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