Loar (NYSE:LOAR) Posts Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Loar (NYSE:LOAR) issued its quarterly earnings results on Thursday. The company reported $0.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.31 by $0.07, FiscalAI reports. The business had revenue of $171.58 million for the quarter, compared to analyst estimates of $162.80 million. Loar had a net margin of 12.64% and a return on equity of 8.47%. The business’s revenue was up 39.4% compared to the same quarter last year. During the same period in the previous year, the business posted $0.23 earnings per share. Loar updated its FY 2026 guidance to 1.320-1.360 EPS.

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

• Record Q2 performance included $172 million in sales, up 17% year over year, and adjusted EBITDA margins of 40.5%, up 220 basis points. Adjusted EBITDA rose $20 million, marking the 16th consecutive quarter of sequential growth.
• Loar raised its 2026 outlook to $665–$675 million in sales, $265–$270 million in adjusted EBITDA, and $1.32–$1.36 in adjusted EPS. The company expects high-double-digit commercial OEM growth, low-double-digit commercial aftermarket growth, and mid-single-digit defense growth.
• The organic new-business pipeline expanded to approximately $750 million of potential five-year revenue, with about $200 million already converted into certified or qualified products expected to generate revenue. Management described new-product and share-gain activity as reaching an inflection point.
• Commercial OEM sales increased 28%, commercial aftermarket sales rose 12%, and defense sales grew 8%. Management cited improving supply-chain conditions, strong Boeing and Airbus backlogs, and sustained air-travel and geopolitical demand.
• Defense ordering remains lumpy, while the company expects to invest additional capital to keep up with demand in fans and motors, restraints, and brakes. Management also reiterated that acquisitions remain part of its one-to-two-per-year strategy, but timing is unpredictable and guidance excludes future deals.

Loar Stock Down 3.2%

NYSE:LOAR traded down $2.42 during mid-day trading on Thursday, hitting $73.24. The company had a trading volume of 1,001,742 shares, compared to its average volume of 598,437. The business has a fifty day simple moving average of $71.24 and a 200-day simple moving average of $66.65. The company has a current ratio of 4.56, a quick ratio of 2.89 and a debt-to-equity ratio of 0.80. Loar has a 1 year low of $53.15 and a 1 year high of $83.43. The firm has a market capitalization of $6.86 billion, a price-to-earnings ratio of 103.15 and a beta of 0.56.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on LOAR shares. Jefferies Financial Group set a $75.00 target price on Loar in a research note on Sunday, May 10th. Citigroup lifted their price target on Loar from $71.00 to $87.00 and gave the company a “buy” rating in a research note on Thursday, June 25th. Morgan Stanley reiterated an “equal weight” rating and issued a $82.00 price objective (down from $91.00) on shares of Loar in a research report on Wednesday, July 15th. Weiss Ratings raised Loar from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, July 10th. Finally, Royal Bank Of Canada decreased their target price on shares of Loar from $90.00 to $80.00 and set an “outperform” rating on the stock in a research report on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $84.40.

Insider Buying and Selling

In other news, Director Taiwo K. Danmola sold 35,000 shares of the business’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $60.59, for a total transaction of $2,120,650.00. Following the transaction, the director directly owned 54,286 shares of the company’s stock, valued at approximately $3,289,188.74. The trade was a 39.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 20.10% of the company’s stock.

Institutional Investors Weigh In On Loar

A number of large investors have recently added to or reduced their stakes in the company. Sunbelt Securities Inc. boosted its position in shares of Loar by 238.3% in the 4th quarter. Sunbelt Securities Inc. now owns 592 shares of the company’s stock valued at $40,000 after purchasing an additional 417 shares during the period. T. Rowe Price Investment Management Inc. grew its position in Loar by 39.0% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,533,540 shares of the company’s stock valued at $172,281,000 after purchasing an additional 711,182 shares in the last quarter. Vident Advisory LLC acquired a new position in Loar in the 4th quarter valued at approximately $259,000. XTX Topco Ltd acquired a new position in Loar in the 4th quarter valued at approximately $4,391,000. Finally, Zimmer Partners LP lifted its position in Loar by 111.5% in the 4th quarter. Zimmer Partners LP now owns 275,000 shares of the company’s stock worth $18,700,000 after buying an additional 145,000 shares in the last quarter.

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.