Loar Holdings Inc. (Loar) specializes in the design, manufacture, and sale of niche aerospace and defense components that are essential for aircraft and aerospace and defense systems.
The company focuses on mission-critical, highly engineered solutions with high intellectual property content. The products manufactured cover a diverse range of applications supporting nearly every major aircraft platform in use today and include auto throttles, lap-belt airbags, two- and three-point seat belts, w...
Loar Holdings Inc. (Loar) specializes in the design, manufacture, and sale of niche aerospace and defense components that are essential for aircraft and aerospace and defense systems.
The company focuses on mission-critical, highly engineered solutions with high intellectual property content. The products manufactured cover a diverse range of applications supporting nearly every major aircraft platform in use today and include auto throttles, lap-belt airbags, two- and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, and motion and actuation devices, customized edge-lighted panels, knobs, and annunciators for incandescent and LED illuminated pushbutton switches, among others. The company primarily serves three core end markets: commercial, business jet and general aviation, and defense, which have long historical track records of consistent growth. It also serves a diversified customer base within these end markets, where it maintains long-standing customer relationships.
The company is centered around a commitment to a consistent and focused business model—creating a portfolio of proprietary products serving a highly diverse set of applications, end markets, and customers within the aerospace and defense value chain. The qualification process for the company’s products serves as a significant barrier to entry for new suppliers. This process can often take years, involving multiple tests that require support and financial contribution from both the system supplier and the OEM. Moreover, the company focuses on products that make up a relatively small portion of the total cost of an aircraft. The company’s position as a trusted supplier of highly engineered, value-added products not only creates significant barriers to entry but also establishes an ability to fairly value its products, which has resulted in consistent improvements to the company’s gross profit margins over the long term.
The company’s portfolio of products serves a variety of applications across aircraft platforms. For the platforms served, the total life of an aircraft can be up to 50 years, ensuring steady aftermarket revenue streams with historically higher margins than revenue to OEM customers. In addition to the company’s OEM and aftermarket balance, its revenue is diversified across end markets, customers, and platforms.
The company’s business approach couples strong organic growth with its proven acquisition strategy. Since 2012, it has executed and successfully integrated 17 strategic acquisitions. It has a highly disciplined approach to evaluating potential acquisition targets and has sought companies with valuable intellectual property, high aftermarket content, revenue synergies, ability to cross-sell, and strong customer relationships. The company operates in a highly fragmented market, which has historically provided ample acquisition targets as it looks to enhance and grow its platform.
On March 7, 2025, the company 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.
### End Markets
The company primarily competes across three core end markets of the aerospace and defense component industry: commercial, business jet and general aviation, and defense.
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Commercial:
The commercial aerospace market, the company’s largest end market representing approximately 43% of 2024 net sales, has experienced significant growth over the past several years.
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Business Jet and General Aviation:
The company’s second largest end market, business jet and general aviation, which accounted for approximately 27% of 2024 net sales, has experienced significant growth over the past several years.
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Defense:
The defense end market, which accounted for approximately 22% of 2024 net sales, has continued to benefit from growing global demand.
The company specializes in niche aerospace and defense components that are essential for the production and maintenance of aircraft and their related systems.
The company supplies aftermarket products to a large installed, and growing, base of aircraft. The company estimates that its addressable market opportunity includes more than 84,000 discrete aircraft across more than 250 total aircraft platforms. Due to the company’s installed OEM base of proprietary products and a demanding certification process, it is often the only supplier providing these products in the aftermarket, which is generally expected to result in a recurring revenue stream for the life of each aircraft platform. The total life of the platforms served can be up to 50 years, presenting the opportunity for a long tail of aftermarket service and/or periodic replacement requirements.
### Growth Strategy
The company’s strategies include providing highly engineered, value-additive solutions to its customers; winning profitable new business; new product introductions; and a disciplined acquisition strategy.
### Governmental Regulation
As a manufacturer and supplier of commercial aircraft components and equipment, the company is subject to regulation by the Federal Aviation Administration in the United States (FAA), the European Union Aviation Safety Agency, UK Civil Aviation Authority, and the Civil Aviation Administration of China, while the military aircraft component industry is governed by military quality specifications.
The company must also satisfy the requirements of its customers, including OEMs and airlines that are subject to FAA regulations, and provide these customers with products and services that comply with the government regulations applicable to commercial flight operations.
Furthermore, the company is at times subject to trade laws and regulations, such as the Arms Export Control Act, the International Traffic in Arms Regulations, the Export Administration Regulations, and the sanctions administered by the United States Department of the Treasury’s Office of Foreign Assets Control. Additionally, the company is subject to data protection laws, including but not limited to the General Data Protection Regulation, the California Consumer Privacy Act, the European Union General Data Protection Regulation, and the Personal Information Protection Law in China.
### Manufacturing and Engineering
The company continually strives to optimize productivity and achieve value pricing over inflation, implementing precision engineering and manufacturing to produce parts essential for today’s aircraft systems and structures. It strives to differentiate itself from its competitors by manufacturing products in an accurate, reliable, and repeatable manner without sacrificing attention to detail, which is evident in the durability and precision of its products. The company is able to keep capital expenditure levels low since it does not constantly need new state-of-the-art equipment, which contributes to its lean entrepreneurial structure and helps drive continuous improvement.
### Intellectual Property
As of December 31, 2024, the company owns 98 issued patents, which will expire between April 2, 2025, and February 22, 2041. It currently has 35 pending or published but not yet issued patents, for which the rights and duration are pending grant of the patent by the U.S. Patent and Trademark Office or other applicable national or regional patent authority. Additionally, as of December 31, 2024, the company had 186 submitted trademark applications, all of which have been issued and none of which are pending.
### Research and Development
The expense recognized for the company’s research and development costs for the year ended December 31, 2024, was $8.8 million.
### History
Loar Holdings Inc., a Delaware corporation, was found in 2017. The company was incorporated in 2017.
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