Loar Holdings Inc (NYSE:LOAR) Reports Strong Q2 Earnings Beat and Raises Full-Year Guidance

Loar Holdings Inc (NYSE:LOAR) reported second-quarter earnings that surpassed analyst expectations, driven by strong performance across its commercial aerospace, business jet, and defense segments. The company also raised its full-year guidance, reflecting confidence in continued demand for its aerospace and defense components.

Q2 2025 Earnings Highlights

• Revenue: $123.1 million, up 26.9% year-over-year (YoY), slightly below the consensus estimate of $123.3 million.
• Adjusted EPS: $0.23, beating estimates of $0.187 by 23%.
• Net Income: $16.7 million, a 118.7% increase YoY.
• Adjusted EBITDA: $47.1 million, up 34.5% YoY, with margins expanding to 38.3% from 36.1% in Q2 2024.

Market Reaction

Shares of Loar Holdings rose 7.05% in pre-market trading, indicating a positive response to the earnings beat and upward revision in guidance. Over the past month, the stock had declined 8.7%, likely due to broader market conditions or pre-earnings caution. The strong post-earnings rebound suggests investor confidence in the company’s growth trajectory.

Key Drivers of Performance

• Strong Demand Across Segments:
  • Commercial OEM sales grew 18% YoY.
  • Commercial aftermarket sales surged 29% YoY.
  • Defense sales jumped 51% YoY, reflecting increased government spending.
• Improved Profitability: Lower interest expenses and higher-margin product sales contributed to expanded net income and EBITDA margins.
• Strategic Acquisition: The company completed the acquisition of Beadlight Ltd., a UK-based aerospace lighting solutions provider, which is expected to bolster its aftermarket revenue.

Updated 2025 Outlook

Loar raised its full-year guidance, now expecting:

• Revenue: $486M–$494M (up from prior guidance of $482M–$490M).
• Adjusted EBITDA: $184M–$187M (previously $182M–$185M).
• Adjusted EPS: $0.83–$0.88 (up from $0.71–$0.76).

The revised outlook aligns with analyst expectations for full-year revenue of $502.3 million and suggests further margin expansion.

Looking Ahead

The company’s performance indicates resilience in aerospace and defense demand, with aftermarket and defense segments leading growth. The Beadlight acquisition adds proprietary technology and strengthens Loar’s position in premium cabin lighting solutions.

For more detailed earnings estimates and historical performance, visit Loar Holdings' earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.