Is Loar Holdings Inc. (LOAR) Halal?

NYSE Industrials United States $5.2B
✓ HALAL
Confidence: 95/100
Loar Holdings Inc. (LOAR) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 11.2% against the AAOIFI threshold of 30%, Loar Holdings Inc. comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Aerospace & Defense), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 11.2%
/ 30%
1.3%
/ 30%
1.4%
/ 30%
2.62%
/ 5%
✓ HALAL
DJIM 11.2%
/ 33%
1.3%
/ 33%
1.4%
/ 33%
2.62%
/ 5%
✓ HALAL
MSCI 35.7%
/ 33%
4.2%
/ 33%
4.6%
/ 33%
2.62%
/ 5%
✗ NOT HALAL
S&P 11.2%
/ 33%
1.3%
/ 33%
1.4%
/ 33%
2.62%
/ 5%
✓ HALAL
FTSE 35.7%
/ 33%
4.2%
/ 33%
4.6%
/ 50%
2.62%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
74.5
Forward: 52.4
EPS
$0.75
P/B Ratio
4.5
EV/EBITDA
33.7
EV: $5.9B
Revenue
$496M
Growth: 19.3%
Current Ratio
4.7

Profitability

Gross Margin 53.4%
Operating Margin 24.6%
Net Margin 14.5%
Return on Equity (ROE) 6.4%
Return on Assets (ROA) 4.4%

Cash Flow & Balance Sheet

Operating Cash Flow$112M
Free Cash Flow$99M
Total Debt$725M
Debt-to-Equity61.7
Current Ratio4.7
Total Assets$2.0B

Price & Trading

Last Close$57.26
50-Day MA$67.14
200-Day MA$72.84
Avg Volume952K
52-Week Range
$55.52
$99.67

About Loar Holdings Inc. (LOAR)

CEO
Mr. Dirkson R. Charles
Employees
1,700
Sector
Industrials
Industry
Aerospace & Defense
Country
United States
Exchange
NYSE
Market Cap
$5.2B
Currency
USD

Loar Holdings Inc., through its subsidiaries, designs, manufactures, and sells aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It 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 safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, interior securing devices, 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, motion and actuation devices, edge-lighted panels and knobs, and annunciators for incandescent and LED illuminated pushbutton switches, high-performance fans and cooling devices, lighting, Human-Machine Interface products, and bespoke lighting systems, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was incorporated in 2017 and is headquartered in White Plains, New York.

Purification Calculator

As a halal stock with 2.62% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

Related Halal Stocks in Industrials

Frequently Asked Questions

Is Loar Holdings Inc. (LOAR) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Loar Holdings Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Loar Holdings Inc.'s debt ratio?

Loar Holdings Inc.'s debt ratio is 11.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 35.7%.

Does Loar Holdings Inc. require dividend purification?

Yes, Loar Holdings Inc. has an impermissible income ratio of 2.62%, which means 2.62% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Loar Holdings Inc.'s key financial metrics?

Loar Holdings Inc. has a market capitalization of $5.2B, trailing P/E ratio of 74.5, and revenue of $496M. The company maintains a gross margin of 53.4% and a net margin of 14.5%. Return on equity stands at 6.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.