Loar Holdings Inc.

Greetings. Welcome to Laura Holdings, Inc. Second Quarter 2025 Results Conference Call. At this time, all participants are in a listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Ian McKillop, Director of Investor Relations. Thank you. You may begin.

Thank you, Daryl. Good morning and welcome to the Lohr Holdings Q2 2025 Earnings Conference Call. Presenting on the call this morning are Lohr's Chief Executive Officer and Executive Co-Chairman, Dirksen Charles, Executive Co-Chairman, Brett Milgram, Treasurer and Chief Financial Officer, Glenn D'Alessandro, as well as myself, Ian McKillop, the Director of Investor Relations. Please visit our website at lohrgroup.com to obtain a slide deck and call replay information. Before we begin, we'd like to remind you that statements made during this call, which 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 the company's latest filings with the SEC available through the Investor Relations section of our website or at sec.gov. We'd also like to advise you that during the course of the call, we'll be referring to adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings per share, each of which is a non-GAAP financial measure. Please see the tables and related footnotes in the earnings release for a presentation of the most directly comparable gap measures and applicable reconciliation. To begin today, I will now turn the call over to Dirksen. Thanks, Ian.

So, I have a confession to make. But before I tell you what that is, let me share one last school day moment we had during the IPO Roadshow regarding giving guidance. We call it the Heather Rule. So look, everyone we met during the Roadshow told us, when you give guidance, ensure that you will achieve it. Do not be overly aggressive, be clear, keep it simple, all good advice. One person we met, Heather, gave us the same advice, but there was something about how she said it that in the elevator ride after the meeting, we drew straws to see who would deliver the message if ever we were not meeting or exceeding what we guided to. Heather, your message resonated. And for the record, Ian drew the short straw. Fortunately for Ian, we once again are delivering great news. We have exceeded every performance metric that we measure that demonstrates the strength of the aerospace component cash compounded that we are building, including record sales, adjusted EBITDA, adjusted EBITDA margins, and tremendous growth across all our market sectors. So, hi Heather. Now for the confession. We usually start our earnings call two minutes late because most of you call in late. For the record, it has gotten worse. So here's my confession. I'm stalling to make sure that when we start, I have most folks on the line, especially since the number of callers have more than tripled since our last call. So, let's get started. We're good? I'm Dirksen, founder, CEO, and co-chairman of Law. As always, we keep our remarks brief, so let's start by reminding you who we are. Law is a family of companies with a very, very simple approach to creating shareholder value. First, we believe that by providing our business units with an entrepreneurial and collaborative environment to advance their brands, we will generate above-market growth rates. Since our inception in 2012 through the end of calendar year 2024, we have grown sales and adjusted EBITDA at a compound annual growth rate of 37% and 45% respectively. Over the long term, we expect to increase sales organically at double-digit percentages with the last three years, 2022, 2023, and 2024, achieving organic sales growth of 18, 14, and 15% respectively, with adjusted EBITDA growing at a faster rate. We execute along four value streams. We identify pain points within the aerospace industry and look to solve those problems through organically launching new products, which we believe over the long term will create one to three percentage points of top line growth annually. We track the pipeline of new product introductions monthly. It represents a list of opportunities across our portfolio of companies that are derived from listening to our customers to identify their pain points to determine how we can help. It is created from the sharing of ideas, best practices, and customer synergies across the group through the high degree of collaboration that we foster across our business units. This list currently represents over 500 million of sales over the next five years. So let's do some simple math. Let's assume that the opportunity is equal weighted by year. So in other words, we have a pipeline of $100 million of new product launches in calendar year 2026. All we need to do to be successful is deliver 5 to 15 million of such opportunities to achieve our 1 to 3% annual growth rate. Here's the beauty of the list, though. It is a living, breathing entity that grows each year. Look, we also focus on optimizing the way we manufacture, go to market, and manage our companies to enhance productivity. Each year, we'll identify initiatives that will allow us to continually improve our performance with a focus on one or two major initiatives each year that will improve margins. In addition, across our portfolio of companies, we'll achieve more price than our cost of inflation each year. The result is a continuous improvement in margins year over year, with on occasion a temporary dilution as a result of acquiring a business with diluted margins or incurring costs as a result of being a public company. All of which we have experienced over the years, but regardless of these temporary headwinds, we continue to improve our margins. Most importantly, we are committed to developing and improving the talent of our employees because our success is solely a result of their dedication and commitment. So again, as always, to all my mates, a big thank you for your commitment and hard work. Before I turn the call over to Brett, I wanted to highlight one metric that we measure relative to the quality of the cash flow that we generate. It is our cash flow conversion percentage. As shown on slide six, In the first two quarters of 2025, the total of our cash flow from operations minus capital expenditures when divided by net income was 175% and 125% respectively. Year-to-date, our conversion percentage was 148%. While there's no real seasonality in our business when it comes to cash flow, we do pay our bonuses and make our first installments to the IRS related to our annual income tax payment requirements in the second calendar quarter. As we said last quarter, we expect our cash flow conversion percentage to be greater than 125 percent for calendar year 25. Look at this chart. Think of this guide as ahead of the moment. I will now turn it over to Brett to walk you through the key characteristics of our portfolio and discuss our most recent addition to our family of companies.