Loar Raises 2026 Sales Guidance to $640–650M after 15% 2025 Sales Gain
Loar’s pro forma 2025 sales climbed 15% to $500M, with full-year adjusted EBITDA rising $43M to $189M and gross margin expanding 330 basis points to 52.7%. The company deployed over $1.1B in M&A, including LMB and Harper, and lifted 2026 guidance to $640–650M in sales and $253–258M in EBITDA.
1. Strong 2025 Financial Performance
On a pro forma basis including Applied Avionics and Beadlight, Loar’s 2025 sales reached $500M, up 15% year over year, while fourth-quarter sales rose 17%. Full-year adjusted EBITDA hit a record $189M, an increase of $43M, with gross margin expanding 330 basis points to 52.7% and free cash flow conversion at 138% (160% ex a $10M tax benefit).
2. Upward 2026 Guidance Revision
Management raised 2026 pro forma net sales guidance to $640–650M and adjusted EBITDA to $253–258M, implying a near 40% margin. They cautioned that adjusted EPS of $0.76–0.80 will be impacted by non-cash purchase accounting depreciation, acquisition interest, and one-time transaction costs.
3. Accelerated M&A Strategy
Loar has deployed over $1.1B on acquisitions since going public, including December additions LMB Fans & Motors and Harper Engineering. Together, these deals are expected to be margin-accretive, boost proprietary content from 85% to 89%, and expand Loar’s exposure in European defense and Boeing’s interior components.
4. Demand Tailwinds and Product Pipeline
An aging global fleet—average aircraft age up to 14+ years—and lower retirement rates are driving aftermarket strength, while Airbus and Boeing production ramps support OEM sales. The company tracks a monthly new-product pipeline of over $600M in potential sales across the next five years, positioning new product introductions as the largest organic growth driver.