Loar Holdings (LOAR) 2Q26 First Take beat & raise

Equity Research 6 August 2026 | 9:46AM EDT

Loar Holdings (LOAR): 2Q26 First Take: beat & raise

Bottom Line: LOAR reported 2Q26 revenue and EBITDA above consensus on 12% Noah Poponak, CFA | organic revenue growth and a 40.5% EBITDA margin. The company raised its 2026 Goldman Sachs & Co. LLC guidance, including revenue, EBITDA, and EPS guidance by 3%, 3% and 5% at the Connor Dessert midpoints. | Goldman Sachs & Co. LLC Details: LOAR reported 2Q26 revenue of $171.6mn, which is 5% above consensus at Nizar Mesani $162.8mn and up 39.4% yoy (up 12.3% organically). Commercial OEM organic | revenue growth is +25.7%, commercial aftermarket is +8.6%, and defense is -2.8%. Goldman Sachs India SPL Adjusted EBITDA of $69.4mn is 7% above consensus of $64.9mn, and the margin of Amanda Fenenbock, CFA | 40.5% is 60bps above consensus. Free cash of $27.4mn is above our model at Goldman Sachs & Co. LLC $25.0mn. Tomas Russo | The company provided an updated 2026 outlook. Revenue guidance is raised to Goldman Sachs & Co. LLC $665-675mn ($645-655mn prior; vs consensus at $654mn). The revenue forecast includes commercial OEM up HDD% yoy (LDD% prior), commercial aftermarket up LDD% yoy (unchanged), and defense up MSD% yoy (unchanged). Adjusted EBITDA is raised to $265-270mn ($257-262mn prior; above consensus at $262mn). Adjusted diluted EPS is now expected to be $1.32-1.36 ($1.26-1.30 prior; above consensus at $1.30).

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Goldman Sachs Loar Holdings (LOAR)

Exhibit 1: LOAR 2Q26 results vs GS estimates $mn, except EPS YoY Change 2Q26 Actual GS Estimate $ Variance % Variance EPS Impact 2Q25 Growth

OEM Sales % $ % Commercial Aerospace % $ % Business Jet & General Aviation % $ % Defense % $ % Other % $0.00 2.7 88.4% Aftermarket Sales %) ($ % Commercial Aerospace % $ % Business Jet & General Aviation %) ($0.00) 12.3 6.8% Defense %) ($0.01) 17.1 5.4% Other 4.7 4.8 (0.1) (2.2%) ($0.00) 4.6 3.7% Total Sales % $ %

Adjusted EBITDA % 47.1 47.4% Adjusted EBITDA margin 40.5% 40.1% 40 bp 38.3% 220 bp

D&A % 12.7 57.2% Adjustments 7.7 7.2 0.4 6.0% 7.1 7.6%

GAAP Operating income (EBIT) % $ % GAAP Operating income (EBIT) margin 24.4% 23.7% 0 bp 22.2% 220 bp Interest expense, net %) ($ % Refinancing costs - - - - GAAP Income before income taxes (EBT) % $0.04 20.8 4.8% Income tax (provision) benefit ( % $0.01 (4.1) 23.6% Effective income tax rate 23.3% 25.0% 0 bp 0.0 19.8% 17.9% GAAP Net income (loss) % $0.04 16.7 0.2% GAAP EPS $0.18 $0.13 $0.04 30.2% $0.04 $0.17 0.8% Diluted shares %) 96.1 (0.6%)

Adjusted Net income (loss) % $ % Adjusted EPS $0.38 $0.30 $0.08 25.7% $0.07 $0.31 21.6%

Source: Company data, Goldman Sachs Global Investment Research

Exhibit 2: FY26 Guidance FY2026 Outlook November '25 February '26 May '26 August '26

Market Assumptions Total Commercial OEM LDD % -- -- HDD% Total Commercial AM LDD % -- -- -- Defense MSD % -- -- --

Financial Outlook Net sales $540 - $550mn $640 - $650mn $645 - $655mn $665 - $675mn Adjusted EBITDA $209 - $214mn $253 - $258mn $257 - $262mn $265 - $270mn Adjusted EBITDA margin ~39% ~40% ~40% -- Interest expense ~$25mn ~$80mn -- -- Effective tax rate ~25% -- -- Net income $80 - $85mn $59 - $63mn $53 - $57mn $56 - $60mn Net income margin ~15% (impl.) ~9% (impl.) ~8% (impl.) -- Share count (mn) ~97 -- -- Diluted EPS $0.82 - $0.88 $0.60 - $0.65 $0.54 - $0.59 $0.57 - $0.62 Adjusted EPS $0.98 - $1.03 $0.76 - $0.80 $1.26 - $1.30 $1.32 - $1.36

Capital expenditures ~$17mn ~$19mn -- Depreciation & amortization ~$53mn ~$75mn ~$80mn -- Stock-based compensation ~$17mn -- ~$18mn

Source: Company data, Goldman Sachs Global Investment Research

Our $102 12-month price target is derived from a target 35.0X CY27E EV/EBITDA, which is informed…