Loar Holdings Inc.

please continue to stand by for the LORS Q4 conference call. We'll begin momentarily. Thank you. you Here we go. Greetings and welcome to LOR Q4 and full year 2025 earnings call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. 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.

Thank you, Brock. Good morning, everyone, and welcome to the Lore Q4 and full year 2025 earnings conference call. Presenting on the call this morning are LOR'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 lorgroup.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 would also like to advise you that during the call, we will 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 reconciliations. To begin today, I'll now turn the call over to Dirksen.

Thanks, Ian. Good morning to my mates and all our partners participating on this call. I'm Dirksen, founder, CEO, executive co-chairman of Law. As you all know, Law was founded 14 years ago with the mission of building an aerospace industrial cash compounder wrapped in a culture that all our mates can be proud of. 14 years into our journey, I am as excited about our future as I've ever been. In 2025, we once again delivered predictable and consistent financial performance exceeding all our key annual financial goals. Sales, adjusted EBITDA, adjusted EBITDA margins, and free cash flow were all annual records for law. But my excitement really comes from looking forward to 2026 and the opportunity to break all those records we set last year. Looking into the future, all our end markets have strong tailwinds. The commercial aftermarket has experienced an increase in the average age of the in-service fleet. Pre-COVID, the average was approximately 11 years. Today, it sits at 14-plus years. The older the fleet, the more demand for aftermarket parts. We love that. This is a trend we can expect to continue well into the 2030s as the delivery of new aircraft continues to fall short of demand. In addition, the commercial aftermarket has witnessed a decrease in the number of aircraft retired each year. Historically, two and a half percent of the fleet is retired. However, from 2022 through 2025, the retirement rate has continuously decreased, reaching a low of 1.5% for 2025. Aging fleets, reduced retirement, all lead to one thing, greater demand for our parts into the future. With regards to original equipment manufacturers who are sitting on record backlogs of orders for future deliveries, they have done an excellent job in addressing ongoing supply chain challenges. shortages of skilled labor and raw materials, constrained production, and geopolitical uncertainty to now be able to increase production. For example, Airbus and Boeing plan to produce approximately 1,900 and 1,300 aircraft over the next two years, respectively. This would represent a compound annual growth rate increase of 15% over 2025 production rates. Our proprietary product, that a line fit on these aircraft will generate increased sales for us as production ramps. Now, with regards to the defense market, which has been heavily influenced by the current geopolitical environment, European nations have increased their military spending the highest percentage of GDP in decades. In the U.S., their stock of a $1.5 trillion defense budget Combined, these trends will lead to greater opportunities for us to provide more products and solutions. So given our balanced portfolio, 50% OE, approximately 50% aftermarket, the broad spectrum of our products across all end markets, combined with executing all along all our value drivers, we expect to continue to grow sales at 10% plus organically and adjusted EBITDA at 15% plus annually into the foreseeable future. We continue to grow inorganically as well. Every time we add a new member to our family of companies, we view it as adding capabilities to the law toolkit. The larger the toolkit, the larger the revenue synergies. I'm pleased to welcome our new mates from LMB and Harper. LMB brings new capabilities to our toolkit, and we're excited to add our new mates to the team. It's a company I've personally known for 18 years and could not be happier knowing that this once employee-owned company chose us to carry their brand into the future. No option, just a good old-fashioned getting to know each other and realizing that our culture is made for a perfect match. Robin Carlo, welcome to Team Law. With that said, Law is a family of companies with a very simple approach to creating a shareholder value. First, we believe that 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 to the end of calendar year 2025, we have grown sales and adjusted EBITDA at a compound annual growth rate of over 30 and 40% respectively. Second, we execute along four value streams. We identified pain points within the aerospace industry, and look to solve those problems through organically launching new products. In calendar year 2026, we expect that new product growth will be the number one driver of our organic growth as we qualify new parts in the first half of the year, fueling increased sales starting the second half of 2026. As you all know, we track this pipeline of opportunities monthly. This pipeline represents a list of opportunities derived from listening to our customers identifying their pain points, and developing direct solutions for them. These solutions are created from the sharing of ideas, best practices, and customer synergies across the group, which directly results in the high degree of collaboration that we foster across our business units. The pipeline represents over $600 million in sales over the next five years without, without, including the benefit of top-line synergies we expect to achieve since adding the capability to produce fans, motors, interior latching mechanisms, and seat track fittings to our toolkit through the additions of L&D and Hopper. We focus on optimizing the way we manufacture, go to market, and manage our companies to enhance productivity. Each year, we will identify initiatives that will allow us to continually improve our performance with a focus on one or two major efforts that can be expected to expand margins. We continuously investigate ways to improve how we mine, collect, gather, and utilize data. Enhancing our management, ERP, and other systems and processes allows us to efficiently leverage data and drive financial and operational efficiencies. Each year, we achieve more price than our cost of inflation. which is one of the levers we use to continuously improve margins year after year, except for the occasional temporary dilution due to acquiring a business with diluted margins or incurring costs because of being a public company. Regardless of these temporary headwinds, we continue to improve our margins. Most importantly, we are committed to developing and improving the talent of our mates because our success is solely, solely a result of their dedication and commitment. To all my mates, as always, thank you so much for your commitment and hard work. I will now turn it over to Brett to walk you through the key characteristics of our portfolio and our commitment to our inorganic growth.