New Thread

Ctrl

⇧

Discover

Home

Discover

RBC Bearings Incorporated Stock Price: Quote, Forecast, Splits & News (RBC)

Finance

Company Profile

New

RBC Bearings Incorporated Price & Performance (RBC)

Stock Performance

Updated Mar 14, 8:00 PM UTC

RBC:NYSE

$336.48USD

1.5% · $4.97

After Hours

-0.5% · $1.67

Open

$333.68

High

$338.79

Low

$333.68

Market Cap

$10.58B

P/E Ratio

46.1

Volume

146.15K

Year High

$372.83

Year Low

$241.43

News & Market Insights

Victory Capital Management Reduces RBC Bearings Holdings by 13%
today
Victory Capital Management Inc. has decreased its stake in RBC Bearings Incorporated by 13% during the fourth quarter. The fund sold 3,244 shares, bringing its total holdings to 21,771 shares valued at $6.51 million. This adjustment reflects a strategic shift in the fund's portfolio for the industrial products sector.1
Callan Family Office Expands Stake in RBC Bearings
Mar 9, 2025
Callan Family Office LLC increased its position in RBC Bearings Incorporated by purchasing 1,729 additional shares. This acquisition highlights the firm's confidence in RBC Bearings' growth, especially as the company continues to benefit from robust aerospace and industrial market performance.2
Analysts Maintain Positive Outlook for RBC Bearings
Mar 13, 2025
RBC Bearings continues to receive favorable ratings from analysts, with a consensus "Moderate Buy" rating. Recent price target increases by firms like Morgan Stanley and Truist Financial underscore positive sentiment, driven by strong performance in aerospace and industrial segments and strategic acquisitions.3

What's Happening

Peers

Earnings

Report Date

Jan 31, 2025

Reported Revenue

394.4M

Avg 1d Change

5.54%

Report Period

Q3 2025

Reported EPS

2.16

Implied Move 1d

5.33%

Transcript

10m 58s

I'm Rob Moffett, Director of Corporate Development and Investor Relations. And with me on today's call are Doctor. Michael Hartnett, Chairman, President and Chief Executive Officer Dan Bergeron, Director, Vice President and Chief Operating Officer and Rob Sullivan, Vice President and Chief Financial Officer. As a reminder, some of the statements made today may be forward looking and are made under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected or implied due to a variety of factors. We refer you to RBC Bearings' recent filings with the SEC for a more detailed discussion of the risks that could impact the company's future operating results and financial condition. These factors are also listed in the press release along with a reconciliation between GAAP and non GAAP financial information. With that, I'll turn the call over to Doctor. Hartnett. Thank you, Rob, and good morning.

11m 51s

I'm going to start today's call with a quick review of our financial results and I'll finish with some high level thoughts on the industry and the outlook for the remainder of And I'll hand it over to Rob Sullivan, for some more detail on the on the numbers. Net sales came in at $3.94,000,000 dollars a 5.5% increase over last year. Driven by continued strong performance in our Aerospace and Defense segment. Total aerospace and defense sales were up 10.7% year over year with a 14.6% growth on the commercial aerospace side and a 3% growth in defense On the industrial side, the segment grew 2.7% year over with distribution and aftermarket up 8% and OEM down 8.2%. Altogether, it was a solid quarter So I'm going to talk about some underlying trends. In Aerospace and Defense, we did a good job mitigating the impact from the strikes of Boeing and Textron during the quarter. Quarter by quarter cadence across commercial aerospace has been lumpy through our and I'm sure that's no surprise to anyone on this call. I would encourage you to focus on the total segment trend, which is 10.7% growth for the and a 15.5% growth year to date and these are solid performance numbers.

13m 34s

Growth in the case of defense was limited by capacity and not demand, In fact, demand is extraordinary. Adding capacity we are adding capacity as we [indiscernible] And adding capacity means hiring and training staff, expanding supply chain, [indiscernible] are currently building plants I want to take a second to commend the teams managing our customers. Plants, people and production schedules There's a lot of work put into rebalancing our production cadence in order to smooth some of the customer volatility over the past two quarters. Maintaining level operating loans in our plant, That is Benny. [indiscernible] Is a critical part of RBC's RBC and continues to be a key contributor to our long term gross margin expansion. On the industrial side, we were excited see this segment return to growth While our OEM business was down for the period, the bulk of the contraction came from the oil and gas category. Additionally, there were headwinds were also seen but to a lesser extent in the construction and semiconductor machinery [indiscernible] aggregate and cement mining and metals, food and beverage, and grain solar markets, were up well into the double digits yielding a net gain of 8% over the period.

15m 14s

Evidences how even a modest USA GDP, expansion and be very impactful this sector. Excluding the oil and gas influence, our industrial sector expanded at a 4.4% rate Overall, the continued tailwinds of industry leading service levels organic growth synergies, and favorable end market mix came together and put us well into the green on revenues, [indiscernible] cash flow for the quarter which was a quarter that's the most challenging of the 4 to navigate. Gross margin for the quarter came in at $175,000,000 or 44.3% of sales a two zero five basis point increase year over year. The biggest drivers of our margin expansion continued to be increased [indiscernible] ongoing synergies with Dodge and a wide range of smaller continuous improvement projects on a plant by plant basis continue to identify through our RBC ops management process. Adjusted net income of 73000034.7% year over year and that translated to an adjusted EPS of 2,.34 per share compared to last year's 1.85 for a growth of 26.70.5% Cash from operations came in at 84,000,000 and compares to $80,000,000 last year and free cash flow of $74,000,000 was up nicely versus the $71,000,000 last year. We use our cash to continue to deleverage the balance sheet with an impressive $100,000,000 of debt reduction in the quarter taking our trailing net leverage to 1.8 turns.

17m 17s

As many as you know, RBC is a cash flow rich business Since we acquired Dodge, we [indiscernible] nearly all of our cash generation to deleveraging the balance sheet.

17m 32s

The 2 mark divided by EBITDA was an important milestone and I'm excited to excited we were able to achieve it in just three years. Also, with our preferred dividend now go on, we we are excited to recapture $23,000,000 in annual expense back into our cash flow and further accelerate additional debt repayment going forward. In terms of our outlook, our A and D business remains on a path towards mid teens growth for the full year. The industrial business should finish the year roughly flat with a heavy healthy exit the year. With the new calendar year, the election behind us, many of you asked for my thoughts the new administration and what it might mean for RBC. I've done a little bit of thinking on the topic. And this is where I come out. In terms of our end markets, I don't think it changes much for commercial aerospace. The drivers here have been supply chain challenges and the broader issues at Boeing. But from what I can see, there appears to be a nice progress in addressing some of these issues and I'm optimistic that it continues. If that happens, we should stand to benefit from some wonderful comps commercial aerospace business as we progress through calendar 2025 our fiscal 2026.

19m 8s

We continue to expect strong secular growth beyond '25 fueled by record bookings, backlogs at Boeing and Airbus, who together have twelve years of demand sitting on their order books and build rates that need to move higher. On the defense side, with the current geopolitical backdrop, and with the Republicans in charge of the House Senate and Executive branch, it seems that likely that The U. S. Spending will accelerate And in terms of international defense spending, EU members are increasingly investing 2% of GDP was up level and are now debating if it needs to be 3%. With Trump arguing there should be 5%. I can't tell you exactly where things are going to shake out, but I suspect there's good odds that it will eventually be higher the at any time in post Cold War history. In the Industrial business, we continue to hear from customers and distributor partners the following. Since the election, there has been a risk step up and quoting for new projects. Clearly, there's no mistake. We are moving into a drill baby drill period.

20m 33s

Where renewable energy sources are out of favor worldwide. Hooray for common sense. Where has it been Confidence seems to have returned [indiscernible] lowering of interest rates appears to be inevitable. Our is a good indicator of the impact of GDP growth on our industrial aftermarket. Tariffs should lead to both spice and fuel to our business outlook.

21m 3s

All of which are strongly a net good. For RBC RBC.

21m 10s

The last area worth touching on is M and A. With our net leverage down to 1.8 times, we are well prepared for the next opportunity and remain busy assessing candidates. With just 1 more quarter left in our our attention is beginning to focus on next year. If the current trend holds, it's likely that could offer an environment where all 3 of our end markets are growing in unison. It's too early to provide a concrete outlook [indiscernible] that is the back I wish are putting budgets together for With that, I'll now turn the call over to Rob Sullivan for more details on The financial Thank you, Mike. Doctor. Hartnett indicated, this was another strong quarter for RBC RBC. Net sales growth of 5.5% drove gross margin growth 10.6% with more than 200 basis points of percentage expansion The quarter benefited from some favorable product mix and strong manufacturing including ongoing synergies and increased utilization of our aerospace and defense On the SG and A line, we continued our investments in future This includes a combination of investing in personnel costs and back office support, including IT licenses and [indiscernible] This resulted in adjusted EBITDA of hundred and $2,260,000,0.0 up 12% year over year and an adjusted EBITDA margin of 31.1% was up 180 basis points year over year.

23m 5s

Interest expense in the quarter was $1,420,000,0.0 This was down 26.4% year over year reflecting the ongoing repayment of our term loan as well as a lower rate as the sulfur base rate has moved lower. The tax rate in our adjusted EPS calculation was 22.2% reasonably consistent versus last year's 21.3%. Altogether, this led to an adjusted diluted EPS of $2,.34 representing growth of 26.5% year over year. An impressive result given some of the choppiness in commercial aerospace customer production and the macroeconomic softness in the industrial economy. Free cash flow in the quarter came in at $7,360,000,0.0 with conversion of 127% and compares to $7,090,000,0.0 and 152% last year. As usual, we used a meaningful portion of the cash generated to continue to deleverage the balance sheet. We repaid $100,000,000 of debt during the quarter, taking our total year to date debt reduction on the facilities to 19,540,000,0.0 And in terms of our free cash flow generation going forward, the October '15 automatic conversion of our mandatory convertible [indiscernible] remove the cash dividend payment reducing our future total cash outlays by approximately $23,000,000 on an annualized basis. This is roughly 9.5% of quarter's total free cash flow.

24m 31s

With our trailing net leverage now at 1.8 turns and heading even lower going forward, our balance sheet is in a increasingly attractive position pursue additional accretive M and A and our team remains busy growing our funnel of potential deal flow. Looking into the we are guiding to revenues of $4.34,000,000 dollars to $4.44,000,000 dollars dollars representing year over year growth of 4.9% to 7.3%. That guidance embeds an operating environment that's fairly similar to the On the gross margin side, we are projecting gross margins of 44% to 44.5% which would be an increase of roughly 115 basis points year over year at the midpoint. And for SG and A, we expect SG and A as a percentage of sales to be between 1616.5% range. During the In closing, this was another strong quarter for RBC RBC.

25m 22s

We remain focused on leveraging our core strengths in engineering, manufacturing and product development to drive both organic and inorganic growth. Continued margin excellence and high levels of free cash flow conversion.

25m 33s

With that, operator, please open the call for Q and A. Thank you. We'll now be conducting a question and answer session. Thank you. Our first question is from Pete Skibits with Alembic Global. Please proceed with your question. Hey, good morning guys. Nice performance. [indiscernible] Mike, I'll echo you that it was good to see industrial return to growth. Can you talk more about oil and gas kind of what you saw in the quarter that was was it lack of spending because of the election? And then when you talk about increased quote activity, and industrial, does that include oil and gas? Well, on The U. S. Side of things, That's a boom robust industry. And when it's booming, they want materials faster than you can make materials? And [indiscernible] over order their materials because the trees never stop growing. And so the trees stopped growing and they had too many materials. So it's really an inventory correction.

27m 16s

We're studying it. Blend down over the next nine months and sort of get back to more normal level, but Basically, we had a few customers who over ordered Got it. Okay. Makes sense. Can you give a little more color on that this is Rob Moffett. Ex the oil and gas, I'd win that OEM business. Down about 2%, 2.5%.

27m 45s

A big chunk of that delta in the industrial area.

27m 48s

Gas. Got you. That's helpful guys. I appreciate it. And then just everybody is going to be worried going over the weekend about this tariff issue. Mike, you don't sound too worried. Can you give us more color in terms of what allows you to retain confidence that that won't be a major roadblock for you?

28m 8s

Yes, sure. I mean, there's It's Mexico and China really, right?

28m 14s

Mean, that's First of all, our our Mexico plants, we have 3 plants in Mexvelte. The materials are shipped in from The U. S. And then they're shipped back out. So any tariff that's applied to Mexico will be easily absorbed It's just not it's not that big a number. It will easily be absorbed in our cost structure and then passed along as [indiscernible] it's a nonissue.

28m 54s

Okay.

28m 57s

So the other the other part of Mexico is commercial contracts where we actually sell product out of Mexico directly to customers. Our contracts have triggers in them which anticipate or anticipate some government action that's unforeseen. And it allows us to negotiate renegotiate our contract. And how did we learn that? Well, we learned that during the pandemic when they showed up at the plant with guns drawn and shut down our plants. [indiscernible] it would be nice to have a clause in these contracts going forward to say, there's anything crazy like that.

29m 52s

Happens between the governments that there's a way to mitigate our our [indiscernible] Our business model. So Yes, that's kind of baked into our contracts. And also, for the most part, our contracts for commercial items are FOB And I'm sure we have belts and suspenders on this thing as far as that's concerned. [indiscernible] So now China is another issue. If Trump dose is 10% tariff on China, I will be incredibly disappointed mean all the huffing and puffing he did and he's going to do ten percent First of all 10% we won't even feel it in our numbers. It's just it will be insignificant If he does 50%, And he puts the same program in place he's putting in place for the steel industry [indiscernible] What do you think is going to happen to Verint?

31m 14s

Probably a shortfall, right? [indiscernible] what happens supply and demand, how about that equation? How does that balance out? So it's going to follow the same path as steel industry if there's a very strong tariff I'm praying for a strong tariff.

31m 33s

Got it.

31m 35s

Got it. Okay. Okay. That's very helpful. I appreciate the whole context.

31m 42s

And I think 1 other thing, [indiscernible] RBC is a made in The USA company for the most part. We make our products here. Mean, there's some augmentation by other by foreign sources, but not a lot and nothing that we can recover with our own plants. So we make it here [indiscernible] And for the most part, more or less, we sell 90% of our sales are here. That's a big distinction between us and what other people consider as our peers. Very helpful.

32m 19s

I'll end on a defense note. And maybe a less controversial 1. You've talked about the need to increase submarine capacity. I think you painted that you need to increase munitions capacity as well. I'm just wondering if you can update us on the CapEx impact and the schedules for your capacity expansion in defense Yes. Well, you won't the CapEx will be Will be extraordinary. We as far as the submarine business is concerned, we're [indiscernible] We're building out 100000 plus plant in Tucson. It's a leased building. So there is no no brick and mortar there. And we'll move machinery from 1 of the Tucson plants into this third plant over the the course of the year and allow more manufacturing capacity inside the Base Tucson plant [indiscernible] So that's ongoing. Capital impact is is well within our normal capital budgets.

33m 39s

Okay. And that sounds like Not something that would take a long time, I guess, the first point. The second point is, I guess, free cash flow drop down should be pretty strong, I would think.

33m 52s

Yes. It's going to be Same as it's been.

33m 57s

Great. Thanks for the color. Appreciate it guys. Thank you. Our next question is Steve Barger with KeyBanc Capital Markets. Thanks. Good morning.

34m 14s

Mike, I know it's early to talk about but you did mention how comps and conditions should allow for strong growth in Aero are you thinking mid teen growth against the mid teens comp or does the growth rate actually accelerate? I guess just trying to figure out how good you think this could RBC?

34m 39s

Now we're talking about commercial aerospace, right?

34m 43s

I guess the segment of aerospace.

34m 46s

Yes, okay. It's going to be very good.

34m 52s

Let's put it this way, we're at 15% Boeing really hasn't been building Right. So you deploy that if nothing else changes, it just accelerates the growth rate.

35m 5s

Yes, if nothing else changes, it just accelerates. We have a lot of content on those plans. So [indiscernible] 15% for commercial aerospace. I don't want to say it's a floor because I think the floor should be higher. It's going to be And presumably, and I'm not trying to nail you down to anything, but just based on the conditions, the twelve year backlog that you talked about, like this shouldn't end anytime soon. You should have not to put words in your mouth, but like you must have as good a visibility right now into aerospace as you've had in a long time.

35m 53s

Yes, I mean our visibility to the in the aerospace is is the same as everybody else as we look at Boeing Skyline and we say a little not being as they make it. That all happens for us. That's where the risk is. Mean, our we have contracts in place with Boeing through 02/30.

36m 13s

For all of our stuff, So all they have to do is make a plane and we'll send them we'll send them the [indiscernible] [indiscernible] it's really in their Understood. And similar question for Industrial. If I heard you right, you said 4% growth ex oil and gas this quarter. If we assume oil and gas gets back to growth, does this feel like we're heading back to a mid single digit kind of growth environment for industrial just as you think about the sentiment, the quoting activity that you've talked about? The the how you think the administration is going to proceed?

36m 58s

Yes, I would say that's right.

37m 2s

I think oil and gas from what we know about inventories and absorption rates is going to take a little bit longer. It will phase in at the end of the year.

37m 21s

Thank you. Our next question is from Michael Ciarmoli with Truist Securities. Please proceed with your question. Michael, is your line on mute?

37m 40s

Sorry, can you guys hear me now? Yes, yes.

37m 46s

Thanks for taking the question. Nice results. Hey, Mike, just maybe stay on stay on that line. I guess first with oil and gas, I mean you mentioned the drill baby drill. Are you kind of seeing any tangible evidence of more planned spending. I mean, if we do see a pretty steep reduction in oil prices, I mean, or energy prices, these companies usually aren't incentivized to spend. They want to continue to deploy capital to shareholders. So do you really think you see large scale projects pick up in that kind of environment? Well, hard to say. I mean, you've got 2 forces and balance there, right? Consumption and supply and There are always seems to be a problem with supply. Whether it's a war or it's embargo or it's something else, there's always there always seems to be interruption that's unpredictable the changes It changes the game for a year or two. So I think it needs something like that. To to accelerate it, but I I wouldn't rule something like that out. Okay. Fair.

39m 14s

And then just a follow-up on where Steve was going with Arrow. I put words in your mouth, if 15% is a floor next year, how do we think about your your contract renewals that have been coming due. Do you kind of maybe volume assuming Boeing, Airbus and the supply chains kind of start to normalize here?

39m 42s

Our current contracts term out at the [indiscernible] I'm sure you're aware.

39m 56s

So the new contracts and the new pricing and the new mix takes effect So yes, and it's it's better.

40m 13s

I mean, okay. Since the old let's put it this way, since the old contracts were signed, producer price index has probably gone off somewhere between 3035%. [indiscernible] That's helpful. Got it. And then just Further back on tariffs, maybe with the China topic. I think when you guys we saw this years ago in 2018, you commented I guess you don't really have a lot of direct competition in China China, a lot of commoditized markets. Does that really then move the needle for you guys if the tariffs into China are pretty significant? Just given that you've played a lot of the commoditized mark? I mean, you don't have a lot of China's competition, right? I mean, the customers you're dealing with are looking for more ruggedized, high quality differentiated bearings like you provide versus the commoditized markets. So I mean, does it really move the needle?

41m 16s

Well, you're talking about exports into China I guess in both cases, right? I mean, do you sell directly that much into China right now? And presumably, would there be a lot of substitute if those tariffs on products coming out of China are material, do you think you'll get a lot of business [indiscernible] Yes, we sell it to China now, but it's not material. It isn't worth talking about. Okay. Okay.

41m 53s

Got it. And then guess, last 1 for me. Anything else you can say on on kind of M and A? I know you talked about the leverage being down. You've got more cash here with the preferreds rolling off. I mean, Just anything close to the finish line, any specific adds, whether it's market you're looking to expand? Any kind of color you can Sure. Well, certainly we have the balance sheet amount over support expansion.

42m 29s

On the other hand, we have an unprecedented amount of projects internal projects underway that we're developing for organic growth [indiscernible] RBC are either in production or close to production. So our first order of business is to look internally and make sure that these these projects in products [indiscernible] well well managed. And we don't disappoint our customers. So that's our first order priority. On acquisitions, [indiscernible] continue to review candidates I don't know How many half a dozen come over the trans zone. Every month, at kind of a rate [indiscernible] we look at Bit with our markets, our ability to sell, our ability to understand those markets, We look for scale Scale is important. And we've gotten to the point when we'll no less than top tier management. Dodge completely spoiled us. [indiscernible] So, right? We look at every one of them and we say, is it as good as And is it a yay or a nay? In terms of management team.

44m 10s

And so we're looking for another Dutch.

44m 14s

So that rules out, should we think about ruling out kind of fixer uppers or a company with maybe inferior margins It just I've always looked at those as saying you could deploy your toolkit and there'd be tremendous opportunity for accretion. But if you're accepting no less than top tier management, presumably the financials would be pretty good?

44m 37s

Well, we were able to help Dodge out with their margins. And that all worked out well for everybody. So think we want a management team basically that's that's that knows the game. Has a lot of experience in the industry and in the business, and is willing to work with us. And that's what we found with that. And Got it. And so that's all kind of gray stuff when you're doing your diligence.

45m 9s

No, you have to make a follow-up. Exactly that. And And that's where we are. I mean, we've we've made bids on some of the candidates we've seen over the last And I can only say that there's way too much private equity So it's flowing around. And [indiscernible] whatever we do, will be expensive.

45m 43s

Got it.

45m 45s

That's helpful. Thanks guys. And just to add on to that, I mean, to Doctor. Hartnett's earlier point, when we look to and the amount of organic growth that's out there, we don't need to take risks on M and A. Number 1 focus is just heads down and capturing the organic growth that's there and we can wait for the right pitch to come across the etcetera. But there's a lot of opportunities that we're focused on organically where we don't feel pressure Yes, makes sense. Got it. Helpful. Good stuff. Thanks guys.

46m 24s

Our next question is from Ross Berenberg with William Blair.

46m 28s

Please proceed with your question.

46m 31s

Hey, good morning gentlemen. Hey, guys. Apologies if I missed it, but did you provide the gross margins by segment? Between aero and industrial That'll be in the queue.

46m 46s

Okay.

46m 46s

All right. I guess the slide here though is that [indiscernible] Just give me a sec, Ross, I'll pull it out for you. Industrial margins were exceptional. As you would expect Aerospace margins this quarter were over 40 or 40.5 and industrial margins were 46 Oh, wow. So I mean that implies that you guys really aren't seeing from the wide body ramp and or contract renewals as I guess you previously noted. So there's still a pretty significant leg up here.

47m 24s

On the industrial side, do you get the sense that you're towards the end of the Dodge synergies then? I think we'll have Dodge synergies for the next ten years.

47m 35s

It just doesn't seem to end. It doesn't seem to end.

47m 39s

Okay. Maybe on the warehouse business, could you provide us what the growth was in the quarter between aftermarket and ARO? I know OEM? I know that's stepping up here. [indiscernible] Raj, you're asking for aftermarket versus OEM air No, sorry, the Dodge warehouse. [indiscernible] That was up.

48m 12s

Yes, I got it right here.

48m 15s

Solid performance across OEM and aftermarket, it was up about 7% on a year over year basis. Okay. So kind of OEM and aftermarket Yes. So maybe just to kind of frame the industrial runway into the year, then 20 roughly 70% of industrial is stable and modest growth The warehouse is coming back and then semiconductor and oil and gas are still around trough levels. Any sense on kind of where that stands on peak to trough or maybe just trough to normalized levels for OEM semiconductor as those begin to come back? I don't Yes. We're starting to see semiconductor work its way back.

49m 3s

We're seeing orders from customers that We're non existent a year ago These are old customers for us, so that we we know who they are and what they use.

Key Insights

RBC Bearings reported a 5.5% year-over-year increase in net sales, driven by strong performance in the Aerospace and Defense segment, which grew 10.7%, with commercial aerospace up 14.6% and defense up 3%. Industrial segment sales grew 2.7%, with distribution and aftermarket up 8% but OEM down 8.2%.
Gross margin for the quarter was $175 million or 44.3% of sales, a 205 basis point increase year-over-year, driven by favorable product mix, manufacturing synergies, and continuous improvement projects.
Adjusted net income grew 34.7% year-over-year to $73 million, translating to an adjusted EPS of $2.34, a 26.5% increase. Free cash flow for the quarter was $74 million, up from $71 million last year, with $100 million of debt reduction achieved during the quarter.
The company provided forward guidance for revenues of $434 million to $444 million for the next quarter, representing year-over-year growth of 4.9% to 7.3%, with gross margins expected to be in the range of 44% to 44.5%.
RBC Bearings remains focused on leveraging organic growth opportunities, particularly in Aerospace and Defense, while maintaining a strong balance sheet for potential M&A opportunities. The company anticipates mid-teens growth in Aerospace and Defense for the full year and expects industrial business performance to stabilize with a healthy exit into the next fiscal year.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$727M	$609M	$943M	$1.5B	$1.6B
Cost of Revenue	$438M	$375M	$586M	$865M	$890M
Gross Profit	$289M	$234M	$357M	$605M	$671M
Gross Profit %	40%	38%	38%	41%	43%
R&D Expenses	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Revenue

$727M

$609M

$943M

$1.5B

$1.6B

Cost of Revenue

$438M

$375M

$586M

$865M

$890M

Gross Profit

$289M

$234M

$357M

$605M

$671M

Gross Profit %

40%

38%

41%

43%

R&D Expenses

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$126M	$90M	$65M	$167M	$210M
Dep. & Amort.	$31M	$33M	$66M	$115M	$119M
Def. Tax	$6.5M	$1.5M	-$1.2M	-$21M	-$12M
Stock Comp.	$28M	$18M	$33M	$14M	$17M
Chg. in WC	-$28M	$3M	$4.4M	-$71M	-$73M

2020

2021

2022

2023

2024

Net Income

$126M

$90M

$65M

$167M

$210M

Dep. & Amort.

$31M

$33M

$66M

$115M

$119M

Def. Tax

$6.5M

$1.5M

-$1.2M

-$21M

-$12M

Stock Comp.

$28M

$18M

$33M

$14M

$17M

Chg. in WC

-$28M

$3M

$4.4M

-$71M

-$73M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$103M	$151M	$183M	$65M	$64M
ST Investments	$0	$90M	$0	$0	$0
Cash & ST Inv.	$103M	$241M	$183M	$65M	$64M
Receivables	$129M	$110M	$247M	$244M	$262M
Inventory	$367M	$364M	$516M	$587M	$623M

2020

2021

2022

2023

2024

Cash

$103M

$151M

$183M

$65M

$64M

ST Investments

$90M

Cash & ST Inv.

$103M

$241M

$183M

$65M

$64M

Receivables

$129M

$110M

$247M

$244M

$262M

Inventory

$367M

$364M

$516M

$587M

$623M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Earnings

Report Date

Jan 31, 2025

Reported Revenue

394.4M

Avg 1d Change

5.54%

Report Period

Q3 2025

Reported EPS

2.16

Implied Move 1d

5.33%

Transcript

10m 58s

11m 51s

13m 34s

15m 14s

17m 17s

As many as you know, RBC is a cash flow rich business Since we acquired Dodge, we [indiscernible] nearly all of our cash generation to deleveraging the balance sheet.

17m 32s

19m 8s

20m 33s

21m 3s

All of which are strongly a net good. For RBC RBC.

21m 10s

23m 5s

24m 31s

25m 22s

25m 33s

27m 16s

27m 45s

A big chunk of that delta in the industrial area.

27m 48s

28m 8s

Yes, sure. I mean, there's It's Mexico and China really, right?

28m 14s

28m 54s

Okay.

28m 57s

29m 52s

31m 14s

31m 33s

Got it.

31m 35s

Got it. Okay. Okay. That's very helpful. I appreciate the whole context.

31m 42s

32m 19s

33m 39s

Okay. And that sounds like Not something that would take a long time, I guess, the first point. The second point is, I guess, free cash flow drop down should be pretty strong, I would think.

33m 52s

Yes. It's going to be Same as it's been.

33m 57s

Great. Thanks for the color. Appreciate it guys. Thank you. Our next question is Steve Barger with KeyBanc Capital Markets. Thanks. Good morning.

34m 14s

34m 39s

Now we're talking about commercial aerospace, right?

34m 43s

I guess the segment of aerospace.

34m 46s

Yes, okay. It's going to be very good.

34m 52s

Let's put it this way, we're at 15% Boeing really hasn't been building Right. So you deploy that if nothing else changes, it just accelerates the growth rate.

35m 5s

35m 53s

36m 13s

36m 58s

Yes, I would say that's right.

37m 2s

I think oil and gas from what we know about inventories and absorption rates is going to take a little bit longer. It will phase in at the end of the year.

37m 21s

Thank you. Our next question is from Michael Ciarmoli with Truist Securities. Please proceed with your question. Michael, is your line on mute?

37m 40s

Sorry, can you guys hear me now? Yes, yes.

37m 46s

39m 14s

39m 42s

Our current contracts term out at the [indiscernible] I'm sure you're aware.

39m 56s

So the new contracts and the new pricing and the new mix takes effect So yes, and it's it's better.

40m 13s

41m 16s

41m 53s

42m 29s

44m 10s

And so we're looking for another Dutch.

44m 14s

44m 37s

45m 9s

45m 43s

Got it.

45m 45s

46m 24s

Our next question is from Ross Berenberg with William Blair.

46m 28s

Please proceed with your question.

46m 31s

Hey, good morning gentlemen. Hey, guys. Apologies if I missed it, but did you provide the gross margins by segment? Between aero and industrial That'll be in the queue.

46m 46s

Okay.

46m 46s

47m 24s

On the industrial side, do you get the sense that you're towards the end of the Dodge synergies then? I think we'll have Dodge synergies for the next ten years.

47m 35s

It just doesn't seem to end. It doesn't seem to end.

47m 39s

48m 12s

Yes, I got it right here.

48m 15s

49m 3s

We're seeing orders from customers that We're non existent a year ago These are old customers for us, so that we we know who they are and what they use.

Key Insights

RBC Bearings reported a 5.5% year-over-year increase in net sales, driven by strong performance in the Aerospace and Defense segment, which grew 10.7%, with commercial aerospace up 14.6% and defense up 3%. Industrial segment sales grew 2.7%, with distribution and aftermarket up 8% but OEM down 8.2%.
Gross margin for the quarter was $175 million or 44.3% of sales, a 205 basis point increase year-over-year, driven by favorable product mix, manufacturing synergies, and continuous improvement projects.
Adjusted net income grew 34.7% year-over-year to $73 million, translating to an adjusted EPS of $2.34, a 26.5% increase. Free cash flow for the quarter was $74 million, up from $71 million last year, with $100 million of debt reduction achieved during the quarter.
The company provided forward guidance for revenues of $434 million to $444 million for the next quarter, representing year-over-year growth of 4.9% to 7.3%, with gross margins expected to be in the range of 44% to 44.5%.
RBC Bearings remains focused on leveraging organic growth opportunities, particularly in Aerospace and Defense, while maintaining a strong balance sheet for potential M&A opportunities. The company anticipates mid-teens growth in Aerospace and Defense for the full year and expects industrial business performance to stabilize with a healthy exit into the next fiscal year.

RBC Bearings Incorporated Price & Performance (RBC)

Stock Performance

Open

High

Low

Market Cap

P/E Ratio

Volume

Year High

Year Low

News & Market Insights

What's Happening

Peers

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights

Income Statement

Cash Flow

Balance Sheet

Go Deeper

Related

News & Market Insights

Go Deeper

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights