Loar Holdings Inc. (LOAR) AI Stock Analysis

• Market Cap: $7.22B
• Dividend Yield: N/A
• Average Volume (3M): 632.48K
• Price to Earnings (P/E): 155.9
• Beta (1Y): 1.08
• Revenue Growth: 26.15%
• EPS Growth: 251.10%
• 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: 422,749
• 30 Day Avg. Volume: 632,479
• 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: 1.17
• Enterprise Value/Revenue: 17.82
• Enterprise Value/Gross Profit: 35.40
• Enterprise Value/Ebitda: 56.64
• 1Y Price Target: $94.50
• Price Target Upside: 32.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $78.00 ▲(9.35% Upside)

Loar Holdings Inc. demonstrates strong financial performance and positive earnings call sentiment, which are the primary drivers of its score. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and demand for Loar's products, supporting long-term business expansion.

Cash Flow Management

Effective cash flow management enhances financial flexibility, enabling strategic investments and sustaining operations over time.

Market Position

A strong position in the defense sector with significant sales growth reinforces Loar's competitive edge and market leadership.

Negative Factors

Margin Dilution

Acquisition-related margin dilution could impact profitability, requiring careful integration and cost management to sustain margins.

Defense Market Normalization

Normalization in defense growth may limit revenue expansion, necessitating diversification and innovation to offset slower growth.

High Interest Expense

High interest expenses can strain financial resources, reducing funds available for growth initiatives and impacting net profitability.

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

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	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	9.27M	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: 71.33
• 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 71.33 is below the 20-day moving average (MA) of 78.14, below the 50-day MA of 78.50, and below the 200-day MA of 78.16, indicating a bearish trend. The MACD of -1.42 indicates Positive momentum. The RSI at 33.09 is Neutral, neither overbought nor oversold. The STOCH value of 24.36 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	69 Neutral	$7.22B	155.93	4.70%	―	26.15%	251.10%
KRMN	67 Neutral	$9.57B	810.51	―	―	―	―
HXL	66 Neutral	$5.47B	80.99	4.36%	0.99%	-0.37%	-34.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRCY	56 Neutral	$4.39B	―	-2.24%	―	8.63%	72.72%
AMTM	53 Neutral	$5.59B	107.39	2.20%	―	―	―
SPR	41 Neutral	$4.23B	-1.63	―	―	-1.31%	-78.19%

Loar Holdings Inc. Corporate Events

Loar Holdings Reports Record Q3 2025 Results

Loar Holdings Inc. is a diversified manufacturer and supplier of niche aerospace and defense components, serving major aerospace and defense original equipment manufacturers and Tier One suppliers globally.

Loar Holdings Inc. Reports Record Sales and Positive Outlook

Loar Holdings Inc. Earnings Call: Optimism Amidst Challenges

Loar Holdings Inc. Reports Record Sales and Growth

In the recent earnings call, Loar Holdings Inc. showcased a robust performance, marked by record sales and EBITDA growth. The sentiment was overwhelmingly positive, driven by solid execution across various sectors, despite some challenges in commercial OE growth and regulatory delays in acquisitions. The positive aspects of the call significantly overshadowed the few hurdles mentioned.

Loar Holdings Inc. Reports Record Q2 2025 Results

Loar Holdings Inc. is a diversified manufacturer and supplier of niche aerospace and defense components, known for its essential contributions to aircraft systems and its strategic acquisitions in the industry.