Loar (NYSE:LOAR – Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.39 EPS for the quarter, beating analysts’ consensus estimates of $0.33 by $0.06, FiscalAI reports. Loar had a net margin of 9.44% and a return on equity of 9.73%. The company had revenue of $176.17 million for the quarter, compared to the consensus estimate of $170.04 million. During the same period in the prior year, the firm posted $0.35 EPS. The company’s quarterly revenue was up 39.0% compared to the same quarter last year. Loar updated its FY 2026 guidance to 1.360-1.400 EPS.
Here are the key takeaways from Loar’s conference call:
- Loar reported 16% organic sales growth in Q3, with Adjusted EBITDA up $23 million year over year and margin expanding to 40.8% from 38.7%. Free cash flow grew 46% year over year, and year-to-date operating cash flow less capital expenditures was about 200% of net income.
- The company raised its 2026 sales outlook to $669–$679 million and Adjusted EBITDA outlook to $270–$275 million. Initial 2027 guidance calls for sales of $745–$755 million and Adjusted EBITDA of $312–$317 million, with an approximately 42% margin; the forecast assumes no additional acquisitions.
- Commercial OE sales grew 20% in Q3, commercial aftermarket grew at a low-double-digit rate, and defense had its strongest growth quarter of the year. For 2027, Loar expects low-double-digit growth across all three end markets, while acknowledging defense sales can be choppy.
- Despite higher revenue and operating income, Q3 net income fell $8 million year over year and adjusted net income fell $3 million. Loar attributed the declines mainly to higher interest and amortization expenses, along with higher taxes compared with a prior-year tax benefit.
- Management said its acquisition pipeline is encouraging and spans more end markets, but emphasized that deal timing is unpredictable and the company will remain disciplined. Loar reiterated its historical target of one to two acquisitions annually, without committing to a near-term transaction.
Loar Stock Performance
Shares of LOAR stock traded up $2.19 during mid-day trading on Friday, hitting $75.19. 1,093,936 shares of the stock were exchanged, compared to its average volume of 1,262,538. The stock’s fifty day simple moving average is $64.76 and its two-hundred day simple moving average is $66.66. The stock has a market capitalization of $7.04 billion, a price-to-earnings ratio of 62.75 and a beta of 0.63. Loar has a 12-month low of $53.15 and a 12-month high of $82.49. The company has a debt-to-equity ratio of 0.79, a quick ratio of 3.24 and a current ratio of 4.91.
Wall Street Analysts Forecast Growth
Several research firms have recently issued reports on LOAR. Royal Bank Of Canada lifted their price objective on shares of Loar from $80.00 to $85.00 and gave the stock an “outperform” rating in a research report on Friday, August 7th. Weiss Ratings reissued a “hold (c)” rating on shares of Loar in a report on Tuesday, October 6th. Jefferies Financial Group restated a “buy” rating and issued a $88.00 price target on shares of Loar in a research note on Sunday, August 9th. Morgan Stanley decreased their price target on Loar from $82.00 to $72.00 and set an “equal weight” rating for the company in a report on Friday, October 16th. Finally, Zacks Research downgraded Loar from a “strong-buy” rating to a “hold” rating in a report on Friday, October 9th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $86.00.
Check Out Our Latest Analysis on Loar
Loar News Summary
Here are the key news stories impacting Loar this week:
- Positive Sentiment: Loar reported third-quarter EPS of $0.39, above the $0.33 consensus, and revenue of $176.17 million versus expectations of $170.04 million. Revenue rose 39% year over year, with organic sales growth of 16%. Zacks Q3 earnings report
- Positive Sentiment: The company raised its 2026 adjusted EPS outlook to $1.36–$1.40, above the cited consensus estimate of $1.34. It also initiated 2027 net sales guidance of up to $755 million, offering investors a view of continued growth. The Motley Fool’s earnings takeaways
- Neutral Sentiment: 2026 revenue guidance of $669–$679 million is broadly in line with the $671.5 million consensus, so the outlook’s potential stock impact may depend more on execution and future growth. StreetInsider earnings and guidance report
About Loar
Loar Holdings Inc is an aerospace and defense company that designs, manufactures and sells highly engineered, mission-critical components and systems. Its products are used in commercial and military aircraft, business jets, general aviation, space vehicles and other defense applications.
The company’s product portfolio includes specialized components such as shock absorbers, vibration-control products, elastomeric components, seals, electronic systems and other aircraft and defense parts.
Read More
- Five stocks we like better than Loar
- Dutch Bros Gave Wall Street What It Wanted, So Why Did the Stock Crater?
- Astera Labs Just Crushed Earnings—So Why Are Analysts Cutting Price Targets?
- Sandisk Shares Are Oversold: Bargain or Value Trap?
- IonQ’s Record Revenue Includes a Big SkyWater Boost: Does That Change the Story?
Receive News & Ratings for Loar Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Loar and related companies with MarketBeat.com's FREE daily email newsletter.
