Loar Holdings Inc. LOAR

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
72/100
Moderate

About Loar Holdings Inc.

Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. The company offers airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and … Full LOAR analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 52.7% (top 19%) and operating margin at 21.4% (top 9%) indicate strong pricing power.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.72), demonstrating pricing resilience across cycles.

Key risks

  • Elevated Debt Risk Debt serviceability is weak (score 0.35), raising refinancing risk.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
81

Where LOAR ranks in Aerospace & Defense

Loar Holdings Inc. ranks #9 of 80 scored companies in Aerospace & Defense by moat score — the top 11%. The widest moat in the group is Howmet Aerospace Inc. (HWM) at 80/100.

Moat scores for companies ranked near LOAR in Aerospace & Defense
# Company Moat score Rating
5 Curtiss-Wright Corporation CW 77/100 Strong
6 Optex Systems Holdings, Inc. OPXS 74/100 Moderate
7 Innovative Solutions and Suppor ISSC 73/100 Moderate
8 Coda Octopus Group, Inc. CODA 72/100 Moderate
9 Loar Holdings Inc. LOAR 72/100 Moderate
10 Woodward, Inc. WWD 72/100 Moderate
11 GE Aerospace GE 71/100 Moderate
12 BWX Technologies, Inc. BWXT 68/100 Moderate
13 General Dynamics Corporation GD 68/100 Moderate

See every General Corporate company ranked by moat score →

How LOAR scores on the Corporate Default defenses

Pricing Power

Score 81 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 68 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 92 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 52 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 62 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 79 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding LOAR's moat

What is Loar Holdings Inc.'s moat score?

Loar Holdings Inc. (LOAR) scores 72 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #9 of 80 scored companies in Aerospace & Defense, the top 11%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 79 companies in Aerospace & Defense. Its strongest defense is Customer Stickiness (92/100) and its weakest is Capital Efficiency (52/100).

How does Loar Holdings Inc. compare with other Aerospace & Defense companies?

Loar Holdings Inc. ranks #9 of 80 scored companies in Aerospace & Defense by moat score. The widest moat in Aerospace & Defense is Howmet Aerospace Inc. (HWM) at 80/100. The companies ranked closest are Coda Octopus Group, Inc. (CODA) at 72 just above it and Woodward, Inc. (WWD) at 72 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 79 companies in Aerospace & Defense. The defenses are then weighted to produce the overall score out of 100.

Why is Loar Holdings Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Loar Holdings Inc.?

The Corporate Default template measures 6 defenses, and LOAR scores: Pricing Power (81), Cost Advantage (68), Customer Stickiness (92), Capital Efficiency (52), Resilience (62), Scale & Market Position (79). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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