Loar Holdings Inc.

Greetings and welcome to the Lore Holdings Q2 2026 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 should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Ian McKillop, Director of Investor Relations. Thank you. You may begin.

Thank you, Diego. Good morning, everyone, and welcome to the Lore Holdings Q2 2026 earnings conference call. Presenting on the call this morning are Lore's Chief Executive Officer and Executive Co-Chairman, Dirkson Charles, Executive Co-Chairman, Brett 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 loregroup.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 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 GAAP measures and applicable reconciliations. To begin today, I'll now turn the call over to Dirkson.

Thanks, Ian. Good morning to my mates and all our partners participating on this call. I am Dirkson, founder, CEO, and executive co-chairman of Law. As you all know, Law's foundational mission and vision is to build an aerospace industrial cash compounder wrapped in a culture that all our mates can be proud of. So first and foremost, to my mates, I extend a huge thank you. Law's continued success in executing on our mission and vision is the direct result of the efforts of every individual contributor. What we have accomplished this quarter is beyond remarkable and a collective accomplishment. I will start with the obvious. Once again, we had a quarterly record for sales, adjusted EBITDA, and adjusted EBITDA margins. This quarter represents the 16th quarter in a row that we have sequentially achieved a new record for adjusted EBITDA. However, what really makes this quarter noteworthy is we demonstrated the strength of the collaboration across business units and functions. Our intentional emphasis on collaboration combined with the strategic discipline that we live by and ensuring our resources were focused on the correct opportunities, we converted approximately 25% of our new business pipeline into WIMS. While we expected greater visibility in our new business pipeline would result in favorable data and use of our resources, We did not anticipate the significant success achieved. In a few minutes, Ian will remind folks how we think about developing our new business pipeline and where we have found success today. But let me just say we do not achieve these results without a collaborative and focused culture. Let me pause here for a minute and answer the question that is on everyone's mind. Does this mean we lost 75% of the pipeline? The simple answer is no. We are currently still working on those opportunities in addition to identifying new projects to add to the pipeline. With regards to our end markets, commercial OV growth was once again stellar, up 28% in the quarter versus last year's Q2. We are benefiting from an improved supply chain that has unlocked demand for our parts. While we do not expect this growth every quarter, we do expect continuing strength to support the 10-year plus backlog of orders at Boeing and Airbus. The platforms where we saw the greatest increase in sales in the quarter were the Boeing 787, the A320 family, and the 737 family of aircraft. This is the second quarter in a row where the commercial OEN market grew the fastest. Comparable to last quarter, we achieved 40 plus percent adjusted EBITDA margins. This end market continues to provide strong financial returns for us on a consistent basis. Commercial aftermarket was up double digit percentage again this quarter. This is predictable and consistent with our long-term projections. Given that our portfolio consists of proprietary products, we have tremendous visibility of the demand for our parts and a strong presence in the commercial aftermarket. In the second quarter, as expected, our customers for our defense and market products returned to their habitual ordering and delivery patterns. We saw sales improve 8% over last year's Q2. We expect increased demand for our military and market products moving forward as the geopolitical uncertainty in the world has resulted in increased military funding across the globe. To be clear, however, we continue to anticipate quarterly sales to this end market to be choppy. Consistent execution of our value drivers continues to stimulate loss growth and create shareholder value. We continue to emphasize collaboration, entrepreneurship, enabling above-market growth rates, solving problems through launching new products, optimizing manufacturing and productivity to increase performance, and achieving price over inflation to improve margins annually. I only have two words to describe our success implementing these value drivers, onward and upward. In 2026, we are poised to grow sales and adjusted EBITDA at a higher rate than our historical average. In the first two quarters of 2026, we have grown sales and adjusted EBITDA at approximately 38% and 47% respectively. To state a fact once again, Q2 of 2026 is the 16th Thank you for joining us. at an impressive rate. In fact, year-to-date operating cash flow minus capital expenditures divided by net income is 1.9 times. To be clear, our free cash flow is close to 200% of our reported net income. We focus on generating cash flow above all else. This consistent performance we have demonstrated since we founded law in 2012. We have also updated our calendar year 2026 adjusted EBITDA guidance range to $265 to $270 million. The strong tailwinds from each end market plus the execution of our strategic value drivers gives us confidence that we will meet or exceed our updated guidance. I will now turn it over to Brett to walk you through the key characteristics of our portfolio and the current state of our M&A pipeline.