Aerospace parts maker Loar Holdings tops Q3 profit expectations on sale of higher-margin products

Overview

• Loar Holdings Q3 revenue up 22.4% yr/yr, slightly missing analyst expectations

• Adjusted EPS for Q3 beats analyst expectations, reflecting strong operational performance

• Company attributes growth to commercial traffic and defense demand

Outlook

• Loar raises 2025 net sales outlook to $487 mln-$495 mln

• Loar projects 2026 net sales between $540 mln and $550 mln

• Company expects 2026 defense growth of mid-single digits

Result Drivers

• COMMERCIAL TRAFFIC AND DEFENSE DEMAND - CEO Dirkson Charles attributes record quarter to growth in commercial passenger traffic and defense product demand

• TAX BENEFIT AND LOWER INTEREST - Increase in net income driven by income tax benefit, higher operating income, and lower interest expense

• HIGHER MARGIN PRODUCTS - Improved adjusted EBITDA margin due to strategic value drivers and sales of higher-margin products

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Loar Holdings Inc is $96.00, about 23.7% above its November 11 closing price of $73.24

• The stock recently traded at 76 times the next 12-month earnings vs. a P/E of 86 three months ago

Press Release: ID:nACS7JJJva

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)