Loar Holdings Inc. (LOAR) AI Stock Analysis

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Loar Holdings Inc.

(NYSE:LOAR)

Rating:66Neutral

Price Target:

$76.00

▼(-0.63% Downside)

Loar Holdings Inc. demonstrates strong financial performance and positive earnings call results, which are the most significant factors contributing to the stock score. However, the high P/E ratio suggests overvaluation, and technical indicators point to a bearish trend, which weigh down the overall score.

Positive Factors

Growth Strategy

Loar continues to execute on its organic and inorganic growth strategy, with record bookings across all end markets.

Investment Appeal

The recent underperformance of LOAR's stock provides an attractive entry point for investors.

Management Execution

Strong management execution is evident from continued growth and margin expansion.

Negative Factors

Stock Performance

The recent underperformance of LOAR's stock might concern some investors despite the company's strong fundamentals.

Loar Holdings Inc. (LOAR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.90B

Dividend YieldN/A

Average Volume (3M)1.02M

Price to Earnings (P/E)157.0

Beta (1Y)1.09

Revenue Growth26.15%

EPS Growth251.10%

CountryUS

Employees1,500

SectorGeneral

Sector StrengthN/A

IndustryAerospace & Defense

Share Statistics

EPS (TTM)0.23

Shares Outstanding93,622,475

10 Day Avg. Volume1,071,629

30 Day Avg. Volume1,022,640

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.23

Enterprise Value/Revenue18.74

Enterprise Value/Gross Profit37.58

Enterprise Value/Ebitda59.94

Forecast

1Y Price Target

$91.75

Price Target Upside19.97% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

Loar Holdings Inc. Business Overview & Revenue Model

Company DescriptionLoar Holdings Inc. (LOAR) is a diversified holding company that focuses on investments in various sectors including technology, healthcare, and consumer goods. The company aims to leverage innovative solutions and strategic partnerships to enhance its portfolio and deliver value to its shareholders. LOAR is dedicated to identifying emerging trends and opportunities within these sectors, driving growth through both organic development and acquisitions.

How the Company Makes MoneyLoar Holdings Inc. generates revenue through multiple streams, including equity stakes in its portfolio companies, dividends from investments, and capital appreciation from asset sales. The company actively manages its investments to ensure optimal performance, often seeking synergies among its holdings to maximize returns. Additionally, LOAR engages in strategic partnerships with industry leaders to enhance its market reach and operational efficiency. These collaborations not only provide financial benefits but also contribute to the development of innovative products and services within its sectors of focus.

Loar Holdings Inc. Earnings Call Summary

Earnings Call Date:Aug 13, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong performance with record sales and EBITDA growth, driven by solid execution across multiple sectors. However, some challenges in commercial OE growth and regulatory delays for an acquisition were noted. Overall, the positive highlights significantly outweighed the lowlights.

Q2-2025 Updates

Positive Updates

Record Sales and Growth

Loar Holdings achieved record sales of $123 million in Q2 2025, representing a 13% increase compared to the prior year, driven by strong performances across commercial aftermarket, commercial OEM, and defense sectors.

Strong EBITDA Performance

The company reported adjusted EBITDA up $12 million from Q2 2024, with margins at a record 38.3%, an increase of 220 basis points from the previous year.

High Cash Flow Conversion

Cash flow conversion percentages of 175% and 125% for the first two quarters of 2025, with a year-to-date average of 148%, exceeding the company's target of 125% for the year.

Successful Acquisition of Beadlight

Loar Holdings acquired Beadlight, a UK-based lighting products company, expected to bring significant growth and accretive results starting in 2026.

Negative Updates

Choppy Commercial OE Growth

Challenges in managing inventory levels and supply chain issues have resulted in choppy growth rates for the commercial OE segment, leading to a cautious stance on organic growth projections.

Regulatory Delays in LMB Acquisition

The acquisition of LMB Fans & Motors is in a holding pattern pending regulatory approval, with potential delays affecting the closing timeline.

Company Guidance

In the second quarter of 2025, Loar Holdings reported exceeding all performance metrics, including record sales, adjusted EBITDA, and adjusted EBITDA margins. The company achieved a compound annual growth rate of 37% in sales and 45% in adjusted EBITDA since its inception, with recent organic sales growth of 18%, 14%, and 15% over the past three years. For 2025, Loar Holdings projects net sales between $486 million and $494 million and adjusted EBITDA between $184 million and $187 million, with an adjusted EBITDA margin of approximately 38%. The company also anticipates low double-digit growth in commercial aftermarket sales and 17% to 20% growth in defense sales. The cash flow conversion percentages for the first two quarters of 2025 were 175% and 125%, respectively, with a year-to-date figure of 148%. The guidance reflects the company's confidence in its value drivers and proprietary portfolio, with no anticipated impact from current tariff environments. Additionally, Loar Holdings' recent acquisition of Beadlight is expected to be accretive in 2026.

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

Positive

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

Positive

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

Very Positive

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	451.74M	402.82M	317.48M	239.43M
Gross Profit	225.25M	198.82M	154.26M	111.50M
EBITDA	141.24M	124.24M	107.52M	73.42M
Net Income	44.37M	22.23M	-4.62M	-2.47M
Balance Sheet
Total Assets	1.50B	1.45B	1.05B	994.52M
Cash, Cash Equivalents and Short-Term Investments	103.34M	54.07M	21.49M	35.50M
Total Debt	9.43M	286.43M	545.48M	496.44M
Total Liabilities	369.49M	362.11M	632.30M	572.55M
Stockholders Equity	1.13B	1.09B	418.14M	421.97M
Cash Flow
Free Cash Flow	80.10M	46.10M	679.00K	5.34M
Operating Cash Flow	89.24M	54.97M	12.81M	13.27M
Investing Cash Flow	-393.01M	-392.13M	-72.56M	-181.83M
Financing Cash Flow	334.15M	370.02M	45.72M	135.31M

Loar Holdings Inc. Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price76.48

Price Trends

50DMA

74.68

Positive

100DMA

81.40

Negative

200DMA

78.77

Negative

Market Momentum

MACD

0.05

Negative

RSI

60.82

Neutral

STOCH

90.31

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 76.48 is above the 20-day moving average (MA) of 71.42, above the 50-day MA of 74.68, and below the 200-day MA of 78.77, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 60.82 is Neutral, neither overbought nor oversold. The STOCH value of 90.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LOAR.

Loar Holdings Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HXL	74 Outperform	$5.10B	59.32	5.63%	1.03%	1.92%	-15.47%
LOAR	66 Neutral	$6.90B	156.97	4.70%	―	26.15%	251.10%
MRCY	63 Neutral	$4.07B	―	-2.57%	―	9.19%	72.88%
KRMN	63 Neutral	$7.13B	―		―	―	―
AMTM	57 Neutral	$6.08B	116.23	2.20%	―	―	―
Sector *	55 Neutral	$6.29B	4.66	-20.95%	6.01%	10.84%	8.15%
SPR	51 Neutral	$4.84B	―	81.63%	―	-2.60%	-94.76%

* General Sector Average

Performance Comparison

LOAR

Loar Holdings Inc.

76.48

8.01

11.70%

HXL

Hexcel

64.88

6.22

10.60%

MRCY

Mercury Systems

68.93

32.53

89.37%

SPR

Spirit AeroSystems

40.84

7.98

24.28%

AMTM

Amentum Holdings, Inc.

24.24

-3.76

-13.43%

KRMN

Karman Holdings Inc.

62.52

30.52

95.38%

Loar Holdings Inc. Corporate Events

Shareholder MeetingsBusiness Operations and Strategy

Loar Holdings Inc. Annual Shareholders Meeting Highlights

Neutral

Jun 5, 2025

On June 3, 2025, Loar Holdings Inc. held its Annual Meeting of Shareholders where key decisions were made, including the re-election of four directors and the ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, shareholders approved the Amended and Restated Loar Holdings Inc. 2024 Incentive Plan, which is expected to influence the company’s strategic direction and operational incentives.

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.Date of analysis: Aug 30, 2025