Loar Holdings Inc. (NYSE: LOAR) has reported record results for the second quarter of 2024.
Net sales reached $97.0 million, representing a 31.1% increase from the previous quarter. Net income was $7.6 million, a significant increase of $7.0 million compared to the same quarter last year. Earnings per share were $0.09. Additionally, adjusted EBITDA was $35.0 million, a 26.3% increase from the previous year’s quarter, while the net profit margin increased to 7.9%, up from 0.8% in the same period in 2023. On the other hand, the adjusted EBITDA margin for the quarter was 36.1%, slightly lower than the 37.5% from the previous year.
Dirkson Charles, CEO of Loar and Co-Chairman of the Board, commented on these results: “In the second quarter, we continued our record pace in net sales and adjusted EBITDA. Additionally, the impact of reduced inventory led to exceptional growth in the aftermarket commercial market compared to last year.”
Charles also expressed excitement about the future addition of Applied Avionics to the Loar family, highlighting their niche capabilities and unique product offerings that align perfectly with the company’s strategy.
Loar’s net sales in the quarter reached $97.0 million, an increase of $23.0 million compared to the previous year. Organically, net sales grew by 17.0% or $12.6 million, reaching $86.6 million. Quarterly net income increased by $7.0 million, reaching $7.6 million, contrasted with $0.6 million in the same quarter of the previous year. This increase was mainly due to increased operating income and decreased interest expenses.
The adjusted EBITDA for the quarter was $35.0 million, representing a 26.3% increase of $7.3 million compared to the second quarter of 2023. However, the adjusted EBITDA margin saw a slight decrease, standing at 36.1% compared to 37.5% from the previous year, due to increased sales of lower-margin defense products and infrastructure costs related to being a public company.
Net sales for the first six months of 2024 totaled $188.9 million, an increase of $40.6 million or 27.4% compared to the same period last year. Organically, net sales increased by 14.1% or $20.8 million, reaching $169.0 million.
Net income year-to-date increased by $16.8 million, reaching $9.9 million, compared to a net loss of $6.9 million in the same period in 2023. The adjusted EBITDA for the first half of 2024 was $68.1 million, a 24.7% increase of $13.5 million compared to the previous year. However, the adjusted EBITDA margin exhibited a minor decrease, standing at 36.0% compared to 36.8% from the previous year.
In light of the strong results in the second quarter, Loar Holdings raised its forecasts for the full year 2024. According to Charles, “We expect strong demand momentum in all end markets we operate in.”
The new forecasts include net sales between $374 and $378 million, net income between $28.4 and $29.6 million, and adjusted EBITDA between $134 and $136 million. Additionally, the net income margin is estimated at approximately 8%, while adjusted earnings per share are between $0.44 and $0.46. Interest expenses are projected to be approximately $42 million.
The forecasts are based on growth in commercial, business, and general aviation OEMs in the mid-double digits, as well as in the aftermarket and defense markets.
An investor and analyst conference call is scheduled for Tuesday, August 13, 2024, at 10:30 a.m. Eastern Time. To participate, dial +1 877-407-0670 / +1 215-268-9902. A live audio webcast will be available on the Loar Holdings website, which will also be archived for future viewing.
Source: MiMub in Spanish
