Air Show Takes: Aftermarket Steady w/ Growing Pipeline of New Wins & M&A

Research evidence excerpt

Air Show Takes: Aftermarket Steady w/ Growing Pipeline of New Wins & M&A

sales on capex, w/ investments concentrated on growth projects

to support forward demand. This includes facility expansions in Germany to include a second Exhibit 2 - Trading at 25.1X FY2 EV/EBITDA,

94% Prem to Mkt vs. Historical Avg Prem ofbuilding to increase seat belt restraint market share; Texas for avionics interfaces & switches, and 138%

Tennessee for tires & brakes, among others. LMB's cooling devices & motors will expand into the 50x 250%

(x) 40xUS and commercial markets through the integration process. 45x 200% (%)

35x

Multiple 30x 150% S&P

Margin Expansion Story Continues w/ A Host of Levers. LOAR targets organic sales growth of 25x20x 100% to

15x EV/EBITDA

10x 50% Premium10%+ and EBITDA growth of 15%+ to drive continued margin expansion, w/ our ests for +200 bps FY2 5x

0x 0%in 2026E to ~40%. Pricing is used as a tool to earn above cost inflation and serves as a filler to the

Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26

growth algorithm based on its relationships with customers, aiming to ultimately be the solutions LOAR FY2 EV/EBITDA 3 Yr Avg. EV/EBITDA % vs. S&P 3 Yr Avg. % vs. S&P

provider for its customers. Productivity & labor efficiency have also been contributors including .Source: FactSet, Jefferies estimates

multi-sourcing suppliers and introducing a Chief Talent Officer focused year-round on optimizing

the workforce & hiring efforts.

Limited Direct DoW Exposure. LOAR's aftermarket business is largely replacement driven for parts

such as sensors, push buttons & switches, rather than larger repairs in the context of the US gov't's

interest in owning the right-to-repair.