Loar Holdings Inc. (LOAR) AI Stock Analysis

• Market Cap: $6.53B
• Dividend Yield: N/A
• Average Volume (3M): 787.42K
• Price to Earnings (P/E): 183.1
• Beta (1Y): 1.09
• Revenue Growth: 26.15%
• EPS Growth: 251.10%
• Country: US
• Employees: 1,500
• Sector: General
• Sector Strength: N/A
• Industry: Aerospace & Defense
• EPS (TTM): 0.23
• Shares Outstanding: 93,556,070
• 10 Day Avg. Volume: 770,028
• 30 Day Avg. Volume: 787,417
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 16.79
• Enterprise Value/Gross Profit: 33.38
• Enterprise Value/Ebitda: 59.34
• 1Y Price Target: $95.80
• Price Target Upside: 37.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: $80.00 ▲(14.66% Upside)

Loar Holdings Inc. receives a solid overall stock score, driven primarily by strong financial performance and positive earnings call outcomes. The company's robust cash flow and strategic initiatives are key strengths. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, which are notable risks.

Positive Factors

Financial Performance

Loar Holdings Inc. reported a solid Q1 with 11% organic growth and operating profit up 22%, driven by strong performance in the Defense sector and expanding EBITDA margins.

Growth Strategy

Loar continues to execute on its organic and inorganic growth strategy, with record bookings across all end markets.

Investment Appeal

The stock has an attractive bull to bear skew of approximately 2.5x, enhancing its investment appeal.

Negative Factors

Stock Performance

The recent underperformance of LOAR's stock provides an attractive entry point for investors.

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

Loar Holdings Inc. generates revenue through multiple streams, including equity stakes in its portfolio companies, dividends from investments, and capital appreciation from asset sales. The company actively manages its investments to ensure optimal performance, often seeking synergies among its holdings to maximize returns. Additionally, LOAR engages in strategic partnerships with industry leaders to enhance its market reach and operational efficiency. These collaborations not only provide financial benefits but also contribute to the development of innovative products and services within its sectors of focus.

Loar Holdings Inc. Financial Statement Overview

Summary

Loar Holdings Inc. shows a positive financial trajectory with strong revenue growth and improved profitability. The balance sheet is robust with reduced leverage, enhancing financial stability. Cash flow management is a standout, with significant improvements in free cash flow, supporting strategic initiatives. Continued focus on operational efficiency and return on equity could further strengthen financial performance.

Income Statement

Loar Holdings Inc. demonstrated strong revenue growth with a 26.9% increase from 2023 to 2024. The gross profit margin improved to 49.4% in 2024, indicating efficient cost management. Net profit margin turned positive to 5.5% from a negative position, showcasing a significant turnaround. However, the EBIT margin of 21.8% and EBITDA margin of 30.8% suggest room for improvement in operational efficiency.

Balance Sheet

The company has a solid equity base with an equity ratio of 75.0%, indicating financial stability. The debt-to-equity ratio improved significantly to 0.26, reflecting reduced leverage. Return on equity increased to 2.0%, showing better profitability, though still modest. The balance sheet is strong, but the low ROE suggests potential for enhanced returns.

Cash Flow

Operating cash flow increased substantially, leading to a strong free cash flow growth rate. The operating cash flow to net income ratio of 2.47 indicates efficient cash generation relative to earnings. The free cash flow to net income ratio of 2.07 further underscores robust cash flow management, supporting future investments and debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	425.63M	402.82M	317.48M	239.43M
Gross Profit	214.10M	198.82M	154.26M	111.50M
EBITDA	120.45M	124.24M	107.52M	73.42M
Net Income	35.30M	22.23M	-4.62M	-2.47M
Balance Sheet
Total Assets	1.48B	1.45B	1.05B	994.52M
Cash, Cash Equivalents and Short-Term Investments	80.50M	54.07M	21.49M	35.50M
Total Debt	286.85M	286.43M	545.48M	496.44M
Total Liabilities	372.15M	362.11M	632.30M	572.55M
Stockholders Equity	1.11B	1.09B	418.14M	421.97M
Cash Flow
Free Cash Flow	64.20M	46.10M	679.00K	5.34M
Operating Cash Flow	72.52M	54.97M	12.81M	13.27M
Investing Cash Flow	-391.58M	-392.13M	-72.56M	-181.83M
Financing Cash Flow	371.75M	370.02M	45.72M	135.31M

Loar Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.77
• 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 69.77 is below the 20-day moving average (MA) of 72.24, below the 50-day MA of 78.75, and below the 200-day MA of 79.85, indicating a bearish trend. The MACD of -2.87 indicates Positive momentum. The RSI at 34.30 is Neutral, neither overbought nor oversold. The STOCH value of 29.79 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
MOG.A	78 Outperform	$5.97B	28.51	11.32%	0.59%	4.77%	4.50%
ERJ	76 Outperform	$10.78B	28.55	12.21%	0.08%	22.95%	-1.01%
BWXT	74 Outperform	$16.41B	56.01	26.97%	0.55%	10.13%	10.04%
LOAR	66 Neutral	$6.53B	183.12	4.70%	―	26.15%	251.10%
SARO	63 Neutral	$9.59B	136.07	7.25%	―	16.09%	―
Sector *	56 Neutral	$6.66B	8.65	-12.38%	6.20%	14.63%	5.17%
SPR	51 Neutral	$4.76B	―	81.63%	―	-2.60%	-94.76%

Loar Holdings Inc. Corporate Events

Loar Holdings Inc. Annual Shareholders Meeting Highlights

On June 3, 2025, Loar Holdings Inc. held its Annual Meeting of Shareholders where key decisions were made, including the re-election of four directors and the ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, shareholders approved the Amended and Restated Loar Holdings Inc. 2024 Incentive Plan, which is expected to influence the company’s strategic direction and operational incentives.

The most recent analyst rating on (LOAR) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Loar Holdings Inc. stock, see the LOAR Stock Forecast page.

Loar Holdings Inc. Completes Share Offering with Jefferies

Loar Holdings Inc. entered into a registration rights agreement on April 29, 2024, with several affiliates and principal investors, including Abrams Capital Management and Blackstone Alternative Credit Advisors. This agreement included an additional lock-up period for key executives, with limited waivers allowing some share transfers. On May 13, 2025, a waiver was issued to allow certain executives to sell shares proportionate to their holdings. On May 14, 2025, Loar Holdings Inc. entered into an underwriting agreement with Jefferies LLC and Morgan Stanley for an offering of 9,000,000 shares of common stock, with an additional option for 1,350,000 shares. The offering closed on May 16, 2025, and the option shares closed on May 19, 2025, at a price of $83.41 per share. The company did not receive any proceeds as all shares were sold by selling shareholders.

The most recent analyst rating on (LOAR) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on Loar Holdings Inc. stock, see the LOAR Stock Forecast page.