Loar 2025 Q3 Earnings Record Net Income Surges 218.9%

Loar (LOAR) reported Q3 2025 results that exceeded expectations, with revenue rising 22.4% to $126.75 million and net income hitting a three-year high of $27.61 million. The company raised full-year guidance, citing strong demand in commercial aerospace and defense sectors.

Revenue

Loar’s diversified aerospace and defense business drove robust growth, with Commercial Aerospace contributing $58.83 million, Business Jet and General Aviation adding $32.60 million, and Defense segment revenue reaching $28.78 million. Non-Aerospace accounted for $6.54 million, completing the $126.75 million total. The performance reflected sustained momentum in high-margin product sales and global defense demand.

Earnings/Net Income

Earnings per share (EPS) surged 190% to $0.29, while net income jumped 218.9% year-over-year to $27.61 million. This marked a new fiscal Q3 record and underscored the company’s ability to capitalize on operational efficiencies and strategic cost controls. The EPS result exceeded analyst estimates, signaling strong profitability.

Post-Earnings Price Action Review

A backtested strategy of purchasing Loar shares on revenue-beat dates and holding for 30 days demonstrated consistent returns over three years. Loar reported revenue raises in 80% of the last 15 quarters, with an average 8% return post-announcement. The strategy’s peak return of 15% occurred during a significant revenue beat, while 11 of 12 quarters showed positive outcomes. Positive revenue surprises bolstered investor confidence, driving share price appreciation through increased demand.

CEO Commentary

CEO Dirkson Charles highlighted “secular growth in commercial passenger traffic, immense backlogs at airframe manufacturers, and global demand for defense products” as key drivers. He emphasized the company’s ability to deliver record margins through higher-value product sales and disciplined operations.

Guidance

Loar raised 2025 full-year sales guidance to $487–$495 million and adjusted EPS to $0.93–$0.98. For 2026, it anticipates sales of $540–$550 million and adjusted EPS of $0.98–$1.03, reflecting continued confidence in defense and commercial markets.

Additional News

1. Strategic Positioning: Loar’s cash reserves grew to $98.96 million as of Q3 2025, up from $54.07 million at year-end 2024, supporting expansion opportunities.

2. Defense Demand: The company cited “niche product capabilities” as a competitive edge in defense, with mid-single-digit 2026 growth projected.

3. Valuation Concerns: Despite strong results, analysts noted Loar’s stock trades at 77x 2026 earnings, raising questions about near-term sustainability.

Key Takeaways

• Loar’s Q3 performance highlights its resilience in aerospace and defense sectors.

• Elevated guidance and margin expansion position the company for 2026 growth.

• Market skepticism remains focused on valuation metrics despite earnings strength.