Loar (LOAR) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool Fri, May 8, 2026 at 12:43 AM GMT+7 31 min read LOAR Image source: The Motley Fool. Chief Executive Officer and Executive Co-Chairman — Dirkson R. Charles Executive Co-Chairman — Brett N. Milgrim Treasurer and Chief Financial Officer — Glenn D’Alessandro Director of Investor Relations — Ian McKillop Need a quote from a Motley Fool analyst? Email pr@fool.com Operator: Ladies and gentlemen, thank you for your interest in Loar Holdings Inc. conference call. Please continue to stand by. The presentation will begin momentarily. Greetings, and welcome to the Loar Holdings Inc. 2026 Q1 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ian McKillop, Director of Investor Relations. You may begin. Ian McKillop: Thank you, Barak. Good morning, everyone, and welcome to the Loar Holdings Inc. 2026 Q1 Earnings Conference Call. Presenting on the call this morning are Loar Holdings Inc.’s Chief Executive Officer and Executive Co-Chairman, Dirkson R. Charles; Executive Co-Chairman, Brett N. Milgrim; Treasurer and Chief Financial Officer, Glenn D’Alessandro; as well as myself, Ian McKillop, the Director of Investor Relations. Please visit our website at loargroup.com to obtain a slide deck and call replay information. Before we begin, we would like to remind you that statements made during this call that are not historical in fact are forward-looking statements. For further information about important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, please refer to our website and latest filings with the SEC, available through the Investor Relations section of our website or at sec.gov. We would also like to advise you that during the call, we will be referring to adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted earnings per share, each of which is a non-GAAP financial measure. Please see the tables and related footnotes in the earnings presentation for the most directly comparable GAAP measures and applicable reconciliations. To begin today, I will now turn the call over to Dirkson. Dirkson R. Charles: Thanks, Ian. Good morning, everyone. I am Dirkson, Founder, CEO, and Executive Co-Chairman of Loar Holdings Inc. As you all know, Loar Holdings Inc. was founded with the mission and vision to build an aerospace industrial cash compounder wrapped in a culture that all our mates can be proud of. Thirteen weeks ago, I shared with all of you how excited I was about what we would accomplish in 2026. I stated that we planned on achieving record financial results through consistent and resilient performance. The results for 2026 Q1 are all quarterly records for sales, adjusted EBITDA, and adjusted EBITDA margins. More importantly, our cash conversion coverage to net income was 230%. Our strong Q1 provides a resilient foundation for 2026, positioning us to break all our annual records. Strengthened orders from our customers resulting in a book-to-bill ratio of greater than 1.2 times, the tremendous progress we have made towards launching new business, and continuing to successfully execute on our value drivers also strengthens our confidence in achieving a record-breaking 2026. But first, let us take a moment to check two of the boxes we shared with you during our IPO process. Two years ago, we said in a short period of time, we would achieve 40% adjusted EBITDA margins. In a word, check. We also stated that we had a balanced and resilient portfolio of products, platforms, and end markets which would allow us to perform in spite of most headwinds in the industry. Again, check. During the first quarter, we had reduced sales in our defense end market, which we have always said can fluctuate unexpectedly. The year-over-year decline reflects a deviation from our customers’ normal ordering pattern for the F-18 brakes and RC-135 autothrottle. These proprietary products supplied exclusively by us are shipped at the discretion of our customers and are significantly sensitive to the ebb and flow of the defense end market. Q1 highlighted reduced demand for these proprietary products. However, if history provides any indication, we expect our customers to return to the habitual, albeit somewhat unpredictable, ordering patterns for the remainder of 2026. I will emphasize that despite the Q1 decline in sales, our book-to-bill ratio in the defense end market was the highest of our end markets during 2026, and we ended the quarter with record backlog for our defense products. With that said, the Q1 defense sales results were more than offset by the strength in our commercial OE and aftermarket end markets. This quarter allows us to demonstrate what we always say: we realize financial success in all

Loar (LOAR) Q1 2026 Earnings Call Transcript

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Loar (LOAR) Q1 2026 Earnings Call Transcript

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