Loar Holdings Inc. (LOAR)

Price$62.21Cached quoteAs of 2026-10-09 19:24 UTC

AI: Overvalued

Price checkThe shares look expensive because today’s valuation already assumes years of unusually strong growth.

At the observed market value, Loar’s equity is about $6.85 billion and its debt-adjusted business value is about $7.67 billion. Against management’s 2026 sales guide of $665 million to $675 million, investors are paying roughly 10 times sales before debt and about 11.5 times after net debt. The shares also cost about 55 times management’s adjusted earnings forecast and more than 100 times forecast reported profit. Those are demanding prices even for a fast-growing aerospace supplier.

Big pictureSales and cash generation are improving fast, but acquisitions now carry much more debt.

Revenue rose from $317.5 million in 2023 to $402.8 million in 2024 and $496.3 million in 2025. Operating cash flow climbed from $12.8 million to $55.0 million and then $112.3 million. In the first half of 2026, operating cash flow was $61.2 million; after $7.0 million of capital spending, free cash flow—cash left after running and investing in the business—was about $54.2 million. Yet net debt reached $826.9 million, while interest and acquisition amortization pushed first-half net income below the prior year.

Business strengthLoar sells specialized aircraft parts with strong margins and a growing mix of replacement demand.

First-half 2026 sales increased 37.8%, while sales excluding recent acquisitions still grew 11.9%. Management’s adjusted profit before interest, taxes, and non-cash wear-and-tear charges reached a 40.5% margin, showing unusually strong profitability for a manufacturer. About 68% of first-half sales came from commercial aerospace and roughly 26% from defense, while nearly half were aftermarket products used to maintain existing aircraft. That mix adds resilience, but aircraft production still matters: the 2026 outlook assumes 17% to 20% growth in commercial and business-jet factory demand.

What could change the storyFaster organic wins and debt paydown could justify the premium; weaker growth would expose it.

The bull case is tangible: Loar says a roughly $750 million opportunity pipeline has already produced initial orders supporting about $200 million of revenue over five years. The bear case is the price paid for that growth. LMB and Harper cost about $725 million combined, goodwill is now about $1.08 billion, and net debt is roughly three times the midpoint of 2026 adjusted operating-profit guidance. Share count barely changed in the first half, limiting dilution, but stock compensation continues. Sustained double-digit organic growth and falling debt are needed to defend the current valuation.

AI: News

Record Q2, higher outlookLoar raised its outlook after record second-quarter sales, but the stock still sold off that day.

On August 6, Loar reported second-quarter sales of $171.6 million, up 39.4%, with sales excluding recent acquisitions up 12.3%. Adjusted operating profit before interest, taxes, and non-cash charges rose 47.4% to $69.4 million. Management lifted 2026 sales guidance to $665 million to $675 million and adjusted profit guidance to $265 million to $270 million. Shares closed 4.1% lower that day; the timing is notable, but it does not prove the report caused the decline.

Q1 growth, profit pressureFirst-quarter growth stayed strong, while higher acquisition costs reduced reported profit and complicated the earnings picture.

On May 7, first-quarter sales rose 36.1% to $156.1 million and sales excluding recent acquisitions grew 11.4%. Adjusted operating profit increased 46.6% to $63.2 million, yet net income fell to $11.1 million from $15.3 million because interest, acquired-asset amortization, and purchase-accounting charges increased. Management raised its adjusted profit outlook but cut its reported net-income outlook. The shares finished 2.8% lower after opening above the prior close, a mixed reaction that matches the mixed earnings quality.

Harper acquisition closesThe Harper purchase expanded Loar’s aircraft-interiors portfolio but added another large cash-funded acquisition to the balance sheet.

Loar completed the Harper Engineering acquisition on January 21 and announced it on January 22. The company paid about $249.8 million in cash and recorded contingent consideration that could ultimately reach $55 million if financial targets are met. Harper adds proprietary aircraft-interior latching and securing products with positions on major commercial platforms. The strategic fit supports growth, but the financing matters more for valuation: by June, total debt had risen to about $949 million, increasing the cost of future growth.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$496.3M	$402.8M	$317.5M	$239.4M
Gross profit	$261.3M	$198.8M	$154.3M	$111.5M
Gross margin	52.66%	49.36%	48.59%	46.57%
Research & development	$13.1M	$8.8M	$6.3M	$4.2M
Operating expenses	$155.1M	$111.2M	$84.8M	$63.8M
Operating income	$106.2M	$87.6M	$69.5M	$47.7M
Operating margin	21.41%	21.75%	21.89%	19.94%
EBITDA	$156.7M	$130.4M	$107.5M	$73.4M
EBITDA margin	31.57%	32.37%	33.87%	30.66%
Net income	$72.1M	$22.2M	−$4.6M	−$2.5M
Net profit margin	14.54%	5.52%	−1.45%	−1.03%
Basic EPSper basic share	$0.77	$0.25	-$22,620.18	-$0.03
Diluted EPSper diluted share	$0.75	$0.24	-$22,620.18	-$0.03

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈34.21%of listed shares

Abrams David C32.05M shares · May 16, 2025

View holders

Top 20 reported holders of LOAR
Holder	% owned
Abrams David C	≈34.21%32.05M shares
ABRAMS CAPITAL MANAGEMENT, L.P.	34.21%32.05M shares
Bobbili Raja	≈33.61%31.49M shares
Carpenito Anthony	≈33.56%31.44M shares
Bomberg Alison	≈33.56%31.44M shares
Capital International Investors	9.40%8.8M shares
LEVY PAUL S	≈8.63%8.09M shares
T. Rowe Price Investment Management, Inc.	4.43%4.15M shares
Charles Dirkson R	≈4.36%4.09M shares
WELLINGTON MANAGEMENT GROUP LLP	4.34%4.06M shares
MILGRIM BRETT N	≈4.09%3.83M shares
WASATCH ADVISORS LP	3.46%3.24M shares
BAMCO INC /NY/	2.69%2.52M shares
STATE STREET CORP	2.49%2.34M shares
BlackRock, Inc.	2.35%2.2M shares
VANGUARD CAPITAL MANAGEMENT LLC	2.11%1.98M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	1.89%1.77M shares
FEDERATED HERMES, INC.	1.73%1.62M shares
UBS Group AG	1.49%1.4M shares
MORGAN STANLEY	1.23%1.15M shares

Percentages use 93.68M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Reported positions exceed 100% in total, so the circle shows the selected holder only.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys12$14.30M disclosed value

Sells (SEC code S)91$4.10B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 20, 2026Form 4	Danmola Taiwo K.Director	SellCommon Stock	35.0K	$60.59	$2.12M	54.3K
Mar 13, 2026Form 4	LEVY PAUL SDirector	BuyCommon Stock · indirect	75.0K	$64.90	$4.87M	8.09M
Mar 13, 2026Form 4	Carpenito AnthonyDirector,TenPercentOwner	BuyCommon Stock, par value $0.01 per share	50	$64.70	$3.2K	4.8K
Mar 12, 2026Form 4	Carpenito AnthonyDirector,TenPercentOwner	BuyCommon Stock, par value $0.01 per share	3.5K	$65.16	$227.4K	4.8K
Mar 12, 2026Form 4	Carpenito AnthonyDirector,TenPercentOwner	BuyCommon Stock, par value $0.01 per share	1.3K	$64.45	$81.2K	1.3K

Review ownership filings at SEC.gov ↗

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Loar Holdings Inc. (LOAR)

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