Loar Holdings Reports Record 2025 Results, Raises 2026 Revenue & EBITDA Guidance, but Lowers EPS Due to Debt
LOAR is trading near its 52-week low of $62.105 (11% above the low) on elevated volume (2.8× avg).
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 · Earnings and Guidance · LOAR
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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 · Manufacturing
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.