Loar 2025 Q2 Earnings Record Net Income Growth

Loar (LOAR) reported strong Q2 2025 earnings, surpassing expectations with 26.9% revenue growth and a 118.7% increase in net income. The company raised its full-year guidance and highlighted strategic value drivers and organic growth, positioning itself for continued momentum.

Loar reported robust Q2 2025 earnings, with revenue increasing by 26.9% year-over-year to $123.12 million. The company exceeded key performance metrics, including record sales and adjusted EBITDA, driven by organic growth and strategic initiatives. CEO Dirkson R. Charles emphasized Loar’s momentum, noting strong execution and long-term demand confidence.

Revenue
Driven by strong performance across all segments, Loar’s revenue reached $123.12 million in Q2 2025, a 26.9% increase compared to $97.02 million in Q2 2024. The Commercial Aerospace segment led with $54.28 million in revenue, followed by the Business Jet and General Aviation segment at $30.16 million. The Defense segment contributed $31.47 million, while the Non-Aerospace segment accounted for $7.21 million. This broad-based growth underscored the company’s diversified business model and strong demand across its core markets.

Earnings/Net Income
Loar’s net income surged to $16.71 million in Q2 2025, representing a 118.7% increase compared to $7.64 million in Q2 2024. Earnings per share (EPS) also saw a significant improvement, rising 100.0% to $0.18 from $0.09 in the prior-year period. This remarkable earnings growth reflects the company’s strong operational execution and disciplined cost management.

Price Action
Following the earnings report, Loar’s stock price declined, with a 7.01% drop on the latest trading day, a 3.43% decrease during the most recent full trading week, and a 14.87% drop month-to-date as of the latest data.

Post-Earnings Price Action Review
Historically, investing in LOAR shares on the day of a strong quarterly revenue report and holding for 30 days has yielded strong returns. Over the past three years, this strategy has generated a 50.26% return, significantly outperforming the 22.22% benchmark return. This translates to an excess return of 28.04%, showcasing LOAR’s ability to capitalize on positive earnings momentum. The strategy also delivered a compound annual growth rate of 40.15%, with a maximum drawdown of 0.00%, indicating robust risk-adjusted returns and minimal downside exposure.

CEO Commentary
Dirkson R. Charles, President, CEO, and Executive Co-Chairman of Loar, highlighted the company’s strong performance and strategic value drivers. He emphasized Loar’s proprietary product portfolio, cross-business collaboration, and execution of productivity initiatives as core growth levers. While acknowledging challenges in OE commercial volatility due to OEM inventory management, Charles expressed confidence in long-term demand and strategic priorities such as leveraging the Beadlight acquisition to boost cross-selling and applying value drivers to enhance margins and new product pipelines.

Guidance
Loar raised its 2025 guidance, projecting net sales between $486 million and $494 million, adjusted EBITDA of $184 million to $187 million, and adjusted EPS of $0.83 to $0.88. The company expects high single-digit organic OE commercial growth, low double-digit commercial aftermarket growth, and high double-digit defense sales growth. Adjusted EBITDA margin guidance is approximately 38%, a 170-basis-point improvement from 2024. Capital expenditures are forecasted at $14 million, with full-year interest expense reduced to $26 million and a 25% effective tax rate. Guidance excludes future benefits from the pending LMB acquisition.

Additional News
As of the 3-week period from August 13, 2025, there were no major M&A activities, C-level changes, or significant dividend or buyback announcements reported for Loar. The company continues to focus on strategic growth through value drivers and organic expansion, with no major non-earnings related developments reported in the short term.