Climate Change Data

Loar Holdings Inc.

Climate Impact & Sustainability Data (2023, 2024-09-30)

Reporting Period: 2023

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

  • Almost exclusive focus on the aerospace and defense industry.
  • Heavy reliance on certain customers.
  • Challenges in consummating acquisitions on satisfactory terms and integrating acquired operations.
  • Dependence on executive officers, senior management, and highly trained employees.
  • Cyclical nature of sales to aircraft manufacturers.
  • Dependence on supplier availability and pricing of components and raw materials.
  • Risks to manufacturing facilities from physical and other disruptions.
  • Potential loss of government or industry approvals, more stringent regulations, or increased industry oversight.
  • Commercial business sensitivity to flight hours, aircraft fleet size and age, and customer profitability.
  • Technology failures, cybersecurity breaches, or unauthorized access to IT systems.
  • Inability to adequately enforce and protect intellectual property.
  • Substantial costs from environmental law violations.
  • Tariffs on imports and changes to import/export regulations.
  • Indebtedness subject to variable interest rates.
  • Insufficient cash flow to service indebtedness.
  • Controlled company status with potential conflicts of interest.
  • Risks related to health pandemics and other public health crises.
  • Stock price volatility.
  • Impact of changes in global economic and political conditions.
Mitigation Strategies
  • Disciplined acquisition strategy focusing on companies with valuable intellectual property, high aftermarket content, revenue synergies, cross-selling opportunities, and strong customer relationships.
  • Efforts to drive operational efficiencies to improve cost structure and profitability.
  • Active management of accounts receivable and inventory.
  • Mitigation of supply chain challenges through increased purchasing and alternative sourcing strategies.
  • Implementation of policies and procedures to prevent or mitigate the effects of cybersecurity attacks and other disruptions to information technology systems.
  • Continuous development of new innovative solutions for customers.
  • Efforts to offset cost increases through manufacturing efficiencies and price adjustments.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2024-09-30

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

  • Continued inflationary pressures and supply chain disruptions may lead to higher material and labor costs
  • supply shortages and inflationary pressures for certain components and raw materials
  • Our operations and those of our customers and suppliers have been and may again be subject to natural disasters, climate change-related events, pandemics or other business disruptions
Mitigation Strategies
  • We are continuing to evaluate short-, medium- and long-term risks related to climate change.
  • We continue to work to mitigate such pressures on our business operations as they develop.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • severe weather events
  • fires in hotter and drier climates
  • areas that may be at risk due to rising sea levels
  • areas that could experience decreased access to water due to climate issues
Transition Risks
  • new regulations that may negatively impact us, our suppliers and customers