Loar Holdings Inc. has recently released its 10-Q report, which provides a detailed insight into the company's financial performance and operations. The company, incorporated in 2017 and headquartered in White Plains, New York, specializes in designing, manufacturing, and marketing aerospace and defense components for various aircraft and aerospace and defense systems globally. Its product portfolio includes a wide range of components such as airframe components, braking system components, flight controls, and environmental systems, catering primarily to commercial, business jet and general aviation, and defense markets.
In the third quarter of 2025, Loar reported net sales of $126.8 million, marking a significant increase of 22.4% compared to the same period in 2024 when net sales were $103.5 million. The increase in net organic sales, which exclude net sales from acquisitions, was primarily driven by growth in aftermarket total commercial sales, OEM total commercial sales, and defense sales. Net acquisition sales for the same period represented 11.3% of the increase in total net sales, amounting to $11.7 million.
The gross profit for the third quarter of 2025 was reported at $66.8 million, reflecting a gross profit margin of 52.7%. This represents an improvement from the gross profit margin of 51.1% reported in the third quarter of 2024. The cost of sales for the third quarter of 2025 increased by 18.5% to $60.0 million compared to $50.6 million in the same period in 2024, in line with the increase in sales.
Furthermore, the company reported an operating income of $29.0 million for the third quarter of 2025, representing 22.9% of net sales, compared to $22.8 million, or 22.0% of net sales, in the third quarter of 2024. The net income for the third quarter of 2025 stood at $27.6 million, with a net income margin of 21.8%, reflecting an improvement from the net income margin of 8.4% reported in the same period in 2024.
Looking ahead to 2026, Loar anticipates net sales growth to be driven by organic growth, particularly from the conversion of high levels of backlog of existing products, and the impact from strategic acquisitions. The company also highlighted its commitment to developing new products and services, further market penetration, and pursuing an aggressive acquisition strategy while seeking to maintain its financial strength and flexibility. The market has reacted to these announcements by moving the company's shares -2.61% to a price of $71.33. For more information, read the company's full 10-Q submission here.
