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

Loar (NYSE:LOAR) released its quarterly earnings data on Thursday. The company reported $0.38 earnings per share 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 analysts’ expectations of $162.80 million. Loar had a net margin of 12.64% and a return on equity of 8.47%. The company’s revenue for the quarter was up 39.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.23 EPS. 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 Performance

Shares of NYSE:LOAR traded down $2.42 during midday 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 company has a debt-to-equity ratio of 0.80, a current ratio of 4.56 and a quick ratio of 2.89. The company has a fifty day moving average of $71.24 and a two-hundred day moving average of $66.65. The company has a market cap of $6.86 billion, a price-to-earnings ratio of 103.15 and a beta of 0.56. Loar has a 12-month low of $53.15 and a 12-month high of $83.43.

Analyst Ratings Changes

A number of equities research analysts recently commented on the company. Citigroup lifted their price objective on Loar from $71.00 to $87.00 and gave the stock a “buy” rating in a research note on Thursday, June 25th. Jefferies Financial Group set a $75.00 target price on shares of Loar in a research note on Sunday, May 10th. Royal Bank Of Canada lowered their price objective on shares of Loar from $90.00 to $80.00 and set an “outperform” rating on the stock in a report on Friday, May 8th. Weiss Ratings upgraded Loar from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, July 10th. Finally, Zacks Research upgraded shares of Loar from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Loar presently has an average rating of “Moderate Buy” and an average target price of $84.40.

Insider Transactions at Loar

In other Loar news, Director Taiwo K. Danmola sold 35,000 shares of the firm’s stock in a transaction that occurred 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 sale, the director owned 54,286 shares in the company, valued at approximately $3,289,188.74. This trade represents a 39.20% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 20.10% of the company’s stock.

Institutional Trading of Loar

Institutional investors and hedge funds have recently modified their holdings of the company. Captrust Financial Advisors boosted its stake in shares of Loar by 1.8% during the second quarter. Captrust Financial Advisors now owns 12,147 shares of the company’s stock worth $1,047,000 after buying an additional 214 shares during the period. Xponance LLC increased its position in Loar by 4.2% in the 4th quarter. Xponance LLC now owns 5,989 shares of the company’s stock valued at $407,000 after acquiring an additional 240 shares during the period. Federation des caisses Desjardins du Quebec raised its stake in Loar by 16.8% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 1,727 shares of the company’s stock valued at $117,000 after acquiring an additional 248 shares during the last quarter. Rakuten Securities Inc. purchased a new stake in Loar during the 2nd quarter valued at approximately $27,000. Finally, Natixis Advisors LLC lifted its position in Loar by 3.4% during the 3rd quarter. Natixis Advisors LLC now owns 11,322 shares of the company’s stock worth $906,000 after acquiring an additional 370 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.