Start here if you're new
what it is
Loar makes niche parts for aircraft and defense systems.
how it gets paid
Last year Loar made $496M in revenue. Flight controls and cockpit hardware was the main engine at $132M, or 27% of sales.
why it's growing
Revenue grew 23.2% last year. Revenue grew 188% vs. prior year. Gross margin was 52.9%.
what just happened
Loar posted $365M of revenue, and EPS jumped to $0.62.
At a glance
n/a balance sheet
96.8x trailing p/e — you're paying up for this one
3.8% return on capital — nothing to write home about
$0.29 fy2024 eps est
$403M fy2024 rev est
What they do
Loar makes niche parts for aircraft and defense systems.
Loar says 85% of 2024 net sales came from proprietary products. Proprietary products mean parts Loar controls, so customers have fewer easy substitutes. Aftermarket products were 53% of sales versus 47% new-build work, so you are selling to fleets already in service.
How they make money
$496M
annual revenue · their business grew +23.2% last year
Flight controls and cockpit hardware
$132M
Seating and safety systems
$116M
Braking and landing components
$98M
Sensors, switches, and fluid systems
$88M
Fire, barriers, and water systems
$62M
The products that matter
oem and aftermarket parts
Commercial Aviation Components
$213M · 43% of sales
this segment generated $213M of the company’s $496.3M in sales. if commercial build rates and aftermarket demand stay healthy, this is where the growth shows up first.
43% of sales
military and space systems
Defense & Space Components
$283M · 57% of sales
at $283M, this is the larger side of the business. it matters because it gives the company a bigger base outside commercial aviation.
57% of sales
acquisition-led expansion
Acquisition Pipeline
$640M–$650M 2026 sales target
management’s 2026 sales goal of $640M–$650M is a big step up from $496.3M. that tells you acquisitions and integration are not side stories. they are the story.
execution bet
Key numbers
$496M
annual revenue
That is the sales base supporting the whole story, and the stock still trades at 96.8x earnings.
96.8x
price / profit
You are paying 96.8 times last year's earnings, which is expensive for an industrial company.
21.4%
operating margin
Operating margin means profit before interest and taxes. At 21.4%, the business is efficient, not immune.
$288M
long-term debt
Debt is 5% of capital, so leverage is manageable, but it still matters if rates rise.
Financial health
n/a
strength
- balance sheet grade n/a
- long-term debt $288M (5% of capital)
n/a — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for LOAR right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Loar posted $365M of revenue, and EPS jumped to $0.62.
Revenue grew 188% vs. prior year. Gross margin was 52.9%, which says the company kept pricing power while scaling.
$124M
revenue
$0.62
eps
52.9%
gross margin
the number that mattered
Revenue jumped 188% vs. prior year to $365M. That is the number that explains the quarter; EPS followed it.
source: EDGAR SEC filings, 2026
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What could go wrong
the #1 risk is the acquisition model producing sales growth without matching earnings power.
med
acquisition integration slips
This company is built to buy businesses and fold them in. If integration stumbles, the jump from $496.3M of 2025 sales to a $640M–$650M 2026 target gets much harder to explain.
the impact: missing that sales bridge would hit the main growth proof point carrying the valuation
med
EPS keeps lagging the revenue story
Management raised the sales target and cut EPS guidance to $0.76–$0.80. That is a clean warning that growth is not flowing through cleanly to shareholders yet.
the impact: a 96.8x stock does not get many chances to say “trust the margin later”
med
commercial aviation cools
Commercial aviation accounts for $213M, or 43% of sales. If that side slows, you lose part of the growth engine that helps justify paying a premium multiple.
the impact: 43% of the revenue base is tied to the more cyclical side of the portfolio
med
cost pressure eats the headline margin
A 52.7% gross margin looks excellent on paper. Supply issues or cost inflation matter more when the market is already paying for a 40% adjusted EBITDA end state.
the impact: even a small margin slip makes the 3.8% return on capital look less like “early stage” and more like “structural”
when a stock trades at 96.8x earnings and earns 3.8% on capital, a miss on either the $640M–$650M sales plan or the $0.76–$0.80 EPS guide matters more than usual.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarterly report
You want the bridge from $131.8M in Q4 sales to the $640M–$650M full-year target to start looking real, not aspirational.
profit conversion
EPS versus revenue
The company already told you sales can rise while EPS guidance falls. Watch whether that starts reversing toward the $0.76–$0.80 range.
segment mix
commercial aviation versus defense
Commercial aviation is 43% of sales and defense and space is 57%. Any sharp mix shift will tell you where growth is actually coming from.
integration
acquisition digestion
The market already prices in smooth integration. If management starts talking more about costs than cross-sell or margin, that is your cue to pay attention.
Analyst rankings
coverage depth
thin
in human-speak, you do not have a big analyst chorus here. that makes filings and guidance changes more important than scorecards.
street posture
watch guidance
If you follow the stock, the next question is simple: does revenue growth start converting into per-share earnings, or not.
what matters most
execution
You need fewer adjectives and more proof: margin hold, integration progress, and a better return on capital than 3.8%.
source: institutional data
Institutional activity
institutional ownership data for LOAR is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$68
current price
n/a
target midpoint · n/a from current
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