Loar Holdings reported record third-quarter sales and adjusted EBITDA, with organic sales growth and a larger contribution from acquisitions. Net income and diluted earnings per share fell from a year earlier, reflecting higher interest, taxes and acquisition-related amortization.
The company also raised its 2026 outlook for the third time this year, citing record orders and its current backlog. The release headline refers to a full-year 2027 outlook, but the available announcement details do not include 2027 targets.
Third-quarter results
- Sales rose 39% to $176.2 million, an increase of $49.4 million from a year earlier. Organic sales increased 15.8%, or $20.1 million, to $146.8 million; the difference reflects sales from acquisitions and other non-organic growth.
- Adjusted EBITDA increased 46.5% to $71.9 million. Its margin rose to 40.8% from 38.7%, which Loar attributed to its operating initiatives and the benefit of higher sales.
- Net income declined to $19.6 million from $27.6 million. Diluted earnings per share fell to $0.20 from $0.29. Loar cited higher interest expense, income taxes and non-cash amortization of acquired intangible assets.
- Adjusted earnings per share were $0.39, compared with $0.43 a year earlier.
- Loar said operating cash flow after capital expenditures was a quarterly record and improved 46% from the prior-year quarter. It did not give a dollar amount in the announcement.
Results for the first nine months
- Sales rose 38.2% to $503.8 million. Organic sales increased 13.2%, or $48.4 million, to $412.8 million.
- Adjusted EBITDA grew 46.8% to $204.6 million, and its margin increased to 40.6% from 38.2%.
- Net income fell to $47.5 million from $59.6 million, while diluted earnings per share declined to $0.50 from $0.62. In addition to higher interest, taxes and acquired-intangible amortization, Loar cited a non-cash inventory step-up expense tied to its LMB and Harper Engineering acquisitions.
- Adjusted earnings per share rose 4.7% to $1.11 from $1.06.
Raised 2026 outlook
- Net sales: $669 million to $679 million, up from a prior range of $665 million to $675 million.
- Net income: $60 million to $64 million, versus $56 million to $60 million previously.
- Adjusted EBITDA: $270 million to $275 million, versus $265 million to $270 million.
- Diluted earnings per share: $0.62 to $0.66, compared with $0.57 to $0.62 previously.
- Adjusted earnings per share: $1.36 to $1.40, up from $1.32 to $1.36.
- Loar now expects a net income margin of about 9%, versus about 8% previously, and continues to expect an adjusted EBITDA margin of about 40%.
- The outlook assumes high-double-digit growth of 19% to 22% in commercial, business jet and general aviation original-equipment sales; low-double-digit growth in those markets’ aftermarket sales; and mid-single-digit defense growth.
- The company’s full-year estimates also include about $80 million of interest expense, $15 million of depreciation and $65 million of amortization.
What changes for investors
Loar’s results show faster growth in adjusted EBITDA than in sales, with the adjusted EBITDA margin improving. At the same time, reported net income and diluted EPS are lower, in part because of financing costs, taxes and acquisition-related accounting expenses. The higher 2026 ranges reflect an improved company outlook for sales, earnings and adjusted earnings per share.