Operating cash flow remains robust with an OCF/NI ratio of 2.34 in 2026Q1, highlighting the company's ability to generate cash despite significant capital deployment toward acquisitions.
| Cash from Operations | 110.03M | 112.28M | 54.97M | 12.81M | 13.27M |
| Operating CF Margin % | - | 22.62% | 13.65% | 4.04% | 5.54% |
| Operating CF Growth % | 356.6% | 104.25% | 329.03% | -3.44% | - |
| Net Income | 67.97M | 72.15M | 22.23M | -4.62M | -2.47M |
| Depreciation & Amortization | 57.48M | 51M | 43.07M | 38.02M | 33.96M |
| Stock-Based Compensation | 11.84M | 14.93M | 11.1M | 372K | 1.53M |
| Deferred Taxes | 3.96M | 3.68M | -1.55M | -3.76M | -3.74M |
| Other Non-Cash Items | 17.57M | 12.23M | 6.6M | 4.06M | 3.89M |
| Working Capital Changes | -48.78M | -41.71M | -26.48M | -21.27M | -19.9M |
| Change in Receivables | -16.88M | -16.61M | -2.1M | -13.73M | -8.53M |
| Change in Inventory | -12.17M | -9.56M | -12.05M | -11.17M | -6.19M |
| Change in Payables | 4.6M | 1.28M | -1.24M | 808K | 1.23M |
| Cash from Investing | -773.01M | -520.88M | -392.13M | -72.56M | -181.83M |
| Capital Expenditures | -15.28M | -13.02M | -8.87M | -12.13M | -7.93M |
| CapEx % of Revenue | 2.84% | 2.62% | 2.2% | 3.82% | 3.31% |
| Acquisitions | -757.72M | -507.85M | -383.26M | -60.42M | -173.9M |
| Investments | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 677.56M | 439.23M | 370.02M | 45.72M | 135.31M |
| Debt Issued (Net) | 239.6M | 1.33M | -258.07M | 46.78M | 136.92M |
| Equity Issued (Net) | 1.92M | 1.86M | 636.97M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 437.9M | 437.9M | -8.88M | -1.06M | -1.61M |
| Net Change in Cash | 14.38M | 30.76M | 32.58M | -14.01M | -33.1M |
| Free Cash Flow | 94.75M | 99.26M | 46.1M | 679K | 5.34M |
| FCF Margin % | 17.62% | 20% | 11.44% | 0.21% | 2.23% |
| FCF Growth % | 47.58% | 115.31% | 6689.4% | -87.28% | - |
| FCF per Share | 0.99 | 1.04 | 0.50 | 0.01 | 0.07 |
| FCF Conversion (FCF/Net Income) | 1.39x | 1.56x | 2.47x | -2.78x | -5.37x |
| Interest Paid | 6.58M | 13.06M | 52.05M | 64.21M | 39.6M |
| Taxes Paid | 6.69M | 7.06M | 12.57M | 5.04M | 2.58M |
Acquisition integration execution risk
According to reported financial statements, LOAR consistently generates operating cash flow significantly higher than net income, with an OCF/NI ratio reaching 2.34 in 2026Q1, suggesting that non-cash charges like amortization are heavily suppressing reported earnings while the underlying business remains a strong cash generator.
The persistent gap between net income and operating cash flow indicates that the company's reported profitability is heavily impacted by acquisition-related accounting, specifically the amortization of intangible assets. Investors should monitor this divergence as it suggests the true economic earnings power of the business is likely higher than the GAAP bottom line implies.
Based on the provided cash flow data, LOAR's free cash flow margin has demonstrated significant volatility, ranging from 5.2% to 23.1% over the last ten quarters, reflecting the uneven timing of acquisition-related integration costs and the ongoing scaling of its proprietary aerospace component business model.
While the FCF margin has shown periods of strength, the fluctuations suggest that the company's cash generation is sensitive to the timing of its aggressive inorganic growth strategy. Sustained FCF margin expansion will likely depend on the company's ability to successfully integrate acquired entities and realize operational efficiencies across its niche product portfolio.
As reported in recent filings, LOAR maintains a disciplined capital expenditure profile, with CapEx/Revenue ratios consistently remaining in the low single digits, averaging approximately 2.5% over the last ten quarters, which underscores the asset-light nature of its proprietary, sole-source aerospace component manufacturing model.
The relatively low capital intensity suggests that the company does not require massive reinvestment to maintain its competitive position, allowing for a higher portion of operating cash flow to be directed toward further acquisitions. This capital efficiency is a key pillar of the company's ability to sustain its growth trajectory without over-leveraging its balance sheet.
Based on the quarterly cash flow data, LOAR has experienced consistent working capital outflows, including a $10.6M usage in 2026Q1, which appears to be a direct consequence of the rapid inventory and receivables build-up required to support its aggressive inorganic revenue expansion strategy.
The recurring negative working capital impact suggests that as the company grows, it must tie up increasing amounts of cash in its supply chain to support its aftermarket and OE segments. Investors should watch for whether these outflows stabilize as the company matures or if they remain a permanent feature of its acquisition-led growth model.
According to the cash flow statements, LOAR has prioritized the deployment of its cash resources toward significant acquisition activity, with net acquisition spending reaching $475.0M in 2025Q4, signaling a clear management focus on consolidating niche aerospace component manufacturers to drive long-term platform value.
The heavy reliance on cash for acquisitions indicates that the company is aggressively utilizing its balance sheet to secure proprietary intellectual property. This strategy warrants further investigation into the long-term return on invested capital, as the company must ensure that these acquisitions provide accretive value beyond the initial purchase price.
Quick answers to the most common questions about buying LOAR stock.
Loar Holdings Inc. (LOAR) generated $112.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Loar Holdings Inc. (LOAR) generated $99.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Loar Holdings Inc. (LOAR) spent $13.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.