
  • Net income margin approximately 5% for 2024.
  • Adjusted Earnings Per Share between $0.35 and $0.37 for 2024.
  • Interest expense approximately $54 million for 2024.
  • Diluted Earnings per share – between $0.20 and $0.22 for 2024

Revenue & Expenses

Visualization of income flow from segment revenue to net income