Loar Announces a Sale Agreement to Acquire Lmb Fans & Motors

Loar Holdings Inc. (NYSE:LOAR) ("Loar," "we," "our," and "the company") announced today that it has entered into a put option to acquire 100% of the shares of LMB Fans & Motors ("LMB") for 365 million euros ($365 million) plus the assumption of net debt, payable in cash at closing. The company also announces a selection of preliminary, unaudited financial results for the fourth quarter and the entire year 2024, as well as an associated earnings release and a call on March 31, 2025.

Acquisition of LMB
Founded over 60 years ago, LMB is a globally specialized company in the design and production of high-performance custom fans and motors. Leveraging its many decades of experience and patented designs, LMB offers the market over 2,000 specialized fans, blowers, motors, and rotating machines. LMB's brushless fans and motors are found on a multitude of aerospace and defense platforms. LMB employs over 75 people worldwide, including those at its headquarters and manufacturing plant in Malemort sur Corrèze, France.

"We are delighted with the opportunity for LMB to join the Loar family of companies," said Dirkson Charles, CEO and Co-Executive Chairman of Loar's Board of Directors. "With virtually all of its revenue derived from proprietary designs and niche market dynamics, LMB fits well into our strategic acquisition criteria."

The put option grants Loar an exclusivity period to sign, subject to the completion of consultation with LMB's social and economic committee, the definitive documents. The transaction is expected to close in the third quarter of 2025, shortly after receiving the necessary regulatory approvals, and is subject to the fulfillment of customary closing conditions. The acquisition will be financed through additional borrowings under Loar's existing credit agreement and available cash.

Preliminary Fourth Quarter and Full Year 2024 Results
"I am pleased to announce that we expect to close the year with record results both on the top and bottom lines," said Dirkson Charles, CEO and Co-Executive Chairman of Loar. "We couldn't be more satisfied with the group's performance in 2024 and look forward to sharing a full update with all our partners on March 31, following the completion of our normal year-end audit."

Preliminary Fourth Quarter 2024

•  Net sales of between $108.1 and $110.1 million, compared to $86.4 million in the prior quarter.

•  Net income of between $2.7 and $3.3 million, compared to net losses of $600,000 in the prior quarter.

•  Net income margin of approximately 2.5% to 3.0%, compared to a net loss margin of 0.7% in the prior year's quarter.

•  Adjusted EBITDA of between $39.0 and $39.8 million, compared to $29.3 million in the prior quarter.

•  Adjusted EBITDA margin is expected to be approximately 36.2%, compared to 33.8% in the prior quarter.

Preliminary Full Year 2024

•  Net sales of between $400.5 and $402.5 million, compared to $317.5 million in the prior year.

•  Net income of between $21.2 and $21.8 million, compared to a net loss of $4.6 million in the prior year.

•  Net profit margin of between 5.3% and 5.4%, compared to a net loss margin of 1.5% in the prior year.

•  Adjusted EBITDA of between $145.2 and $146.0 million, compared to $112.7 million in the prior year.

•  Adjusted EBITDA margin is expected to be approximately 36.3%, compared to 35.5% in the prior year.

Revised Full Year 2025 Outlook
"Given the visibility provided by our order book, we are reaffirming our gross revenue and adjusted EBITDA forecasts for 2025, as well as updating forecasts for the impact of the secondary offering completed in December 2024," said Glenn D'Alessandro, Treasurer and Chief Financial Officer of Loar.

•  Net sales: between $470 and $480 million.

•  Net income: between $55 and $60 million, compared to between $33 and $37 million.

•  Net income margin: approximately 12%, compared to approximately 7%.

•  Adjusted EBITDA: between $176 and $180 million

•  Diluted earnings per share: between $0.57 and $0.62, compared to between $0.35 and $0.40.

•  Adjusted earnings per share: between $0.67 and $0.72, compared to between $0.45 and $0.50.

•  Adjusted EBITDA margin - approximately 37.5%.

•  Interest expenses: approximately $28 million, compared to approximately $60 million.

•  Market assumptions: the full-year outlook is based on the following assumptions:   •  Single-digit growth in commercial, business, and general aviation OEMs.

•  High single-digit growth in the commercial, business, and general aviation aftermarket

•  High double-digit growth in defense



*The revised 2025 outlook doesn't include the impact of the LMB acquisition.