Loar Holdings Inc. (LOAR): A Bull Case Theory

We came across a bullish thesis on Loar Holdings Inc. on Stay Invested’s Substack by Denis Gorbunov. In this article, we will summarize the bulls’ thesis on LOAR. Loar Holdings Inc.’s share was trading at $71.00 as of August 5^th. LOAR’s trailing and forward P/E were 188.18 and 92.59 respectively according to Yahoo Finance.

Loar Holdings (LOAR), which went public in May 2024, operates as a holding company managing multiple niche businesses that manufacture aerospace and defense components. Its portfolio includes four key segments: Airframe & Structural Parts (such as latches and hinges), Avionics & Safety Systems (including warning systems and cockpit sensors), Composites & Materials (carbon-fiber parts and composite structures), and Fluid, Motion & Control Systems (valves and hydraulic components). These specialized products serve leading aerospace and defense customers, including Boeing, Lockheed Martin, and Airbus, positioning Loar as a critical supplier in the industry.

Financially, Loar demonstrates solid fundamentals despite being a young public company. Revenue grew 27% over the last four quarters, and the company maintains a manageable long-term debt of $280 million. Free cash flow stands at $64 million, with the most recent quarterly earnings at $15.3 million. Institutional ownership is strong at 80%, reflecting confidence from large investors.

Based on fundamentals, Loar’s valuation is likely near $64 per share—a level that acted as strong support in March before the stock rallied to $100 and has since corrected back toward that range. The upcoming earnings report on August 12 could be a catalyst, making it prudent to watch management’s commentary closely.While price volatility is typical for newly listed companies, Loar’s strong financial profile, big-name clients, and diversified business segments suggest a bright future. For investors willing to accept the inherent risks of a young public company, Loar offers an attractive long-term opportunity supported by solid growth and balance sheet strength.

Previously we covered a bullish thesis on HEICO Corporation (HEI) by Bulls On Parade in April 2025, which highlighted the company’s niche dominance, acquisition-driven growth, and disciplined capital allocation. The company’s stock price has appreciated approximately by 29% since our coverage. This is because the thesis played out with strong earnings and sustained demand. The thesis still stands. Denis Gorbunov shares a similar view but emphasizes Loar Holdings’ early-stage growth and diversification.

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Disclosure: None.