Loar Q2 2026 Earnings: Revenue Rises 39% as Adjusted EBITDA Margin Expands

Loar Holdings (NYSE: LOAR) reported Q2 2026 net sales of $171.6 million, up 39.4% from $123.1 million a year earlier, while GAAP net income remained unchanged at $16.7 million. Adjusted EBITDA increased faster than revenue and its margin expanded, but higher interest expense and acquired-intangible amortization prevented that improvement from reaching the bottom line.

Core earnings data

Reported sales growth substantially exceeded the 12.3% organic growth rate. The $33.3 million difference between total sales and sales under Loar’s organic measure indicates that acquired operations represented a meaningful part of quarterly revenue.

Adjusted EBITDA rose 47.4%, outpacing the 39.4% increase in sales. Its margin improved by 2.2 percentage points, which management attributed to its strategic value drivers and the accretive effect of higher sales.

Prior-year organic sales and adjusted EBITDA are derived from the changes disclosed by the company. Net margins are calculated from the supplied net sales and net income figures.

Acquisitions lifted revenue and EBITDA, but financing and amortization held back GAAP earnings

Loar’s quarter showed a clear divergence between reported and organic growth. Total net sales increased by $48.5 million, but the organic increase was $15.1 million. The difference means the headline growth rate included a substantial contribution outside the organic measure.

The same expansion supported adjusted profitability: adjusted EBITDA grew faster than revenue, producing a higher margin. However, GAAP net income did not increase because higher interest expense and non-cash amortization of acquired intangible assets offset the operating gains. As a result, the approximate GAAP net margin declined even as adjusted EBITDA margin expanded.

The first-half results reinforce this pattern. For the six months ended June 30, 2026, sales rose 37.8% to $327.7 million, while organic sales increased 11.9% to $266.0 million. Adjusted EBITDA climbed 47.0% to $132.7 million and its margin reached 40.5%, compared with 38.0% a year earlier. In contrast, net income declined by $4.1 million to $27.9 million due mainly to higher interest expense, acquired-intangible amortization, and a non-cash inventory step-up related to the LMB and Harper Engineering acquisitions.

Recent insider transactions

The supplied six-month insider summary shows 675,189 shares purchased across six transactions and 35,000 shares sold in one transaction, resulting in net purchases of 640,189 shares. It lists total insider holdings of 18.1 million shares and net purchases equal to 3.70% of that amount; these figures describe the transactions but do not establish insiders’ outlook for the company.

The following are the latest ten reported transactions in the supplied two-year history:

Risks investors should monitor

• Interest expense is limiting earnings conversion. Higher interest expense helped keep quarterly net income flat despite substantial growth in revenue and adjusted EBITDA.
• Acquisition-related costs are affecting GAAP profit. Amortization of acquired intangible assets pressured both quarterly and first-half net income, while the LMB and Harper Engineering inventory step-up created an additional first-half expense.
• Underlying growth is below the reported rate. Organic sales rose 12.3%, compared with 39.4% reported growth, making sales outside the organic measure an important part of Loar’s current growth profile.

Summary

Loar’s Q2 2026 results combined rapid reported sales growth with an expansion in adjusted EBITDA margin, supported in meaningful part by revenue outside the organic measure. The central issue is that these operating gains have not translated into higher GAAP net income because interest expense and acquisition-related amortization remain significant. Future results should be assessed through the pace of organic growth and whether improved adjusted profitability begins to produce stronger GAAP earnings.