Here’s a simple story: people want to fly, and countries want to defend themselves. For a company that makes parts for planes and defense systems, that’s pretty good news. Loar Holdings Inc. (LOAR) just reported its third-quarter 2025 results, and it’s a record-breaker, beating earnings estimates and raising its guidance for the year. The stock initially traded higher on the news, though it was slightly lower by the end of the day Wednesday.
Let’s talk numbers. Adjusted earnings per share came in at 35 cents, comfortably topping the 22-cent estimate. Revenue was $126.75 million, which was just a hair below the $127.05 million forecast but still up a healthy 22.4% from the same period last year. The real star was the bottom line: net income skyrocketed 218.9% to $27.6 million. Diluted EPS jumped 222.2% to 29 cents. Adjusted EBITDA climbed 28.9% to $49.1 million, representing 38.7% of sales—an improvement from 36.8% a year ago.
So, what’s driving this? According to Dirkson Charles, Loar’s CEO and Executive Co-Chairman, it’s a perfect storm of favorable trends. “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,” he said. In other words, more people are flying, plane makers have huge order books, and governments are spending on defense. That’s a nice setup for a business like Loar’s.
Profit margins expanded dramatically. The net income margin rose to 21.8% from just 8.4% a year ago, thanks to higher operating income, lower interest expense, and a tax benefit. The company also generated a hefty $82 million in operating cash flow through the first nine months of 2025, as noted by Glenn D’Alessandro, Loar’s Treasurer and CFO. That cash flow helped boost the company’s cash balance to $98.96 million at the end of the quarter, up from $54.07 million at the end of 2024. Long-term debt stood at $279.36 million.
Breaking it down by segment, 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. Both sides of the business are contributing to the growth.
Given the strong performance, Loar decided to raise its full-year 2025 forecast. The company now expects adjusted EPS to be in the range of 93 to 98 cents, up from the previous guidance of 83 to 88 cents and ahead of the 85-cent estimate. GAAP EPS is projected at 73 to 78 cents, up from 68 to 73 cents previously and above the 71-cent consensus. Revenue is expected to be between $487 million and $495 million, compared with the prior range of $486 million to $494 million and near the $491.85 million estimate.
Looking ahead to fiscal 2026, Loar is optimistic. The company anticipates adjusted EPS of $0.98 to $1.03, compared with a $1.00 estimate, and GAAP EPS of 82 to 88 cents against an 81-cent forecast. Sales are projected at $540 million to $550 million, slightly below the $554.52 million estimate but still showing solid growth. Charles pointed to positive market indicators: “Airframe OEMs are increasing production rates. Global commercial traffic is at record levels, and overall demand is continuing to grow.” He added that defense customers continue to rely on Loar for 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.”
In the market, LOAR shares were trading lower by 0.68% to $72.74 at last check Wednesday, but the broader story here is one of a company riding a wave of industry demand and turning it into record financial performance.
