05. Loar Holdings Inc. (NYSE:LOAR)
Upside Potential as of June 23: 25%
Loar Holdings Inc. (NYSE:LOAR) might be flying under the radar, but Wall Street is paying attention, and with good reason. Based on a target price of $101.56, shares offer a compelling 25% upside from their current level of $81.20 (as of June 22). The company’s strong first quarter results for 2025 confirm that Loar is executing exceptionally well in a sector poised for growth.
Loar Holdings Inc. (NYSE:LOAR) specializes in designing and manufacturing high value, niche aerospace and defense components. With a portfolio of over 20,000 proprietary products, no single item makes up more than 3% of annual revenue, giving Loar a well diversified and resilient foundation. This diversity extends across commercial OEM, aftermarket, and defense markets, each of which is showing strong momentum.
For Q1 2025, Loar Holdings Inc. (NYSE:LOAR) posted record sales of $150 million, representing a 12% year over year increase, with organic growth of 11.1%. Defense sales surged 30%, commercial aftermarket sales jumped 13%, and commercial OEM revenue rose 8%, highlighting broad based strength. More impressive, adjusted EBITDA came in at $56.4 million, a $10 million increase from the prior year, with margins expanding by 160 basis points to a robust 37.6%, well above industry averages.
This margin expansion is no fluke. Loar continues to execute on its strategic value drivers, including new product launches, pricing discipline, and manufacturing efficiencies. The company also expects 1% to 3% annual top line growth purely from innovation. A standout example is its secondary cockpit barrier for Airbus aircraft, developed in under a year and already shipping, a strong testament to Loar’s agility and customer centric R&D.
Looking ahead, management has raised its full year 2025 guidance, now expecting net sales of $482–$490 million, EBITDA of $182–$185 million, and EPS between $0.71 - $0.76. The outlook is further boosted by record bookings and a balanced mix of end market exposure.
In short, Loar Holdings Inc. (NYSE:LOAR) may call itself “boring,” but the numbers are anything but. With healthy financials, strong end market tailwinds, and a culture of consistent execution, LOAR stands out as a top aerospace and defense stock with serious upside potential.