Loar Holdings Inc. (LOAR) SEC Filings & Earnings Calls

Higher interest expense and amortization impacting net income growth

“Net income flat YoY due to higher interest expense and non-cash amortization of acquired intangible assets”

Integration risk from recent acquisitions (LMB, Harper Engineering)

“Non-cash expense of inventory step-up attributable to acquisitions of LMB and Harper Engineering”

High leverage from acquisition financing

“Total debt to total capitalization 44 %” · word for word

Interest expense growth outpacing operating income growth

“Interest expense for the three months ended June 30, 2026 increased $13.5 million, to $20.0 million compared to $6.5 million for the three months ended June 30, 2025.” · word for word

Customer concentration in aerospace and defense

“the almost exclusive focus of our business on the aerospace and defense industry; our heavy reliance on certain customers for a significant portion of our sales” · word for word

Net income and GAAP EPS declined due to higher interest expense, amortization of acquired intangibles, and inventory step-up from acquisitions.

“Net income of $11.1 million, compared to $15.3 million for the prior year’s quarter, primarily resulting from higher interest, higher non-cash amortization of acquired intangible assets, and the non-recurring non-cash recognition of inventory step-up related to the LMB and Harper Engineering acquisitions.” · word for word

Customer Concentration

“Our heavy reliance on certain customers for a significant portion of our sales.” · word for word

Acquisition Integration Risk

“Our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired operations.” · word for word

Leverage Risk

“Total debt to total capitalization 45% vs 38% at year-end 2025.”

Customer concentration

“Our two largest customers accounted for approximately 19% of net sales during the year ended December 31, 2025.” · word for word

Cyclicality of aircraft manufacturing

“Our sales to manufacturers of aircraft are cyclical, and a downturn in sales to these manufacturers may adversely affect us.” · word for word

Supply chain disruptions

“We currently are experiencing supply shortages and inflationary pressures for certain components and raw materials that are important to our manufacturing process.” · word for word

Dependence on government contracts

“Sales to U.S. government agencies accounted for approximately 2% of our net sales during the year ended December 31, 2025.” · word for word

Increased leverage from debt-funded acquisitions raises interest expense and financial risk.

“Borrowed $685 million of debt; incremental interest expense of $55 million; net income guidance lowered.”

Integration risk from two acquisitions (LMB Fans & Motors, Harper Engineering) may impact near-term margins.

“Completed acquisitions; expected to be accretive within a year, but integration execution is key.”

Integration risk and increased leverage from acquisition financing.

“Acquisition financed through cash on hand and borrowing available under the Credit Agreement.”

Increased debt could lead to higher leverage.

“Additional $175M in delayed draw term loan commitments.”

Customer concentration

“our reliance on certain customers” · word for word

Aerospace industry cyclicality

“the almost exclusive focus of our business on the aerospace and defense industry” · word for word

Tariff exposure

“tariffs on certain imports to the United States and other potential changes to U.S. tariff and import/export regulations” · word for word

Execution risk on production rate increases and defense demand.

“Guidance assumes low-double-digit OEM growth and high-double-digit defense growth.”