Loar files $3.2 billion IPO as defense demand surges

Loar, one of the defense industry’s most consistent performers, filed for an initial public offering this week, marking the first major defense IPO in more than a year. The company, known for its rugged electronics and communications gear used by the U.S. military and allied forces, plans to list on the New York Stock Exchange under the ticker LOAR. Timing is everything: with global defense budgets rising again after years of flat spending, Loar is angling to capitalize on pent-up demand for advanced battlefield tech.

The push comes as NATO allies rebuild arsenals following Russia’s invasion of Ukraine, and the U.S. ramps up production of drones, secure radios, and electronic warfare systems. Loar has quietly built a $1.4 billion business supplying components that go into everything from armored vehicles to fighter jets. Its revenue grew 12% last year even as many peers struggled with supply chain delays and labor shortages. Now, with interest rates stabilizing and defense stocks trading at premium valuations, Loar sees a window to raise capital at a higher multiple than it could have just 12 months ago.

Investors will be watching the IPO price closely. Loar initially targeted a valuation of $4 billion in private markets last year, but that was before the broader market pullback in 2022. The company now plans to price shares between $18 and $20, according to regulatory filings, which would value it closer to $3.2 billion at the midpoint. That still puts Loar among the top-tier of U.S. defense contractors by revenue multiple. Analysts say the IPO could serve as a litmus test for smaller defense tech firms waiting in the wings.

If the IPO goes well, Loar plans to use proceeds to expand production lines for next-gen radio systems and AI-powered sensors. A strong debut could unlock follow-on offerings from competitors like Mercury Systems and Teledyne Technologies, which have been holding off on big moves amid market volatility. Failure, though, might force Loar to revisit its growth plans—or even shelve the listing entirely. Either way, the outcome will ripple through the sector, signaling whether defense stocks are back in favor with public investors.