Loar Holdings (LOAR) Q3 2025 Financial Results Summary

2025-11-12 · Stocks · QuoteReporter

Loar Holdings Inc. (LOAR) Q3 2025 Financial Results Summary

Loar Holdings Inc. (NYSE: LOAR) released its financial results for the third quarter of 2025 on November 12, 2025. The company reported record performance driven by strong demand in the aerospace and defense sectors. Below is a summary of the key financial metrics and operational highlights from the quarter and year-to-date.

Q3 2025 Financial Highlights

Net Sales:
$126.8 million, up 22.4% from Q3 2024.
Organic growth contributed 11.1%, or $11.5 million, resulting in organic net sales of $115.0 million.
Net Income:
$27.6 million, an increase of 218.9% from $8.7 million in Q3 2024.
Driven by tax benefits, improved operating income, and reduced interest expense.
Diluted Earnings Per Share (EPS):
$0.29, a 222.2% increase from $0.09 in Q3 2024.
Adjusted EBITDA:
$49.1 million, up 28.9% from Q3 2024.
Adjusted EBITDA margin was 38.7%, compared to 36.8% in the previous year.
Adjusted Earnings Per Share:
$0.35, an increase of 133.3% from $0.15 in Q3 2024.
Net Income Margin:
Improved to 21.8% from 8.4% in Q3 2024.

Year-to-Date Financial Highlights

Net Sales:
$364.5 million, a 24.7% increase compared to the same period last year.
Net Income:
$59.6 million, up 221.6% from $18.5 million year-to-date Q3 2024.
Diluted EPS:
$0.62, representing a 210.0% increase compared to $0.20 in the prior year period.
Adjusted EBITDA:
$139.4 million, up 31.3% from $106.2 million year-to-date Q3 2024.
Adjusted EBITDA margin was 38.2%, up from 36.3% in the comparable period last year.
Adjusted Earnings Per Share:
$0.78, an increase of 143.8% from $0.32 in the same period last year.

Outlook

Revised Full Year 2025 Outlook:
Net Sales: Expected between $487 million and $495 million, an increase from previous guidance.
Net Income: Revised to be between $70 million and $75 million.
Adjusted EBITDA: Projected between $185 million and $188 million.
Diluted EPS: Estimated to be between $0.73 and $0.78.
Full Year 2026 Outlook:
Net Sales: Forecasted between $540 million and $550 million.
Net Income: Projected between $80 million and $85 million.
Adjusted EBITDA: Expected between $209 million and $214 million.
Adjusted EPS: Estimated to be between $0.98 and $1.03.

Dividend and Share Repurchase

Loar Holdings did not declare a quarterly dividend or announce any share repurchase during this reporting period.

Overall Commentary

Loar Holdings has delivered remarkable financial results fueled by strong market demand and strategic operational execution. The company’s upward revisions to its outlook for 2025 and the optimistic projections for 2026 reflect confidence in its business model and product demand in aerospace and defense sectors.

In summary, Loar Holdings Inc. continues to show robust growth, with significant improvements across all key financial metrics over the same quarter last year, solidifying its position in the market.

Loar Holdings Inc. Table 1: Condensed Consolidated Balance Sheets (Unaudited, amounts in thousands except share amounts)

September 30, 2025	December 31, 2024
Assets
Current assets:
Cash and cash equivalents $98,955	$54,066
Accounts receivable, net $78,571	$63,834
Inventories $105,471	$92,639
Other current assets $10,891	$9,499
Income taxes receivable $1,588	$632
Total current assets $295,476	$220,670
Property, plant and equipment, net $78,107	$76,605
Finance lease assets $1,963	$2,171
Operating lease assets $5,856	$5,584
Other long-term assets $22,604	$17,389
Intangible assets, net $424,459	$434,662
Goodwill $705,581	$693,537
Total assets $1,534,046	$1,450,618
Liabilities and equity
Current liabilities:
Accounts payable $17,653	$12,086
Current portion of finance lease $261	$232
liabilities
Current portion of operating lease $699	$603
liabilities
Income taxes payable $2,622	$1,984
Accrued expenses and other current $28,648	$26,901
liabilities
Total current liabilities $49,883	$41,806
Deferred income taxes $34,361	$32,892
Long-term debt, net $279,357	$277,293
Finance lease liabilities $2,967	$3,170
Operating lease liabilities $5,347	$5,136
Other long-term liabilities $1,935	$1,816
Total liabilities $373,850	$362,113
Commitments and contingencies
Equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized, and no shares issued or outstanding	—
Common stock, $0.01 par value, 485,000,000 shares authorized; 93,622,471 and 93,556,071 issued and outstanding at September 30, 2025 and December 31, 2024, respectively	$936
Additional paid-in capital $1,120,701	$1,108,225
Retained earnings (accumulated deficit) $39,075	($20,560)
Accumulated other comprehensive loss ($516)	($96)
Total equity $1,160,196	$1,088,505
Total liabilities and equity $1,534,046	$1,450,618

Loar Holdings Inc. Table 2: Condensed Consolidated Statements of Net Income (Unaudited, amounts in thousands except per common share amounts)

Three Months Ended September 30,	Nine Months Ended September 30,
2025	2024	2025	2024
Net sales $126,751	$103,519	$364,533	$292,378
Cost of sales $59,973	$50,615	$171,850	$147,515
Gross profit $66,778	$52,904	$192,683	$144,863
Selling, general and administrative expenses	$35,758	$30,186	$105,758	$80,362
Transaction expenses $1,846	$1,444	$4,290	$2,549
Other (expense) income, net ($154)	$1,574	($154)	$4,441
Operating income $29,020	$22,848	$82,481	$66,393
Interest expense, net $6,012	$9,962	$18,952	$38,332
Refinancing costs —	—	—	$1,645
Income before income taxes $23,008	$12,886	$63,529	$26,416
Income tax benefit (provision) $4,598	($4,230)	($3,894)	($7,870)
Net income $27,606	$8,656	$59,635	$18,546
Net income per common share:	Basic $0.29	$0.10	$0.64	$0.21
Diluted $0.29	$0.09	$0.62	$0.20
Weighted average common shares outstanding:	Basic 93,622	89,704	93,588	88,722
Diluted 95,875	91,931	95,912	90,755