Loar: Ignore The Premium, Buy The Growth

Dhierin BechaiInvesting Group LeaderFollowSummaryLoar Holdings delivered record Q2 results, with 39.4% sales growth, 47.4% adjusted EBITDA growth, and raised 2026 guidance.LOAR's organic growth remains robust, but GAAP net income is pressured by higher interest and amortization from debt-funded acquisitions.Free cash flow is strong and leverage is manageable at 3.1x EBITDA, but elevated debt limits room for operational missteps or further large M&A.I maintain a Buy rating as LOAR's margin expansion, execution, and conservative guidance support upside, though premium valuation and leverage require risk tolerance.Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More » aapsky/iStock via Getty Images Loar Holdings (NYSE:LOAR) delivered another record quarter, with second-quarter sales rising 39.4% to $171.6 million and adjusted EBITDA increasing 47.4% to $69.4 million. Organic growth remained in the double digits, margins expanded, and management raised its 2026 guidance. The important nuance is thatThis article was written byDhierin Bechai24.44K FollowersFollowDhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.