Loar: Ignore The Premium, Buy The Growth
Loar Holdings reported record Q2 results with 39.4% sales growth and 47.4% adjusted EBITDA growth, and raised its 2026 guidance. While organic growth remains robust and free cash flow is strong with leverage manageable at 3.1x EBITDA, GAAP net income is pressured by higher interest and amortization from debt-funded acquisitions, and elevated debt limits room for missteps or further large M&A.
Why it matters — A LOAR watcher would care because the record growth and raised guidance signal strong momentum, while the debt-funded acquisition profile highlights a key risk in its capital structure.