LOAR

• Core Financial & Operational Performance Highlights

  • Achieved 16th consecutive quarter of record sequential adjusted EBITDA, with Q2 2026 adjusted EBITDA increasing $20 million year-over-year to 40.5% margins (220 basis points of expansion vs. Q2 2025)
  • Year-to-date 2026 sales growth is ~38% and adjusted EBITDA growth is ~47%, both above Lore's historical average growth rate
  • Free cash flow is nearly 200% of reported net income year-to-date, reflecting Lore's top priority of cash generation
  • Gross profit margins would have increased 100 basis points year-over-year excluding non-cash amortization from recent acquisitions

• Organic Growth Pipeline Progress

  • Total organic new business pipeline now stands at $750 million in potential revenue to convert over the next five years, up $50 million from the prior quarter
  • To date, $200 million of this pipeline has been converted to certified, qualified products for customers, with revenue visibility over five years, exceeding management expectations
  • Approximately 25% of the existing pipeline has been converted to base business to date, with the remaining $550 million still in active development
  • Engineering investment ($30-$40 million annually) is focused on high-probability, profitable opportunities rather than speculative blue sky projects, driving higher conversion rates

• M&A Strategy & Recent Acquisition Performance

  • Lore maintains its long-term cadence of targeting 1-2 high-quality acquisitions per year, focused on niche aerospace and defense proprietary offerings with high barriers to entry and balanced OEM/aftermarket exposure
  • Since going public two years ago, Lore has completed four acquisitions (most recently Harper Engineering in 2026) and invested over $1.1 billion in M&A
  • All recent acquisitions (Beadlight, LMB Fans & Motors, Harper Engineering) are performing ahead of expectations, delivering higher 2026 revenue contributions than initially projected, with cross-selling and synergy opportunities progressing ahead of plan

• Business Model Strength

  • Lore maintains a diversified portfolio of over 25,000 unique proprietary part numbers across all major aerospace platforms and end markets, reducing exposure to short-term market fluctuations and delivering consistent long-term performance
  • Proprietary product positions enable long-term (multi-decade) revenue annuities, value pricing above inflation, embedded customer relationships, and cross-selling opportunities that support ongoing pipeline growth

• Full year 2026 guidance was upgraded across all metrics from prior ranges, reflecting stronger than expected year-to-date performance and end market tailwinds:
  • Net sales guidance raised to $665-$675 million
  • Adjusted EBITDA guidance raised to $265-$270 million, with expected adjusted EBITDA margins of ~40%
  • GAAP net income projected at $56-$60 million
  • Adjusted EPS guidance raised to $1.32-$1.36, up from the prior range of $1.26-$1.30
  • Capital expenditures are projected to remain in line with historical levels at ~$20 million (3% of sales)
  • All guidance assumes no additional acquisitions in 2026
• Segment growth expectations for full year 2026 (pro forma):
  • Commercial OEM: High double-digit percentage growth
  • Commercial Aftermarket: Low double-digit percentage growth
  • Defense: Mid-single-digit percentage growth
• Management expects to meet or exceed the high end of the updated guidance range, with embedded conservatism to account for the learning curve of newly converted new business

Lore Holdings reported total Q2 2026 sales of $172 million, representing a 17% year-over-year increase. Three core end market segments delivered the following results:

1. Commercial OEM: Total sales increased 28% year-over-year, driven by improved supply chains and higher production rates at Boeing and Airbus, with the strongest growth on the Boeing 787, A320 family, and 737 family platforms. This segment achieved adjusted EBITDA margins above 40% for the second consecutive quarter, making it Lore's highest return end market, and contributed 40%+ of total Q2 adjusted EBITDA.
2. Commercial Aftermarket: Sales increased 12% year-over-year (double-digit growth, in line with long-term projections), supported by ongoing secular growth in global air travel. This segment contributed approximately 35% of total Q2 revenue.
3. Defense: Sales increased 8% year-over-year, returning to typical ordering patterns after uneven ordering in the prior period. This segment contributed approximately 25% of total Q2 revenue.

• Quarterly sales in the defense segment will remain lumpy/choppy due to the large, uneven timing of government customer orders, even with underlying long-term demand growth driven by increasing global military funding
• Stronger than expected demand for high-growth product lines (fans and motors, safety restraints, brakes) requires additional incremental capacity investment, and the business must scale production to meet unanticipated demand levels
• New converted organic revenue will not grow at a perfectly linear rate over the next five years, dependent on aircraft fleet dynamics and OEM build rates

Q: Management highlighted new business development more than usual. Is organic new business growth inflecting, and why now? / A: Management confirms the business is at an inflection point for organic new business conversion. Years of focused engineering investment on high-probability projects (rather than speculative blue sky work) and recent successful product certifications have driven stronger than expected results. All opportunities added to the pipeline already meet customer need, profitability, and solution requirements, so management expects to win most opportunities, not just 25%. The remaining $550 million in the pipeline remains in active conversion. The 25% conversion achieved to date is ahead of historical rates, reflecting the new focused strategy.

Q: Why wasn't guidance raised more after a strong first half, and what risks are you watching for the second half? / A: Guidance is intentionally conservative to account for the learning curve of newly launched converted new business. Management explicitly expects to meet or beat the high end of the updated guidance range, so the current range already accounts for identified risks. The only key near-term challenge is the need to invest in additional capacity to match stronger than expected demand for high-growth new product lines including fans, restraints, and brakes.

Q: Is there aftermarket inventory destocking risk heading into 2027 after recent operator over-provisioning during supply chain uncertainty? / A: Management sees no material destocking risk. Any modest inventory adjustment already occurred in the first half of 2026, where inventory levels fell from 5-7 months of coverage to 3-5 months. Management expects commercial aftermarket growth to be stronger in 2027 than 2026, and notes 2026 12% growth is a strong result after lapping 19% growth in 2025.

Q: Recent organic growth of 12% lags peer levels of mid-teens to 20%+ — will conversion of the $200 million in visible new business close this gap over time? / A: Management notes quarterly results do not change Lore's long-term consistent performance strategy, and that Lore lapped very strong prior period organic growth that outpaced peers in earlier periods. Going forward, new business development will become the top driver of organic growth (up from third place historically), and the $200 million in visible revenue will add 3% annual organic growth (toward the upper end of the historical 1-3% guidance range). Management expects the current growth engine to double total revenue within three years.