Loar Holdings Inc. (LOAR)

Loar designs, manufactures and sells niche, highly engineered aerospace and defense components that are essential to aircraft and aerospace and defense systems. About 89% of its 2025 net sales came from proprietary products where it believes it holds market-leading positions. Aftermarket products accounted for roughly 55% of 2025 net sales, which the company says provides predictable, recurring and higher-margin revenue because it expects to keep supplying aftermarket parts for the life of a platform once its components are qualified on it. Aircraft in the platforms it serves can have lives of up to 50 years.

The product range supports nearly every major aircraft platform. It includes auto throttles, lap-belt airbags, two- and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches and interior securing devices, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic ice protection, RAM air components, sealing solutions, and motion and actuation devices. It also includes edge-lighted panels, knobs and annunciators for illuminated pushbutton switches, high-performance fans and cooling devices, lighting, Human-Machine Interface products and bespoke lighting systems. Growth is pursued through organic expansion and acquisitions. Since 2012 Loar has completed 20 acquisitions, 18 of which it has integrated, and it targets companies with valuable intellectual property, high aftermarket content, cross-selling potential and strong customer relationships. On January 21, 2026 it acquired Harper Engineering, a maker of latching and securing mechanisms for aircraft interiors, for $250 million in cash.

Loar serves three core end markets. Commercial aerospace is the largest at about 45% of 2025 net sales, followed by business jet and general aviation at about 25% and defense at about 25%. Customers include major aerospace and defense OEMs and Tier 1 and Tier 2 suppliers. Revenue is diversified: no single customer represented more than 12% of 2025 net sales, and no single aircraft platform more than 7%. The company estimates its addressable market at more than 84,000 aircraft across more than 250 platforms.

The market for aerospace and defense components is highly fragmented with few scaled competitors. Loar faces different competitors across individual products and applications, ranging from divisions of large public corporations to small private companies. It competes mainly on engineering, capabilities, capacity and customer responsiveness. It sees the lengthy, costly qualification and certification process, and the fact that its parts are a small share of an aircraft's cost, as significant barriers to entry. The management team, including CEO and Co-Chairman Dirkson Charles and CFO Glenn D'Alessandro, previously worked together at K&F and McKechnie. The text does not describe suppliers, manufacturing sites or headquarters location.