Highlights

  • Net sales for the three months ended June 30, 2026 were $171.6 million, up 39.4% from $123.1 million, with net income of $16.7 million.
  • Adjusted EBITDA, a non-GAAP measure, was $69,449 thousand for the quarter, and the Adjusted EBITDA margin was 40.5%.
  • Interest expense was $20.0 million, compared with $6.5 million a year earlier, and total debt was $952,362 thousand at June 30, 2026.
  • Management raised 2026 guidance to net sales of $665 million to $675 million and adjusted EPS of $1.32 to $1.36.

Loar Holdings Inc. (NYSE: LOAR) shares were trading at USD 61.21 on October 27, 2026, down 2.95%, with a relative volume at time of 2.12. The aerospace and defense component maker acquired Harper Engineering on January 21, 2026, filed its quarterly report for the period ended June 30, 2026 on August 6, 2026, and raised its 2026 guidance on its second quarter call.

Loar Holdings is a Delaware corporation with principal executive offices in White Plains, New York. It designs, manufactures and sells niche aerospace and defense components, including auto throttles, lap-belt airbags, seat belts, fire barriers, latches and brake discs. It serves commercial, business jet and general aviation, and defense end markets, reports one segment, and its fiscal year ends December 31. Its recent acquisitions include Beadlight, LMB and Harper Engineering.

Second Quarter 2026 Results

Net sales increased $48.5 million, or 39.4%, to $171.6 million, compared with $123.1 million for the three months ended June 30, 2025. Net organic sales increased $15.1 million, or 12.3%, to $138.3 million. Net acquisition sales were $33.3 million.

Within net organic sales, OEM total commercial sales increased $9.6 million, or 25.7%, and aftermarket total commercial sales increased $4.1 million, or 8.6%. Defense sales declined $0.9 million, or 2.8%.

Cost of sales was $80.4 million, or 46.8% of net sales, compared with 46.2% a year earlier. Interest expense increased $13.5 million, to $20.0 million, attributed to borrowings for the LMB and Harper Engineering acquisitions.

Net income was $16.7 million, or 9.8% of net sales, compared with $16.7 million, or 13.5%, in the prior-year quarter. The company said results were negatively impacted by higher interest expense and higher amortization of intangible and other long-term assets. Adjusted EBITDA was $69,449 thousand, compared with $47,118 thousand, and the Adjusted EBITDA margin was 40.5%, compared with 38.3%. For the six months, net sales were $327.7 million, up 37.8%, and Adjusted EBITDA was $132,668 thousand.

Balance Sheet, Debt and Cash Flow

Cash and cash equivalents were $122,433 thousand at June 30, 2026, compared with $84,827 thousand at December 31, 2025. Total debt was $952,362 thousand, compared with $718,870 thousand, and stockholders' equity was $1,199,394 thousand. Total debt to total capitalization was 44%, compared with 38%.

At June 30, 2026, $962.9 million was outstanding under the Credit Agreement, with availability of $35 million in delayed draw term loan commitments and a $50 million revolving line of credit. Net cash provided by operating activities was $61.2 million for the six months.

The company acquired Harper Engineering on January 21, 2026 for $249.8 million in cash, financed through a $240 million drawdown of Delayed Draw Term Loans and cash on hand. It recorded other expense of $1.3 million for an increase in the estimated contingent purchase price.

2026 Guidance

On the second quarter call, management raised its calendar year 2026 guidance to net sales of $665 million to $675 million and Adjusted EBITDA of $265 million to $270 million, with margins of approximately 40%. GAAP net income is expected to be $56 million to $60 million, and adjusted EPS is expected to be $1.32 to $1.36, up from $1.26 to $1.30. Management said capital expenditures are expected to be approximately $20 million.

In the 10-Q, the company said it expects 2026 net sales growth from organic growth, including conversion of backlog, and strategic acquisitions. It said continued inflationary pressures and supply chain disruptions may lead to higher material and labor costs, and that it plans to continue pursuing acquisitions.