Loar (NYSE:LOAR) Announces Earnings Results

Loar (NYSE:LOAR) issued its quarterly earnings results on Thursday. The company reported $0.26 EPS for the quarter, topping analysts’ consensus estimates of $0.19 by $0.07, FiscalAI reports. The firm had revenue of $131.75 million for the quarter, compared to analyst estimates of $128.00 million. Loar had a net margin of 13.33% and a return on equity of 6.45%. The business’s revenue for the quarter was up 19.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.11 EPS. Loar updated its FY 2026 guidance to 0.760-0.800 EPS.

Here are the key takeaways from Loar’s conference call:

• Record 2025 results — Loar reported $500M in sales (up ~15% YoY), a record Adjusted EBITDA of $189M, expanded margins and strong free cash flow conversion (138%, or 160% ex a one‑time tax benefit).
• Raised 2026 outlook — Management guided to $640–650M sales, $253–258M Adjusted EBITDA (≈40% margin) and reiterated 10%+ organic sales and 15%+ Adjusted EBITDA annual growth targets.
• Deal activity and product pipeline — Closed acquisitions of LMB Fans & Motors and Harper Engineering, highlighted a >$600M five‑year new‑product pipeline, and said M&A will remain a core, accretive growth lever (1–2 deals/yr historical proxy, but opportunistic).
• Adjusted EPS guide lowered — The 2026 adjusted EPS range ($0.76–$0.80) was reduced due to incremental non‑cash amortization/dep from the recent deals and higher interest expense related to acquisition financing.
• Strong aftermarket and defense tailwinds — Management pointed to an aging commercial fleet and lower retirement rates boosting aftermarket demand (commercial aftermarket +19% for 2025; +34% in Q4), and noted sustained defense spending as a growth opportunity despite lumpy ordering.

Loar Trading Up 1.2%

Shares of NYSE LOAR traded up $0.79 during trading hours on Thursday, hitting $69.03. The company’s stock had a trading volume of 3,349,033 shares, compared to its average volume of 853,650. Loar has a 12 month low of $62.10 and a 12 month high of $99.67. The stock has a market cap of $6.46 billion, a price-to-earnings ratio of 104.59 and a beta of 0.37. The company has a debt-to-equity ratio of 0.24, a quick ratio of 3.81 and a current ratio of 5.92. The business has a 50-day simple moving average of $68.99 and a 200-day simple moving average of $72.32.

Wall Street Analyst Weigh In

Several brokerages have issued reports on LOAR. Wall Street Zen raised Loar from a “hold” rating to a “buy” rating in a research note on Saturday, February 14th. Citigroup dropped their target price on Loar from $87.00 to $81.00 and set a “buy” rating for the company in a research report on Thursday, February 5th. Morgan Stanley reduced their price target on shares of Loar from $100.00 to $97.00 and set an “overweight” rating on the stock in a research report on Thursday, November 13th. Royal Bank Of Canada lowered their price objective on shares of Loar from $92.00 to $90.00 and set an “outperform” rating for the company in a report on Wednesday, February 18th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Loar in a research note on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of $91.50.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Rakuten Securities Inc. bought a new position in Loar in the second quarter worth $27,000. Sunbelt Securities Inc. lifted its position in Loar by 238.3% during the 4th quarter. Sunbelt Securities Inc. now owns 592 shares of the company’s stock valued at $40,000 after acquiring an additional 417 shares during the period. Kestra Advisory Services LLC purchased a new position in Loar during the 4th quarter valued at about $67,000. Quadrant Capital Group LLC bought a new stake in Loar during the fourth quarter worth about $73,000. Finally, Tower Research Capital LLC TRC grew its holdings in Loar by 347.0% in the second quarter. Tower Research Capital LLC TRC now owns 970 shares of the company’s stock worth $84,000 after purchasing an additional 753 shares during the period.

About Loar

Loar Holdings Inc, through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices.