Loar Holdings Inc. Reports 24.8% Revenue Growth to $114.7 Million in Latest Quarter

Loar Holdings Inc. reported significant financial growth in its latest quarterly results, with net sales for the three months ended March 31, 2025, reaching $114.7 million, a 24.8% increase from $91.8 million in the same period last year. The company achieved a gross profit of $59.7 million, up 34.4% from $44.4 million, resulting in a gross profit margin of 52.1%. Operating income also rose to $26.1 million, representing 22.8% of net sales, compared to $21.4 million, or 23.3% of net sales, in the prior year. Net income surged to $15.3 million, or 13.4% of net sales, compared to $2.2 million, or 2.4% of net sales, in the previous year.

The company’s financial performance reflects a notable improvement in operational efficiency, as the cost of sales as a percentage of net sales decreased to 47.9% from 51.6% year-over-year. This reduction was attributed to better operating leverage and strategic execution, despite an increase in selling, general, and administrative expenses, which rose to $33.1 million from $22.9 million. The increase in expenses was primarily driven by higher stock-based compensation and research and development costs. Additionally, interest expenses decreased significantly to $6.5 million from $17.7 million, largely due to debt repayments made following the company's initial public offering (IPO) in April 2024.

Loar Holdings has also been active in strategic acquisitions, having completed the acquisition of Applied Avionics, Inc. in August 2024 for $383.5 million. This acquisition contributed $12.6 million to net sales in the latest quarter. Furthermore, the company announced plans to acquire LMB Fans & Motors for €365 million, with the transaction expected to close in the third quarter of 2025. This acquisition is anticipated to be financed through additional borrowings under the existing Credit Agreement and cash on hand.

Operationally, Loar Holdings reported a total of 93,556,071 shares of common stock outstanding as of April 30, 2025. The company continues to focus on expanding its market presence, particularly in the aerospace and defense sectors, which have shown consistent growth. The company’s backlog of orders remains strong, indicating potential for continued revenue growth in the upcoming quarters. Looking ahead, Loar Holdings anticipates that net sales growth will be driven by organic growth and the successful integration of recent acquisitions, while also navigating potential inflationary pressures and supply chain challenges.