| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 12 | 89.5x | 17.6x | Bottom tier | |
Growth | 89 | 14.2% | 7.1% | Top tier | |
Quality | 68 | 6.7% | 4.5% | Top tier | |
Safety | 49 | 4.6x | 2.6x | Around median | |
Capital Return | 16 | — | 2.15% | Bottom tier | |
Momentum | 47 | 5.0% | 2.3% | Around median | |
Sentiment | 64 | 3 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Loar Holdings manufactures specialized, technically proprietary components for the aerospace and defense sectors, and its portfolio includes more than 25 thousand part numbers covering commercial aircraft, business aviation, general aviation, and military platforms. Its ability to generate revenue depends on designing, engineering, and qualifying products, then supplying them to original equipment manufacturers and the aftermarket throughout the life of the aircraft; its applications include brakes, sensors, switches, safety restraints, fans, and motors. Qualified products and sole-source positions in several applications provide opportunities for value-based pricing and for selling the same part across production and maintenance cycles spanning decades.
In fiscal Q2 2026, net sales reached $171.6 million, with reported growth of 39.4%, while pro forma growth was 17% and organic growth was 12%. Commercial original equipment sales rose 28%, commercial aftermarket sales 12%, and defense sales 8%, driven particularly by the Boeing 787, A320 family, and 737 family platforms. Adjusted earnings before interest, taxes, depreciation, and amortization reached $69.4 million, up 47.4%, and its margin reached 40.5% versus 38.3% a year earlier, while adjusted earnings per share reached $0.38 versus estimates of $0.31.
GAAP net income remained flat year over year in fiscal Q2 2026 because growth in operating income was offset by higher interest expense and amortization of acquired intangible assets. Gross margin declined 60 basis points due to the amortization of LMB and Harper Engineering assets; excluding this non-cash impact, the margin would have risen 100 basis points. EDGAR data for fiscal 2025 shows revenue of $496.3 million, gross profit of $261.3 million, and net income of $72.1 million, while revenue for the twelve-month period ending in 2026 was approximately $537.7 million and net income was $68.0 million.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is Buy, with an average target of $83.33 and a relatively narrow target range of $80 to $88, while Jefferies raised its target on 2026-08-10 from $75 to $88 and maintained its Buy rating. The average target is directly below the 52-week range high of $83.43, versus a low of $53.15, tying the valuation case to the sustainability of organic growth and achievement of the raised guidance while containing the impact of debt and amortization on net income.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
In fiscal Q2 2026, commercial original equipment sales rose 28%, aftermarket sales 12%, and defense sales 8%. The strongest increases came from the Boeing 787, A320 family, and 737 family as the production and supply chain environment improved. Organic growth was 12%, while net sales reached $171.6 million. The company also raised its calendar year 2026 sales guidance to a range of $665 million to $675 million.
The figure represents potential revenue opportunities that Loar expects to convert over five years, and it increased by approximately $50 million from the level reported in May 2026. By the 2026-08-06 call, the company had secured initial orders providing visibility into approximately $200 million in cumulative revenue. The opportunities include qualified brakes, sensors, switches, safety restraints, and the expansion of existing products to new customers and platforms. This revenue is not subject to long-term agreements but is fulfilled from one purchase order to the next after the product is qualified or certified.
Adjusted earnings before interest, taxes, depreciation, and amortization rose 47.4% to $69.4 million in fiscal Q2 2026, and its margin reached 40.5%. Adjusted earnings per share reached $0.38, exceeding analyst estimates of $0.31. In contrast, GAAP net income remained flat because of higher interest expense and amortization of acquired intangible assets. Therefore, the improvement was clearer in adjusted metrics and cash flow than in accounting net income.
Loar announced four acquisitions over approximately two years through 2026-08-06 and invested more than $1.1 billion in mergers and acquisitions. The businesses discussed included Beadlight, LMB, and Harper Engineering, and management said their contributions in 2026 exceeded its original expectations. The acquisitions contributed to cross-selling opportunities, such as Beadlight's collaboration with SCHROTH, and to Harper's growth associated with Boeing 787 products. However, debt financing raised leverage to 3.1 times earnings before interest, taxes, depreciation, and amortization, while also increasing interest expense and amortization and weighing on reported net income.
On 2026-08-06, management identified the ability to keep pace with demand as an issue requiring investment, particularly in fans, motors, safety restraints, and brakes. The learning curve in producing new parts adds the possibility that the approximately $200 million in revenue will not materialize at a steady pace over five years. Defense orders also remain volatile from quarter to quarter because of government purchasing patterns, despite growing 8% in fiscal Q2 2026. In addition, interest on debt and amortization of acquired assets affect the translation of operational growth into GAAP net income.
