Loar Holdings Inc (NYSE:LOAR) stock rose 0.53% (As on August 14, 11:23:31 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY25. Organically, net sales increased 11.3% or $11.0 million, to $108.0 million. Net income for the quarter increased $9.1 million to $16.7 million from a net income of $7.6 million in the comparable quarter a year ago. The increase in net income for the quarter was primarily driven by lower interest expense and an increase in operating income, partially offset by a higher tax provision. Adjusted EBITDA for the quarter was $47.1 million, an increase of 34.5% or $12.1 million compared to the prior year’s quarter. Adjusted EBITDA as a percentage of net sales was 38.3%, compared to 36.1% in the second quarter of the prior year. The increase in Adjusted EBITDA as a percentage of net sales was due to the continued execution of our strategic value drivers and accretive impact of increased sales of higher margin products, partially offset by additional costs associated with being a public company, including Sarbanes-Oxley Act compliance and additional organizational costs.

LOAR in the second quarter of FY25 has reported the adjusted earnings per share of 23 cents, beating the analysts’ estimates for the adjusted earnings per share of 19 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 26.9 percent to $123.12 million in the second quarter of FY25, beating the analysts’ estimates for revenue by 2.37%.

Additionally, on August 1, 2025, LOAR amended the credit agreement pursuant to which the interest rate was reduced by 50 basis points. At the election, interest on loans will accrue at the Secured Overnight Financing Rate (SOFR) plus the applicable margin of 4.25% as long as the Company maintains a leverage ratio of less than 5.5 to 1. In addition, the company has completed the acquisition of Beadlight Ltd.

For fiscal 2025, the company expects net sales to be between $486 million and $494 million, up from between $482 million and $490 million, net income to be between $65.0 million and $70.0 million, up from between $59.0 million and $64.0 million, Adjusted EBITDA to be between $184 million and $187 million, up from between $182 million and $185 million, Diluted Earnings per share to be between $0.68 and $0.73, up from between $0.61 and $0.66, Net income margin to be approximately 13%, up from approximately 12%, Adjusted Earnings Per Share to be between $0.83 and $0.88, up from between $0.71 and $0.76 and Adjusted EBITDA Margin to be approximately 38%, up from approximately 37.5%