RBC Bearings' Aerospace & Defense Growth Picks Up: A Sign of More Upside?

RBC Bearings Incorporated RBC is experiencing persistent strength in aerospace and defense markets. Solid momentum in the commercial aerospace market, driven by strong growth in orders from the OEM (original equipment manufacturer) and the aftermarket verticals, is driving the company’s Aerospace/Defense segment. After witnessing growth of 10.4% year over year in the first-quarter fiscal 2026 (ended June 28, 2025), revenues from the segment surged 38.8% in the fiscal second quarter (ended Sept. 27, 2025).

The robust backlog level of $1.06 billion, exiting the fiscal second quarter, along with the company’s strong execution on incremental orders in the commercial aerospace market, is expected to act as a tailwind for the segment.

An increase in demand for the company’s bearings and engineered component products in the defense market, supported by growth in marine and missile applications orders, will also continue to augur well for the segment in the quarters ahead. Within the segment, revenues from the commercial aerospace market increased 21.6%, while those from the defense market were up 73.3% in second-quarter fiscal 2026.

RBC Bearings’ aerospace and defense unit is poised to maintain solid demand momentum in the quarters ahead, supported by robust budgetary provisions for the U.S. defense sector and strength in air travel.

Segment Snapshot of RBC’s Peers

The strongest driver of Howmet Aerospace Inc.’s HWM business at the moment is the commercial aerospace market. Pickup in air travel has been positive for the company as the increased usage of aircraft spurs spending on parts and products that it provides, which again drives its sales. Revenues from the commercial aerospace market increased 15% year over year (exceeding $1.1 billion) in third-quarter 2025, constituting 53% of its business.

It's another peer, Parker-Hannifin Corp.’s PH Aerospace Systems segment is benefiting from strong momentum in the commercial and military markets across both the OEM and aftermarket channels. Revenues from Parker-Hannifin’s Aerospace Systems segment jumped 13.3% year over year in the first quarter of fiscal 2026 (ended September 2025). Parker-Hannifin’s Aerospace Systems segment is poised to gain from strong demand for its products and aftermarket support services in the general aviation market.

RBC's Price Performance, Valuation and Estimates

Shares of RBC Bearings have surged 19.3% in the past three months compared with the industry’s growth of 3.6%.

From a valuation standpoint, RBC is trading at a forward price-to-earnings ratio of 35.51X, above the industry’s average of 21.90X. RBC Bearings carries a Value Score of F.

The Zacks Consensus Estimate for RBC’s fiscal 2026 (ending March 2026) earnings has been on the rise over the past 60 days.

RBC Bearings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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