Loar Holdings Q3 2026: Third Guidance Raise and First Look at 2027

Loar Holdings reported adjusted EPS of $0.39 for the third quarter of 2026, exceeding expectations. Net sales came in at $176.17 million, also exceeding expectations and rising 39% from the same period a year earlier. Organic growth of 15.8% drove the bulk of the top-line expansion, with the LMB and Harper Engineering acquisitions contributing the remainder.

Adjusted EBITDA climbed 46.5% to $71.94 million, with margin widening to 40.8% from 38.7% a year ago. Operating income rose 59% year over year to $46.18 million, a reflection of higher volumes across commercial aerospace, defense, and aftermarket channels. Every major end market contributed, with commercial aerospace OEM sales reaching $37.9 million versus $20.7 million in the prior-year quarter and defense OEM sales reaching $28.3 million versus $13.8 million.

GAAP net income fell to $19.6 million from $27.6 million a year earlier. The culprit was interest expense, which surged to $20.01 million from $6.01 million as the company carried debt taken on to fund its acquisitions. Long-term debt stood at $941.9 million, and rising amortization of acquired intangibles added further pressure to the GAAP line.

Management raised its full-year 2026 outlook for the third time this year, now guiding for net sales of $669 million to $679 million and adjusted EPS of $1.36 to $1.40. The company also issued its first formal look at 2027, calling for net sales of $745 million to $755 million and adjusted EPS of $1.64 to $1.68, with an adjusted EBITDA margin target of approximately 42%.

CEO Dirkson Charles pointed to demand building across every end market heading into 2027, citing higher commercial OEM production rates, a strong aftermarket as airlines extend the life of aging fleets, and defense growth tied to global geopolitical and kinetic conflicts. Operating cash flow less capital expenditures improved 46% year over year for the quarter, which Charles described as a record for the period.