Loar(NYSE) LOAR

Loar makes small, specialized parts that keep airplanes and defense systems working safely. These products help commercial airlines, private jet owners, and military forces maintain their aircraft. Most of these items are essential components that must be replaced regularly to keep planes in the air.

What Loar Builds

• Commercial Aircraft Parts: Specialized components for passenger planes, including water filters and seat belts; makes up 45% of net sales.
• Aftermarket Services: Replacement parts and repairs for planes already in service; accounts for 55% of net sales.
• Business and General Aviation: Parts for private jets and small planes; represents 25% of net sales.
• Defense Components: Mission-critical hardware for military systems and aircraft; contributes 25% of net sales.
• Proprietary Products: Highly engineered items protected by patents or specialized designs; accounts for 89% of net sales.

A Strategy of Buying Growth

• Acquired LMB Fans & Motors in December 2025 to add high-performance cooling devices to the product portfolio.
• Purchased Harper Engineering for $250 million in January 2026 to gain control of specialized latching mechanisms for aircraft interiors.
• Integrated 18 different companies since 2012 by focusing on businesses that own unique designs and have strong customer ties.

Why the Company Stands Out

Loar creates high barriers to entry because its parts must go through years of expensive testing and government certification before they can be used on planes. Once a part is chosen for an aircraft, the company typically remains the sole provider of replacement pieces for the plane's entire 50-year lifespan.

The Recent Numbers

• Net income rose to $12.5 million in Q4 2025, a 239.5% increase from $3.7 million in Q4 2024.
• Revenue reached $131.8 million in Q4 2025, up 19.3% from the same period in 2024.
• Free cash flow grew to $24.9 million in Q4 2025, representing a 38.7% increase year-over-year.
• Operating income hit $30.8 million in Q4 2025, up 44.8% from $21.2 million in Q4 2024.

Bottom Line

Loar has transformed from a young startup into a diversified aerospace supplier by acquiring niche manufacturers with protected intellectual property. Its focus on essential replacement parts provides a recurring revenue stream that lasts for the decades-long life of global aircraft fleets.