Loar (NYSE:LOAR – Get Free Report) released its earnings results on Thursday. The company reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.31 by $0.07, FiscalAI reports. Loar had a return on equity of 9.42% and a net margin of 11.60%.The company had revenue of $171.58 million for the quarter, compared to analyst estimates of $162.80 million. During the same period in the prior year, the firm posted $0.23 EPS. Loar’s quarterly revenue was up 39.4% on a year-over-year basis. 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 Price Performance
Loar stock traded down $1.47 during mid-day trading on Friday, reaching $71.07. The company had a trading volume of 533,535 shares, compared to its average volume of 621,800. The business has a fifty day simple moving average of $71.37 and a 200 day simple moving average of $66.69. The company has a market cap of $6.65 billion, a P/E ratio of 98.70 and a beta of 0.56. Loar has a fifty-two week low of $53.15 and a fifty-two week high of $83.43. The company has a current ratio of 4.56, a quick ratio of 2.89 and a debt-to-equity ratio of 0.80.
Analyst Upgrades and Downgrades
Check Out Our Latest Report on Loar
Insider Activity
In other news, Director Taiwo K. Danmola sold 35,000 shares of the company’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 completion of the transaction, the director directly owned 54,286 shares in the company, valued at approximately $3,289,188.74. This represents a 39.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 20.10% of the company’s stock.
Institutional Investors Weigh In On Loar
A number of hedge funds and other institutional investors have recently bought and sold shares of LOAR. Rakuten Securities Inc. bought a new position in Loar in the second quarter valued at about $27,000. Sunbelt Securities Inc. grew its holdings in shares of Loar by 238.3% during the fourth quarter. Sunbelt Securities Inc. now owns 592 shares of the company’s stock worth $40,000 after purchasing an additional 417 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in shares of Loar in the fourth quarter valued at approximately $67,000. Quadrant Capital Group LLC acquired a new position in shares of Loar in the fourth quarter valued at approximately $73,000. Finally, Tower Research Capital LLC TRC raised its holdings in Loar by 347.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 970 shares of the company’s stock valued at $84,000 after buying an additional 753 shares during the last quarter.
Key Loar News
Here are the key news stories impacting Loar this week:
- Positive Sentiment: Royal Bank of Canada raised its price target on Loar from $80 to $85 and reiterated an “outperform” rating, implying meaningful upside from recent trading levels. Benzinga
- Positive Sentiment: Loar exceeded second-quarter expectations: adjusted EPS was $0.38 versus the $0.31 consensus estimate, while revenue reached approximately $171.6 million, up 39.4% year over year and ahead of the $162.8 million estimate. Adjusted EBITDA increased 47.4% to $69.4 million, with margin expanding to 40.5%. Loar Q2 earnings report
- Positive Sentiment: Management raised its fiscal 2026 outlook to EPS of $1.32–$1.36 and revenue of $665 million–$675 million, above consensus estimates of $1.28 EPS and $652.5 million revenue. The increase reflects strong aerospace and defense demand and a robust new-business pipeline. Loar Q2 results and outlook
- Positive Sentiment: Recent insider activity was reportedly entirely on the buy side, while several institutional investors increased their Loar positions, providing an additional signal of confidence in the company’s long-term prospects.
- Neutral Sentiment: Investor’s Business Daily described Loar as forming a potential new buy point but pulling back toward an important support level. A decisive move above resistance could strengthen the technical outlook, while failure to hold support may keep the stock volatile. Loar technical setup
- Negative Sentiment: Zacks Research downgraded Loar from “strong buy” to “hold,” tempering the positive impact of the earnings beat and higher guidance. With the shares trading at an elevated earnings multiple, further gains may depend on continued strong execution and additional upward revisions. Zacks Research
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.
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