Loar Holdings Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved net sales of $103.5 million for the third quarter, marking a 25.0% increase from $82.8 million in the same period of 2023. For the nine months ended September 30, 2024, net sales reached $292.4 million, up 26.5% from $231.0 million year-over-year. This growth was driven by increased demand in both original equipment manufacturer (OEM) and aftermarket sales, particularly in the commercial and defense sectors.
Gross profit for the third quarter was $52.9 million, representing 51.1% of net sales, compared to $40.6 million (49.1% of net sales) in Q3 2023. Operating income also rose to $22.8 million (22.0% of net sales) from $17.1 million (20.6% of net sales) in the prior year. Net income for the third quarter was reported at $8.7 million, a substantial increase from $2.9 million in Q3 2023. For the nine-month period, net income totaled $18.5 million, reversing a net loss of $4.0 million in the same timeframe last year.
The company’s total assets increased to $1.472 billion as of September 30, 2024, up from $1.050 billion at the end of 2023. This growth was accompanied by a rise in cash and cash equivalents to $55.2 million, compared to $21.5 million at the end of 2023. Total equity also saw a significant increase, reaching $769.8 million, up from $418.1 million at the end of the previous year.
Strategically, Loar Holdings completed the acquisition of Applied Avionics, LLC for $383.5 million in cash on August 26, 2024. This acquisition is expected to enhance the company’s capabilities in avionics interface solutions. The newly acquired entity contributed $3.8 million in net sales and $0.6 million in operating income during the third quarter. Additionally, the company has made other acquisitions, including DAC Engineered Products and CAV Systems Group, which have further bolstered its market position.
The company’s long-term debt increased to $596.1 million as of September 30, 2024, from $528.6 million at the end of 2023, reflecting the financing of acquisitions and operational growth. Interest expenses decreased significantly due to debt repayment and lower interest rates, contributing to improved profitability.
Loar Holdings transitioned to a public company in April 2024, completing its IPO and raising approximately $325.4 million in net proceeds. The company anticipates continued growth driven by organic sales and strategic acquisitions, despite potential challenges from inflationary pressures and supply chain disruptions.
About Loar Holdings Inc.
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