Loar Holdings Inc. has unveiled remarkable financial outcomes for the third quarter of 2025, buoyed by an escalating demand from both the aerospace and defense industries. The company's stellar performance included exceeding adjusted earnings forecasts, alongside a substantial increase in net income and EBITDA. These positive results have prompted an optimistic adjustment to its financial outlook for the entirety of 2025 and an initial forecast for 2026, underscoring confidence in the thriving commercial aviation and defense sectors.
For the third quarter of 2025, Loar Holdings reported adjusted earnings per share of 35 cents, a figure that comfortably outstripped the anticipated 22 cents. Despite a slight miss on revenue projections, with actual revenue reaching $126.75 million against a forecast of $127.05 million, this still represented a robust 22.4% increase compared to the same period in the previous year. Net income saw an impressive surge of 218.9%, arriving at $27.6 million, while diluted earnings per share climbed by 222.2% to 29 cents. Adjusted EBITDA also experienced significant growth, rising by 28.9% to $49.1 million, which translates to a healthy 38.7% of sales, an improvement from 36.8% in the prior year.
Dirkson Charles, CEO and Executive Co-Chairman of Loar, attributed these outstanding results to several powerful industry trends. He highlighted the consistent expansion in commercial passenger travel, the substantial order backlogs held by aircraft manufacturers, and a widespread global appetite for defense-related goods as key drivers behind the company's record-setting quarter. The profit margins expanded considerably, with the net income margin jumping to 21.8% from 8.4% year-over-year. This expansion was fueled by heightened operating income, reduced interest expenses, and a favorable tax outcome. Glenn D’Alessandro, Loar’s Treasurer and CFO, emphasized the strong operational cash flow generated, totaling $82 million over the first nine months of 2025. The quarter concluded with Loar possessing $98.96 million in cash, a significant rise from $54.07 million at the close of 2024, and a long-term debt standing at $279.36 million. Commercial sales contributed $91.4 million, up from $74.9 million, while defense revenues increased to $28.8 million from $22 million.
In light of these positive developments, Loar has refined its financial predictions for the future. The company now expects full-year 2025 adjusted earnings per share to fall between 93 and 98 cents, an increase from the previous range of 83 to 88 cents and surpassing the 85-cent analyst estimate. GAAP earnings per share are projected to be between 73 and 78 cents, up from 68 to 73 cents, also exceeding the 71-cent consensus. Revenue for 2025 is anticipated to be in the range of $487 million to $495 million, aligning closely with the $491.85 million estimate. Looking ahead to fiscal year 2026, Loar foresees adjusted earnings per share between $0.98 and $1.03, against an estimate of $1.00, and GAAP earnings per share of 82 to 88 cents, compared to an 81-cent forecast. Sales for 2026 are predicted to be between $540 million and $550 million, slightly below the $554.52 million estimate, sustained by continued expansion in both commercial and defense sectors. Charles further noted the upward trajectory of market indicators, including increased production rates by airframe original equipment manufacturers and record-breaking global commercial traffic. He also highlighted the consistent reliance of defense clients on Loar's specialized products, suggesting that 2026 is poised to be another impactful year for the company, underpinned by a robust backlog of orders.