Loar Holdings Inc. (LOAR) AI Stock Analysis

• Market Cap: $6.11B
• Dividend Yield: N/A
• Average Volume (3M): 698.49K
• Price to Earnings (P/E): 103.2
• Beta (1Y): 1.12
• Revenue Growth: 25.38%
• EPS Growth: 237.96%
• Country: US
• Employees: 1,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): N/A
• Shares Outstanding: 93,622,475
• 10 Day Avg. Volume: 819,003
• 30 Day Avg. Volume: 698,494
• 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: 1.08
• Enterprise Value/Revenue: 13.26
• Enterprise Value/Gross Profit: 25.17
• Enterprise Value/Ebitda: 45.63
• 1Y Price Target: $87.00
• Price Target Upside: 27.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $76.00 ▲(11.37% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong financial performance (improving margins, much stronger cash flow, and sharply reduced leverage) and a constructive earnings outlook with record results and upbeat 2026 guidance. Offsetting factors are weak-to-mixed technical momentum and a very high P/E, while recent debt-funded M&A adds integration and balance-sheet risk.

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: profitability and cash generation improved materially, and leverage was dramatically reduced (debt down sharply to ~14M TTM). Key offset is cooling TTM revenue growth (~4.5%) and the need to prove consistency after multi-year cash flow volatility.

Income Statement

Profitability improved meaningfully: TTM (Trailing-Twelve-Months) net margin is ~13% versus ~6% in 2024 and losses in 2022–2023, while gross margin has remained strong and steady (~47–50%). Operating profitability is also solid with TTM operating margin ~21% and EBITDA margin ~31%. The main offset is that the reported revenue growth rate in TTM is modest (~4.5%) versus stronger growth in earlier years, suggesting the growth trajectory has cooled even as margins expanded.

Balance Sheet

Leverage has materially de-risked: total debt dropped sharply from ~545M (2023) and ~286M (2024) to ~14M in TTM, with low debt relative to equity (debt-to-equity ~0.25). Equity has expanded substantially and the return on equity improved to ~5.6% in TTM from ~2.0% in 2024 and negative in 2022–2023. The key watch item is that returns are improving but still moderate for the asset base, implying execution needs to remain strong to sustain higher profitability.

Cash Flow

Cash generation strengthened significantly: TTM operating cash flow (~112M) and free cash flow (~99M) are well above 2024 levels, and free cash flow is close to net income (about 90%), indicating earnings quality is generally good. Cash conversion has also improved versus the weak 2022–2023 period when free cash flow was minimal. A potential risk is volatility across years (very weak 2023, then sharp rebound), which may reflect working-capital swings or normalization effects that warrant monitoring.

Breakdown	TTM	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	144.18M	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

• Technical Analysis Sentiment: Neutral
• Last Price: 68.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 68.24 is above the 20-day moving average (MA) of 66.27, below the 50-day MA of 68.88, and below the 200-day MA of 75.23, indicating a neutral trend. The MACD of -0.94 indicates Negative momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 56.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LOAR.

Loar Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOAR	72 Outperform	$6.11B	103.22	6.56%	―	25.38%	237.96%
AMTM	67 Neutral	$7.36B	73.35	2.17%	―	―	―
KRMN	67 Neutral	$11.06B	974.77	―	―	―	―
HXL	64 Neutral	$7.01B	67.59	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	$5.33B	-172.79	-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.