Loar Holdings Inc. — Q3 2026 Earnings Summary

Financial Performance:

• Q3 2026 net sales reached $176.2 million, a 39.0% increase year-over-year (YoY), with organic sales up 15.8% to $146.8 million.
• Year-to-date (YTD) net sales were $503.8 million, up 38.2% YoY, with organic sales increasing 13.2% to $412.8 million.
• Q3 2026 net income was $19.6 million, down from $27.6 million in the prior year quarter; YTD net income was $47.5 million, down from $59.6 million.
• Q3 2026 diluted EPS was $0.20 compared to $0.29 in the prior year; YTD diluted EPS was $0.50 compared to $0.62.
• Adjusted EBITDA for Q3 2026 was $71.9 million, up 46.5% YoY, with an Adjusted EBITDA margin of 40.8% (vs. 38.7% prior year).
• YTD Adjusted EBITDA was $204.6 million, up 46.8% YoY, with an Adjusted EBITDA margin of 40.6% (vs. 38.2% prior year).
• Adjusted EPS for Q3 2026 was $0.39 (vs. $0.43 prior year); YTD Adjusted EPS was $1.11 (up 4.7% vs. $1.06).
• Net income margin for Q3 2026 was 11.2% (vs. 21.8% prior year); YTD net income margin was 9.5% (vs. 16.3% prior year).
• Operating cash flow after capital expenditures for Q3 2026 was a record, improving 46% over the prior year period.
• Cash and cash equivalents increased to $159.3 million at September 30, 2026, from $84.8 million at December 31, 2025.
• Long-term debt, net, increased to $941.9 million at September 30, 2026, from $711.3 million at December 31, 2025.
• Total liabilities increased to $1.13 billion at September 30, 2026, from $855.1 million at December 31, 2025.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $262.3 million, primarily driven by $249.8 million in payments for acquisitions.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $232.1 million, including $240 million in proceeds from long-term debt issuance.

Guidance and Future Outlook:

• Revised Full Year 2026 Net Sales guidance raised to $669–$679 million (previously $665–$675 million).
• Revised Full Year 2026 Net Income guidance raised to $60–$64 million (previously $56–$60 million).
• Revised Full Year 2026 Adjusted EBITDA guidance raised to $270–$275 million (previously $265–$270 million).
• Revised Full Year 2026 Diluted EPS guidance raised to $0.62–$0.66 (previously $0.57–$0.62).
• Revised Full Year 2026 Adjusted EPS guidance raised to $1.36–$1.40 (previously $1.32–$1.36).
• Full Year 2026 outlook assumes Commercial, Business Jet, and General Aviation OEM growth of 19–22% (high-double digits).
• Full Year 2026 outlook assumes Commercial, Business Jet, and General Aviation aftermarket growth of low-double digits.
• Full Year 2026 outlook assumes Defense growth of mid-single digits.
• Full Year 2027 Net Sales guidance set at $745–$755 million.
• Full Year 2027 Net Income guidance set at $91–$95 million.
• Full Year 2027 Adjusted EBITDA guidance set at $312–$317 million.
• Full Year 2027 Adjusted EBITDA Margin guidance set at approximately 42%.
• Full Year 2027 Diluted EPS guidance set at $0.93–$0.97.
• Full Year 2027 Adjusted EPS guidance set at $1.64–$1.68.
• Full Year 2027 outlook assumes Commercial, Business Jet, and General Aviation OEM and aftermarket growth of low-double digits.
• Full Year 2027 outlook assumes Defense growth of low-double digits.

Business Segments and Product Lines:

• Commercial aerospace OEM sales were $37.9 million in Q3 2026 (up from $20.7 million in Q3 2025) and $106.5 million YTD (up from $56.2 million).
• Commercial aerospace aftermarket sales were $48.4 million in Q3 2026 (up from $38.2 million) and $138.2 million YTD (up from $105.4 million).
• Business jet & general aviation OEM sales were $19.9 million in Q3 2026 (up from $19.9 million) and $59.8 million YTD (up from $57.2 million).
• Business jet & general aviation aftermarket sales were $14.3 million in Q3 2026 (up from $12.7 million) and $38.4 million YTD (up from $36.4 million).
• Defense OEM sales were $28.3 million in Q3 2026 (up from $13.8 million) and $78.3 million YTD (up from $39.8 million).
• Defense aftermarket sales were $17.3 million in Q3 2026 (up from $15.0 million) and $52.9 million YTD (up from $49.2 million).
• Other OEM sales were $4.9 million in Q3 2026 (up from $3.3 million) and $14.7 million YTD (up from $8.8 million).
• Other aftermarket sales were $5.3 million in Q3 2026 (up from $3.2 million) and $14.9 million YTD (up from $11.5 million).
• Acquisitions of LMB and Harper Engineering contributed to non-cash inventory step-up expenses impacting net income.

Market and Competitive Landscape:

• Demand is building across all end markets heading into 2027.
• Commercial OEM benefits from higher production rates.
• Commercial aftermarket remains strong as airlines extend the life of aging fleets.
• Defense business growth is driven by global demand related to geo-political and kinetic conflicts.
• The company maintains relationships with leading aerospace and defense OEMs and Tier Ones worldwide.

Risks and Challenges:

• Net income was negatively impacted by higher interest expense, higher income tax expense, and higher non-cash amortization of acquired intangible assets.
• Net income for the nine months ended September 30, 2026, was also impacted by non-cash inventory step-up expenses attributable to acquisitions.
• Forward-looking statements are subject to risks including reliance on specific customers, the ability to consummate acquisitions on satisfactory terms, and integration of acquired operations.
• Actual results may differ from projections due to global, regional, or local economic, business, competitive, market, and regulatory factors.
• Non-GAAP measures (Adjusted EBITDA, etc.) do not reflect interest expense, cash requirements for asset replacement, acquisition integration costs, or tax payments.

Management Commentary and Tone:

• CEO Dirkson Charles stated record results reflect successful execution of value drivers and highlighted record operating cash flow after capital expenditures.
• CFO Glenn D'Alessandro noted this was the third upward revision to the full-year 2026 outlook, citing confidence in converting record orders and backlog into sales and profits.
• CEO Dirkson Charles expressed confidence in another year of strong performance for 2027 driven by market tailwinds and the company's proprietary portfolio.

Other Key Points:

• The company raised its full-year 2026 outlook for the third time in 2026.
• Acquisitions of LMB and Harper Engineering were completed, resulting in significant non-cash amortization and inventory step-up expenses.
• The company issued $240 million in long-term debt during the nine months ended September 30, 2026.
• Capital expenditures for the nine months ended September 30, 2026, were $12.5 million.
• A conference call was scheduled for November 5, 2026, at 11:00 a.m. Eastern Time.
• The company does not provide a reconciliation of forward-looking non-GAAP measures to GAAP due to the difficulty of projecting event-driven transactional items.