second quarter of 2026
Filed Aug 6, 2026Loar Holdings Inc. Reports Q2 2026 Record Results and Upward Revision to 2026 Outlook
Second-quarter net sales grew 39.4%, organic net sales increased 12.3%, Adjusted EBITDA grew 47.4%, and Adjusted EBITDA Margin expanded to 40.5%. The company raised its full-year 2026 outlook for net sales, net income, Adjusted EBITDA, diluted earnings per share, and Adjusted Earnings Per Share.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $171.6 million | – | up 39.4% |
| Organic net salesother | $138.3 million | – | increased 12.3% or $15.1 million |
| Net incomeGAAP | $16.7 million | – | equal to the prior year’s quarter |
| Diluted earnings per shareGAAP | $0.18 | – | – |
| Net income marginGAAP | 9.8% | – | – |
| Adjusted EBITDAnon-GAAP | $69.4 million | – | up 47.4% or $22.3 million |
| Adjusted EBITDA Marginnon-GAAP | 40.5% | – | – |
| Adjusted Earnings Per Sharenon-GAAP | $0.38 | – | up 22.6% |
| Year-to-date net salesGAAP | $327.7 million | – | up 37.8% or $89.9 million |
| Year-to-date organic net salesother | $266.0 million | – | increased 11.9% or $28.2 million |
| Year-to-date net incomeGAAP | $27.9 million | – | a decrease of $4.1 million |
| Year-to-date diluted earnings per shareGAAP | $0.29 | – | – |
| Year-to-date net income marginGAAP | 8.5% | – | – |
| Year-to-date Adjusted EBITDAnon-GAAP | $132.7 million | – | up 47.0% or $42.4 million |
| Year-to-date Adjusted EBITDA Marginnon-GAAP | 40.5% | – | – |
| Year-to-date Adjusted Earnings Per Sharenon-GAAP | $0.72 | – | up 22.0% |
Full Year 2026 Outlook – Revised outlook
- Revenuebetween $665 million and $675 million
- NoteNet income – between $56 million and $60 million
- NoteAdjusted EBITDA – between $265 million and $270 million
- NoteAdjusted EBITDA Margin – approximately 40%
- NoteDiluted Earnings per share – between $0.57 and $0.62
- NoteNet income margin – approximately 8%
- NoteAdjusted Earnings Per Share – between $1.32 and $1.36
- NoteInterest expense – approximately $80 million
- NoteDepreciation expense – approximately $15 million
- NoteAmortization expense – approximately $65 million
- NoteCommercial, Business Jet, and General Aviation OEM growth of high-double digits (17% -20%)
- NoteCommercial, Business Jet, and General Aviation aftermarket growth of low-double digits
- NoteDefense growth of mid-single digits
What drove it
- Exceptional demand across end-markets and strong conversion of the new business pipeline.
- Of the approximately $750 million in the pipeline, the company secured initial orders which provide visibility to approximately $200 million of revenue over the next five years.
- The increase in Adjusted EBITDA Margin was due to execution of strategic value drivers and the accretive impact of increased sales.
- The full-year outlook assumes Commercial, Business Jet, and General Aviation OEM growth of high-double digits (17% -20%), Commercial, Business Jet, and General Aviation aftermarket growth of low-double digits, and Defense growth of mid-single digits.
Concerns
- Second-quarter net income was equal to the prior year’s quarter despite net sales growth, impacted by higher interest expense and higher non-cash amortization of acquired intangible assets.
- Year-to-date net income decreased by $4.1 million, primarily driven by higher interest expense, higher non-cash amortization of acquired intangible assets, and non-cash expense of inventory step-up attributable to the acquisitions of LMB and Harper Engineering.
- Net income margin declined to 9.8% from 13.6% in the second quarter and to 8.5% from 13.5% year-to-date.
- Management states that Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share do not reflect significant interest expense, taxes, certain acquisition integration costs, or substantial amortization expense associated with intangible assets.
What to watch
- Delivery against revised full-year net sales guidance of between $665 million and $675 million.
- Whether Adjusted EBITDA Margin remains at approximately 40% as guided.
- The effect of approximately $80 million of interest expense and approximately $65 million of amortization expense on GAAP net income and diluted earnings per share.
- Conversion of the approximately $750 million pipeline and the initial orders expected to provide visibility to approximately $200 million of revenue over the next five years.
- Progress under the stated Commercial, Business Jet, General Aviation, and Defense market-growth assumptions.
Analysis
Loar reported record second-quarter results, led by net sales of $171.6 million, up 39.4% compared to the prior year’s quarter. Organic net sales increased 12.3% or $15.1 million, to $138.3 million, indicating that the period's growth was supported by existing businesses as well as acquisitions. Management attributed demand strength to its end-markets and conversion of its new business pipeline.
Profitability was stronger on the company’s non-GAAP measure. Adjusted EBITDA increased 47.4% or $22.3 million to $69.4 million, while Adjusted EBITDA Margin expanded to 40.5% from 38.3%. The company attributed margin expansion to strategic value-driver execution and the accretive impact of increased sales. The year-to-date Adjusted EBITDA Margin was also 40.5%, compared with 38.0% in the comparable prior-year period.
GAAP earnings did not grow at the same rate as sales and Adjusted EBITDA. Second-quarter net income was $16.7 million, equal to the prior year’s quarter, and net income margin declined to 9.8% from 13.6%. Year-to-date net income was $27.9 million compared with $32.0 million, while year-to-date net income margin was 8.5% compared with 13.5%. The company identified higher interest expense, higher non-cash amortization of acquired intangible assets, and, year-to-date, non-cash inventory step-up expense from the LMB and Harper Engineering acquisitions as the principal factors affecting GAAP earnings.
The outlook was raised across the principal financial measures. Full-year net sales guidance increased to between $665 million and $675 million from between $645 million and $655 million, and Adjusted EBITDA guidance increased to between $265 million and $270 million from between $257 million and $262 million. The company also raised net income, diluted earnings per share, and Adjusted Earnings Per Share outlook. The revised outlook continues to target Adjusted EBITDA Margin of approximately 40%, while assuming high-double-digit Commercial, Business Jet, and General Aviation OEM growth, low-double-digit aftermarket growth, and mid-single-digit Defense growth.
Investors should focus on the divergence between expanding Adjusted EBITDA Margin and lower GAAP net income margins, particularly given full-year assumptions of approximately $80 million of interest expense and approximately $65 million of amortization expense. Pipeline conversion is another central variable: management cited approximately $750 million in pipeline opportunities and initial orders providing visibility to approximately $200 million of revenue over the next five years. No capital-return activity, cash balance, debt balance, operating cash flow, or free cash flow was reported in the supplied filing text.
Management, verbatim
Through the first half of the year the business continues to outperform our expectations, driven by exceptional demand across our end-markets and strong conversion of our new business pipeline. Of the approximately $750 million in our pipeline, we secured initial orders which provide visibility to approximately $200 million of revenue over the next five years,
Dirkson Charles, Loar Holdings Chief Executive Officer and Executive Co-Chairman of the Board of Directors
Our Q2 and year-to-date results reflect the strength and consistency of Loar’s operating model. Achieving Adjusted EBITDA Margin above 40% for the second consecutive quarter underscores the quality of our portfolio, robust demand across our end markets, and our disciplined focus on executing our strategic value drivers,
Glenn D’Alessandro, Loar Holdings Treasurer and Chief Financial Officer
Not in the filing
stated, not guessed- Segment revenue, segment growth rates, and segment drivers
- Gross profit and gross margin
- Operating income and operating margin
- Prior-year net sales amounts for the second quarter and year-to-date periods
- Prior-year Adjusted EBITDA amounts for the second quarter and year-to-date periods
- Prior-quarter comparisons for reported metrics
- Cash balance
- Debt balance
- Operating cash flow
- Free cash flow
- Capital expenditures
- Share repurchases
- Dividends
- Weighted-average diluted shares
- Tax rate
- Reconciliation table amounts for EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Earnings Per Share
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.