Loar Holdings Q2 Sales Surge 39% on Acquisitions, but Higher Interest Erodes Profit
LOAR sits 41% above its 52-week low of $53.15.
Summary
Loar Holdings' Q2 2026 revenue surged 39% to $171.6M on acquisitions and organic growth, but net income was flat at $16.7M as higher interest and amortization costs weighed on profitability.
Key Events · Earnings and Guidance · LOAR
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Revenue Jumps 39% on M&A and Organic Growth
Q2 2026 net sales reached $171.6 million, up from $123.1 million a year ago. Organic sales grew 12.3%, while acquisitions contributed $33.3 million.
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Net Income Flat as Interest Costs Triple
Net income was $16.7 million, essentially unchanged from Q2 2025, as interest expense surged to $20.0 million from $6.5 million due to debt taken on for acquisitions.
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Adjusted EBITDA Rises 47% to $69.4 Million
Adjusted EBITDA, which excludes acquisition-related costs and non-cash charges, increased 47.4% year-over-year, reflecting strong underlying operating performance.
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Debt Load Climbs to $964 Million
Total debt increased to $964.4 million at June 30, 2026, from $727.9 million at year-end 2025, primarily to fund the $249.8 million Harper Engineering acquisition.
Analysis · LOAR · Manufacturing
Loar Holdings delivered strong top-line growth in Q2 2026, with net sales jumping 39.4% to $171.6 million, driven by recent acquisitions of Harper Engineering and LMB Fans & Motors. Organic sales also rose 12.3%, reflecting robust commercial aerospace demand. However, net income was flat at $16.7 million as a tripling of interest expense to $20 million and higher amortization from acquisitions offset the revenue gains. The balance sheet shows a significant increase in debt to $964.4 million following the Harper Engineering deal, though liquidity remains adequate with $122.4 million in cash and $85 million in available credit facilities. The results underscore the company's aggressive acquisition strategy, which is fueling growth but also adding leverage and non-cash charges that pressure the bottom line.
At the time of this filing, LOAR was trading at $74.91 on NYSE in the Manufacturing sector, with a market capitalization of approximately $7.1B. The 52-week trading range was $53.15 to $83.43. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.