Loar (NYSE:LOAR) Announces Quarterly Earnings Results

Loar (NYSE:LOAR) announced its quarterly earnings data on Thursday. The company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.19 by $0.07, FiscalAI reports. Loar had a return on equity of 6.45% and a net margin of 13.33%.The firm had revenue of $131.75 million for the quarter, compared to analysts’ expectations of $128.00 million. During the same period last year, the business posted $0.11 earnings per share. The firm’s revenue for the quarter was up 19.3% on a year-over-year basis. 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 Stock Down 3.2%

Loar stock traded down $2.19 during midday trading on Thursday, reaching $66.05. The stock had a trading volume of 1,434,824 shares, compared to its average volume of 820,855. The stock has a market capitalization of $6.18 billion, a P/E ratio of 99.68 and a beta of 0.37. Loar has a 1-year low of $62.10 and a 1-year high of $99.67. The firm’s fifty day simple moving average is $68.99 and its 200-day simple moving average is $72.32. The company has a debt-to-equity ratio of 0.24, a quick ratio of 3.81 and a current ratio of 5.92.

Wall Street Analysts Forecast Growth

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

Institutional Trading of Loar

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Wasatch Advisors LP increased its holdings in Loar by 17.3% in the 4th quarter. Wasatch Advisors LP now owns 3,064,965 shares of the company’s stock valued at $208,418,000 after buying an additional 452,646 shares during the period. T. Rowe Price Investment Management Inc. grew its position in shares of Loar by 39.0% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,533,540 shares of the company’s stock valued at $172,281,000 after buying an additional 711,182 shares during the last quarter. State Street Corp boosted its holdings in Loar by 18.1% in the fourth quarter. State Street Corp now owns 1,880,955 shares of the company’s stock valued at $127,905,000 after acquiring an additional 288,095 shares during the last quarter. Alliancebernstein L.P. lifted its holdings in Loar by 1.1% in the third quarter. Alliancebernstein L.P. now owns 1,536,334 shares of the company’s stock valued at $122,907,000 after buying an additional 16,270 shares during the period. Finally, Wellington Management Group LLP lifted its stake in shares of Loar by 118.3% in the 4th quarter. Wellington Management Group LLP now owns 1,084,175 shares of the company’s stock valued at $73,724,000 after purchasing an additional 587,493 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.