RBC Bearings (NYSE:RBC) Issues Quarterly Earnings Results

Key Points

• RBC Bearings beat expectations in its latest quarter, reporting EPS of $3.62 versus estimates of $3.31 and revenue of $518 million versus $505.9 million expected. Revenue rose 18.3% year over year, up from $2.83 EPS in the same period last year.
• The company’s aerospace and defense business was a standout, with A&D revenue up 41.2% in the quarter and a record backlog of about $2.3 billion. Management said defense, space, and commercial aircraft demand are continuing to drive growth.
• RBC Bearings issued FY2027 first-quarter guidance of $500 million to $510 million in revenue, ahead of market expectations, and said it is still focused on paying down debt. Management expects to eliminate the remaining term loan by November 2026.

RBC Bearings (NYSE:RBC - Get Free Report) released its quarterly earnings results on Friday. The industrial products company reported $3.62 earnings per share for the quarter, topping the consensus estimate of $3.31 by $0.31, Briefing.com reports. RBC Bearings had a net margin of 15.00% and a return on equity of 10.86%. The business had revenue of $518.00 million for the quarter, compared to the consensus estimate of $505.90 million. During the same period last year, the firm earned $2.83 earnings per share. The company's quarterly revenue was up 18.3% on a year-over-year basis.

Here are the key takeaways from RBC Bearings' conference call:

• RBC Bearings reported a strong fiscal Q4, with net sales up 18.3% to $518 million and adjusted diluted EPS up to $3.62 from $2.83 a year ago. Adjusted EBITDA also rose 21% year over year, and free cash flow remained solid at $67.5 million.
• The A&D segment continued to outpace the rest of the business, with revenue up 41.2% in the quarter and full-year A&D growth of 32%. Management highlighted a record backlog of about $2.3 billion, supported by defense, space, and commercial aircraft demand.
• Management said missile, marine, and space programs remain major growth drivers, with the company expanding capacity to support submarine-related work and broader missile production. They also noted increasing exposure to both legacy and new-space customers, including SpaceX and Blue Origin.
• For fiscal Q1 2027, RBC guided to $500 million-$510 million in revenue, implying 14.7%-17% growth, with adjusted gross margin expected at 45.25%-45.5%. Management said consolidated gross margin should expand about 50 basis points for the full year, though A&D growth will dilute the mix somewhat.
• The company remains focused on deleveraging, paying down another $116 million of debt in the quarter and another $27 million after quarter-end. Management said it expects to pay off the remainder of the term loan by November 2026.

RBC Bearings Price Performance

RBC traded down $41.88 during trading on Friday, hitting $570.05. 525,479 shares of the company traded hands, compared to its average volume of 205,305. The company has a market cap of $18.02 billion, a PE ratio of 67.06, a P/E/G ratio of 2.96 and a beta of 1.47. The stock's 50-day simple moving average is $573.65 and its two-hundred day simple moving average is $512.04. RBC Bearings has a 1 year low of $350.58 and a 1 year high of $632.00. The company has a current ratio of 1.86, a quick ratio of 0.67 and a debt-to-equity ratio of 0.22.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. The Goldman Sachs Group reiterated a "neutral" rating and issued a $542.00 price target on shares of RBC Bearings in a research report on Monday, February 9th. Wall Street Zen cut shares of RBC Bearings from a "buy" rating to a "hold" rating in a research note on Sunday, April 12th. Truist Financial raised shares of RBC Bearings to a "strong-buy" rating in a research note on Friday, May 1st. Morgan Stanley reissued an "overweight" rating and issued a $600.00 price objective on shares of RBC Bearings in a research note on Friday, February 6th. Finally, KeyCorp increased their price objective on shares of RBC Bearings from $595.00 to $680.00 and gave the stock an "overweight" rating in a research note on Monday, March 2nd. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Buy" and an average target price of $574.67.

Hedge Funds Weigh In On RBC Bearings

Institutional investors have recently bought and sold shares of the stock. Advisors Asset Management Inc. purchased a new position in shares of RBC Bearings in the 1st quarter worth $26,000. Larson Financial Group LLC boosted its stake in shares of RBC Bearings by 148.5% during the 3rd quarter. Larson Financial Group LLC now owns 82 shares of the industrial products company's stock worth $32,000 after purchasing an additional 49 shares during the period. EverSource Wealth Advisors LLC boosted its stake in shares of RBC Bearings by 123.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 96 shares of the industrial products company's stock worth $37,000 after purchasing an additional 53 shares during the period. Measured Wealth Private Client Group LLC purchased a new position in shares of RBC Bearings during the 3rd quarter worth about $55,000. Finally, Danske Bank A S purchased a new position in shares of RBC Bearings during the 3rd quarter worth about $78,000.

Key Stories Impacting RBC Bearings

Here are the key news stories impacting RBC Bearings this week:

• Positive Sentiment: RBC Bearings beat quarterly earnings and revenue estimates, with especially strong growth in aerospace and defense sales, which is supporting investor optimism. RBC Bearings Incorporated Announces Fiscal Fourth Quarter and Full Year 2026 Results
• Positive Sentiment: The company issued first-quarter FY2027 revenue guidance of $500 million to $510 million, above the market’s expectation of about $497.3 million, suggesting management sees continued demand momentum. RBC Bearings forecasts $500m-$510m Q1 FY2027 revenue while targeting marine revenue doubling in 24-36 months
• Positive Sentiment: Management said it is targeting a doubling of marine revenue over the next 24–36 months, pointing to a longer-term growth opportunity beyond the current quarter. RBC Bearings forecasts $500m-$510m Q1 FY2027 revenue while targeting marine revenue doubling in 24-36 months

RBC Bearings Company Profile

RBC Bearings Incorporated is a global designer, manufacturer and marketer of highly engineered precision bearings and components for extreme applications. The company's product portfolio includes cylindrical roller bearings, spherical plain bearings, ball bearings, track rollers, and engineered components such as metal-to-metal and polymer bearings. These products are tailored to meet the demanding requirements of aerospace, defense and industrial customers where reliability under severe conditions is critical.

The company's bearings and components find application in aircraft engines, auxiliary power units, landing gear systems, space and missile programs, industrial gas turbines, oil and gas drilling equipment, and heavy machinery.

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