Loar Holdings Inc. Reports Q3 2026 Record Results and Upward Revision to 2026 Outlook and Full Year 2027 Outlook

Quarterly sales and adjusted earnings growth contrasted with lower net income, alongside higher interest, tax and acquired-intangible amortization expenses.

Rhea-AI Summary

Loar Holdings (NYSE:LOAR) reported third-quarter 2026 sales of $176.2 million, raised its full-year outlook and issued its 2027 outlook. Sales rose 39.0% year over year, including 15.8% organic growth, which excludes new acquisitions. Net income fell to $19.6 million from $27.6 million, and diluted earnings per share fell to $0.20 from $0.29. Adjusted EBITDA, a non-GAAP measure of earnings excluding interest, taxes, depreciation, amortization and certain other items, rose 46.5% to $71.9 million.

Loar now expects 2026 sales of $669 million–$679 million and net income of $60 million–$64 million, versus prior ranges of $665 million–$675 million and $56 million–$60 million. Its 2027 outlook calls for sales of $745 million–$755 million and net income of $91 million–$95 million. Nine-month sales rose 38.2% to $503.8 million, while net income declined to $47.5 million from $59.6 million.

24 points · 1 major

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0 major · 14 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Loar raised 2026 sales guidance to $669 million–$679 million from $665 million–$675 million.
• Moderate pointThird-quarter sales rose 39.0% to $176.2 million versus the prior-year quarter.
• Moderate pointThird-quarter organic sales, excluding new acquisitions, rose 15.8% to $146.8 million year over year.
• Moderate pointThird-quarter adjusted EBITDA rose 46.5% to $71.9 million year over year.
• Moderate pointThird-quarter adjusted EBITDA margin increased to 40.8% from 38.7% a year earlier.
• Moderate pointQuarterly operating cash flow after capital expenditures improved 46% over the comparable prior-year period.
• Moderate pointNine-month sales increased 38.2% to $503.8 million versus the comparable prior-year period.
• Moderate pointNine-month organic sales rose 13.2% to $412.8 million versus the comparable prior-year period.
• Moderate pointNine-month adjusted EBITDA increased 46.8% to $204.6 million versus the comparable prior-year period.
• Moderate pointNine-month adjusted EBITDA margin increased to 40.6% from 38.2% in the comparable prior-year period.
• Moderate pointNine-month adjusted earnings per share rose 4.7% to $1.11 from $1.06 a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Loar's 2027 outlook targets sales of $745 million–$755 million.

12 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Loar raised 2026 net income guidance to $60 million–$64 million from $56 million–$60 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar raised 2026 adjusted EBITDA guidance to $270 million–$275 million from $265 million–$270 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar expects a 2026 adjusted EBITDA margin of approximately 40%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar raised 2026 diluted earnings per share guidance to $0.62–$0.66 from $0.57–$0.62.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar raised 2026 net income margin guidance to approximately 9% from approximately 8%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar raised 2026 adjusted earnings per share guidance to $1.36–$1.40 from $1.32–$1.36.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar's 2027 outlook targets net income of $91 million–$95 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar's 2027 outlook targets adjusted EBITDA of $312 million–$317 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar expects a 2027 adjusted EBITDA margin of approximately 42%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar's 2027 outlook targets diluted earnings per share of $0.93–$0.97.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar expects a 2027 net income margin of approximately 12%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar's 2027 outlook targets adjusted earnings per share of $1.64–$1.68.

Negative

• Moderate pointThird-quarter net income declined to $19.6 million from $27.6 million a year earlier.
• Moderate pointThird-quarter adjusted earnings per share declined to $0.39 from $0.43 a year earlier.
• Moderate pointNine-month net income declined to $47.5 million from $59.6 million in the comparable prior-year period.
• Minor pointThird-quarter diluted earnings per share fell to $0.20 from $0.29 a year earlier.
• Minor pointThird-quarter net income margin fell to 11.2% from 21.8% a year earlier.

9 minor points

• Minor pointNine-month diluted earnings per share fell to $0.50 from $0.62 in the comparable prior-year period.
• Minor pointNine-month net income margin declined to 9.5% from 16.3% in the comparable prior-year period.
• Minor pointHigher interest, income tax and acquired-intangible amortization expenses weighed on quarterly and nine-month net income.
• Minor pointNon-cash inventory step-up expense from LMB and Harper Engineering acquisitions also weighed on nine-month net income.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar expects interest expense of approximately $80 million in 2026 and approximately $83 million in 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar expects depreciation expense of approximately $15 million in each of 2026 and 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar expects amortization expense of approximately $65 million in 2026 and approximately $67 million in 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar's 2026 outlook assumes 19–22% aviation OEM growth, low-double-digit aviation aftermarket growth and mid-single-digit defense growth.
• Minor point. Forward-looking: it has not happened yet and may not happen.Loar's 2027 outlook assumes low-double-digit growth across aviation OEM, aviation aftermarket and defense markets.

News Explained

Loar does not reconcile its forward adjusted EBITDA, adjusted EBITDA margin or adjusted EPS outlook to GAAP, citing difficulty projecting event-driven and other non-core items and saying their magnitude may be significant.

Key Figures

Q3 net sales: $176.2 million; up 39.0% Q3 net income: $19.6 million Q3 Adjusted EBITDA: $71.9 million; up 46.5% +5 more

Q3 net sales

$176.2 million; up 39.0%

Third quarter 2026 versus prior-year quarter

Q3 net income

$19.6 million

Third quarter 2026; compared with $27.6 million in the prior-year quarter

Q3 Adjusted EBITDA

$71.9 million; up 46.5%

Third quarter 2026 versus prior-year quarter

2026 net sales outlook

$669 million to $679 million

Revised outlook; previously $665 million to $675 million

2026 net income outlook

$60 million to $64 million

Revised outlook; previously $56 million to $60 million

2026 Adjusted EBITDA outlook

$270 million to $275 million

Revised outlook; previously $265 million to $270 million

2027 net sales outlook

$745 million to $755 million

Full year 2027 outlook

2027 net income outlook

$91 million to $95 million

Full year 2027 outlook

Historical Context

1 past event · Latest: Aug 06

1 event

1. Aug 06

   Q2 earnings

   24h Move

   -4.1%

   Q2 sales and Adjusted EBITDA grew, and the company raised its 2026 outlook.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, non-gaap financial measures, oem, amortization

4 terms

ebitda financial

"References to "EBITDA" mean earnings before interest, taxes, depreciation and amortization"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

non-gaap financial measures financial

"are not measurements of financial performance under U.S. GAAP"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

oem technical

"Commercial, Business Jet, and General Aviation OEM growth"

OEM stands for Original Equipment Manufacturer, which is a company that produces parts or components used in the final products made by other companies. For investors, understanding OEMs is important because their performance can impact the supply chain and overall success of major industries, especially those relying on specialized parts. Think of OEMs as the suppliers that provide the building blocks for larger products, like the engine parts for a car.

amortization financial

"higher non-cash amortization of acquired intangible assets"

Amortization is the process of spreading a large cost over a series of future periods, either by gradually writing off the value of an intangible asset (like a patent or license) or by showing how loan principal is paid down over time. For investors it matters because amortization affects reported profits and cash flow — similar to slicing a big bill into smaller monthly payments — and therefore influences valuations, comparisons between companies, and expectations for future earnings.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WHITE PLAINS, NY / ACCESS Newswire / November 5, 2026 / Loar Holdings Inc. (NYSE:LOAR) (the "Company," "Loar," "we," "us" and "our"), reported record results for the third quarter of 2026, upward revision to 2026 outlook and full year 2027 outlook.

"Our record results in the third quarter of 2026 reflects our continued successful execution along all our value drivers," said Dirkson Charles, Loar Holdings Chief Executive Officer and Executive Co-Chairman of the Board of Directors. "Most noteworthy our operating cash flow for the quarter after being reduced by our capital expenditures were a record for the quarter improving 46% over the comparative previous year period."

Third Quarter 2026

• Net sales of $176.2 million, up 39.0% compared to the prior year's quarter.
• Net income of $19.6 million, compared to $27.6 million for the prior year's quarter.
• Diluted earnings per share of $0.20, compared to $0.29 for the prior year's quarter.
• Adjusted EBITDA of $71.9 million, up 46.5% compared to the prior year's quarter.
• Net income margin of 11.2%, compared to 21.8% for the prior year's quarter.
• Adjusted EBITDA Margin for the quarter was 40.8% compared to 38.7% for the prior year's quarter.
• Adjusted Earnings Per Share of $0.39, compared to $0.43 for the prior year's quarter.

Loar reported net sales for the quarter of $176.2 million, an increase of $49.4 million or 39.0% over the prior year's quarter. Organically,⁽¹⁾ net sales increased 15.8% or $20.1 million, to $146.8 million.

Net income for the quarter was $19.6 million, compared to $27.6 million for the prior year's quarter. Net income for the quarter was impacted by higher interest expense, higher income tax expense, and higher non-cash amortization of acquired intangible assets.

Adjusted EBITDA for the quarter was $71.9 million, an increase of 46.5% or $22.8 million compared to the prior year's quarter. Adjusted EBITDA Margin was 40.8%, compared to 38.7% in the third quarter of the prior year. The increase in Adjusted EBITDA Margin was due to the execution of our strategic value drivers and the accretive impact of increased sales.

Year-to-Date

• Net sales of $503.8 million, up 38.2% over the comparable prior year period.
• Net income of $47.5 million, compared to $59.6 million for the prior year period.
• Diluted earnings per share of $0.50, compared to $0.62 for the prior year period.
• Adjusted EBITDA of $204.6 million, up 46.8% over the comparable prior year period.
• Net income margin of 9.5%, compared to 16.3% for the prior year period.
• Adjusted EBITDA Margin was 40.6% compared to 38.2% in the comparable prior year period.
• Adjusted Earnings Per Share of $1.11, up 4.7% compared to $1.06 over the comparable prior year period.

Loar reported net sales for the nine months ended September 30, 2026 of $503.8 million, an increase of $139.3 million or 38.2% over the comparable period of the prior year. Organically,⁽¹⁾ net sales increased 13.2% or $48.4 million, to $412.8 million.

Net income for the nine months ended September 30, 2026 was $47.5 million, a decrease of $12.1 million compared to the same period of the prior year. The decrease in net income was primarily driven by higher interest expense, higher non-cash amortization of acquired intangible assets, higher income tax expense, and non-cash expense of inventory step-up attributable to the acquisitions of LMB and Harper Engineering.

Adjusted EBITDA for the nine months ended September 30, 2026 was $204.6 million, an increase of 46.8% or $65.3 million over the comparable period of the prior year. Adjusted EBITDA Margin was 40.6%, compared to 38.2% for the comparable prior year period. The increase in Adjusted EBITDA Margin was due to the execution of our strategic value drivers and the accretive impact of increased sales.

Please see the attached Table 4 for a reconciliation of net income to EBITDA, Adjusted EBITDA and
Adjusted EBITDA Margin for the periods discussed in this press release.

(1)	Net organic sales represent net sales from our existing businesses for comparable periods and exclude net sales from new acquisitions. We include net sales from new acquisitions in net organic sales from the 13th month after the acquisition on a comparative basis with the prior period.

Full Year 2026 Outlook - Revised

"We're raising our full year 2026 outlook for the third time this year," said Glenn D'Alessandro, Loar Holdings Treasurer and Chief Financial Officer. "The increase reflects our confidence in being able to convert our record orders and current backlog into increased sales, profits and cash flow through the balance of 2026." Our outlook for the full year 2026 includes:

• Net sales - between $669 million and $679 million, up from between $665 million and $675 million.
• Net income - between $60 million and $64 million, up from between $56 million and $60 million.
• Adjusted EBITDA - between $270 million and $275 million, up from between $265 million and $270 million.
• Adjusted EBITDA Margin - approximately 40%.
• Diluted Earnings per share - between $0.62 and $0.66, up from between $0.57 and $0.62.
• Net income margin - approximately 9%, up from approximately 8%.
• Adjusted Earnings Per Share - between $1.36 and $1.40, up from between $1.32 and $1.36.
• Interest expense - approximately $80 million.
• Depreciation expense - approximately $15 million.
• Amortization expense - approximately $65 million.
• Market Assumptions - Full year 2026 outlook is based on the following assumptions:
  • Commercial, Business Jet, and General Aviation OEM growth of high-double digits (19 -22%).
  • Commercial, Business Jet, and General Aviation aftermarket growth of low-double digits.
  • Defense growth of mid-single digits.

Full Year 2027 Outlook

"Demand is building across every one of our end markets as we head into 2027," said Dirkson Charles, Loar Holdings Chief Executive Officer and Executive Co-Chairman of the Board of Directors. "Commercial OEM is benefiting from higher production rates, the Commercial Aftermarket remains strong as airlines keep an aging fleet flying longer, and our Defense business continues to grow with global demand driven by geo-political and kinetic conflicts. These tailwinds combined with the strength of our proprietary portfolio, we believe positions Loar to have another year of strong performance." Our outlook for 2027 is as follows:

• Net sales - between $745 million and $755 million.
• Net income - between $91 million and $95 million.
• Adjusted EBITDA - between $312 million and $317 million.
• Adjusted EBITDA Margin - approximately 42%.
• Diluted Earnings per share - between $0.93 and $0.97.
• Net income margin - approximately 12%.
• Adjusted Earnings Per Share - between $1.64 and $1.68.
• Interest expense - approximately $83 million.
• Depreciation expense - approximately $15 million.
• Amortization expense - approximately $67 million.
• Market Assumptions - Full year 2027 outlook is based on the following assumptions:
  • Commercial, Business Jet, and General Aviation OEM growth of low-double digits.
  • Commercial, Business Jet, and General Aviation aftermarket growth of low-double digits.
  • Defense growth of low-double digits.

Adjusted EBITDA, Adjusted Earnings Per Share and Adjusted EBITDA Margin are non-GAAP financial measures provided in the "Full Year 2026 Outlook - Revised" and the "Full Year 2027 Outlook" sections on a forward-looking basis. The Company does not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with GAAP because to do so would be potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.

Earnings Conference Call

A conference call will be held at 11:00 a.m., Eastern Time on November 5, 2026. To participate in the call telephonically please dial +1 877-407-0670 / +1 215-268-9902. International participants can find a list of toll-free numbers here. A live audio webcast will also be available at the following link as well as through the Investor section of Loar Holdings website; https://ir.loargroup.com.

The webcast will be archived and available for replay later in the day.

About Loar Holdings Inc.

Loar Holdings Inc. is a diversified manufacturer and supplier of niche aerospace and defense components that are essential for today's aircraft and aerospace and defense systems. Loar has established relationships across leading aerospace and defense original equipment manufacturers and Tier Ones worldwide.

Non-GAAP Supplemental Information

We present in this press release certain financial information based on our EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share. References to "EBITDA" mean earnings before interest, taxes, depreciation and amortization, references to "Adjusted EBITDA" mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income to EBITDA and Adjusted EBITDA, and references to "Adjusted EBITDA Margin" refer to Adjusted EBITDA divided by net sales. References to "Adjusted Net Income" mean net income plus certain adjustments as set forth in the reconciliations below to derive Adjusted EBITDA from EBITDA and the amortization of acquired intangible assets, less the tax effect of these adjustments. References to "Adjusted Earnings Per Share" mean Adjusted Net Income divided by weighted average common shares outstanding-diluted. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share are not measurements of financial performance under U.S. GAAP. We present EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share because we believe they are useful indicators for evaluating operating performance. In addition, our management uses Adjusted EBITDA to review and assess the performance of the management team in connection with employee incentive programs and to prepare its annual budget and financial projections. Moreover, our management uses Adjusted EBITDA of target companies to evaluate acquisitions.

Although we use EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share as measures to assess the performance of our business and for the other purposes set forth above, the use of non-GAAP financial measures as analytical tools has limitations, and you should not consider any of them in isolation, or as a substitute for analysis of our results of operations as reported in accordance with U.S. GAAP. Some of these limitations are:

• EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin do not reflect the significant interest expense, or the cash requirements necessary to service interest payments on our indebtedness.
• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and the cash requirements for such replacements are not reflected in EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin.
• EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share exclude the cash expense we have incurred to integrate acquired businesses into our operations, which is a necessary element of certain of our acquisitions.
• The omission of the substantial amortization expense associated with our intangible assets further limits the usefulness of EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share.
• EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin do not include the payment of taxes, which is a necessary element of our operations.

Because of these limitations, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share should not be considered as measures of cash available to us to invest in the growth of our business. Management compensates for these limitations by not viewing EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share in isolation and specifically by using other U.S. GAAP measures, such as net sales, operating profit, and net income to measure our operating performance. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share are not measurements of financial performance under U.S. GAAP, and they should not be considered as alternatives to net income or cash flow from operations determined in accordance with U.S. GAAP. Our calculations of EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share may not be comparable to the calculations of similarly titled measures reported by other companies.

Foward Looking Statements

This press release includes express or implied forward-looking statements. Forward-looking statements include all statements that are not historical facts, including those that reflect our current views with respect to, among other things, our operations and financial performance. The words "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "seek," "foreseeable," the negative version of these words or similar terms and phrases may identify forward-looking statements in this press release, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this press release, including, but not limited to, the statements under the headings "Full Year 2026 Outlook - Revised" and the "Full Year 2027 Outlook" are based on management's current expectations and are not guarantees of future performance. Our expectations and beliefs are expressed in management's good faith, and we believe there is a reasonable basis for them, however, the forward-looking statements are subject to various known and unknown risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to the following: the almost exclusive focus of our business on the aerospace and defense industry; our heavy reliance on certain customers for a significant portion of our sales; the fact that we have in the past consummated acquisitions and our intention to continue to pursue acquisitions, and that our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired operations; and the other risks and uncertainties described in Part I, Item 1A of the Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission ("SEC"), and other periodic reports filed by the Company from time to time with the SEC.

These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in the forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date of this press release and is expressly qualified in its entirety by the cautionary statements included in this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable law.

Contact

Ian McKillop
Loar Holdings Inc. Investor Relations
IR@loargroup.com

Loar Holdings Inc.

Table 1: Condensed Consolidated Balance Sheets

(Unaudited, amounts in thousands except share amounts)

		September 30, 2026				December 31, 2025
Assets
Current assets:
Cash and cash equivalents		$	159,321			$	84,827
Accounts receivable, net			107,287				88,026
Inventories			128,633				109,036
Other current assets			14,690				11,123
Income taxes receivable			7,082				5,486
Total current assets			417,013				298,498
Property, plant and equipment, net			89,657				82,536
Finance lease assets			1,686				1,894
Operating lease assets			11,989				6,229
Other long-term assets			31,335				25,935
Intangible assets, net			722,204				606,406
Goodwill			1,079,835				1,008,377
Total assets		$	2,353,719			$	2,029,875
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$	25,687			$	18,606
Current portion of long-term debt, net			6,736				4,362
Current portion of finance lease liabilities			317				279
Current portion of operating lease liabilities			1,362				818
Income taxes payable			2,226				3,022
Accrued expenses and other current liabilities			41,178				36,419
Total current liabilities			77,506				63,506
Deferred income taxes			78,524				68,377
Long-term debt, net			941,850				711,338
Finance lease liabilities			2,650				2,891
Operating lease liabilities			10,968				5,605
Other long-term liabilities			20,650				3,405
Total liabilities			1,132,148				855,122
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized, and no shares issued or outstanding			-				-
Common stock, $0.01 par value, 485,000,000 shares authorized; 93,690,471 and 93,622,471 issued and outstanding at September 30, 2026 and December 31, 2025, respectively			937				936
Additional paid-in capital			1,140,615				1,125,015
Retained earnings			99,055				51,586
Accumulated other comprehensive loss			(19,036	)			(2,784	)
Total stockholders' equity			1,221,571				1,174,753
Total liabilities and stockholders' equity		$	2,353,719			$	2,029,875

Loar Holdings Inc.

Table 2: Condensed Consolidated Statements of Income

(Unaudited, amounts in thousands except per common share amounts)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net sales		$	176,170			$	126,751			$	503,837			$	364,533
Cost of sales			80,763				59,973				237,987				171,850
Gross profit			95,407				66,778				265,850				192,683
Selling, general and administrative expenses			47,858				35,758				138,865				105,758
Transaction expenses			780				1,846				3,580				4,290
Other expense, net			589				154				1,856				154
Operating income			46,180				29,020				121,549				82,481
Interest expense, net			20,012				6,012				58,736				18,952
Income before income taxes			26,168				23,008				62,813				63,529
Income tax provision (benefit)			6,584				(4,598	)			15,344				3,894
Net income		$	19,584			$	27,606			$	47,469			$	59,635
Earnings per share:
Basic		$	0.21			$	0.29			$	0.51			$	0.64
Diluted		$	0.20			$	0.29			$	0.50			$	0.62
Weighted average common shares outstanding:
Basic			93,688				93,622				93,653				93,588
Diluted			95,769				95,875				95,647				95,912

Loar Holdings Inc.

Table 3: Condensed Consolidated Statements of Cash Flows

(Unaudited, amounts in thousands)

		Nine Months Ended September 30,
		2026				2025
Operating activities
Net income		$	47,469			$	59,635
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			10,006				8,874
Amortization of intangible and other long-term assets			48,849				29,060
Amortization of debt issuance costs			2,930				670
Recognition of inventory step-up			4,916				45
Stock-based compensation			13,400				10,617
Deferred income taxes			5,903				(2,753	)
Non-cash lease expense			930				451
Adjustment to contingent consideration liability			2,050				-
Changes in assets and liabilities, net of acquisitions:
Accounts receivable			(14,106	)			(13,276	)
Inventories			(13,393	)			(9,559	)
Other assets			(9,657	)			(6,443	)
Accounts payable			7,646				4,430
Income taxes receivable			(1,875	)			(752	)
Accrued expenses and other current liabilities			1,842				1,278
Operating lease liabilities			(775	)			(420	)
Net cash provided by operating activities			106,135				81,857
Investing activities
Capital expenditures			(12,484	)			(7,493	)
Payment for acquisitions, net of cash acquired			(249,841	)			(32,813	)
Net cash used in investing activities			(262,325	)			(40,306	)
Financing activities
Net proceeds from issuance of common stock			2,201				1,859
Proceeds from issuance of long-term debt			240,000				1,500
Payments of long-term debt			(5,138	)			-
Financing costs			(4,800	)			-
Payments of finance lease liabilities			(202	)			(173	)
Net cash provided by financing activities			232,061				3,186
Effect of translation adjustments on cash and cash equivalents			(1,377	)			152
Net increase in cash, cash equivalents and restricted cash			74,494				44,889
Cash, cash equivalents and restricted cash, beginning of period			84,827				54,066
Cash, cash equivalents and restricted cash, end of period		$	159,321			$	98,955
Supplemental information
Interest paid during the period, net of capitalized amounts		$	57,871			$	19,399
Income taxes paid during the period, net		$	10,629			$	7,676

Loar Holdings Inc.

Table 4: Reconciliation of Net income to EBITDA and Adjusted EBITDA

(Unaudited, amounts in thousands)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net income		$	19,584			$	27,606			$	47,469			$	59,635
Adjustments:
Interest expense, net			20,012				6,012				58,736				18,952
Income tax provision (benefit)			6,584				(4,598	)			15,344				3,894
Operating income			46,180				29,020				121,549				82,481
Depreciation			3,380				2,926				10,006				8,874
Amortization			16,589				9,863				48,849				29,060
EBITDA			66,149				41,809				180,404				120,415
Adjustments:
Recognition of inventory step-up (1)			-				45				4,916				45
Other expense, net (2)			589				154				1,856				154
Transaction expenses (3)			780				1,846				3,580				4,290
Stock-based compensation (4)			4,427				3,878				13,400				10,617
Acquisition and facility integration costs (5)			-				1,377				457				3,839
Adjusted EBITDA		$	71,945			$	49,109			$	204,613			$	139,360
Net sales		$	176,170			$	126,751			$	503,837			$	364,533
Net income margin			11.2	%			21.8	%			9.5	%			16.3	%
Adjusted EBITDA Margin			40.8	%			38.7	%			40.6	%			38.2	%

1. Represents accounting adjustments to inventory associated with acquisitions of businesses that were charged to cost of sales when inventory was sold.
2. Primarily represents an adjustment to the contingent purchase price for the Harper Engineering acquisition during the three and nine months ended September 30, 2026.
3. Represents third party transaction-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses, and valuation costs that are required to be expensed as incurred.
4. Represents the non-cash compensation expense recognized by the Company for equity awards.
5. Represents costs incurred to integrate acquired businesses and product lines into our operations, facility relocation costs and other acquisition-related costs.

Loar Holdings Inc.

Table 5: Sales by End-Market

(Unaudited, amounts in thousands)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Commercial Net Sales
Commercial aerospace OEM		$	37,864			$	20,659			$	106,545			$	56,163
Commercial aerospace aftermarket			48,412				38,169				138,183				105,408
Total commercial aerospace			86,276				58,828				244,728				161,571
Business jet & general aviation OEM			19,900				19,859				59,837				57,177
Business jet & general aviation aftermarket			14,277				12,738				38,442				36,440
Total business jet & general aviation			34,177				32,597				98,279				93,617
Total commercial OEM			57,764				40,518				166,382				113,340
Total commercial aftermarket			62,689				50,907				176,625				141,848
Total commercial			120,453				91,425				343,007				255,188
Defense Net Sales
Total defense OEM			28,276				13,752				78,289				39,810
Total defense aftermarket			17,252				15,032				52,921				49,227
Total defense			45,528				28,784				131,210				89,037
Other Net Sales
Total other OEM			4,907				3,315				14,676				8,836
Total other aftermarket			5,282				3,227				14,944				11,472
Total other			10,189				6,542				29,620				20,308
Net Sales		$	176,170			$	126,751				503,837			$	364,533

Loar Holdings Inc.

Table 6: Reconciliations of Earnings Per Share to Adjusted Earnings Per Share and Net Income to Adjusted Net Income

(Unaudited, amounts in thousands except per share amounts)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Reported earnings per share
Net income		$	19,584			$	27,606			$	47,469			$	59,635
Denominator for basic and diluted earnings per share:
Weighted-average common shares outstanding - basic			93,688				93,622				93,653				93,588
Effect of dilutive common shares			2,081				2,253				1,994				2,324
Weighted average common shares outstanding - diluted			95,769				95,875				95,647				95,912
Earnings per share - basic		$	0.21			$	0.29			$	0.51			$	0.64
Earnings per share - diluted		$	0.20			$	0.29			$	0.50			$	0.62
Adjusted Earnings Per Share
Net income		$	19,584			$	27,606			$	47,469			$	59,635
Gross adjustments to EBITDA			5,796				7,300				24,209				18,945
Amortization of acquired intangible assets (1)			16,570				9,637				48,849				29,060
Tax adjustment (2)			(4,229	)			(3,468	)			(14,276	)			(5,923	)
Adjusted Net Income		$	37,721			$	41,075			$	106,251			$	101,717
Adjusted Earnings Per Share - diluted		$	0.39			$	0.43			$	1.11			$	1.06
Diluted earnings per share to Adjusted Earnings Per Share
Earnings per share - diluted		$	0.20			$	0.29			$	0.50			$	0.62
Adjustments to diluted earnings per share:
Other expense, net			-				-				0.02				-
Recognition of inventory step-up			-				-				0.05				-
Transaction expenses			0.01				0.02				0.04				0.05
Stock-based compensation			0.05				0.04				0.14				0.11
Acquisition and facility integration costs			-				0.01				-				0.04
Gross adjustments to EBITDA			0.06				0.07				0.25				0.20
Amortization of acquired intangible assets (1)			0.17				0.10				0.51				0.30
Refinancing costs			-				-				-				-
Tax adjustment (2)			(0.04	)			(0.03	)			(0.15	)			(0.06	)
Adjusted Earnings Per Share - diluted		$	0.39			$	0.43			$	1.11			$	1.06

1. The calculation of Adjusted Earnings Per Share has been updated for the current and prior year's results to reflect an adjustment for amortization of acquired intangible assets. We believe this adjustment provides a more consistent view of our earnings.
2. The tax adjustment represents the tax effect of the adjustments at the applicable effective tax rate. To determine the applicable effective tax rate, transaction expenses and stock-based compensation are excluded from Adjusted Net Income and therefore we have excluded the impact those items have on the effective tax rate.

SOURCE: Loar Group Inc.

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FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Loar Holdings' revised 2026 earnings outlook?

Loar expects 2026 net income of $60 million–$64 million and diluted earnings per share of $0.62–$0.66. The prior outlook called for net income of $56 million–$60 million and diluted earnings per share of $0.57–$0.62.

What does Loar Holdings expect for sales and earnings in 2027?

Loar expects 2027 sales of $745 million–$755 million and net income of $91 million–$95 million. Its diluted earnings per share outlook is $0.93–$0.97, with a net income margin of approximately 12%.

What market growth assumptions underpin Loar Holdings' 2026 and 2027 outlooks?

Loar's 2026 outlook assumes 19–22% growth in commercial, business jet and general aviation original equipment manufacturers, low-double-digit growth in those aftermarket businesses, and mid-single-digit defense growth. For 2027, Loar assumes low-double-digit growth in each of those market groups.

Why did Loar Holdings' third-quarter 2026 net income decline?

Higher interest expense, income tax expense and non-cash amortization of acquired intangible assets weighed on third-quarter net income. Net income declined to $19.6 million from $27.6 million in the prior-year quarter despite higher sales.