Loar Holdings reported record third‑quarter 2025 results, with net sales of $126.8 million, up 22.4 % from $103.5 million in the same period last year. Net income rose to $27.6 million, a 218.9 % increase, and diluted earnings per share reached $0.29, beating the consensus estimate of $0.22 by $0.07 or 31 %. Adjusted EBITDA climbed to $49.1 million, a 28.9 % jump, and the adjusted EBITDA margin expanded to 38.7 % from 36.8 % a year earlier.
Revenue growth was driven by a 22.4 % increase in commercial sales, which reached $91.4 million from $74.9 million a year ago, and a 30.0 % rise in defense revenue to $28.8 million from $22 million. The higher‑margin commercial mix and continued demand for defense components helped lift the overall margin profile, while operating cash flow for the nine months to September 30 reached $82 million, up from $45 million in the prior year.
CEO Dirkson Charles said the quarter reflected “strong tailwinds from commercial passenger traffic and defense spending, backed by a robust backlog.” CFO Glenn D'Alessandro highlighted that disciplined cost management and the tax‑benefit impact of the 2025 tax code changes contributed to the margin expansion and the $82 million operating cash flow. Both executives noted that the company’s focus on high‑margin niche components and strategic acquisitions has positioned it to sustain growth.
Management raised its full‑year 2025 revenue outlook to $487–$495 million, up from $470–$478 million, and adjusted EBITDA guidance to $185–$188 million, above the previous $170–$175 million range. A 2026 outlook of $540–$550 million in revenue and $209–$214 million in adjusted EBITDA was also issued, signaling confidence in continued demand and operational leverage.
Consensus estimates for the quarter were $124.12 million in revenue and $0.22 in diluted EPS. The company beat the EPS estimate by $0.07 and the revenue estimate by $2.68 million, a 2.2 % overrun. Analysts cited the margin expansion, the strong commercial and defense mix, and the guidance upgrade as key drivers of the positive market reaction.
Management acknowledged that supply‑chain constraints and inventory management remain challenges, but emphasized that the company’s strategic focus on high‑margin products and its ability to secure long‑term contracts mitigate those risks. The combination of robust demand, disciplined cost control, and a favorable tax environment underpins the company’s outlook for continued profitability.
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