Loar Holdings Inc. (NYSE:LOAR) reported record third-quarter 2025 results, beating adjusted earnings estimates but narrowly missing revenue expectations, as strong demand from the aerospace and defense sectors fueled growth.

The company’s stock traded higher following the announcement, reflecting investor optimism over raised guidance and record margins.

Adjusted earnings per share came in at 35 cents, topping the 22-cent estimate. Revenue totaled $126.75 million, slightly below the $127.05 million forecast but up 22.4% from the same period last year.

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Net income surged 218.9% to $27.6 million, while diluted EPS rose 222.2% to 29 cents. Adjusted EBITDA climbed 28.9% to $49.1 million, representing 38.7% of sales compared with 36.8% a year earlier.

CEO Cites Strong Industry Tailwinds

“The strong tailwinds of secular growth in commercial passenger traffic, immense backlogs at the airframe manufacturers, and global demand for defense products once again led us to a record quarter,” said Dirkson Charles, Loar CEO and Executive Co-Chairman.

Profit margins expanded sharply, with net income margin rising to 21.8% from 8.4% a year ago, driven by higher operating income, lower interest expense, and a tax benefit.

“Through the nine months of 2025 the business has delivered strong performance and most notably has generated $82 million of operating cash flow,” said Glenn D’Alessandro, Loar Treasurer and CFO.

The company ended the quarter with $98.96 million in cash, up from $54.07 million at year-end 2024, and long-term debt of $279.36 million.

By segment, total commercial sales grew to $91.4 million from $74.9 million a year ago, while defense revenue increased to $28.8 million from $22 million.

Outlook

Loar raised its full-year 2025 forecast, now guiding adjusted EPS to 93–98 cents, up from 83–88 cents and ahead of the 85-cent estimate. GAAP EPS is projected to be 73–78 cents, up from 68–73 cents previously, and above the 71-cent consensus.

The company expects revenue to be between $487 million and $495 million, compared with $486 million–$494 million in the prior period and near the $491.85 million estimate.

For fiscal 2026, Loar anticipates adjusted EPS of $0.98–$1.03 versus a $1.00 estimate and GAAP EPS of 82–88 cents against an 81-cent forecast.

Sales are projected at $540 million–$550 million, slightly below the $554.52 million estimate, supported by continued growth in commercial and defense markets.

“Market indicators are trending upwards — airframe OEMs are increasing production rates. Global commercial traffic is at record levels, and overall demand is continuing to grow,” Charles said.

“Additionally, our defense customers continue to rely on our ability to consistently provide niche products and capabilities. Leveraging this backdrop, and taking into account a robust backlog, we anticipate that 2026 will be an exciting year for Loar.”

Price Action: LOAR shares were trading lower by 0.68% to $72.74 at last check Wednesday.

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