Loar Holdings Inc. (LOAR) AI Stock Analysis

• Market Cap: $6.28B
• Dividend Yield: N/A
• Average Volume (3M): 594.29K
• Price to Earnings (P/E): 101.5
• Beta (1Y): 1.11
• Revenue Growth: 25.38%
• EPS Growth: 237.96%
• Country: US
• Employees: 1,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.35
• Shares Outstanding: 93,622,475
• 10 Day Avg. Volume: 608,658
• 30 Day Avg. Volume: 594,294
• PEG Ratio: -0.56
• Price to Book (P/B): 6.35
• Price to Sales (P/S): 17.17
• P/FCF Ratio: 149.99
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 13.22
• Enterprise Value/Gross Profit: 26.25
• Enterprise Value/Ebitda: 41.99
• 1Y Price Target: $85.45
• Price Target Upside: 27.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $83.00 ▲(23.75% Upside)

The score is primarily driven by strong financial performance and a constructive earnings outlook with record margins and upbeat 2026 guidance. Offsetting factors are a weak-to-neutral technical trend (below key longer-term averages with negative MACD) and a demanding valuation (P/E ~104), with added execution risk from recent debt-funded acquisition activity.

Positive Factors

Revenue and Margin Expansion

Sustained top-line growth with record EBITDA margins indicates durable operational leverage and pricing or mix advantages. Management's ability to expand margins alongside sales suggests structural improvements in cost structure and scalable offerings that should support earnings over the next several quarters.

Strong Cash Generation and Low Leverage

High cash conversion and rapid free cash flow growth, paired with minimal leverage, provide durable financial flexibility for reinvestment, organic growth, and selective M&A. This cash profile reduces financing risk and supports execution of multi-quarter strategic initiatives without stressing the balance sheet.

Strategic M&A Expands Capabilities

Acquiring LMB broadens product mix into specialized aerospace and industrial components, creating cross-sell opportunities and vertical integration benefits. If integrations persist, this structurally strengthens competitive positioning and revenue diversification over the medium term.

Negative Factors

Acquisition-Related Margin Dilution and Execution Risk

M&A has already caused temporary margin dilution, highlighting integration and cost-synergy risks. Repeated acquisitions increase execution complexity and can erode near-term profitability and distract management, posing a durable risk if integration discipline and synergies are not consistently realized.

Defense Growth Normalization

A structural slowdown in defense revenue growth reduces a previously high-growth segment contribution, pressuring overall revenue and margin expansion rates. Dependence on a normalizing defense market makes forward growth more reliant on commercial and newly acquired businesses to sustain momentum.

Modest Return on Equity

Despite improving margins and cash flow, ROE remains low, signaling limited capital efficiency or a large equity base. Persistently modest ROE can constrain long-term shareholder returns and suggests management must either improve asset returns or deploy capital more effectively to drive sustainable shareholder value.

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 generates revenue through a combination of service-based and product-based models. Its key revenue streams include software licensing fees from proprietary technology solutions, digital marketing service fees, and e-commerce sales commissions. Additionally, the company has established strategic partnerships with other tech firms, enhancing its service offerings and expanding its market reach. These collaborations often result in joint ventures and co-branded products that further contribute to its earnings. The diverse portfolio allows Loar Holdings to mitigate risks and capitalize on multiple market opportunities.

Loar Holdings Inc. Financial Statement Overview

Summary

Strong fundamentals supported by improving profitability (TTM net margin up to 9.82% from 5.52%), solid gross margin (49.86%), and strong cash conversion (operating cash flow to net income of 1.92) with 15.23% free cash flow growth. Balance sheet leverage is very low (debt-to-equity 0.008), though ROE remains modest (4.34%).

Income Statement

Loar Holdings Inc. demonstrates strong revenue growth with a 5.14% increase in TTM, supported by a solid gross profit margin of 49.86%. The net profit margin improved significantly to 9.82% in TTM from 5.52% in the previous year, indicating enhanced profitability. EBIT and EBITDA margins are stable, reflecting efficient operational management.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.008 in TTM, showcasing minimal leverage and financial stability. Return on equity improved to 4.34%, indicating better utilization of equity. The equity ratio is healthy, suggesting a strong capital structure.

Cash Flow

Loar Holdings Inc. shows a strong free cash flow growth rate of 15.23% in TTM, indicating effective cash management. The operating cash flow to net income ratio of 1.92 suggests efficient conversion of income into cash. The free cash flow to net income ratio is high, reflecting strong cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	474.97M	402.82M	317.48M	239.43M
Gross Profit	239.13M	198.82M	154.26M	111.50M
EBITDA	149.48M	124.24M	107.52M	73.42M
Net Income	63.32M	22.23M	-4.62M	-2.47M
Balance Sheet
Total Assets	1.53B	1.45B	1.05B	994.52M
Cash, Cash Equivalents and Short-Term Investments	98.95M	54.07M	21.49M	35.50M
Total Debt	288.63M	286.43M	545.48M	496.44M
Total Liabilities	373.85M	362.11M	632.30M	572.55M
Stockholders Equity	1.16B	1.09B	418.14M	421.97M
Cash Flow
Free Cash Flow	92.31M	46.10M	679.00K	5.34M
Operating Cash Flow	102.58M	54.97M	12.81M	13.27M
Investing Cash Flow	-43.13M	-392.13M	-72.56M	-181.83M
Financing Cash Flow	-15.31M	370.02M	45.72M	135.31M

Loar Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 67.07 is below the 20-day moving average (MA) of 71.23, below the 50-day MA of 69.44, and below the 200-day MA of 77.17, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 37.65 is Neutral, neither overbought nor oversold. The STOCH value of 12.58 is Positive, 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
AMTM	74 Outperform	$8.88B	27.16	1.47%	―	―	―
LOAR	71 Outperform	$6.28B	101.45	6.56%	―	25.38%	237.96%
KRMN	67 Neutral	$12.96B	1,144.16	―	―	―	―
HXL	64 Neutral	$6.57B	60.58	7.87%	0.89%	-0.37%	-34.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRCY	55 Neutral	$4.63B	-149.23	-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.

Loar Holdings Inc. Expands Loan Commitment by $175M

On November 25, 2025, Loar Holdings Inc. amended its Credit Agreement to increase its delayed draw term loan commitment by $175.0 million, bringing the total to $275.0 million. This amendment also extended the availability period for the loan commitment through September 30, 2026, providing the company with increased financial flexibility and potential for growth.

The most recent analyst rating on (LOAR) stock is a Buy with a $91.00 price target. To see the full list of analyst forecasts on Loar Holdings Inc. stock, see the LOAR Stock Forecast page.