Loar (NYSE:LOAR) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Loar (NYSE:LOAR) issued its quarterly earnings results on Thursday. The company reported $0.38 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.07, FiscalAI reports. Loar had a return on equity of 9.42% and a net margin of 11.60%.The business had revenue of $171.58 million during the quarter, compared to the consensus estimate of $162.80 million. During the same quarter last year, the company earned $0.23 earnings per share. The company’s quarterly revenue was up 39.4% on a year-over-year basis. Loar updated its FY 2026 guidance to 1.320-1.360 EPS.

Here are the key takeaways from Loar’s conference call:

• Record Q2 performance included $172 million in sales, up 17% year over year, and adjusted EBITDA margins of 40.5%, up 220 basis points. Adjusted EBITDA rose $20 million, marking the 16th consecutive quarter of sequential growth.
• Loar raised its 2026 outlook to $665–$675 million in sales, $265–$270 million in adjusted EBITDA, and $1.32–$1.36 in adjusted EPS. The company expects high-double-digit commercial OEM growth, low-double-digit commercial aftermarket growth, and mid-single-digit defense growth.
• The organic new-business pipeline expanded to approximately $750 million of potential five-year revenue, with about $200 million already converted into certified or qualified products expected to generate revenue. Management described new-product and share-gain activity as reaching an inflection point.
• Commercial OEM sales increased 28%, commercial aftermarket sales rose 12%, and defense sales grew 8%. Management cited improving supply-chain conditions, strong Boeing and Airbus backlogs, and sustained air-travel and geopolitical demand.
• Defense ordering remains lumpy, while the company expects to invest additional capital to keep up with demand in fans and motors, restraints, and brakes. Management also reiterated that acquisitions remain part of its one-to-two-per-year strategy, but timing is unpredictable and guidance excludes future deals.

Loar Price Performance

Shares of LOAR traded down $1.47 during trading hours on Friday, hitting $71.07. 533,535 shares of the stock were exchanged, compared to its average volume of 621,800. The stock’s 50-day moving average price is $71.37 and its two-hundred day moving average price is $66.69. Loar has a 12-month low of $53.15 and a 12-month high of $83.43. The company has a debt-to-equity ratio of 0.80, a quick ratio of 2.89 and a current ratio of 4.56. The company has a market cap of $6.65 billion, a price-to-earnings ratio of 98.70 and a beta of 0.56.

Analyst Upgrades and Downgrades

LOAR has been the topic of a number of recent analyst reports. Citigroup upped their price target on shares of Loar from $71.00 to $87.00 and gave the company a “buy” rating in a research note on Thursday, June 25th. Weiss Ratings raised Loar from a “hold (c-)” rating to a “hold (c)” rating in a research report on Friday, July 10th. Royal Bank Of Canada raised their target price on Loar from $80.00 to $85.00 and gave the stock an “outperform” rating in a research note on Friday. Zacks Research cut Loar from a “strong-buy” rating to a “hold” rating in a research report on Wednesday. Finally, Morgan Stanley reiterated an “equal weight” rating and set a $82.00 price target (down from $91.00) on shares of Loar in a research note on Wednesday, July 15th. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $85.40.

Key Stories Impacting Loar

Here are the key news stories impacting Loar this week:

• Positive Sentiment: Royal Bank of Canada raised its price target on Loar from $80 to $85 and reiterated an “outperform” rating, implying meaningful upside from recent trading levels. Benzinga
• Positive Sentiment: Loar exceeded second-quarter expectations: adjusted EPS was $0.38 versus the $0.31 consensus estimate, while revenue reached approximately $171.6 million, up 39.4% year over year and ahead of the $162.8 million estimate. Adjusted EBITDA increased 47.4% to $69.4 million, with margin expanding to 40.5%. Loar Q2 earnings report
• Positive Sentiment: Management raised its fiscal 2026 outlook to EPS of $1.32–$1.36 and revenue of $665 million–$675 million, above consensus estimates of $1.28 EPS and $652.5 million revenue. The increase reflects strong aerospace and defense demand and a robust new-business pipeline. Loar Q2 results and outlook
• Positive Sentiment: Recent insider activity was reportedly entirely on the buy side, while several institutional investors increased their Loar positions, providing an additional signal of confidence in the company’s long-term prospects.
• Neutral Sentiment: Investor’s Business Daily described Loar as forming a potential new buy point but pulling back toward an important support level. A decisive move above resistance could strengthen the technical outlook, while failure to hold support may keep the stock volatile. Loar technical setup
• Negative Sentiment: Zacks Research downgraded Loar from “strong buy” to “hold,” tempering the positive impact of the earnings beat and higher guidance. With the shares trading at an elevated earnings multiple, further gains may depend on continued strong execution and additional upward revisions. Zacks Research

Insider Buying and Selling at Loar

In related news, Director Taiwo K. Danmola sold 35,000 shares of the business’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $60.59, for a total transaction of $2,120,650.00. Following the transaction, the director directly owned 54,286 shares in the company, valued at approximately $3,289,188.74. The trade was a 39.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 20.10% of the company’s stock.

Institutional Investors Weigh In On Loar

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Rakuten Securities Inc. purchased a new position in Loar during the second quarter worth about $27,000. Sunbelt Securities Inc. lifted its stake in Loar by 238.3% during the 4th quarter. Sunbelt Securities Inc. now owns 592 shares of the company’s stock worth $40,000 after acquiring an additional 417 shares in the last quarter. Kestra Advisory Services LLC purchased a new position in Loar during the 4th quarter valued at about $67,000. Quadrant Capital Group LLC purchased a new stake in Loar during the fourth quarter worth about $73,000. Finally, Tower Research Capital LLC TRC lifted its position in shares of Loar by 347.0% during the second quarter. Tower Research Capital LLC TRC now owns 970 shares of the company’s stock worth $84,000 after purchasing an additional 753 shares in the last quarter.

About Loar

Loar Holdings Inc, through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices.