Loar Holdings Inc. Reports Q4 2025 and Full Year 2025 Record Results, and Upward Revisions to Full Year 2026 Outlook
WHITE PLAINS, NY / ACCESS Newswire / February 26, 2026 / Loar Holdings Inc. (NYSE:LOAR) (the "Company," "Loar," "we," "us" and "our"), reports record results for the fourth quarter and full year of 2025 and upward revisions to the full year 2026 outlook.
"As we close the year, I am pleased to report that Loar once again delivered record results across key financial metrics, including Net Sales, Adjusted EBITDA, and Adjusted EBITDA Margin," said Dirkson Charles, Loar CEO and Executive Co‑Chairman of the Board of Directors. "Driven by favorable end‑market dynamics and disciplined execution across the organization, our team delivered strong operating performance while advancing our long‑term value creation strategy. These results underscore the scalability and resilience of our business model and reinforce Loar's position as a leading aerospace and defense component supplier. We also successfully completed the acquisitions of LMB Fans & Motors and Harper Engineering, further strengthening our portfolio and expanding our growth platform as we enter the next phase of the company's evolution."
Fourth Quarter 2025
Net sales of $131.8 million, up 19.3% compared to the prior year's quarter.
Net income of $12.5 million, up 239.5% compared to the prior year's quarter.
Diluted earnings per share of $0.13, up 225.0% compared to the prior year's quarter.
Adjusted EBITDA of $49.8 million, up 23.9% compared to the prior year's quarter.
Net income margin for the quarter improved to 9.5% compared to the prior year's quarter of 3.3%.
Adjusted EBITDA Margin for the quarter improved to 37.8% compared to 36.4% for the prior year's quarter.
Adjusted Earnings Per Share of $0.26, up 136.4% compared to the prior year's quarter.
Loar reported net sales for the quarter of $131.8 million, an increase of $21.3 million or 19.3% over the prior year's quarter. Organically (1), net sales increased 16.9% or $18.7 million, to $129.1 million.
Net income for the quarter increased $8.8 million to $12.5 million from $3.7 million in the comparable quarter a year ago. The increase in net income for the quarter was primarily driven by the contribution from higher sales and improved gross margins and lower interest expense, partially offset by higher income tax expense.
Adjusted EBITDA for the quarter was $49.8 million, an increase of 23.9% or $9.6 million compared to the prior year's quarter. Adjusted EBITDA as a percentage of net sales was 37.8%, compared to 36.4% in the fourth quarter of the prior year. The increase in Adjusted EBITDA as a percentage of net sales was due to the continued execution of our strategic value drivers, accretive impact of increased sales of higher margin products, and the leveraging impact of higher sales on operating costs.
During the fourth quarter we borrowed $445 million under our existing credit agreement to fund the acquisition of LMB Fans & Motors.
Full Year 2025
Net sales of $496.3 million, up 23.2% over the prior year.
Net income of $72.1 million, up 224.5% over the prior year.
Diluted earnings per share of $0.75, up 212.5% over the prior year.
Adjusted EBITDA of $189.1 million, up 29.2% over the prior year.
Net income margin improved to 14.5% compared to 5.5% in the prior year.
Adjusted EBITDA Margin improved to 38.1% compared to 36.3% in the prior year.
Adjusted Earnings Per Share of $1.04, up 147.6% over the prior year.
Net sales for the twelve months ended December 31, 2025, were $496.3 million, an increase of $93.5 million or 23.2% over the prior year. Organically (1), net sales increased 12.7% or $51.4 million, to $454.2 million.
Net income for the year ended December 31, 2025 increased $49.9 million to $72.1 million from a net income of $22.2 million for the prior year.
Adjusted EBITDA for the twelve months of 2025 was $189.1 million, an increase of 29.2% or $42.8 million over the prior year. Adjusted EBITDA as a percentage of net sales was 38.1% for 2025, compared to 36.3% for the prior year.
Please see the attached Table 4 for a reconciliation of net income to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for the periods discussed in this press release.
(1)
Net organic sales represent net sales from our existing businesses for comparable periods and exclude net sales from acquisitions. We include net sales from new acquisitions in net organic sales from the 13th month after the acquisition on a comparative basis with the prior year period.
Full Year 2026 Outlook - Revised
"We revised our outlook for net sales, Adjusted EBITDA, and Adjusted EBITDA Margin upward to include the impact of the LMB Fans & Motors and Harper Engineering acquisitions as well as the underlying strength of our business. We remain highly positive on end-market demand and our team's ability to execute on our strategic value drivers, delivering returns our stakeholders have come to expect," stated Mr. Charles.
"In conjunction with the acquisitions of LMB Fans & Motors and Harper Engineering, we borrowed an incremental $685 million of debt under our existing credit agreement," noted Glenn D'Alessandro, Chief Financial Officer and Treasurer. "This additional debt carries approximately $55 million of incremental interest expense." Mr. D'Alessandro then added that he expects "both acquisitions to be accretive to Loar's earnings within the year following the acquisition."
Net sales - between $640 million and $650 million, up from between $540 million and $550 million.
Net income - between $59 million and $63 million, down from between $80 million and $85 million.
Adjusted EBITDA - between $253 million and $258 million, up from between $209 million and $214 million.
Adjusted EBITDA Margin - approximately 40%, up from approximately 39%.
Diluted Earnings per share - between $0.60 and $0.65, down from between $0.82 and $0.88.
Net income margin - approximately 9%, down from approximately 15%.
Adjusted Earnings Per Share - between $0.76 and $0.80, down from between $0.98 and $1.03.
Interest expense - approximately $80 million, up from approximately $25 million.
Effective tax rate - approximately 25%.
Market Assumptions - Full year outlook is based on the following assumptions:
Commercial, Business Jet, and General Aviation OEM growth of low-double digits.
Commercial, Business Jet, and General Aviation aftermarket growth of low-double digits.
Defense growth of mid-single digits.
Adjusted EBITDA, Adjusted Earnings Per Share and Adjusted EBITDA Margin are non-GAAP financial measures provided in the "Full Year 2026 Outlook - Revised" section on a forward-looking basis. The Company does not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with GAAP because to do so would be potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.
Earnings Conference Call
A conference call will be held at 10:30 a.m., Eastern Time on February 26, 2026. To participate in the call telephonically please dial +1 877-407-0670 / +1 215-268-9902. International participants can find a list of toll-free numbers here. A live audio webcast will also be available at the following link as well as through the Investor section of Loar Holdings website; https://ir.loargroup.com.
The webcast will be archived and available for replay later in the day.
About Loar Holdings Inc.
Loar Holdings Inc. is a diversified manufacturer and supplier of niche aerospace and defense components that are essential for today's aircraft and aerospace and defense systems. Loar has established relationships across leading aerospace and defense original equipment manufacturers and Tier Ones worldwide.
Non-GAAP Supplemental Information
We present in this press release certain financial information based on our EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share. References to "EBITDA" mean earnings before interest, taxes, depreciation and amortization, references to "Adjusted EBITDA" mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income to EBITDA and Adjusted EBITDA, and references to "Adjusted EBITDA Margin" refer to Adjusted EBITDA divided by net sales. References to "Adjusted Earnings Per Share" mean net income plus certain adjustments as set forth in the reconciliations below to derive Adjusted EBITDA from EBITDA, less the tax effect of these adjustments. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share are not measurements of financial performance under U.S. GAAP. We present EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share because we believe they are useful indicators for evaluating operating performance. In addition, our management uses Adjusted EBITDA to review and assess the performance of the management team in connection with employee incentive programs and to prepare its annual budget and financial projections. Moreover, our management uses Adjusted EBITDA of target companies to evaluate acquisitions.
Although we use EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share as measures to assess the performance of our business and for the other purposes set forth above, the use of non-GAAP financial measures as analytical tools has limitations, and you should not consider any of them in isolation, or as a substitute for analysis of our results of operations as reported in accordance with U.S. GAAP. Some of these limitations are:
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin do not reflect the significant interest expense, or the cash requirements necessary to service interest payments on our indebtedness.
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and the cash requirements for such replacements are not reflected in EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share exclude the cash expense we have incurred to integrate acquired businesses into our operations, which is a necessary element of certain of our acquisitions.
The omission of the substantial amortization expense associated with our intangible assets further limits the usefulness of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin.
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin do not include the payment of taxes, which is a necessary element of our operations.
Because of these limitations, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share should not be considered as measures of cash available to us to invest in the growth of our business. Management compensates for these limitations by not viewing EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share in isolation and specifically by using other U.S. GAAP measures, such as net sales and operating profit, to measure our operating performance. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share are not measurements of financial performance under U.S. GAAP, and they should not be considered as alternatives to net income or cash flow from operations determined in accordance with U.S. GAAP. Our calculations of EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Earnings Per Share may not be comparable to the calculations of similarly titled measures reported by other companies.
Future Looking Statements
This press release includes express or implied forward-looking statements. Forward-looking statements include all statements that are not historical facts, including those that reflect our current views with respect to, among other things, our operations and financial performance. The words "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "seek," "foreseeable," the negative version of these words or similar terms and phrases may identify forward-looking statements in this press release, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this press release, including, but not limited to, the statements under the heading "Full Year 2026 Outlook - Revised" are based on management's current expectations and are not guarantees of future performance. Our expectations and beliefs are expressed in management's good faith, and we believe there is a reasonable basis for them, however, the forward-looking statements are subject to various known and unknown risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to the following: the almost exclusive focus of our business on the aerospace and defense industry; our heavy reliance on certain customers for a significant portion of our sales; the fact that we have in the past consummated acquisitions and our intention to continue to pursue acquisitions, and that our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired operations; and the other risks and uncertainties described in Part I, Item 1A of the Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 31, 2025, as well as the Company's Annual Report on Form 10-K that will be filed following this earnings release, and other periodic reports filed by the Company from time to time with the SEC.
These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in the forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date of this press release and is expressly qualified in its entirety by the cautionary statements included in this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable law.
Contact
Ian McKillop
Loar Holdings Inc. Investor Relations
[email protected]
Loar Holdings Inc.
Table 1: Consolidated Balance Sheets
(Unaudited, amounts in thousands except share amounts)
December 31, 2025
December 31, 2024
$
84,827
$
54,066
88,026
63,834
109,036
92,639
11,123
9,499
5,486
632
298,498
220,670
82,536
76,605
1,894
2,171
6,229
5,584
25,935
17,389
606,406
434,662
1,008,377
693,537
$
2,029,875
$
1,450,618
$
18,606
$
12,086
4,362
-
279
232
818
603
3,022
1,984
36,419
26,901
63,506
41,806
68,377
32,892
711,338
277,293
2,891
3,170
5,605
5,136
3,405
1,816
855,122
362,113
-
-
936
936
1,125,015
1,108,225
51,586
(20,560
)
(2,784
)
(96
)
1,174,753
1,088,505
$
2,029,875
$
1,450,618
Loar Holdings Inc.
Table 2: Consolidated Statements of Net Income
(Unaudited, amounts in thousands except per common share amounts)
Three Months Ended December 31,
Years Ended December 31,
2025
2024
2025
2024
$
131,750
$
110,441
$
496,283
$
402,819
63,108
56,479
234,958
203,994
68,642
53,962
261,325
198,825
37,884
31,893
143,642
112,255
6,991
841
11,281
3,390
(5
)
11
(159
)
4,452
23,762
21,239
106,243
87,632
6,713
13,780
25,665
52,112
-
4,814
-
6,459
17,049
2,645
80,578
29,061
(4,538
)
1,040
(8,432
)
(6,830
)
$
12,511
$
3,685
$
72,146
$
22,231
$
0.13
$
0.04
$
0.77
$
0.25
$
0.13
$
0.04
$
0.75
$
0.24
93,622
90,541
93,597
89,366
95,813
93,242
95,893
91,684
Loar Holdings Inc.
Table 3: Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Years Ended December 31,
2025
2024
$
72,146
$
22,231
11,935
11,244
39,065
31,826
948
1,344
45
1,102
14,931
11,103
3,681
(1,552
)
790
553
-
6,459
-
(2,861
)
(16,607
)
(2,105
)
(6,878
)
(12,051
)
(9,650
)
(3,367
)
1,276
(1,238
)
(3,718
)
(4,046
)
5,074
(2,083
)
-
(1,078
)
(758
)
(510
)
112,280
54,971
(13,023
)
(8,871
)
(507,854
)
(383,260
)
(520,877
)
(392,131
)
1,859
636,969
446,500
360,000
-
(617,881
)
(8,900
)
(8,876
)
(232
)
(190
)
439,227
370,022
131
(285
)
30,761
32,577
54,066
21,489
$
84,827
$
54,066
$
25,369
$
52,049
$
9,394
$
12,567
Loar Holdings Inc.
Table 4: Reconciliation of Net income to EBITDA and Adjusted EBITDA
(Unaudited, dollars in thousands)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
$
12,511
$
3,685
$
72,146
$
22,231
6,713
13,780
25,665
52,112
-
4,814
-
6,459
4,538
(1,040
)
8,432
6,830
23,762
21,239
106,243
87,632
3,061
3,061
11,935
11,244
10,005
9,577
39,065
31,826
36,828
33,877
157,243
130,702
-
826
45
1,102
5
(11
)
159
(4,452
)
6,991
841
11,281
3,390
4,314
3,535
14,931
11,103
1,626
1,110
5,465
4,491
$
49,764
40,178
$
189,124
$
146,336
$
131,750
$
110,441
$
496,283
$
402,819
9.5
%
3.3
%
14.5
%
5.5
%
37.8
%
36.4
%
38.1
%
36.3
%
Represents accounting adjustments to inventory associated with acquisitions of businesses that were charged to cost of sales when inventory was sold.
Represents a $2.9 million reduction in the estimated contingent purchase price for the CAV acquisition and $1.7 million of proceeds from the settlement of buyer-side representations and warranties insurance covering the acquisition of DAC during the twelve months ended December 31, 2024.
Represents third party transaction-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses, and valuation costs that are required to be expensed as incurred, and post-IPO transaction related costs.
Represents the non-cash compensation expense recognized by the Company for equity awards.
Represents costs incurred to integrate acquired businesses and product lines into our operations, facility relocation costs and other acquisition-related costs.
Loar Holdings Inc.
Table 5: Sales by End-Market
(Unaudited, amounts in thousands)
Three Months Ended December 31,
Years Ended December 31,
2025
2024
2025
2024
$
21,228
$
18,695
$
77,391
$
65,011
39,060
28,204
144,468
109,305
60,288
46,899
221,859
174,316
17,568
16,542
74,745
70,098
12,936
9,853
49,376
39,106
30,504
26,395
124,121
109,204
38,796
35,237
152,136
135,109
51,996
38,057
193,844
148,411
90,792
73,294
345,980
283,520
16,160
11,523
55,970
38,316
17,442
17,951
66,669
50,632
33,602
29,474
122,639
88,948
3,947
3,269
12,783
13,996
3,409
4,404
14,881
16,355
7,356
7,673
27,664
30,351
$
131,750
$
110,441
$
496,283
$
402,819
Loar Holdings Inc.
Table 6: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
(Unaudited, amounts in thousands except per share amounts)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
$
12,511
$
3,685
$
72,146
$
22,231
93,622
90,541
93,597
89,366
2,191
2,701
2,296
2,318
95,813
93,242
95,893
91,684
$
0.13
$
0.04
$
0.77
$
0.25
$
0.13
$
0.04
$
0.75
$
0.24
$
12,511
$
3,685
$
72,146
$
22,231
-
4,814
-
6,459
12,936
6,301
31,881
15,634
(370
)
(4,976
)
(4,001
)
(5,856
)
$
25,077
$
9,824
$
100,026
$
38,468
$
0.26
$
0.11
$
1.04
$
0.42
$
0.13
$
0.04
$
0.75
$
0.24
-
0.05
-
0.07
-
-
-
(0.05
)
-
0.01
-
0.01
0.07
0.01
0.12
0.04
0.04
0.04
0.15
0.12
0.02
0.01
0.06
0.05
-
(0.05
)
(0.04
)
(0.06
)
$
0.26
$
0.11
$
1.04
$
0.42
The tax adjustment represents the tax effect of the adjustments at the applicable effective tax rate. To determine the applicable effective tax rate, transaction expenses, stock-based compensation, and acquisition and facility integration costs are excluded from adjusted net income and therefore we have excluded the impact those items have on the effective tax rate.
SOURCE: Loar Group Inc.