Loar Holdings (LOAR) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with net sales of $171.6 million, up 39.4% year-over-year, and marked the 16th consecutive quarter of sequential adjusted EBITDA growth.

• Converted $200 million of new business pipeline into base business, with a total organic pipeline of $750 million over five years.

• Commercial OEM and aftermarket sales saw strong double-digit growth, while defense sales increased mid-single digits.

• Major acquisitions (LMB, Harper, Beadlight) expanded product offerings and contributed to growth, with Harper expected to double EBITDA faster than previous deals.

• Free cash flow year-to-date is nearly 200% of reported net income, reflecting strong cash generation.

Financial highlights

• Q2 2026 net sales were $171.6 million, up 39.4% year-over-year; organic net sales increased 12.3%.

• Adjusted EBITDA for Q2 2026 was $69.4 million, up 47.4% year-over-year, with margin rising to 40.5% from 38.3%.

• Adjusted net income for Q2 2026 was $36.3 million, up 34.5% year-over-year; GAAP net income was flat at $16.7 million due to higher interest and amortization.

• Gross profit margin was 53.2% in Q2 2026; gross margin decreased by 60 basis points due to non-cash amortization from acquisitions.

• EBITDA margins have increased by 910 basis points since 2020.

Outlook and guidance

• Full-year 2026 guidance raised: net sales $665–$675 million, adjusted EBITDA $265–$270 million (~40% margin), net income $56–$60 million, adjusted EPS $1.32–$1.36.

• Commercial OEM, aftermarket, and defense sales expected to be up high double digits, low double digits, and mid-single digits, respectively.

• Capital expenditures projected at ~$20 million (3% of sales); interest expense ~$80 million; effective tax rate ~25%.

• Guidance assumes no additional acquisitions in 2026; diluted share count expected at ~97 million.