Loar: Ignore The Premium, Buy The Growth

Loar 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.