LOAR · Loar Holdings Inc.

Loar Holdings delivered record top-line and Adjusted EBITDA performance in Q1 2026, with net sales rising 36.1% year-over-year to $156.1 million and Adjusted EBITDA surging 46.6% to $63.2 million — both all-time highs for the company. The growth was fueled by strong organic sales ($127.7 million, +11.4% YoY) and contributions from recent acquisitions, particularly LMB and Harper Engineering. However, GAAP net income declined 27.5% to $11.1 million, driven by three acquisition-related headwinds: higher interest expense, elevated amortization of acquired intangible assets, and a non-recurring, non-cash inventory step-up adjustment tied to those acquisitions. These items also pressured GAAP net income margin down to 7.1% from 13.4% a year earlier. Notably, Adjusted EBITDA margin expanded to 40.5% (from 37.6%), underscoring operational leverage and the accretive impact of scale and strategic value drivers. Management explicitly attributed the improved margin to execution on those initiatives and higher sales volume. In response to the strong start and robust backlog, Loar revised its full-year 2026 outlook: net sales guidance was raised by $5 million at the midpoint, and Adjusted EBITDA guidance increased by $4.5 million, while net income and diluted EPS guidance were lowered to reflect the ongoing burden of acquisition-related costs. The company also updated its Adjusted EPS calculation to consistently exclude amortization of acquired intangibles — a methodological shift that lifted the Adjusted EPS guidance range. CEO Dirkson Charles cited proprietary portfolio content and progress in new product qualification as key confidence drivers behind the raised outlook, signaling sustained demand strength across commercial, business jet, general aviation, and defense end markets.