Loar Holdings Q3 sales beat on organic growth, acquisitions

Overview

• U.S. aerospace components maker's Q3 sales rose 39% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Net income declined due to higher interest, tax, and amortization expenses

Outlook

• Loar raises 2026 net sales outlook to $669 mln-$679 mln from $665 mln-$675 mln

• Company lifts 2026 net income forecast to $60 mln-$64 mln from $56 mln-$60 mln

• Loar forecasts 2027 net sales of $745 mln-$755 mln

Result Drivers

• SALES GROWTH - Co attributed higher Q3 sales to both organic growth and contributions from acquisitions

• EXPENSE IMPACT - Higher interest, tax, and amortization expenses weighed on Q3 net income

• MARGIN IMPROVEMENT - Adjusted EBITDA margin rose, which co attributed to execution of strategic initiatives and increased sales

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Loar Holdings Inc. is $86.00, about 23.4% above its November 4 closing price of $69.72

• The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 48 three months ago

Reuters Recommended Reads

• Nov 5 - Ducommun Q3 revenue beats on commercial aerospace growth

• Nov 4 - Redwire Q3 revenue up 5% but misses estimates

• Nov 4 - ITT Q3 adjusted EPS rises, beats estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)