Loar (NYSE:LOAR) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Loar (NYSE:LOAR) issued its earnings results 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 business had revenue of $176.17 million for the quarter, compared to the consensus estimate of $170.04 million. During the same quarter last year, the firm posted $0.35 EPS. The business’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 Price Performance

Shares of LOAR traded up $2.19 during midday trading on Friday, reaching $75.19. The stock had a trading volume of 1,093,936 shares, compared to its average volume of 1,262,538. The company has a debt-to-equity ratio of 0.79, a current ratio of 4.91 and a quick ratio of 3.24. The company has a market capitalization of $7.04 billion, a P/E ratio of 62.75 and a beta of 0.63. The firm’s 50 day moving average price is $64.76 and its 200-day moving average price is $66.66. Loar has a 52 week low of $53.15 and a 52 week high of $82.49.

Loar News Roundup

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

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. Weiss Ratings restated a “hold (c)” rating on shares of Loar in a research note on Tuesday, October 6th. Royal Bank Of Canada increased their price target on Loar from $80.00 to $85.00 and gave the stock an “outperform” rating in a research report on Friday, August 7th. Morgan Stanley cut their price target on Loar from $82.00 to $72.00 and set an “equal weight” rating on the stock in a report on Friday, October 16th. Zacks Research lowered Loar from a “strong-buy” rating to a “hold” rating in a research report on Friday, October 9th. Finally, Jefferies Financial Group restated a “buy” rating and set a $88.00 price objective on shares of Loar in a research report on Sunday, August 9th. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Loar currently 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.