What does Loar do and what are its main business segments?

Did Loar beat or miss consensus estimates last quarter?

What is Loar's latest dividend and current dividend yield?

What is Loar's gross profit margin?

What guidance did Loar's management provide for the next earnings period?

What were the key takeaways from Loar's earnings call?

What is the revenue and EPS growth rate for Loar year over year?

What factors drove the changes in Loar's revenue and profit?

- **Record 2025 Performance**: $500M sales, 15% YoY growth, $189M adjusted EBITDA. Commercial aftermarket up 34% Q4, driven by aging fleets.
- **2026 Targets**: $640-650M sales, $253-258M EBITDA. New products to drive 10%+ organic growth.
- **Acquisition Impact**: LMB and Harper add $600M+ pipeline, with 2026 accretion. M&A spend $1.1B since IPO, doubling company size.
- **Defense Growth**: European defense spending up, Loar's proprietary products (e.g., LMB) to benefit from supply chain needs.
- **Margin Expansion**: Adjusted EBITDA margin 40% in 2026, up from 32% in 2025. Free cash flow conversion 138%.

**【CEO Summary Section】**
- **2025 Performance Highlights**: Achieved record sales, adjusted EBITDA, and free cash flow. Commercial aftermarket sales grew 19% YoY, driven by aging aircraft fleets (average age 14+ years) and reduced retirement rates (1.5% in 2025 vs. historical 2.5%).
- **2026 Outlook**: Targets $640-650M net sales and $253-258M adjusted EBITDA. Expects low double-digit growth in commercial OEM and aftermarket, mid-single-digit growth in defense. New product pipeline ($600M+ over 5 years) will be the top organic growth driver.
- **Acquisitions**: Added LMB (French cooling devices) and Harper (Boeing latching mechanisms), which are margin-accretive and expand defense and commercial market exposure.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Sales $500M (15% YoY), gross margin 52.7% (up 330bps), adjusted EBITDA $189M (up 43% YoY). Free cash flow conversion 138%.
- **2026 Guidance**: Net income $59-63M, adjusted EPS $0.76-0.80. Capital expenditures ~3% of sales. Interest expense $80M due to acquisitions.
- **M&A Strategy**: 1-2 deals/year, disciplined approach to accretive growth. 2025 M&A spend: $1.1B, doubling company size in 2 years as public.

**【Q&A Key Highlights】**
- **EPS Revision**: Lower 2026 EPS due to noncash amortization ($75M) and interest costs from LMB/Harper deals. Acquisitions expected to be accretive by 2027.
- **Organic Growth Drivers**: New products (e.g., Harper's Boeing latching mechanisms) and aftermarket demand (34% Q4 growth in commercial aftermarket). Defense sales up 19% YoY, driven by European military spending.
- **Defense Market**: European nations increasing military spending to 5% of GDP. Loar's proprietary products (e.g., LMB's cooling systems) position it to benefit from supply chain needs.
- **M&A Pipeline**: Active market with 1-2 deals/year. Focus on proprietary, niche-market businesses with strong aftermarket potential (e.g., LMB in European defense).

Loar Holdings Inc.(LOAR)-20260226-2025 Q4 Earnings call transcript

- **Record Q3 2025 Performance**: 15% YoY organic sales growth, 38.7% adjusted EBITDA margin (up 190bps), and $420M GAAP net income.
- **2026 Outlook**: $540M-$550M net sales, 39% EBITDA margin, 25% effective tax rate, and 125%+ cash flow conversion.
- **Strategic Drivers**: New product pipeline ($600M+), data-driven manufacturing, and 3%+ annual growth from 20+ new products.
- **Risk Management**: Conservative production rate assumptions (Boeing -15%, Airbus -20%), but 10%+ aftermarket resilience despite OEM destocking.
- **Shareholder Value**: 37% CAGR in sales (2012-2024), 47% EBITDA CAGR, and 100%+ operating cash flow growth.

**【Management Opening Remarks】**
- CEO Dirk Charles highlighted a 15% year-over-year (YoY) increase in organic sales, driven by strong commercial aftermarket and OEM demand.
- CFO Glenn D’Alessandro reported record Q3 2025 adjusted EBITDA margins of 38.7%, up 190 basis points YoY, due to operating leverage and strategic initiatives.
- 2026 outlook includes net sales of $540-$550 million, with low double-digit growth in commercial aerospace and defense, despite cautious production rate assumptions (Boeing 737 MAX: 38/month, Airbus A320: 54/month), reflecting supply chain conservatism.

**【CEO Strategic Commentary】**
- Emphasized long-term compound annual growth rates (CAGR) of 18%-15% in organic sales (2022-2024), targeting double-digit organic growth through new product development (e.g., cockpit door barriers, PMA brake systems).
- Highlighted $600 million pipeline of new customer opportunities, with 3%+ annual growth from new products like water purification systems and de-icing technologies.
- Stressing margin improvement through data-driven manufacturing and ERP enhancements, aiming for 39%+ EBITDA margins in 2026.

**【CFO Financial Highlights】**
- Q3 2025 GAAP net income: $420 million, Non-GAAP EPS: $1.08 (vs. $0.95 prior guidance), driven by cost control ($1 million+ savings in Sarbanes-Oxley compliance).
- Operating cash flow minus capex expected to exceed 125% of net income in 2026, with $17 million in non-cash stock comp.
- 2026 capital expenditures: $17 million, effective tax rate: 25%, depreciation/amortization: $15 million.

**【Q&A Key Themes】**
- **Defense Market Deceleration**: 2026 growth expected at 5% (vs. 16% in 2025), attributed to normalized ground vehicle bookings.
- **New Product Growth**: 3%+ contribution from PMA brake certifications and cockpit door exclusivity on Airbus narrow-bodies.
- **Aftermarket Resilience**: 10%+ growth driven by aging fleets and air travel recovery, despite concerns about OEM production rates.
- **Acquisition Integration**: BeeLite (seat belt restraints) already generating $1 million+ in synergies with Schwartz Aerospace, with 40%+ pipeline for additional certifications.


Loar Holdings Inc. (LOAR) Q3 2025 Earnings Call Transcript

- **Record Q2 performance**: 13% sales growth, 38.3% EBITDA margin, and 16% EPS guidance increase.
- **Pipeline acceleration**: $500M product pipeline with 2025 contributions at lower end of 1-3% range.
- **Strategic acquisitions**: Beadlight to drive 2026+ accretion; LMB pending regulatory approval.
- **Resilient aftermarket**: No degradation in demand, supported by proprietary sole-source products.
- **Margin expansion**: 710bps EBITDA margin improvement since 2020, driven by pricing, productivity, and mix.

**【CEO Summary Section】**
- **Record financial performance**: Q2 2025 sales of $123 million (+13% YoY), adjusted EBITDA of $47 million (38.3% margin), and net income of $11 million.
- **Pipeline growth**: $500 million pipeline of new products over 5 years, with 2025 contributions expected at the lower end of 1-3% growth range.
- **Updated guidance**: 2025 net sales $486-494M (+11%), adjusted EBITDA $184-187M (+17%), EPS $0.83-0.88 (+16%).
- **Strategic acquisitions**: Beadlight (UK lighting) to contribute mid-single-digit sales in 2025, accretive from 2026; LMB Fans & Motors pending regulatory approval.

**【CFO Financial Commentary】**
- **Margin expansion**: Gross margin +480bps YoY, driven by strategic pricing, productivity, and mix. Adjusted EBITDA margin up 220bps to 38.3%.
- **Cost management**: Public company costs stabilized at Q2 run rate; no material increases expected.
- **Liquidity**: Strong cash flow conversion (148% YTD) supporting $14M CapEx and $26M interest expense guidance.

**【Q&A Highlights】**
- **Beadlight valuation**: Acquired for $33M, 2025 sales ~$2M breakeven; 2026+ accretion from new programs and Loar synergies.
- **LMB status**: Regulatory delays, but optimistic for Q3 close; French authorities supportive of strategic fit.
- **Market trends**: Commercial aftermarket demand resilient; OE volatility due to inventory management. Defense sales +19% YoY, driven by new programs and share gains.
- **Proprietary strength**: 100% sole-source products; airlines unable to substitute, ensuring demand stability.

Loar Holdings Inc. (LOAR) Q2 2025 Earnings Conference Call Transcript

- **Revenue Growth**: Q1 2025 sales up 12% YoY to $150 million, driven by defense (30% growth), commercial aftermarket (13%), and OEM (8%).
- **Margin Expansion**: Gross profit margin improved 370 bps, adjusted EBITDA up $10 million, with 2025 margin target of 37.5%.
- **New Product Success**: Secondary cockpit barrier to be installed on all new Airbus aircraft, with retrofit orders expected.
- **M&A Pipeline**: Active deal flow with no need for leverage increase, despite strong balance sheet.
- **Defense Volatility**: Q1 30% growth contrasted with full-year high double-digit guidance, reflecting order lumpy nature.
- **Tariff Resilience**: Minimal impact on results; costs passed through without margin erosion.


**【CEO Summary Section】**
- Loar Holdings achieved a 12% year-over-year increase in Q1 2025 sales to $150 million, driven by strong performance across defense, commercial aftermarket, and commercial OEM segments.
- The company improved gross profit margin by 370 basis points in Q1, with adjusted EBITDA up $10 million compared to the prior year period.
- Updated 2025 guidance includes net sales of $482-$490 million (up from $480-$488 million) and adjusted EBITDA of $182-$185 million (up from $180-$184 million), reflecting confidence in demand and execution of value drivers.
- Management emphasized the proprietary nature of the product portfolio, with no single product accounting for more than 3% of annual revenue.
- The secondary cockpit barrier, a new product developed in partnership with Airbus, is expected to contribute significantly to future growth.

**【CFO Financial Commentary】**
- Defense sales increased 30% YoY in Q1, driven by new product launches and market share gains, though noted as lumpy due to ordering patterns.
- Commercial aftermarket sales rose 13% YoY and 15% sequentially, benefiting from strong air travel demand.
- Commercial OEM sales grew 8% YoY, with higher production rates for Boeing and Airbus platforms.
- Adjusted EBITDA margin reached 37.6% in Q1, up 120 basis points from 2024, supported by cost control and operating leverage.
- The company expects to close the acquisition of LMB Fans and Motors in Q3 2025, with no impact on current guidance.

**【Q&A Key Highlights】**
- **Commercial Aftermarket Pricing**: No pushback on price increases; demand remains strong with no inventory overhang.
- **Defense Growth**: Q1 30% growth is lumpy; full-year guidance assumes high double-digit growth despite potential volatility.
- **M&A Activity**: Management is actively pursuing acquisitions, with a strong pipeline and no need to increase leverage.
- **Tariffs Impact**: Minimal impact on results; costs are passed through to customers without margin erosion.
- **Production Rates**: Boeing MAX production rates are tracking higher than initial expectations, while Airbus remains stable.


Loar (LOAR)-13 May 25-2025 Q1 Earnings call transcript

- **Record 2024 Performance**: 15% revenue growth, $146M adjusted EBITDA, 200% free cash flow conversion.
- **2025 Guidance**: $480-488M net sales, 120 bps margin expansion to 37.5%, driven by defense growth and pricing power.
- **Strategic Wins**: LMB acquisition (Q3 2025), PMA pipeline acceleration, and 1-3% annual new product contribution.
- **Resilience**: Mitigated tariff risk via inventory pre-positioning, 99% U.S. secondary sourcing.
- **Growth Catalysts**: Defense market share gains, aftermarket secular trends, and OE production stabilization.


**【CEO Opening Remarks】**
- Loar Holdings achieved 15% YoY revenue growth in 2024, driven by strong aftermarket demand and defense market expansion.
- Emphasized margin improvement strategy: 660 basis points of margin expansion over 5 years, targeting 37.5% adjusted EBITDA margin in 2025.
- Highlighted new product launches (e.g., PMA parts) as key growth drivers, with 1-3% annual contribution to top-line growth.
- Announced pending acquisition of LMB Fans and Motors, expected to close in Q3 2025, adding high-margin defense exposure.

**【CFO Financial Highlights】**
- Q4 2024 net sales: $120 million (15% YoY growth), full-year 2024 net sales: $470 million (15% YoY growth).
- Adjusted EBITDA: $146 million (2024) / $42 million (Q4 2024), margin: 36.4%.
- Free cash flow conversion: 200% for 2024, driven by strong collections and capital discipline.
- 2025 guidance: Net sales $480-488 million, adjusted EBITDA $180-184 million, 120 bps margin expansion.

**【Q&A Key Takeaways】**
- **Aftermarket Strength**: Backlog remains robust, with 12-15% YoY growth in commercial aftermarket.
- **Defense Mix Impact**: Higher defense sales (24% of 2024 revenue) slightly dilute margins but provide long-term growth.
- **Tariff Mitigation**: Pre-positioned inventory for steel/aluminum offsets near-term cost increases; 99% of parts have U.S. secondary sourcing.
- **M&A Pipeline**: Expect 1-2 deals/year; LMB acquisition adds $15 million annual revenue with 50% EBITDA margin.
- **OE Visibility**: Boeing/Airbus production rates expected to stabilize at 30/50 aircraft/month, supporting mid-teen organic growth.

**【Outlook 2025】**
- **Revenue Growth**: 15-16% YoY, driven by defense (17-20% growth) and aftermarket secular trends.
- **Margin Expansion**: 120 bps to 37.5% adjusted EBITDA margin, fueled by pricing > inflation and operating leverage.
- **Leverage New Products**: PMA certifications expected to accelerate in H2 2025, contributing incremental growth.
- **Liquidity**: $55 million cash flow from ops (2024), $14 million CapEx, no material balance sheet risk.


Actual	0.13	0.15	0.11	0.2	0.23	0.35	0.26
Forecast	0.0973	0.1298	0.1011	0.1699	0.1833	0.2167	0.1934
Surprise	+33.61%	+15.56%	+8.80%	+17.72%	+25.48%	+61.51%	+34.44%

Actual	97.02M	103.52M	110.44M	114.66M	123.12M	126.75M	131.75M
Forecast	91.70M	97.30M	102.51M	112.61M	120.90M	125.45M	128.02M
Surprise	+5.80%	+6.39%	+7.74%	+1.82%	+1.84%	+1.04%	+2.91%

LOAR

LOAR fundamentals

LOAR Q4 2025 Earnings

Earnings Call

You can ask Aime

LOAR

LOAR fundamentals

LOAR Q4 2025 Earnings

Earnings Call

LOAR Earnings Call Summary for Q4/202510:00 AM on Feb 26, 2026

LOAR Earnings Call Summary for Q3/202510:00 AM on Nov 12, 2025

LOAR Earnings Call Summary for Q2/202510:30 AM on Aug 13, 2025

LOAR Earnings Call Summary for Q1/202510:30 AM on May 13, 2025

LOAR Earnings Call Summary for Q4/202410:30 AM on Mar 31, 2025

You can ask Aime