LOARMEDIUM SIGNALOPERATIONAL10-K

LOAR completed a $250 million acquisition of Harper Engineering while growing aftermarket revenue mix to 55% of net sales and demonstrating strong organic growth across key metrics.

The Harper Engineering acquisition represents LOAR's 18th successful integration since 2012, expanding their portfolio of mechanically engineered aircraft interior devices and proprietary latching mechanisms. The increase in aftermarket revenue percentage from 53% to 55% of total sales strengthens the company's recurring revenue profile, as aftermarket products typically carry higher margins and provide more predictable cash flows throughout aircraft platform lifecycles.

Comparing 2026-03-02 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

LOAR delivered solid financial performance with revenue growing 23% to $496.3M and gross profit expanding 31% to $261.3M, indicating improved operational leverage. The company's balance sheet reflects the acquisition activity with total assets growing 40% to $2.0B and cash increasing meaningfully to $84.8M. Interest expense declined substantially due to favorable refinancing conditions, while R&D investment grew 49% to support product development initiatives.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+56.9%
$54.1M→$84.8M

Cash position surged 56.9% — strong cash generation or capital raise providing significant financial cushion.

Current Liabilities
Balance Sheet
+51.9%
$41.8M→$63.5M

Current liabilities surged 51.9% — significant near-term obligations; verify ability to meet short-term debt.

Interest Expense
P&L
-50.8%
$52.1M→$25.7M

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

R&D Expense
P&L
+48.9%
$8.8M→$13.1M

R&D investment increased 48.9% — signals commitment to future product development, though near-term margin impact.

Total Assets
Balance Sheet
+39.9%
$1.5B→$2.0B

Asset base grew 39.9% — expansion through organic growth, acquisitions, or capital deployment.

Accounts Receivable
Balance Sheet
+37.9%
$63.8M→$88.0M

Receivables surged 37.9% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Current Assets
Balance Sheet
+35.3%
$220.7M→$298.5M

Current assets grew 35.3% — improving short-term liquidity or inventory/receivables build.

Gross Profit
P&L
+31.4%
$198.8M→$261.3M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

SG&A Expense
P&L
+28%
$112.3M→$143.6M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Revenue
P&L
+23.2%
$402.8M→$496.3M

Revenue growing 23.2% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-03-02
PRIOR — 2025-03-31
ADDED
We estimate that approximately 55% of our 2025 net sales were derived from aftermarket products.
This results in significant aftermarket revenue, which represented approximately 55% of our 2025 net sales.
On January 21, 2026, the Company acquired Harper Engineering for $250 million in cash.
Founded in 1968, Harper Engineering is a leading manufacturer of mechanically engineered devices for aircraft interiors and holds a proprietary portfolio of latching and securing mechanisms used across multiple leading commercial aerospace platforms.
Since 2012, we have executed 20 strategic acquisitions, including the acquisition of Harper Engineering in January 2026.
We have successfully integrated 18 of these acquisitions due to our highly disciplined approach to evaluating potential acquisition targets, seeking companies with valuable intellectual property, high aftermarket content, revenue synergies, ability to cross-sell and strong customer relationships.
In 2025, there were more than 30,000 commercial jet aircraft in service, compared to 17,712 commercial jet aircraft in service in 2010, and industry consultants project that future demand requires 49,000 commercial aircraft in service by 2044.
The defense end market, which accounted for approximately 25% of 2025 net sales, has continued to benefit from growing global demand.
Current geopolitical circumstances, including the Ukraine conflict and the potential for engagements with China and/or Russia have resulted in increased global defense spending.
We derived 89% of our 2025 net sales from proprietary products or solutions.
REMOVED
We estimate that approximately 53% of our 2024 net sales were derived from aftermarket products.
4 Our portfolio of products serves a variety of applications across aircraft platforms as shown below: Once Loar s components are qualified on an aircraft platform, we believe we are likely to maintain our position as the provider of aftermarket parts and services for the life of the platform and related platform derivatives.
This results in significant aftermarket revenue, which represented 53% of our 2024 net sales.
Our business approach couples strong organic growth with our proven acquisition strategy.
Since 2012, we have executed and successfully integrated 17 strategic acquisitions.
We have a highly disciplined approach to evaluating potential acquisition targets, and have sought companies with valuable intellectual property, high aftermarket content, revenue synergies, ability to cross-sell and strong customer relationships.
On March 7, 2025, we entered into a purchase agreement to acquire LMB Fans Motors ("LMB"), which is a global specialty player in the design and production of customized high-performance fans and motors.
In 2024, there were 28,000 commercial jet aircraft in service, compared to 17,712 commercial jet aircraft in service in 2010, and industry consultants project that future demand requires 50,170 commercial aircraft in service by 2043.
Moreover, increased accessibility and affordability of private aviation has driven accelerated adoption by consumers, as flyers seek alternative options to commercial air travel, resulting in even greater flight hours and aftermarket growth.
The defense end market, which accounted for approximately 22% of 2024 net sales, has continued to benefit from growing global demand.
MORE OPERATIONAL SIGNALS
NVDAHIGHNVIDIA has repositioned itself from a "full-stack computing infrastructure compa...
2026-02-25
NVDAHIGHNVIDIA has repositioned itself from a "full-stack computing infrastructure compa...
2026-02-25
NOWHIGHServiceNow has fundamentally repositioned itself as an AI-first platform company...
2026-01-29
TSLAHIGHTesla has fundamentally repositioned itself from an electric vehicle company to ...
2026-01-29
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →