Loar Holdings’ $250M Harper Acquisition and 19% Revenue Growth Spark Upside
Loar Holdings completed a $250 million acquisition of Harper Engineering in January, securing a $30 million tax benefit. In 4Q25 the company generated $131.8 million in revenue, up 19% year-over-year and beat forecasts by $3.75 million, while posting a $0.26 non-GAAP EPS, 7 cents above estimates.
1. Business Profile and HALO Classification
Loar Holdings is the parent of a network of aerospace and defense subsidiaries with over 25 to 70 years of experience in precision manufacturing, engineering and product testing. Its portfolio includes airframe structures, avionics, composites, flight controls, de-icing equipment and safety devices, giving it a heavy-asset, low-obsolescence profile valued in the HALO stock framework.
2. Harper Engineering Acquisition
In January, Loar closed a $250 million purchase of Harper Engineering, adding two Seattle-area facilities devoted to aerospace components. The transaction is expected to deliver a $30 million tax benefit and expand Loar’s capacity in high-precision manufacturing.
3. Q4 2025 Financial Performance
Loar reported 4Q25 revenue of $131.8 million, marking a 19% increase over the prior year and surpassing consensus by $3.75 million. The company recorded a non-GAAP EPS of $0.26, exceeding estimates by $0.07 and demonstrating strong free cash flow conversion.
4. Analyst Rating and Outlook
Goldman Sachs analyst Noah Poponak assigns a Buy rating with a $98 price target, implying 35.5% upside, citing Loar as a high-quality aerospace & defense earnings compounder with margin expansion potential. The stock holds a unanimous Strong Buy consensus and an average target of $87.67, reflecting 21% projected gains.