Executive Summary

Beat and raise quarter: Q4 revenue rose 27.8% year over year to $110.4M, Adjusted EBITDA rose 37.4% to $40.2M, and Adjusted EPS was $0.11; management simultaneously raised FY25 guidance across revenue, EBITDA, EPS, and net income .
Versus S&P Global consensus, LOAR beat on revenue (Actual $110.4M vs $102.5M estimate*) and matched/slightly beat on Primary EPS ($0.11 vs $0.108*), while S&P “EBITDA” tracked near consensus; note definitional differences with company Adjusted EBITDA (company reported $40.2M) . Values retrieved from S&P Global.
Mix and transitory costs tempered margin upside: net income margin was 3.3% (refinancing costs and interest), and management cited defense mix, facility move and public-company infrastructure as margin diluters; however gross margin improved ~250 bps YoY and Adjusted EBITDA margin reached 36.4% .
Positive FY25 setup and catalysts: guidance raised to revenue $480–$488M, Adjusted EBITDA $180–$184M, Adjusted EPS $0.70–$0.75; demand strong across end-markets, aftermarket bookings solid, and PMA pipeline/price initiatives in flight; pending LMB Fans & Motors acquisition expected to close in 3Q25 (not in guidance) .

What Went Well and What Went Wrong

What Went Well
- Strong top-line and profitability momentum: Q4 revenue +27.8% YoY to $110.4M; Adjusted EBITDA +37.4% YoY to $40.2M with margin 36.4% (up from 33.8%) on pricing, productivity, and operating leverage .
- Defense strength and broad-based demand: Q4 defense sales nearly doubled YoY to $29.5M; commercial aftermarket and OEM both grew double-digits YoY; management: “challenge this year is keeping up with demand” .
- Raised FY25 outlook: revenue to $480–$488M (from $470–$480M Feb outlook), Adjusted EBITDA to $180–$184M (from $176–$180M), Adjusted EPS to $0.70–$0.75 (from $0.67–$0.72); CEO: “we are ahead of our plan on our value pricing and productivity initiatives” .
What Went Wrong
- Mix and infrastructure costs diluted margins: management flagged defense mix, a facility relocation, and added public-company costs as headwinds; Q4 net income margin 3.3% despite strong EBITDA margin .
- “Other” end-market down YoY in Q4 (to $7.7M from $10.2M), partially offset by sequential uptick vs Q3; management remains focused on A&D mix over time .
- S&P “EBITDA” near consensus rather than a clear beat; definitional differences vs company Adjusted EBITDA can create headline ambiguity despite company’s stronger Adjusted EBITDA performance* . Values retrieved from S&P Global.

Financial Results

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$97.015	$103.519	$110.441
Diluted EPS ($)	$0.09	$0.09	$0.04
Adjusted EPS ($)	$0.13	$0.15	$0.11
Adjusted EBITDA ($USD Millions)	$35.031	$38.096	$40.178
Adjusted EBITDA Margin (%)	36.1%	36.8%	36.4%
Net Income ($USD Millions)	$7.641	$8.656	$3.685
Net Income Margin (%)	7.9%	8.4%	3.3%

Segment sales mix (Totals)

Segment	Q4 2023	Q3 2024	Q4 2024
Commercial (Total) ($M)	$60.564	$74.914	$73.294
Defense (Total) ($M)	$15.636	$21.962	$29.474
Other (Total) ($M)	$10.235	$6.643	$7.673
Total Revenue ($M)	$86.435	$103.519	$110.441

Consensus vs actuals (S&P Global; Primary EPS refers to S&P’s primary/adjusted EPS)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue Actual ($M)	$97.015	$103.519	$110.441
Revenue Consensus Mean ($M)*	$91.666*	$97.631*	$102.510*
Primary EPS Actual ($) (S&P)*	$0.13*	$0.15*	$0.11*
Primary EPS Consensus Mean ($)*	$0.097*	$0.130*	$0.108*
EBITDA Actual ($M) (S&P)*	$30.644*	$34.876*	$38.462*
EBITDA Consensus Mean ($M)*	$33.049*	$35.642*	$38.740*

Values retrieved from S&P Global.

Notes: Company-reported Q4 Adjusted EBITDA was $40.178M vs S&P “EBITDA” actual $38.462M, reflecting definitional differences (company Adjusted EBITDA includes specific add-backs) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales	FY 2025	$470–$480M (Feb-21-2025)	$480–$488M (Mar-31-2025)	Raised
Net Income	FY 2025	$55–$60M (Feb-21-2025)	$58–$63M (Mar-31-2025)	Raised
Adjusted EBITDA	FY 2025	$176–$180M (Feb-21-2025)	$180–$184M (Mar-31-2025)	Raised
Diluted EPS	FY 2025	$0.57–$0.62 (Feb-21-2025)	$0.60–$0.65 (Mar-31-2025)	Raised
Adjusted EPS	FY 2025	$0.67–$0.72 (Feb-21-2025)	$0.70–$0.75 (Mar-31-2025)	Raised
Adjusted EBITDA Margin	FY 2025	~37.5% (Feb-21-2025)	~37.5% (Mar-31-2025)	Maintained
Interest Expense	FY 2025	~ $28M (Feb-21-2025)	~ $28M (Mar-31-2025)	Maintained
Market Assumptions	FY 2025	Commercial OEM/AM high single digits; Defense high double digits (Feb-21-2025)	Same (Mar-31-2025)	Maintained

Context: Initial FY2025 guide on Nov 13, 2024 was materially lower (Net Income $33–$37M; Diluted EPS $0.35–$0.40; Interest ~$60M) before the February and March upward revisions .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Aftermarket demand/backlog	Record bookings; strategy change to extend lead times improved visibility; book-to-bill >1; “blue skies” commentary	“Backlog is fairly strong… challenge is keeping up with demand” with 1–3 month lead times; confident outlook	Strength sustained
Pricing & productivity	Value-based pricing and productivity underpin margins; 2024 margin dilution from defense mix and relocation; public co costs	Ahead of plan on value pricing/productivity in 1Q25; 120 bps margin expansion targeted for 2025; high confidence	Improving
OEM production/supply chain	Conservative on MAX; Airbus relatively stronger; non-big OEMs (Embraer, etc.) robust	Assuming YE rates ~30/mo Boeing narrow-body and ~50/mo Airbus; cautious but constructive	Cautious optimism
Defense mix	Q2/Q3 defense strong but lower margin	Defense up sharply in Q4, acknowledged margin dilution near term	Positive revenue; mixed for margins
PMA/new products	PMA approvals pending; targeted 1–3 pts of annual growth	PMA programs through key tests; expecting adoption late 2025/early 2026; 1–3 pts still the goal	Pipeline progressing
Tariffs/input costs	Not prominent in Q2/Q3 calls	Limited near-term impact due to pre-buys; proprietary content supports pass-through; 2nd sources in U.S.	Managed risk
M&A pipeline	Active, disciplined (Applied Avionics closed in Q3)	Active; LMB put agreement signed; expect 1–2 deals/year; LMB close targeted 3Q25	Ongoing consolidation

Management Commentary

“We are ahead of our plan on our value pricing and productivity initiatives… the challenge we see this year is keeping up with demand.” — CEO Dirkson Charles .
“Adjusted EBITDA margins remained strong at 36.4%… partially offset by a higher mix of defense sales and the continued build-out of our infrastructure.” — CFO Glenn D’Alessandro .
“We are highly confident of achieving [~120 bps] margin improvement [in 2025].” — CEO Dirkson Charles .
“Our aftermarket backlog looks really, really strong… we have conversations with customers every quarter updating the next 12 months.” — CEO Dirkson Charles .
On tariffs: “We will pass along any increase in cost… there’s not going to be a lot of a hit for us this year given the extra inventory… and 99% of the cases [we have] a second source in the U.S.” — CEO Dirkson Charles .

Q&A Highlights

Aftermarket strength and visibility: Backlog solid with short lead times; demand the constraint; confidence embedded in guidance .
2025 margin drivers: Applied Avionics is accretive but not the sole driver; pricing > inflation and operating leverage support ~120 bps expansion; timing skewed to 2H25 .
OEM cadence: Assumptions of YE Boeing ~30/month and Airbus ~50/month underpin cautious planning; variability by part/product .
Tariffs and input costs: Limited 2025 impact expected due to inventory positioning; proprietary portfolio supports price pass-through; diversified sourcing .
M&A: Pipeline active; target pace 1–2 deals/year; LMB Fans & Motors under French review, expected 3Q25 close, mostly Europe defense exposure .

Estimates Context

Q4 2024: Revenue beat (Actual $110.4M vs $102.5M estimate*), Primary EPS slightly above (Actual $0.11 vs $0.108*). S&P “EBITDA” actual ~$38.5M vs ~$38.7M estimate*, while company-reported Adjusted EBITDA was $40.2M (higher due to add-backs) . Values retrieved from S&P Global.
Q3 2024: Revenue beat (Actual $103.5M vs $97.6M*), Primary EPS beat ($0.15 vs $0.130*), S&P “EBITDA” modestly below consensus (Actual ~$34.9M vs ~$35.6M*), again differing from company’s Adjusted EBITDA of $38.1M . Values retrieved from S&P Global.
Q2 2024: Revenue beat (Actual $97.0M vs $91.7M*), Primary EPS beat ($0.13 vs $0.097*), S&P “EBITDA” below consensus (~$30.6M vs ~$33.0M*) vs company Adjusted EBITDA of $35.0M . Values retrieved from S&P Global.
Implications: Street models likely lift FY25 revenue, Adjusted EBITDA and EPS to reflect March raise (and stronger demand/pipeline), while reconciling S&P “EBITDA” vs company Adjusted EBITDA definitions in target setting .

Key Drivers Behind Results

Pricing, productivity and leverage: Margin progress driven by value-based pricing and operating leverage on higher volumes, partially offset by defense mix and infrastructure investments .
End-market breadth: Commercial OEM and aftermarket both grew double-digits; defense surged as Loar gained share on new product launches; OEM ordering patterns mixed but improving net of customer bottlenecks .
Non-GAAP adjustments: Q4 Adjusted EPS of $0.11 includes add-backs for refinancing costs ($4.8M), inventory step-up, transaction costs, stock-based comp, integration costs, and related tax effects .

Additional Relevant Press Releases (Q4 context)

Put agreement to acquire LMB Fans & Motors for ~€365M + net debt; primarily European defense exposure; financing via incremental term facility and cash; close expected before end of 3Q25 (not in FY25 guide) .
Preliminary Q4/FY24 results (Feb 21): ranges aligned closely with final 8-K; reaffirmed/upgraded initial FY25 guidance ahead of the March raise .

Key Takeaways for Investors

Beat-and-raise pattern intact; FY25 outlook moved higher across revenue, EBITDA, and EPS with demand broad-based and pricing/productivity tracking ahead of plan .
Aftermarket and defense remain twin engines; defense growth is margin-dilutive near term, but pricing and leverage offset, keeping Adjusted EBITDA margins mid‑30s and expanding in FY25 .
Street likely revises FY25 estimates upward to match raised guidance; pay attention to definition differences between S&P “EBITDA” and company Adjusted EBITDA in comp sheets* . Values retrieved from S&P Global.
Watch catalysts: PMA certifications/adoption in late 2025/early 2026, further price resets/LTAs, and LMB acquisition close in 3Q25 (incremental European defense exposure) .
Balance sheet improved in 2024 with debt reduction post-IPO; YE 2024 long-term debt $277.3M vs $528.6M YE 2023; interest expense guide down to ~$28M in FY25 supports EPS leverage .
Risk checks: OEM cadence variability, defense mix on margins, and tariff/inflation pass-through execution; management indicates buffers via inventory, pricing power, and dual sourcing .