Loar Raises 2026 Outlook a Third Time and Adds 2027

The Tip Desk · November 5, 2026 · 4 min read

Third-quarter net sales reached $176.2 million as organic growth accelerated and the company lifted its 2026 outlook and introduced a 2027 forecast.

Loar Holdings Inc. (LOAR), a diversified manufacturer of niche aerospace and defense components, reported record third-quarter 2026 results and raised its full-year 2026 outlook for the third time this year, while also introducing a 2027 forecast.

Net sales were $176.2 million, up 39.0% from the year-ago quarter, an increase of $49.4 million. Organic net sales, which exclude new acquisitions until the 13th month after closing, rose 15.8% to $146.8 million, faster than the 12.3% organic increase in the second quarter.

Adjusted EBITDA was $71.9 million, up 46.5% from a year earlier. Adjusted EBITDA margin expanded to 40.8% from 38.7% a year earlier. The company said the margin increase reflected execution of its strategic value drivers and the accretive impact of increased sales.

Net income fell to $19.6 million from $27.6 million a year earlier, and the net income margin was 11.2% versus 21.8%. Diluted earnings were $0.20 a share, compared with $0.29. Adjusted earnings were $0.39 a share, versus $0.43. The company said net income was impacted by higher interest expense, higher income tax expense, and higher non-cash amortization of acquired intangible assets. Interest expense, net, was $20.0 million in the quarter versus $6.0 million a year earlier.

Commercial net sales were $120.5 million, up from $91.4 million a year earlier. Commercial OEM rose to $57.8 million from $40.5 million and commercial aftermarket to $62.7 million from $50.9 million. Defense net sales were $45.5 million versus $28.8 million, with defense OEM at $28.3 million versus $13.8 million and defense aftermarket at $17.3 million versus $15.0 million. Other net sales were $10.2 million versus $6.5 million.

Chief Executive Officer Dirkson Charles said the record results reflected continued execution along the company’s value drivers and that operating cash flow after capital expenditures was a record for the quarter, improving 46% over the comparative previous-year period.

Treasurer and Chief Financial Officer Glenn D’Alessandro said the company was raising its full-year 2026 outlook for the third time this year. The increase, he said, reflects confidence in converting record orders and current backlog into increased sales, profits and cash flow through the balance of 2026.

Full-year 2026 net sales guidance moved to between $669 million and $679 million from between $665 million and $675 million. Net income guidance was raised to between $60 million and $64 million from between $56 million and $60 million. Adjusted EBITDA guidance was raised to between $270 million and $275 million from between $265 million and $270 million. Diluted earnings guidance moved to between $0.62 and $0.66 a share from between $0.57 and $0.62, and adjusted earnings to between $1.36 and $1.40 from between $1.32 and $1.36. Net income margin is expected at approximately 9%, up from approximately 8%. Interest expense is expected at approximately $80 million.

The 2026 outlook assumes commercial, business jet, and general aviation OEM growth of high-double digits (19–22%), low-double-digit aftermarket growth, and mid-single-digit defense growth.

For 2027, Loar now expects net sales of between $745 million and $755 million, net income of between $91 million and $95 million, adjusted EBITDA of between $312 million and $317 million, and an adjusted EBITDA margin of approximately 42%. Diluted earnings are expected at between $0.93 and $0.97 a share, and adjusted earnings at between $1.64 and $1.68. Interest expense is expected at approximately $83 million. The 2027 outlook assumes low-double-digit growth in commercial, business jet, and general aviation OEM, low-double-digit aftermarket growth, and low-double-digit defense growth.

Charles said demand is building across every one of the company’s end markets as it heads into 2027, citing higher commercial OEM production rates, a strong commercial aftermarket as airlines keep an aging fleet flying longer, and continued defense growth with global demand driven by geo-political and kinetic conflicts.