Loar Holdings (LOAR) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 net sales of $156.1 million, up 36.1% year-over-year, with organic sales growth of 11.4%, driven by commercial OEM and recent acquisitions.

• Adjusted EBITDA reached $63.2 million, up 46.6% from the prior year, with margin improving to 40.5%.

• Net income declined to $11.1 million from $15.3 million due to higher interest, increased amortization, and non-recurring inventory step-up from acquisitions.

• Major acquisitions included Harper Engineering ($249.9M, January 2026) and LMB Fans & Motors ($474.8M, December 2025), expanding product offerings and market reach.

• The company maintains a strong position in niche aerospace and defense components, with a diversified and resilient portfolio.

Financial highlights

• Net sales: $156.1 million (+36.1% YoY); organic net sales: $127.7 million (+11.4% YoY).

• Adjusted EBITDA: $63.2 million (40.5% margin), up from $43.1 million (37.6% margin) YoY.

• Adjusted net income grew 19.7% to $32.3 million, while reported net income declined 27.2% to $11.1 million due to non-cash and acquisition-related items.

• Gross profit margin was 50.8%, down from 52.1% in Q1 2025, impacted by $11 million in non-cash acquisition-related charges.

• Interest expense increased to $18.7 million from $6.5 million YoY, reflecting acquisition financing.

Outlook and guidance

• 2026 net sales guidance raised to $645–$655 million; adjusted EBITDA guidance increased to $257–$262 million, maintaining ~40% margin.

• Net income guidance revised down to $53–$57 million; adjusted EPS outlook raised to $1.26–$1.30.

• Organic sales growth expected at 10%+ and adjusted EBITDA at 15%+ annually.

• Commercial OEM and aftermarket projected to grow low double digits; defense sales to rise mid-single digits in 2026.

• Capex to remain at 3% of sales (~$19 million); guidance excludes future acquisitions.