On August 13, 2024, Loar Holdings Inc (LOAR, Financial) released its 8-K filing reporting record results for the second quarter of 2024. Loar Holdings Inc is a diversified manufacturer and supplier of niche aerospace and defense components essential for today's aircraft and aerospace and defense systems. The company operates across ten manufacturing facilities in the United States, one in Germany, and one in the United Kingdom.
Q2 2024 Financial Highlights
Loar Holdings Inc reported net sales of $97.0 million for Q2 2024, marking a 31.1% increase compared to the same quarter last year. Net income for the quarter was $7.6 million, a significant rise from $0.6 million in Q2 2023. Earnings per share (EPS) stood at $0.09, with an adjusted EPS of $0.13. Adjusted EBITDA reached $35.0 million, up 26.3% from the previous year, although the adjusted EBITDA margin slightly decreased to 36.1% from 37.5%.
Year-to-Date Performance
For the first six months ending June 30, 2024, Loar Holdings Inc reported net sales of $188.9 million, a 27.4% increase over the same period last year. Net income for the period was $9.9 million, a substantial improvement from a net loss of $6.9 million in the comparable period of 2023. Adjusted EBITDA for the first half of 2024 was $68.1 million, up 24.7% from the previous year, with an adjusted EBITDA margin of 36.0%.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $97.0 million | $73.9 million |
| Net Income | $7.6 million | $0.6 million |
| EPS | $0.09 | N/A |
| Adjusted EBITDA | $35.0 million | $27.7 million |
| Adjusted EBITDA Margin | 36.1% | 37.5% |
Challenges and Achievements
Despite the impressive growth, Loar Holdings Inc faced challenges such as increased sales of lower-margin defense products and the continued dilutive impact of an acquisition completed in the second half of 2023. Additionally, infrastructure costs related to being a public company impacted the adjusted EBITDA margin.
However, the company achieved significant milestones, including exceptional commercial aftermarket growth and the future addition of Applied Avionics to its portfolio. Dirkson Charles, Loar CEO and Executive Co-Chairman of the Board of Directors, stated,
“In the second quarter we continued our record-setting pace in net sales and Adjusted EBITDA. Additionally, in the quarter we saw the impact of de-stocking give way to exceptional commercial aftermarket growth over last year. We are also excited for the future addition of Applied Avionics to the Loar Family.”
Revised Full-Year 2024 Outlook
Given the strong performance in Q2, Loar Holdings Inc has revised its guidance upward for the full year 2024. The company now expects net sales between $374 million and $378 million, up from the previous range of $370 million to $374 million. Net income is projected to be between $28.4 million and $29.6 million, up from $25.7 million to $27.1 million. Adjusted EBITDA is expected to be between $134 million and $136 million, up from $132 million to $134 million. The adjusted EPS is anticipated to be between $0.44 and $0.46, up from $0.41 to $0.43.
Conclusion
Loar Holdings Inc's Q2 2024 results demonstrate robust growth and strong financial performance, positioning the company well for the remainder of the year. The upward revision in guidance reflects confidence in continued demand across its end markets. Investors and stakeholders can access the detailed financial statements and additional information in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Loar Holdings Inc for further details.
