Loar Holdings Inc. reported significant financial growth in its 2024 fiscal year, with net sales reaching $402.8 million, a 26.9% increase from $317.5 million in 2023. The company attributed this growth to a combination of organic sales and contributions from recent acquisitions, including Applied Avionics, LLC (AAI). Organic sales alone increased by 15.0%, driven by higher demand in both the commercial and defense sectors. The company also reported a net income of $22.2 million, a notable recovery from a net loss of $4.6 million in the previous year, reflecting a net income margin of 5.5%.
In terms of operational metrics, Loar Holdings saw a gross profit margin improvement to 49.4%, up from 48.6% in 2023. This increase was primarily due to favorable pricing strategies and a higher mix of commercial sales, despite a larger proportion of lower-margin defense sales. Selling, general, and administrative expenses rose to $112.3 million, reflecting the costs associated with acquisitions and the transition to a public company. The company’s Adjusted EBITDA also increased to $146.3 million, representing a margin of 36.3%.
Strategically, Loar Holdings has focused on expanding its market presence through acquisitions, having successfully integrated 17 companies since 2012. The recent acquisition of AAI for approximately $383.5 million is expected to enhance its product offerings in avionics interface solutions. Additionally, the company announced plans to acquire LMB Fans & Motors for €365 million, further diversifying its product portfolio. These acquisitions are financed through existing credit facilities, which include a $360 million incremental term loan.
Loar Holdings has maintained a diversified revenue stream, with no single customer accounting for more than 13% of total sales. The company serves multiple end markets, including commercial aerospace (43% of sales), business jets and general aviation (27%), and defense (22%). As of December 31, 2024, the company employed approximately 1,500 individuals, reflecting its growth and operational needs.
Looking ahead, Loar Holdings anticipates continued growth driven by a strong backlog of orders and strategic acquisitions. The company is committed to developing new products and expanding its market reach while managing inflationary pressures and supply chain challenges. The management remains optimistic about maintaining financial strength and flexibility to support its growth initiatives in 2025 and beyond.
About Loar Holdings Inc.
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