Shares of Loar Holdings Inc (LOAR) are soaring 7.27% in pre-market trading on Wednesday following the company's impressive third-quarter earnings report and upward revision of its full-year 2025 guidance. The aerospace parts maker significantly surpassed profit expectations, driven by the sale of higher-margin products and strong demand in both commercial and defense sectors.
Loar Holdings reported adjusted earnings per share of $0.35 for Q3, handily beating the analyst consensus of $0.22 and marking a substantial increase from $0.15 in the same quarter last year. While quarterly sales of $126.8 million slightly missed estimates, they still represented a robust 22.4% year-over-year growth. The company's performance was bolstered by growth in commercial passenger traffic, substantial backlogs at airframe manufacturers, and increased global demand for defense products.
In light of its strong performance, Loar Holdings raised its full-year 2025 outlook. The company now expects adjusted EPS between $0.93 and $0.98, up from its previous guidance of $0.83 to $0.88, and well above the FactSet consensus of $0.85. Net sales projections for 2025 were also lifted to a range of $487 million to $495 million. Looking ahead to 2026, Loar anticipates further growth, projecting net sales between $540 million and $550 million, with mid-single-digit growth expected in its defense segment. This positive outlook, coupled with the company's improved profitability and strong market position, appears to be driving investor enthusiasm and the significant stock price increase.
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