Loar Holdings Reports Record 2025 Results, Raises 2026 Revenue & EBITDA Guidance, but Lowers EPS Due to Debt
Summary
Loar Holdings reported record Q4 and full-year 2025 results and raised its 2026 revenue and Adjusted EBITDA guidance, but lowered its net income and EPS outlook due to increased interest expense from recent acquisitions.
Key Events
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Record 2025 Financial Performance
Loar Holdings Inc. reported record results for the fourth quarter and full year 2025, with net sales up 19.3% and 23.2% respectively, and net income increasing by 239.5% and 224.5% for the same periods.
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Upward Revision to 2026 Revenue and Adjusted EBITDA Outlook
The company revised its full-year 2026 net sales guidance upward to between $640 million and $650 million (from $540 million-$550 million) and Adjusted EBITDA guidance to between $253 million and $258 million (from $209 million-$214 million).
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Downward Revision to 2026 Net Income and EPS Outlook
Despite strong operational growth, the full-year 2026 net income guidance was lowered to between $59 million and $63 million (from $80 million-$85 million), and diluted EPS guidance was reduced to between $0.60 and $0.65 (from $0.82-$0.88).
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Significant Increase in Interest Expense
The revised outlook includes an estimated $80 million in interest expense for 2026, a substantial increase from the prior $25 million, primarily due to $685 million in incremental debt for the LMB Fans & Motors and Harper Engineering acquisitions.
Analysis
Loar Holdings Inc. delivered strong operational performance in Q4 and full year 2025, achieving record net sales, net income, and Adjusted EBITDA. The company also significantly raised its full-year 2026 outlook for net sales and Adjusted EBITDA, reflecting robust end-market demand and the successful integration of recent acquisitions. However, the substantial increase in debt to fund these acquisitions will lead to a significant rise in interest expense, resulting in a downward revision to the full-year 2026 net income and diluted EPS guidance. While the acquisitions are expected to be accretive within the year, investors will need to weigh the strong top-line growth and operational efficiency against the short-term impact on GAAP profitability.
At the time of this filing, LOAR was trading at $69.01 on NYSE in the Manufacturing sector, with a market capitalization of approximately $6.4B. The 52-week trading range was $62.11 to $99.67. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.