Loar Holdings Inc. (LOAR)
NYSE:LOAR
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Loar Holdings Inc.
(NYSE:LOAR)
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Rating:70Outperform
Price Target:
$66.00
▼(-2.19% Downside)
Action:Upgraded
Date:05/10/26
The score is driven primarily by strong financial performance (rapid growth, solid profitability and cash generation, and a significantly strengthened balance sheet) and supportive earnings-call fundamentals including raised guidance and record adjusted margins/cash conversion. These positives are tempered by a weak technical trend (below key moving averages with negative MACD) and a very high P/E valuation that leaves less room for execution risk.
Positive Factors
Strengthened balance sheet
Loar materially delevered from >1x debt-to-equity to ~0.01x by 2025-TTM while expanding equity to ~$1.18B. This durable capital structure improvement reduces refinancing and solvency risk, increases strategic optionality for M&A, capex, and downturns, and supports long-term growth funding without stressing cash flows.
Negative Factors
Margin volatility
Margins have shown step-downs and sensitivity to non-recurring items: TTM margins are lower than 2025 and acquisition accounting reduced reported gross profit. Persistent margin volatility raises execution risk for meeting multi-year margin targets and makes forecasting sustainable free cash flow and returns more uncertain.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthened balance sheet
Loar materially delevered from >1x debt-to-equity to ~0.01x by 2025-TTM while expanding equity to ~$1.18B. This durable capital structure improvement reduces refinancing and solvency risk, increases strategic optionality for M&A, capex, and downturns, and supports long-term growth funding without stressing cash flows.
Read all positive factors
Loar Holdings Inc. (LOAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.10B
Dividend YieldN/A
Average Volume (3M)897.22K
Price to Earnings (P/E)88.8
Beta (1Y)1.25
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. Volume648,765
30 Day Avg. Volume897,215
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 Cap0.99
Enterprise Value/Revenue11.21
Enterprise Value/Gross Profit22.04
Enterprise Value/Ebitda35.22
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. 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
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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 | 16.94M | 13.96M | 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
60.43
Positive
64.74
Positive
69.21
Negative
Market Momentum
0.67
Negative
60.34
Neutral
78.52
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 60.17, above the 50-day MA of 60.43, and below the 200-day MA of 69.21, indicating a neutral trend. The MACD of 0.67 indicates Negative momentum. The RSI at 60.34 is Neutral, neither overbought nor oversold. The STOCH value of 78.52 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $6.10B | 88.81 | 5.86% | ― | 26.33% | 88.70% | |
64 Neutral | $5.65B | 39.30 | 3.27% | ― | 26.11% | 801.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $6.49B | -470.42 | -0.96% | ― | 8.95% | 78.82% | |
60 Neutral | $6.87B | 57.90 | 8.35% | 0.89% | 1.46% | -0.14% | |
56 Neutral | $8.42B | 291.35 | 7.89% | ― | 44.21% | 417.85% |
* Industrials Sector Average
LOAR
Loar Holdings Inc.
64.48
-22.57
-25.93%
HXL
Hexcel
89.79
37.39
71.34%
MRCY
Mercury Systems
111.70
62.45
126.80%
AMTM
Amentum Holdings, Inc.
23.23
2.57
12.44%
KRMN
Karman Holdings Inc.
57.50
14.64
34.16%
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.