RBC Bearings (NYSE:RBC) Posts Earnings Results, Beats Estimates By $0.31 EPS

RBC Bearings (NYSE:RBC) released its quarterly earnings results on Friday. The industrial products company reported $3.62 EPS for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $518.00 million during the quarter, compared to analysts’ expectations of $505.90 million. During the same period in the previous year, the company earned $2.83 EPS. The firm’s revenue for the quarter was up 18.3% compared to the same quarter last year.

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 Stock Performance

NYSE:RBC traded down $41.88 during trading hours on Friday, hitting $570.05. 525,479 shares of the company were exchanged, compared to its average volume of 205,305. The company’s 50 day moving average price is $573.65 and its 200-day moving average price is $512.04. The stock has a market capitalization of $18.02 billion, a price-to-earnings ratio of 67.06, a PEG ratio of 2.96 and a beta of 1.47. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.86 and a quick ratio of 0.67. RBC Bearings has a 52-week low of $350.58 and a 52-week high of $632.00.

Institutional Trading of RBC Bearings

Large investors have recently made changes to their positions in the business. CIBC Private Wealth Group LLC boosted its holdings in shares of RBC Bearings by 84.2% in the 4th quarter. CIBC Private Wealth Group LLC now owns 374 shares of the industrial products company’s stock valued at $168,000 after acquiring an additional 171 shares during the last quarter. UMB Bank n.a. lifted its stake in shares of RBC Bearings by 7.1% in the 4th quarter. UMB Bank n.a. now owns 348 shares of the industrial products company’s stock valued at $156,000 after purchasing an additional 23 shares during the period. Brown Brothers Harriman & Co. raised its position in RBC Bearings by 191.8% during the third quarter. Brown Brothers Harriman & Co. now owns 391 shares of the industrial products company’s stock worth $153,000 after acquiring an additional 257 shares during the period. Headlands Technologies LLC acquired a new position in RBC Bearings during the second quarter worth $128,000. Finally, Aster Capital Management DIFC Ltd acquired a new position in RBC Bearings during the fourth quarter worth $107,000.

RBC Bearings News Roundup

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

Analysts Set New Price Targets

RBC has been the subject of a number of research analyst reports. Zacks Research upgraded shares of RBC Bearings from a “hold” rating to a “strong-buy” rating in a report on Wednesday, February 11th. KeyCorp lifted their price objective on shares of RBC Bearings from $595.00 to $680.00 and gave the company an “overweight” rating in a report on Monday, March 2nd. Wall Street Zen lowered shares of RBC Bearings from a “buy” rating to a “hold” rating in a report on Sunday, April 12th. The Goldman Sachs Group restated a “neutral” rating and issued a $542.00 price target on shares of RBC Bearings in a report on Monday, February 9th. Finally, Truist Financial upgraded shares of RBC Bearings to a “strong-buy” rating in a report on Friday, May 1st. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $574.67.

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.