Loar Holdings Inc. Reports Q2 2024 Results and Upward Revision to Guidance

Loar Holdings Inc. (NYSE: LOAR) revealed strong results for the second quarter of 2024, showcasing significant financial growth and an optimistic outlook for the full year. Net sales reached $97.0 million, a 31.1% increase compared to the previous year. Net income for Q2 was $7.6 million, a substantial rise from the $0.6 million recorded last year, resulting in earnings per share of $0.09.

Adjusted EBITDA came in at $35.0 million, marking a 26.3% growth from the prior year. Despite the increase in lower-margin defense product sales and infrastructure costs, the adjusted EBITDA margin was 36.1%. CEO Dirkson Charles highlighted the impact of exceptional commercial aftermarket growth and anticipated the positive integration of Applied Avionics into the Loar Family.

Year-to-date, Loar saw net sales of $188.9 million, a 27.4% increase over last year. The net income for the first half of 2024 was $9.9 million, showing a significant recovery from a loss of $6.9 million the previous year. Adjusted EBITDA for this period rose by 24.7% to $68.1 million, with an adjusted EBITDA margin of 36.0%.

Given these robust figures, Loar has adjusted its full-year 2024 guidance. The company now expects net sales between $374 million and $378 million, net income between $28.4 million and $29.6 million, and adjusted EBITDA ranging from $134 million to $136 million. The anticipated net income margin is approximately 8%, adjusted earnings per share are expected to be between $0.44 and $0.46, and adjusted EBITDA margin is projected at around 36%.

Loar Holdings Inc. continues to see strong demand across various markets including Commercial, Business Jet, and General Aviation, as well as the defense sector.