Loar Holdings Inc. (LOAR)
NYSE:LOAR
Want to see LOAR full AI Analyst Report?
Top Page
Loar Holdings Inc.
(NYSE:LOAR)
Select Model
Select Model
Rating:73Outperform
Price Target:
$80.00
▲(18.55% Upside)
Action:Reiterated
Date:06/04/26
The score is driven primarily by strong financial execution and balance-sheet improvement, reinforced by a constructive earnings call with raised guidance and record adjusted profitability/cash conversion. These strengths are partially offset by an expensive valuation (high P/E) and only mixed technical positioning versus longer-term moving averages.
Positive Factors
Sustained revenue scaling and healthy demand
Loar has materially scaled revenue over multiple years and maintains book-to-bill >1.2, evidencing durable end-market demand and execution across commercial and defense. This multi-year revenue base supports predictable organic growth and underpins longer-term margin and cash generation targets.
Negative Factors
Margin volatility and recent step-down vs 2025
While margins are healthy, recent step-down versus 2025 and reported volatility signal exposure to cost, mix, or acquisition accounting swings. Persistent margin variability can impair ability to sustain target adjusted EBITDA growth and complicates forecasting for multi-year profitability targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue scaling and healthy demand
Loar has materially scaled revenue over multiple years and maintains book-to-bill >1.2, evidencing durable end-market demand and execution across commercial and defense. This multi-year revenue base supports predictable organic growth and underpins longer-term margin and cash generation targets.
Read all positive factors
Loar Holdings Inc. (LOAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.71B
Dividend YieldN/A
Average Volume (3M)790.20K
Price to Earnings (P/E)98.7
Beta (1Y)1.27
Revenue Growth26.33%
EPS Growth88.70%
CountryUS
Employees1,500
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.72
Shares Outstanding93,624,470
10 Day Avg. Volume786,824
30 Day Avg. Volume790,203
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 Cap1.08
Enterprise Value/Revenue13.44
Enterprise Value/Gross Profit26.43
Enterprise Value/Ebitda42.23
Forecast
1Y Price Target
$79.25Price Target Upside17.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.15
Revenue Forecast (FY)$630.06M
Loar Holdings Inc. Business Overview & Revenue Model
Company Description
Loar Holdings Inc. is an enterprise focused on the development, manufacturing, and marketing of specialized components essential to the aerospace and defense industries. These unique parts are utilized across various aircraft, aerospace applicatio...
How the Company Makes Money
null...
Loar Holdings Inc. Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operating and financial wins: record Q1 sales, record adjusted EBITDA and margins, robust cash conversion (230%), a $700M new-business pipeline, and raised full-year guidance. These positives were tempered by short-term, largely non-cash acquisition accounting impacts (≈$11M), higher amortization and interest expense, a modest 2% decline in defense sales driven by lumpy ordering, and timing risks tied to FAA certifications and near-term geopolitical/fuel uncertainty. Overall, the fundamental operational performance and forward guidance improvements materially outweigh the temporary and non-cash lowlights.Positive Updates
Record Quarterly Sales
Q1 2026 sales of $156 million, an 11% increase year-over-year (pro forma).
Negative Updates
Defense Sales Decline and Lumpy Ordering
Defense sales decreased 2% year-over-year in Q1 2026 due to irregular ordering patterns for proprietary products (e.g., F-18 brakes and RC-135 autothrottle); timing of defense orders remains unpredictable.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Sales
Q1 2026 sales of $156 million, an 11% increase year-over-year (pro forma).
Read all positive updates
Company Guidance
Loar raised 2026 guidance by $5 million of sales and $4 million of adjusted EBITDA, now targeting net sales of $645–$655 million, adjusted EBITDA of $257–$262 million (about a 40% adjusted EBITDA margin), GAAP net income of $53–$57 million, adjusted EPS of $1.26–$1.30, and capital expenditures of roughly $19 million (~3% of sales); amortization expense is increased by $5 million and non‑cash stock‑based compensation is up $1 million to $18 million, with no change to interest expense, effective tax rate, depreciation, or diluted share count. Management reiterated longer‑term targets of organic sales growth of 10%+ and adjusted EBITDA growth of 15%+ annually, a new‑business contribution of 1–3% per year (organic pipeline ≈$700 million, where converting <15% would support ~3% annual new‑business growth), market assumptions of low‑double‑digit growth in commercial OE and aftermarket and mid‑single‑digit growth in defense, a cadence of one to two acquisitions per year, and the ambition to at least triple adjusted EBITDA every five years (Q1 metrics cited for context: Q1 sales $156 million, net organic sales +11% YoY, cash conversion to net income 230%, and book‑to‑bill >1.2).Loar Holdings Inc. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 537.71M | 496.28M | 402.82M | 317.48M | 239.43M |
| Gross Profit | 273.34M | 261.32M | 198.82M | 154.26M | 111.50M |
| EBITDA | 171.10M | 157.24M | 124.24M | 107.52M | 73.42M |
| Net Income | 67.97M | 72.15M | 22.23M | -4.62M | -2.47M |
Balance Sheet | |||||
| Total Assets | 2.30B | 2.03B | 1.45B | 1.05B | 994.52M |
| Cash, Cash Equivalents and Short-Term Investments | 94.88M | 84.83M | 54.07M | 21.49M | 35.50M |
| Total Debt | 960.28M | 725.29M | 286.43M | 545.48M | 496.44M |
| Total Liabilities | 1.12B | 855.12M | 362.11M | 632.30M | 572.55M |
| Stockholders Equity | 1.18B | 1.17B | 1.09B | 418.14M | 421.97M |
Cash Flow | |||||
| Free Cash Flow | 94.75M | 99.26M | 46.10M | 679.00K | 5.34M |
| Operating Cash Flow | 110.03M | 112.28M | 54.97M | 12.81M | 13.27M |
| Investing Cash Flow | -773.01M | -520.88M | -392.13M | -72.56M | -181.83M |
| Financing Cash Flow | 677.56M | 439.23M | 370.02M | 45.72M | 135.31M |
Loar Holdings Inc. Technical Analysis
Positive
67.48
Price Trends
62.48
Positive
63.77
Positive
68.81
Positive
Market Momentum
2.15
Negative
67.63
Neutral
71.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOAR, the sentiment is Positive. The current price of 67.48 is above the 20-day moving average (MA) of 65.20, above the 50-day MA of 62.48, and below the 200-day MA of 68.81, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 67.63 is Neutral, neither overbought nor oversold. The STOCH value of 71.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.71B | 98.72 | 5.86% | ― | 26.33% | 88.70% | |
64 Neutral | $5.29B | 35.71 | 3.27% | ― | 26.11% | 801.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $6.84B | -479.73 | -0.96% | ― | 8.95% | 78.82% | |
60 Neutral | $7.36B | 62.96 | 8.35% | 0.89% | 1.46% | -0.14% | |
56 Neutral | $6.68B | 222.82 | 7.89% | ― | 44.21% | 417.85% |
* Industrials Sector Average
LOAR
Loar Holdings Inc.
71.67
-10.77
-13.06%
HXL
Hexcel
97.63
43.19
79.35%
MRCY
Mercury Systems
113.91
62.08
119.78%
AMTM
Amentum Holdings, Inc.
21.66
-0.25
-1.14%
KRMN
Karman Holdings Inc.
50.37
3.22
6.83%
Loar Holdings Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Loar Holdings Shareholders Endorse Board, Pay, and Auditor
Positive
Jun 4, 2026
On June 2, 2026, Loar Holdings Inc. shareholders re-elected directors Raja Bobbili, Alison Bomberg, and Margaret (Peg) McGetrick at the company’s annual meeting, reinforcing continuity in board oversight. Investors also ratified the appointm...
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.