Revenue growth accelerated to 39.4% YoY in 2026Q2 with gross margin improving to 53.2%, but EPS grew only 5.9% as SG&A jumped to $46.5M, indicating margin pressure from integration costs.
Loar Holdings Inc. (LOAR) annual income statement — 4-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Sales/Revenue | 586.17M | 496.28M | 402.82M | 317.48M | 239.43M |
| Revenue Growth % | 29.76% | 23.2% | 26.88% | 32.59% | - |
| Cost of Goods Sold | 280.31M | 234.96M | 203.99M | 163.21M | 127.93M |
| COGS % of Revenue | - | 47.34% | 50.64% | 51.41% | 53.43% |
| Gross Profit | 305.86M | 261.32M | 198.82M | 154.26M | 111.5M |
| Gross Margin % | 52.18% | 52.66% | 49.36% | 48.59% | 46.57% |
| Gross Profit Growth % | - | 31.43% | 28.89% | 38.35% | - |
| Operating Expenses | 166.69M | 142.07M | 111.19M | 84.77M | 72.04M |
| OpEx % of Revenue | - | 28.63% | 27.6% | 26.7% | 30.09% |
| Selling, General & Admin | 123.49M | 94.72M | 73.6M | 49.36M | 37.99M |
| SG&A % of Revenue | - | 19.09% | 18.27% | 15.55% | 15.87% |
| Research & Development | 10.96M | 13.05M | 8.78M | 6.28M | 4.2M |
| R&D % of Revenue | - | 2.63% | 2.18% | 1.98% | 1.76% |
| Other Operating Expenses | 4M | 34.3M | 28.81M | 29.13M | 29.85M |
| Operating Income | 139.18M | 119.25M | 87.63M | 69.49M | 39.46M |
| Operating Margin % | 23.74% | 24.03% | 21.75% | 21.89% | 16.48% |
| Operating Income Growth % | - | 36.09% | 26.11% | 76.1% | - |
| EBITDA | 203.92M | 170.25M | 130.7M | 107.52M | 73.42M |
| EBITDA Margin % | 34.79% | 34.31% | 32.45% | 33.87% | 30.66% |
| EBITDA Growth % | 36.39% | 30.26% | 21.57% | 46.45% | - |
| D&A (Non-Cash Add-back) | 64.74M | 51M | 43.07M | 38.02M | 33.96M |
| EBIT | 128.15M | 106.24M | 81.17M | 69.49M | 39.46M |
| Net Interest Income | -51.45M | -25.66M | -52.11M | -67.05M | -42.07M |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 51.45M | 25.66M | 52.11M | 67.05M | 42.07M |
| Other Income/Expense | -62.48M | -38.68M | -58.57M | -67.05M | -42.07M |
| Pretax Income | 76.7M | 80.58M | 29.06M | 2.44M | -2.61M |
| Pretax Margin % | 13.09% | 16.24% | 7.21% | 0.77% | -1.09% |
| Income Tax | 8.7M | 8.43M | 6.83M | 7.05M | -142K |
| Effective Tax Rate % | 11.34% | 10.46% | 23.5% | 289.37% | 5.44% |
| Net Income | 68M | 72.15M | 22.23M | -4.62M | -2.47M |
| Net Margin % | 11.6% | 14.54% | 5.52% | -1.45% | -1.03% |
| Net Income Growth % | 53.26% | 224.53% | 581.71% | -86.92% | - |
| Net Income (Continuing) | 68M | 72.15M | 22.23M | -4.62M | -2.47M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.71 | 0.75 | 0.24 | -0.05 | -0.03 |
| EPS Growth % | 55.27% | 212.5% | 558.02% | -63.24% | - |
| EPS (Basic) | - | 0.77 | 0.24 | -0.05 | -0.03 |
| Diluted Shares Outstanding | 95.52M | 95.89M | 91.68M | 88M | 77M |
| Basic Shares Outstanding | 93.65M | 93.6M | 93.56M | 88M | 77M |
| Dividend Payout Ratio | - | - | - | - | - |
Quick answers to the most common questions about buying LOAR stock.
For fiscal year 2025, Loar Holdings Inc. (LOAR) reported total revenue of $496.3M. This represents a 107.3% increase compared to $239.4M in 2022.
Loar Holdings Inc. (LOAR) is profitable, generating $72.1M in net income for the fiscal year ending 2025 with a net profit margin of 14.5%.
Loar Holdings Inc. (LOAR) reported an operating income of $119.3M, resulting in an operating profit margin of 24.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Loar Holdings Inc. (LOAR) generated $261.3M in gross profit for the year, representing a gross profit margin of 52.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
EPS miss vs raised guidance
Metrics are mathematically derived from official filings.
Accelerating Growth Amidst Integration
LOAR's revenue grew 39.4% YoY in 2026Q2, accelerating from 19.3% in 2025Q4, driven by strong demand and acquisitions, as per recent financial statements.
The sequential acceleration from 19.3% to 39.4% YoY growth suggests that the company is successfully converting its acquisition pipeline into revenue, with the ~$750M pipeline providing visibility to ~$200M over five years. However, the growth is likely a mix of organic and inorganic contributions, and investors should monitor whether the pace is sustainable as the base expands.
Gross Margin Resilience with Fluctuations
Gross margin improved to 53.2% in 2026Q2 from 47.7% in 2025Q2, indicating pricing power and mix benefits, as reported in quarterly filings.
The 530 basis point improvement in gross margin over the year suggests that LOAR is benefiting from aftermarket mix and pricing discipline, though the 2025Q2 dip to 47.7% highlights potential volatility from product mix or input costs. The structural moat from sole-source IP supports margin durability, but the recent EPS miss implies that operating expenses may be absorbing some of the gross profit gains.
Operating Leverage Tempered by SG&A
Operating margin expanded to 24.4% in 2026Q2 from 22.8% in 2025Q1, but SG&A jumped to $46.5M, indicating rising overhead costs, per income statement data.
While operating income grew 36% YoY in 2026Q2, the SG&A increase of 91% YoY (from $24.3M to $46.5M) suggests that the company is investing heavily in infrastructure or facing integration costs. This may indicate that operating leverage is not scaling as efficiently as gross profit, and investors should watch whether SG&A growth moderates as revenue grows.
Earnings Quality Clouded by Non-Cash Charges
Net income in 2026Q2 was $16.7M, but SBC of $9.0M and potential amortization of intangibles may understate true cash earnings, as per financial disclosures.
The EPS miss versus consensus suggests that reported earnings may be impacted by non-cash items or one-off costs, while the raised guidance indicates management's confidence in underlying demand. The large SBC in 2026Q2 (vs. zero in 2026Q1) could signal equity-based compensation tied to performance, which may dilute shareholders over time. Investors should adjust for these items to assess core profitability.
Rising SG&A and R&D Investment
SG&A surged to $46.5M in 2026Q2 from $27.9M in 2026Q1, while R&D reappeared at $4.4M, indicating increased spending on growth initiatives, as reported.
The sharp increase in SG&A (66% sequentially) may reflect costs related to the IPO, integration of acquisitions, or expanded sales efforts, which could pressure near-term margins. The reappearance of R&D after a zero in 2026Q1 suggests investment in new product development, which may be necessary to maintain the moat but could also signal a shift in cost structure.
2026Q2: A Quarter of Divergence
In 2026Q2, revenue growth accelerated to 39.4% YoY, but EPS grew only 5.9% YoY, marking a potential inflection in earnings conversion, per quarterly data.
This quarter stands out as the first where revenue growth significantly outpaced EPS growth, suggesting that the company may be sacrificing margins for growth or facing integration headwinds. The raised guidance despite the EPS miss implies that management expects the revenue momentum to eventually translate into profits, but the divergence warrants close monitoring in subsequent quarters.
What Could Invalidate the Base Case
The 2026Q2 EPS miss of $0.18 versus $0.33 consensus, despite 39.4% revenue growth, raises concerns about margin dilution and integration costs, per reported figures.
Short-sellers could argue that the widening gap between revenue growth and EPS growth indicates that acquisitions are not being integrated efficiently, leading to structural margin compression. The surge in SG&A and SBC may signal that the company is overpaying for growth, and if the raised guidance fails to materialize, the stock could face de-rating. Investors should monitor whether the EPS miss is a one-off or a trend, as the current valuation likely embeds high expectations for continued earnings conversion.