Loar Holdings (LOAR) Q4 2025 earnings summary

Executive summary

• Achieved record annual and Q4 sales, Adjusted EBITDA, margins, and free cash flow in 2025, consistently outperforming guidance and driven by robust demand in commercial aftermarket, OEM, and defense markets.

• Strategic acquisitions of LMB Fans & Motors and Harper Engineering expanded proprietary aerospace and defense product offerings and are expected to drive future synergies and growth.

• Demonstrated exceptional execution since IPO in 2024, entering 2026 with confidence and a focus on operational excellence and new product introductions.

Financial highlights

• 2025 net sales reached $500 million, up 23.2% year-over-year; Q4 sales were $131.8 million, up 19.3%.

• Commercial aftermarket sales grew 19% for the year and 34% in Q4; commercial OEM sales up 19% for the year and 34% in Q4.

• Defense sales increased 15% for the year and 17% in Q4.

• Q4 gross margin rose to 52.1%; full-year gross margin was 52.7%, up from 49.4% in 2024.

• Net income for 2025 was $72.1 million, up from $22.2 million in 2024; Adjusted EBITDA reached $189.1 million, up 29.2%.

• Free cash flow conversion reached 160% for 2025.

Outlook and guidance

• 2026 net sales expected between $640–$650 million; Adjusted EBITDA $253–$258 million; margin ~40%.

• Net income guidance $59–$63 million; adjusted EPS $0.76–$0.80, lower due to higher interest expense from acquisitions.

• Capital expenditures projected at $19 million (3% of sales); interest expense increased to $80 million; effective tax rate 25%; D&A $75 million; stock-based comp $17 million; share count 97 million.

• Commercial OEM and aftermarket growth expected to be low double digits; defense up mid-single digits.

• Both LMB and Harper expected to be accretive to earnings in 2027 and to double Adjusted EBITDA in 3–5 years.