Loar Holdings Inc (NYSE: LOAR) is an aerospace and defense components company that designs, manufactures, and sells proprietary niche components used in the production and maintenance of aircraft and related systems. Revenue is transactional, generated when control of a product transfers to the customer, with substantially all revenue recognized at a point in time. Loar reported $496.3 million in net sales for the year ended December 31, 2025, up from approximately $402.8 million in FY2024, with a gross profit margin of 52.7% in FY2025. The company operates across three end markets: commercial aerospace (approximately 45% of FY2025 net sales), business jet and general aviation, and defense. 89% of FY2025 net sales came from proprietary products. Since 2012, Loar has completed 20 acquisitions, operating in a fragmented market where certification barriers and long qualification cycles make supplier displacement costly for customers.

Revenue model

Transactional product sales. Revenue recognized at point in time when control transfers to the customer. Value-based pricing reflects proprietary product positioning, high switching costs, and the low cost of Loar's components relative to total aircraft platform cost. Aftermarket content is a material component of the business.

Products and services

Proprietary, highly engineered aerospace and defense components. 89% of FY2025 net sales derived from proprietary products or solutions. Products are niche, customized, and certified onto specific aircraft platforms. Loar also acquired Harper Engineering in January 2026.

Customers and end markets

Customers are OEMs and system suppliers in commercial aerospace, business jet and general aviation, and defense. Commercial aerospace is the largest end market at approximately 45% of FY2025 net sales. Products must be certified onto specific aircraft platforms, creating long-term supply relationships. Customer concentration detail is not disclosed in the excerpts.

Value-chain role

Tier 2 or deeper supplier of niche, certified components to OEMs and system suppliers in the aerospace and defense value chain. Loar's products are small in cost relative to total aircraft platform cost but are subject to stringent regulatory and certification requirements, making incumbent suppliers difficult to displace.

Geographic exposure

Geographic revenue mix is not disclosed in the filing excerpts.

Source: SEC 10-K, filed 2026-03-02

Industry: Aircraft Parts & Auxiliary Equipment, NEC Peers: AeroVironment Inc BWX Technologies Inc General Electric Co Hexcel Corp Huntington Ingalls Industries Inc Leonardo DRS Inc Spirit AeroSystems Holdings, Inc.