Loar Holdings Expands With LMB Acquisition, Raises FY25 EPS Outlook

Loar Holdings Inc. LOAR shares are trading lower premarket on Friday. The company signed a put option agreement to acquire 100% of LMB Fans & Motors for 365 million euros (around $382 million) plus net debt, payable in cash at closing.

Founded over 60 years ago, LMB is a specialty player in designing and producing customized high-performance fans and motors.

The put option grants Loar exclusive rights to finalize the deal, pending consultation with LMB’s social and economic committee.

Loar plans to finance the acquisition through additional borrowings under its existing credit agreement and available cash.

The transaction is expected to close in the third quarter of 2025, following regulatory approvals and customary closing conditions.

Preliminary Results: For the fourth quarter of 2024, the company sees net sales of $108.1 million-$110.1 million (vs. consensus of $100.01 million), Adjusted EBITDA of $39.0 million-$39.8 million and net income of $2.7 million-$3.3 million.

For 2024, Loar expects net sales of $400.5 million-$402.5 million (vs. consensus of $392.7 million), Adjusted EBITDA of $145.2 million- $146.0 million and net income of $21.2 million-$21.8 million.

Outlook: For FY25, the company continues to expect net sales of $470 million and $480 million (vs. consensus of $483.4 million), while adjusted EPS outlook raised to $0.67-$0.72 (vs. consensus of $0.72) from $0.45-$0.50.

“Given the visibility provided by our backlog we are reaffirming our topline and Adjusted EBITDA 2025 guidance as well as updating the guidance for the impact of the secondary offering completed in December 2024,” stated Glenn D’Alessandro, Loar’s Treasurer and CFO.

The company plans to release the fourth quarter and 2024 earnings on March 31, 2025.

As of September 30, 2024, cash and cash equivalent stood at $55.179 million.

Price Action: LOAR shares are down 0.58% at $69.00 premarket at the last check Friday.

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