Loar Holdings Inc. (LOAR) AI Stock Analysis

• Market Cap: $6.17B
• Dividend Yield: N/A
• Average Volume (3M): 698.49K
• Price to Earnings (P/E): 88.2
• Beta (1Y): 1.13
• Revenue Growth: 25.38%
• EPS Growth: 237.96%
• Country: US
• Employees: 1,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): N/A
• Shares Outstanding: 93,622,475
• 10 Day Avg. Volume: 819,003
• 30 Day Avg. Volume: 698,494
• PEG Ratio: 0.40
• Price to Book (P/B): 5.42
• Price to Sales (P/S): 12.82
• P/FCF Ratio: 64.12
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 12.29
• Enterprise Value/Gross Profit: 24.04
• Enterprise Value/Ebitda: 38.80
• 1Y Price Target: $87.67
• Price Target Upside: 32.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $69.00 ▲(4.66% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is driven primarily by strong financial performance (improving margins, sharply reduced leverage, and materially better free cash flow) and supportive forward guidance from the earnings call. These positives are tempered by weak technical trend signals and a very high P/E valuation, which increases downside risk if growth or margin execution disappoints.

Positive Factors

Margin Expansion

Sustained margin expansion across gross, operating and EBITDA levels indicates durable improvements in pricing, cost structure and mix (aftermarket/OEM/defense). Higher margins amplify cash flow and provide a buffer if revenue growth softens, supporting reinvestment and resilience.

Material Deleveraging

Sharp reduction of debt to nominal levels materially lowers financial risk and interest burden, increasing balance-sheet flexibility. This de-risking gives management capacity to invest, pursue bolt-on M&A or withstand cyclical downturns without immediate refinancing pressure.

Strong Cash Generation

High operating cash flow and FCF close to net income demonstrate strong cash conversion and earnings quality. Reliable FCF supports capex, deleveraging, and funded acquisitions, improving long-term funding options and lowering reliance on external capital.

Negative Factors

Modest Top-line Growth

Modest TTM revenue growth limits the company’s ability to scale earnings organically and increases reliance on margin expansion and acquisitions to meet investor expectations. If margin gains reverse or M&A disappoints, earnings growth could stall despite improved profitability metrics.

Acquisition Financing & Integration Risk

Large incremental borrowings to fund the LMB acquisition raise financing and integration risk: assumed debt and elevated leverage could pressure interest costs and covenants if synergies lag. Successful integration is necessary to justify the strategic expansion into fans/motors.

Cash-Flow Volatility

Pronounced year-to-year cash-flow swings suggest working-capital or cyclical volatility that reduces predictability of FCF. Variable cash conversion complicates capital allocation, makes servicing new acquisition-related debt risker, and raises sensitivity to demand cycles.

Loar Holdings Inc. Business Overview & Revenue Model

Company Description

Loar Holdings, Inc. engages in the design, manufacture, and sale of niche aerospace and defense components for aircraft, aerospace and defense systems. The company was founded on August 21, 2017 and is headquartered in White Plains, NY.

How the Company Makes Money

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Loar Holdings Inc. Financial Statement Overview

Summary

Financials show a clear inflection: profitability and margins improved meaningfully (TTM net margin ~13%, operating margin ~21%), leverage was dramatically reduced (debt down to ~14M), and cash generation strengthened with strong free cash flow relative to net income (~90%). Key watch items are modest TTM revenue growth (~4.5%) and potential cash-flow volatility after large multi-year swings.

Income Statement

Profitability improved meaningfully: TTM (Trailing-Twelve-Months) net margin is ~13% versus ~6% in 2024 and losses in 2022–2023, while gross margin has remained strong and steady (~47–50%). Operating profitability is also solid with TTM operating margin ~21% and EBITDA margin ~31%. The main offset is that the reported revenue growth rate in TTM is modest (~4.5%) versus stronger growth in earlier years, suggesting the growth trajectory has cooled even as margins expanded.

Balance Sheet

Leverage has materially de-risked: total debt dropped sharply from ~545M (2023) and ~286M (2024) to ~14M in TTM, with low debt relative to equity (debt-to-equity ~0.25). Equity has expanded substantially and the return on equity improved to ~5.6% in TTM from ~2.0% in 2024 and negative in 2022–2023. The key watch item is that returns are improving but still moderate for the asset base, implying execution needs to remain strong to sustain higher profitability.

Cash Flow

Cash generation strengthened significantly: TTM operating cash flow (~112M) and free cash flow (~99M) are well above 2024 levels, and free cash flow is close to net income (about 90%), indicating earnings quality is generally good. Cash conversion has also improved versus the weak 2022–2023 period when free cash flow was minimal. A potential risk is volatility across years (very weak 2023, then sharp rebound), which may reflect working-capital swings or normalization effects that warrant monitoring.

Breakdown	Dec 2025	Mar 2025	Dec 2023	Dec 2022
Income Statement
Total Revenue	496.28M	402.82M	317.48M	239.43M
Gross Profit	261.32M	198.82M	154.26M	111.50M
EBITDA	157.24M	124.24M	107.52M	73.42M
Net Income	72.15M	22.23M	-4.62M	-2.47M
Balance Sheet
Total Assets	2.03B	1.45B	1.05B	994.52M
Cash, Cash Equivalents and Short-Term Investments	84.83M	54.07M	21.49M	35.50M
Total Debt	13.96M	286.43M	545.48M	496.44M
Total Liabilities	855.12M	362.11M	632.30M	572.55M
Stockholders Equity	1.17B	1.09B	418.14M	421.97M
Cash Flow
Free Cash Flow	99.26M	46.10M	679.00K	5.34M
Operating Cash Flow	112.28M	54.97M	12.81M	13.27M
Investing Cash Flow	-520.88M	-392.13M	-72.56M	-181.83M
Financing Cash Flow	439.23M	370.02M	45.72M	135.31M

Loar Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOAR, the sentiment is Negative. The current price of 65.93 is below the 20-day moving average (MA) of 68.43, below the 50-day MA of 69.05, and below the 200-day MA of 73.97, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 26.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOAR.

Loar Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOAR	70 Outperform	$6.17B	88.22	6.31%	―	25.38%	237.96%
AMTM	67 Neutral	$6.74B	42.26	2.18%	―	―	―
KRMN	67 Neutral	$13.77B	312.46	3.55%	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HXL	58 Neutral	$6.14B	53.70	7.41%	0.89%	-0.37%	-34.97%
MRCY	55 Neutral	$4.88B	-73.03	-2.08%	―	8.63%	72.72%

Loar Holdings Inc. Corporate Events

Loar Holdings Secures Loan and Completes LMB Acquisition

On December 23, 2025, Loar Holdings Inc. amended its existing credit agreement to secure a $445 million incremental term loan, providing financing to support its acquisition strategy, cover related fees and expenses, and fund working capital and general corporate purposes. On the same date, Loar Group completed the previously announced acquisition of LMB, paying $367 million in cash plus the assumption of net debt, with the transaction financed through cash on hand and borrowings under the amended credit agreement, marking a significant expansion of Loar’s capabilities in high-performance fans and motors and strengthening its position in specialized aerospace and industrial components; the company publicly announced the closing of the deal in a press release issued on December 26, 2025.

The most recent analyst rating on (LOAR) stock is a Buy with a $83.00 price target. To see the full list of analyst forecasts on Loar Holdings Inc. stock, see the LOAR Stock Forecast page.