Loar Holdings Inc. Revenue Disclosure
4. Revenue Recognition
All revenue recognized in the consolidated statements of operations is considered to be revenue from contracts with customers.
Revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services when control of the promised good or service is transferred to the customer. Substantially all of the Company’s revenue from contracts with customers is recognized at a point in time, which is generally upon shipment of goods to the customer.
The Company sells specialty aerospace components based on a customer purchase order, which generally includes a fixed price per unit. The Company satisfies the single performance obligation generally upon shipment of the goods, as this is when contractual control transfers to the customer and recognizes revenue at that point in time. Total revenues do not include taxes, such as sales tax or value-added tax, which are assessed by governmental authorities and collected by the Company.
Products are covered by a standard assurance warranty, generally extended for a period of 25 days to two years depending on the customer, which promises that delivered products conform to contract specifications. The Company does not offer refunds or accept returns, unless related to a defect or warranty related matter. The Company does not sell extended warranties and does not provide warranties outside of fixing defects that existed at the time of sale. As such, warranties are accounted for under ASC 460, Guarantees and not as a separate performance obligation.
Customers generally have payment terms between 30 and 90 days from the satisfaction of the performance obligations. As a practical expedient, the Company does not adjust the amount of consideration for a financing component, as the period between the transfer of goods or services and the customer’s payment is, at contract inception, expected to be one year or less.
Net sales by end market were as follows (in thousands):
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Years Ended December 31, |
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2025 |
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2024 |
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2023 |
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Commercial Net Sales |
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Commercial aerospace OEM |
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$ |
77,391 |
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|
$ |
65,011 |
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$ |
54,726 |
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Commercial aerospace aftermarket |
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|
144,468 |
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|
109,305 |
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|
89,204 |
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Total commercial aerospace |
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221,859 |
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|
174,316 |
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|
143,930 |
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Business jet & general aviation OEM |
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74,745 |
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|
70,098 |
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|
47,016 |
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Business jet & general aviation aftermarket |
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|
49,376 |
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|
39,106 |
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|
|
29,028 |
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Total business jet & general aviation |
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|
124,121 |
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|
109,204 |
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|
|
76,044 |
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|
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Total commercial OEM |
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|
152,136 |
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|
|
135,109 |
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|
|
101,742 |
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Total commercial aftermarket |
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|
193,844 |
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|
148,411 |
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|
|
118,232 |
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Total commercial |
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|
345,980 |
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|
|
283,520 |
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|
219,974 |
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Defense Net Sales |
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Total defense OEM |
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55,970 |
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|
38,316 |
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|
30,399 |
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Total defense aftermarket |
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|
66,669 |
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50,632 |
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|
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28,839 |
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Total defense |
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122,639 |
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|
88,948 |
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|
59,238 |
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Other Net Sales |
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Total other OEM |
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12,783 |
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|
|
13,996 |
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21,045 |
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Total other aftermarket |
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14,881 |
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|
16,355 |
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|
17,220 |
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Total other |
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27,664 |
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|
|
30,351 |
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|
|
38,265 |
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Net Sales |
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$ |
496,283 |
|
|
$ |
402,819 |
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|
$ |
317,477 |
|
Contract Liabilities
Contract liabilities, or deferred revenue, represents payments received in advance of the satisfaction of performance under the contract. The Company receives payments from customers based on established terms. The Company's contract liabilities consisted of the following (in thousands):
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December 31, |
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2025 |
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2024 |
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Contract liabilities, current (1) |
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$ |
4,227 |
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|
$ |
4,159 |
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Contract liabilities, long-term |
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|
— |
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|
— |
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Total contract liabilities |
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$ |
4,227 |
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|
$ |
4,159 |
|
During the years ended December 31, 2025 and 2024, the revenue recognized that was included in the contract liability balance at the beginning of the year was approximately $3.8 million and $1.3 million, respectively. The Company had no material contract assets at December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.