Loar Holdings Inc.(US:LOAR)2025-11-12 14:00Sales Performance - Net sales for Q3 2025 increased by $23.2 million, or 22.4%, to $126.8 million compared to $103.5 million in Q3 2024[96] - Net organic sales for Q3 2025 rose by $11.5 million, or 11.1%, to $115.0 million, driven by increases in aftermarket commercial sales, OEM commercial sales, and defense sales[98] - Aftermarket total commercial sales increased by $6.0 million, or 15.4%, due to rising global commercial air travel demand[98] - Defense sales grew by $2.7 million, or 12.2%, attributed to increased market share from new product launches and heightened global demand[100] - Net sales for the nine months ended September 30, 2025 increased by $72.2 million, or 24.7%, to $364.5 million compared to $292.4 million for the same period in 2024[110] - Net organic sales for the nine months ended September 30, 2025 increased by $32.7 million, or 11.2%, to $325.1 million compared to $292.4 million for the same period in 2024[112] - Net acquisition sales for Q3 2025 amounted to $11.7 million, contributing 11.3% to the total net sales increase compared to Q3 2024[101] - Net acquisition sales for the nine months ended September 30, 2025 were $39.4 million, representing 13.5% of the increase in total net sales compared to the same period in 2024[114] Financial Performance - Operating income for Q3 2025 was $29.0 million, representing 22.9% of net sales, compared to $22.8 million, or 22.0%, in Q3 2024[95] - Net income for Q3 2025 was $27.6 million, or 21.8% of net sales, compared to $8.7 million, or 8.4%, in Q3 2024[95] - EBITDA for Q3 2025 was $41.8 million, compared to $33.6 million in Q3 2024, reflecting strong operational performance[95] - Operating income for the nine months ended September 30, 2025, was $82.5 million, representing 22.6% of net sales, an increase from $66.4 million or 22.7% for the same period in 2024[120] - Net income for the nine months ended September 30, 2025, was $59.6 million, or 16.3% of net sales, compared to $18.5 million, or 6.3% for the same period in 2024[123] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $139,360,000, up from $106,158,000 in the same period of 2024, reflecting a growth of 31.2%[144] - The net income margin improved to 21.8% in Q3 2025, compared to 8.4% in Q3 2024, showcasing a substantial enhancement in profitability[144] - Adjusted EBITDA margin for Q3 2025 was 38.7%, slightly up from 36.8% in Q3 2024, indicating stable operational efficiency[144] Expenses and Costs - Cost of sales for the three months ended September 30, 2025 increased by $9.4 million, or 18.5%, to $60.0 million compared to $50.6 million for the same period in 2024[102] - Gross profit for the three months ended September 30, 2025 was $66.8 million, representing a 26.2% increase from $52.9 million in the same period in 2024[102] - Selling, general and administrative expenses for the three months ended September 30, 2025 increased by $5.6 million to $35.8 million, or 28.2% as a percentage of net sales[103] - Total selling, general and administrative expenses for the nine months ended September 30, 2025 increased by $25.4 million to $105.8 million, or 29.0% as a percentage of net sales[116] - Transaction expenses for the nine months ended September 30, 2025 were $4.3 million, compared to $2.5 million for the same period in 2024[119] - The company recognized $1,377,000 in acquisition and facility integration costs for Q3 2025, compared to $1,288,000 in Q3 2024, reflecting ongoing investment in growth[144] - The company reported a depreciation expense of $2,926,000 for Q3 2025, slightly higher than $2,775,000 in Q3 2024, indicating continued capital investment[144] Debt and Equity - Total debt as of September 30, 2025, was $282.6 million, with a total debt to total capitalization ratio of 20%[124] - Stockholders' equity increased to $1,160.2 million as of September 30, 2025, compared to $1,088.5 million at the end of 2024[124] - The company had $100 million available under a delayed draw term loan commitment and a $50 million revolving line of credit as of September 30, 2025[124] - Interest expense decreased by $19.4 million, or 50.6%, to $19.0 million for the nine months ended September 30, 2025, compared to $38.3 million in 2024[121] - Interest expense for the nine months ended September 30, 2025, was $18,952,000, down from $38,332,000 in the same period of 2024, a reduction of 50.6%[144] Future Outlook - The company anticipates net sales growth in 2026 driven by organic growth and strategic acquisitions, despite potential inflationary pressures[93] - The company is currently classified as an "emerging growth company" under the JOBS Act, allowing it to delay adopting new accounting standards[147] - Market risks have not materially changed for the nine months ended September 30, 2025, as detailed in the company's Annual Report[148] Acquisition Activity - The company entered into a purchase agreement to acquire LMB for €370 million, expected to close in Q4 2025[91]