Loar Holdings Raises Full-Year Outlook as Sales Growth Accelerates
The medical technology company raised its full-year net sales guidance to a range of $665 million to $675 million.
Loar Holdings (LOAR), a medical technology company, reported second-quarter net sales of $171.6 million, an increase of 39.4% compared to the same period last year.
The results marked an acceleration in growth for the company, as the year-over-year sales increase surpassed the 36.1% growth rate recorded in the first quarter. Organic net sales also rose, increasing 12.3% to $138.3 million, up from an 11.4% organic increase in the prior quarter.
Adjusted EBITDA rose 47.4% year-over-year to $69.4 million. This growth followed a 46.6% increase in the first quarter, where the company reported $63.2 million in Adjusted EBITDA. The Adjusted EBITDA margin remained flat at 40.5%, matching the margin reported in the first quarter.
Net income margin for the quarter was 9.8%, a decrease from 13.6% in the prior year's second quarter, though the figure improved from 7.1% in the first quarter of 2024. For the first six months of the year, net income decreased by $4.1 million year-over-year to $27.9 million. The decline was due to higher interest expenses, non-cash amortization, and inventory step-ups related to the acquisitions of Harper Engineering and LMB.
Loar raised its full-year 2024 guidance across all primary metrics. The company now expects net sales between $665 million and $675 million, up from the previous range of $645 million to $655 million. Adjusted EBITDA guidance was increased to between $265 million and $270 million from a prior range of $257 million to $262 million.
Full-year net income guidance was raised to between $56 million and $60 million, compared to the previous estimate of $53 million to $57 million. Adjusted earnings per share guidance was also increased to a range of $1.32 to $1.36, up from $1.26 to $1.30.
The company disclosed a new business pipeline valued at $750 million. Initial orders from this pipeline provide visibility to approximately $200 million of revenue over the next five years.