Loar (NYSE:LOAR) Issues Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• Loar reported quarterly EPS of $0.39, beating the $0.33 consensus, while revenue of $176.17 million exceeded expectations and rose 39% year over year.
• The company raised its FY 2026 adjusted EPS outlook to $1.36–$1.40 and provided 2027 guidance of $745–$755 million in sales and $312–$317 million in adjusted EBITDA.
• Q3 organic sales grew 16%, with adjusted EBITDA margin expanding to 40.8%; however, net income declined year over year, largely due to higher interest, amortization and tax expenses.

Loar (NYSE:LOAR - Get Free Report) released its earnings results on Thursday. The company reported $0.39 earnings per share for the quarter, beating analysts' consensus estimates of $0.33 by $0.06, FiscalAI reports. Loar had a net margin of 11.60% and a return on equity of 9.37%. The business had revenue of $176.17 million during the quarter, compared to the consensus estimate of $170.04 million. During the same quarter last year, the firm earned $0.35 earnings per share. The firm's revenue for the quarter 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 Up 3.0%

LOAR traded up $2.19 during trading on Friday, reaching $75.19. 1,093,936 shares of the stock were exchanged, compared to its average volume of 850,690. The company has a debt-to-equity ratio of 0.79, a quick ratio of 3.24 and a current ratio of 4.91. The stock's 50 day moving average price is $64.76 and its two-hundred day moving average price is $66.66. Loar has a twelve month low of $53.15 and a twelve month high of $82.49. The stock has a market cap of $7.04 billion, a P/E ratio of 119.34 and a beta of 0.63.

Key Loar News

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

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of Loar in a research report on Tuesday, October 6th. Morgan Stanley decreased their price objective on Loar from $82.00 to $72.00 and set an "equal weight" rating for the company in a report on Friday, October 16th. Jefferies Financial Group restated a "buy" rating and issued a $88.00 price objective on shares of Loar in a report on Sunday, August 9th. Royal Bank Of Canada lifted their target price on Loar from $80.00 to $85.00 and gave the company an "outperform" rating in a research report on Friday, August 7th. Finally, Zacks Research lowered Loar from a "strong-buy" rating to a "hold" rating in a report on Friday, October 9th. Four investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $86.00.

Loar Company Profile

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.

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