Loar Holdings Inc. (LOAR)
NYSE:LOAR
Top Page
Loar Holdings Inc.
(NYSE:LOAR)
Select Model
Select Model
Rating:70Outperform
Price Target:
$63.00
▼(-4.69% Downside)
Action:ReiteratedDate: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 Improvement
Sustained margin expansion (TTM net ~13%, operating ~21%) and steady gross margins (~47–50%) point to durable pricing power or structural cost advantages. Higher operating leverage improves cash generation and resilience, supporting reinvestment or deleveraging over the next several quarters.
Negative Factors
Slowing Top-Line
Modest trailing revenue growth (~4.5%) contrasts with margin improvements; without stronger top-line momentum, sustaining high margins and improving returns on the asset base becomes harder. Durable value creation will likely require re-acceleration in organic sales or successful integration of acquisitions.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Improvement
Sustained margin expansion (TTM net ~13%, operating ~21%) and steady gross margins (~47–50%) point to durable pricing power or structural cost advantages. Higher operating leverage improves cash generation and resilience, supporting reinvestment or deleveraging over the next several quarters.
Read all positive factors
Loar Holdings Inc. (LOAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.02B
Dividend YieldN/A
Average Volume (3M)1.13M
Price to Earnings (P/E)88.2
Beta (1Y)1.23
Revenue Growth25.38%
EPS Growth237.96%
CountryUS
Employees1,500
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.26
Shares Outstanding93,622,475
10 Day Avg. Volume990,622
30 Day Avg. Volume1,132,783
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)5.42
Price to Sales (P/S)12.82
P/FCF Ratio64.12
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue12.33
Enterprise Value/Gross Profit24.10
Enterprise Value/Ebitda38.91
Forecast
1Y Price Target
$83.67Price Target Upside26.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.79
Revenue Forecast (FY)$646.10M
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
null...
Loar Holdings Inc. Earnings Call Summary
Earnings Call Date:Apr 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial picture—record revenue, record adjusted EBITDA, margin expansion, high free cash flow conversion, a sizable new-product pipeline (~$600M over five years), and active, disciplined M&A (recent strategic adds LMB and Harper). Management acknowledged near-term headwinds tied to acquisition accounting (non-cash D&A), higher interest expense ($80M guide) and ongoing public company costs, plus the inherent lumpiness in defense revenue. On balance the company presented clear growth drivers and an upgraded 2026 outlook despite identifiable near-term EPS and financing impacts.Positive Updates
Record Revenue and Quarterly Performance
Company reported record full-year sales of $500 million and record Q4 sales. Management cited Q4 sales +17% year-over-year; various pro forma/recap figures in the call included sales growth of 19.3% (16.9% excl. acquisition sales) and other full-year comparisons up to +23.2% in certain recaps.
Negative Updates
Adjusted EPS Guidance Reduced Due to Acquisition Accounting
Adjusted EPS guidance for 2026 was lowered to $0.76–$0.80 primarily because of incremental non-cash depreciation and amortization from recent acquisitions and higher interest associated with financing those deals; management emphasized this as a non-cash, acquisition-related drag in the near term.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Quarterly Performance
Company reported record full-year sales of $500 million and record Q4 sales. Management cited Q4 sales +17% year-over-year; various pro forma/recap figures in the call included sales growth of 19.3% (16.9% excl. acquisition sales) and other full-year comparisons up to +23.2% in certain recaps.
Read all positive updates
Company Guidance
Loar gave an upwardly revised pro forma 2026 outlook: net sales of $640–$650M, adjusted EBITDA of $253–$258M (≈40% adjusted EBITDA margin), net income of $59–$63M and adjusted EPS of $0.76–$0.80. Management expects commercial OEM and aftermarket growth in the low double digits, defense up mid-single digits, with organic sales growth of 10%+ and adjusted EBITDA growth of 15%+ annually; capital expenditures of ~3% of sales (~$19M). They also forecast interest expense of $80M (higher due to acquisition financing), depreciation & amortization of $75M, non‑cash stock‑based compensation of ~$17M, an effective tax rate of 25% and a share count of 97M; the EPS guide is reduced mainly by non‑cash amortization and acquisition interest, while L&B and Harper are expected to double EBITDA in 3–5 years and be accretive in 2027.Loar Holdings Inc. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
84
Very Positive
| 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
Neutral
66.10
Price Trends
64.83
Negative
66.99
Negative
71.80
Negative
Market Momentum
-1.20
Negative
55.36
Neutral
88.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOAR, the sentiment is Neutral. The current price of 66.1 is above the 20-day moving average (MA) of 60.60, above the 50-day MA of 64.83, and below the 200-day MA of 71.80, indicating a neutral trend. The MACD of -1.20 indicates Negative momentum. The RSI at 55.36 is Neutral, neither overbought nor oversold. The STOCH value of 88.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LOAR.
Loar Holdings Inc. Risk Analysis
Loar Holdings Inc. disclosed 49 risk factors in its most recent earnings report. Loar Holdings Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Loar Holdings Inc. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $6.02B | 88.22 | 6.31% | ― | 25.38% | 237.96% | |
67 Neutral | $6.41B | 42.26 | 2.18% | ― | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $6.34B | 53.70 | 7.41% | 0.89% | -0.37% | -34.97% | |
55 Neutral | $4.78B | -73.03 | -2.08% | ― | 8.63% | 72.72% | |
53 Neutral | $10.94B | 557.53 | 4.48% | ― | ― | ― |
* Industrials Sector Average
LOAR
Loar Holdings Inc.
66.10
-21.45
-24.50%
HXL
Hexcel
84.17
31.98
61.26%
MRCY
Mercury Systems
82.52
35.36
74.98%
AMTM
Amentum Holdings, Inc.
27.57
9.07
49.03%
KRMN
Karman Holdings Inc.
87.79
55.29
170.12%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.