Loar Holdings (NYSE: $LOAR), a diversified aerospace and defense manufacturer that supplies components to the commercial aerospace sector, business jets, and generation aviators sectors, released its Q4 and fully year fiscal 2024 results on Monday, March 31, 2025, before markets opened. Here is a deep dive into the results.
Loar Holdings Releases Q4 Results
For the fourth quarter of fiscal 2024, Loar Holdings reported revenue of $110.4 million, a 27.8% YoY increase and above estimates of $102.54 million. The aerospace and defense manufacturer reported an adjusted EPS of $0.11, beating estimates of $0.10.
It reported a net income of $3.7 million, a $4.3 million increase from the same period last year. The adjusted EBITDA came in at $40.2 million, a 37.4% YoY increase, while the net income margin improved to 3.3% from the net loss margin of 0.7% reported last year. The adjusted EBITDA margin improved to 36.4% compared to 33.8% the previous year.
Full-Year Highlights
For the full year, Loar Holdings reported revenue of $402.8 million, a 26.9% YoY increase, while the adjusted EBITDA increased 29.8% YoY to $146.3 million. The net income came in at $22.2 million, a $26.8 million YoY for a net income margin of 5.5% compared to the net loss margin of 1.4% reported last year. It reported an adjusted EBITDA margin of 36.3% compared to 35.5% the previous year, while the adjusted EPS came in at $0.42.
Commenting on the results, Loar CEO and Executive Co-Chairman of the Board, Dirkson Charles, stated, “We capped off the year with record net sales and Adjusted EBITDA for both the fourth quarter and full year.” He added that fiscal 2024 was their “third consecutive year of mid-teen organic growth.”
Loar Holdings Revises Guidance
Loar Holdings revised its previous guidance upward, driven by strong demand in their end markets, and solid progress made in the key productivity, and value pricing initiatives.
The company expects revenue of $480M to $488M, up from the previous guidance of $470M to $80M. It expects a net income of $58M to $63M, up from the previous forecast of $55M to $60M.
The company expects an adjusted EBITDA of $180M to $184M, up from the previous forecast of $176M to $ 180M. It expects a net income margin of around 12% and an adjusted EPS of $0.70 to $0.75, up from the previous forecast of $0.67 to $0.72. Loar Holdings maintained its adjusted EBITDA margin forecast of 37.5%.
Loar Holdings (LOAR) Market Performance
Following the positive full-year, and Q4 results, plus the upward revision in guidance, LOAR shares rose 0.80% in premarket trading on March 31, 2025 to $66.50 as of 8:50 AM in New York.
The stock is down 11.19% in the past six months, as of Friday’s closing price, and up 46.60% in the past 12 months. Year to date, LOAR has dipped 10.74%. As of Friday’s closing, LOAR is trading below both the 50 and 200-day moving averages of $71.71, and $72.54, respectively.
Analysts are cautiously optimistic about its future stock price, giving it a moderate buy rating. They forecast an average price of $98.50, which is a 49.31% upside based on the last closing price of $65.97. The analysts provide a wide range of forecasts, with a high of $105 and a low of $92.
Is LOAR A Buy?
Loar’s Q4 and full-year results reflect the broader recovery in the aerospace industry, with results outpacing the overall industry metrics. Their results demonstrate that LOAR has effectively positioned themselves across key market segments, and executed a market expansion strategy successfully.
With commercial aviation traffic now about pre-pandemic levels and ageing fleets in need of maintenance, Loar’s aftermarket business could ensure continued growth. The company has managed to sustain growth for the past three years, and the trend is expected to hold. Consequently, adding LOAR to your portfolio could potentially be beneficial in the long term.
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