RBC Bearings Q1 Earnings & Revenues Surpass Estimates, Rise Y/Y

RBC Bearings Incorporated’s RBC first-quarter fiscal 2026 (ended June 28, 2025) adjusted earnings of $2.84 per share beat the Zacks Consensus Estimate of $2.74. The figure increased 11.8% from the year-ago adjusted earnings of $2.54 per share, supported by higher revenues.

RBC’s Revenue Details

RBC Bearings’ revenues were $436 million, which increased 7.3% year over year. Also, the figure surpassed the Zacks Consensus Estimate of $432 million.

While exiting the reported quarter, RBC had a backlog of $1.02 billion compared with $940.7 million reported at the end of the fourth quarter of fiscal 2025 (ended March 29, 2025).

RBC Bearings’ Segmental Details

The company currently has two reportable segments, namely Aerospace/Defense and Industrial. Its segmental performance for the fiscal first quarter is briefly discussed below:

Industrial revenues of $271.4 million (representing 62.2% of the quarter’s revenues) were up 5.5% year over year. The consensus estimate for the Industrial segment’s revenues was pegged at $265 million.

Aerospace/Defense revenues totaled $164.6 million (37.8%), up 10.4% year over year. The consensus estimate for the Aerospace/Defense segment’s revenues was pegged at $167 million.

RBC Bearings Incorporated Price, Consensus and EPS Surprise

RBC Bearings Incorporated price-consensus-eps-surprise-chart | RBC Bearings Incorporated Quote

RBC’s Margin Profile

The company’s cost of sales rose 8.3% year over year to $240.8 million. Gross profit (on a reported basis) grew 6.1% to $195.2 million. The gross margin contracted 50 basis points (bps) to 44.8%. However, the adjusted gross margin increased 20 bps to 45.4%.

Selling, general and administrative expenses (SG&A) were $73.9 million, up 9.2% year over year. Adjusted EBITDA jumped 5.6% to $141.5 million. The adjusted EBITDA margin was 32.5%, down 50 bps year over year.

Adjusted operating income increased 8% year over year to $105.3 million. The adjusted margin increased 20 bps to 24.2%. Net interest expenses were $12.2 million compared with $17.2 million in the year-ago quarter.

RBC Bearings’ Balance Sheet and Cash Flow

At the time of exiting the fiscal first quarter, RBC had cash and cash equivalents of $132.9 million compared with $36.8 million at the end of fiscal 2025. Long-term debt (less current portion) was $913.8 million, down from $918.4 million at the end of fiscal 2025.

In first three months of fiscal 2026, the company generated net cash of $120 million from operating activities, which increased 23.2% on a year-over-year basis. Capital expenditure of $15.7 million increased 73% year over year. In first three months of fiscal 2026, RBC Bearings did not repurchase shares.

RBC’s Outlook

For the second quarter of fiscal 2026, management anticipates net sales to be in the range of $445-$455 million, indicating an increase of 11.8-14.4% from the prior-year figure of $397.9 million.

It expects the gross margin to be in the band of 44-44.25% and SG&A (as a percentage of net sales) to be in the range of 17- 17.25%.

Zacks Rank & Other Stocks to Consider

RBC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked companies are discussed below:

Flowserve Corporation FLS presently sports a Zacks Rank of 1. FLS’ earnings surpassed the consensus estimate twice and missed on the other two occasions in the trailing four quarters. The average earnings surprise was 5.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2025 earnings has increased 3.4%.

Allegion plc ALLE currently sports a Zacks Rank of 1. ALLE has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 7.9%.  In the past 60 days, the Zacks Consensus Estimate for Allegion’s 2025 earnings has increased 4.1%.

Tetra Tech, Inc. TTEK currently carries a Zacks Rank of 2. TTEK outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 7.1%.  In the past 60 days, the Zacks Consensus Estimate for Tetra Tech’s 2025 earnings has increased 2.7%.

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This article originally published on Zacks Investment Research (zacks.com).

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