RBC Bearings Q3 Earnings & Revenues Surpass Estimates, Rise Y/Y

RBC Bearings Incorporated’s RBC third-quarter fiscal 2026 (ended Dec. 27, 2025) adjusted earnings of $3.04 per share beat the Zacks Consensus Estimate of $2.85. The figure increased 29.9% from the year-ago adjusted earnings of $2.34 per share, supported by higher revenues.

RBC’s Revenue Details

RBC Bearings’ revenues were $461.6 million, which increased 17% year over year. Also, the figure surpassed the Zacks Consensus Estimate of $461.1 million.

While exiting the reported quarter, RBC had a backlog of $2.1 billion compared with $1.6 billion reported at the end of the second quarter of fiscal 2026 (ended Sept. 27, 2025).

RBC Bearings’ Segmental Details

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

Industrial revenues of $259.1 million (representing 56.1% of the quarter’s revenues) were up 3.1% year over year. The consensus estimate for the Industrial segment’s revenues was pegged at $260 million.

Aerospace/Defense revenues totaled $202.5 million (43.9%), up 41.5% year over year. The consensus estimate for the Aerospace/Defense segment’s revenues was pegged at $190 million.

RBC’s Margin Profile

The company’s cost of sales rose 17.2% year over year to $257.2 million. Gross profit (on a reported basis) grew 16.9% to $204.4 million. The gross margin matched the year-ago figure of to 44.3%. However, the adjusted gross margin increased 80 bps to 45.1%.

Selling, general and administrative expenses (SG&A) were $77.9 million, up 11.1% year over year. Adjusted EBITDA jumped 22% to $149.6 million. The adjusted EBITDA margin was 32.4%, up 130 bps year over year.

Adjusted operating income increased 25.3% year over year to $107.4 million. The adjusted margin increased 160 bps to 23.3%. Net interest expenses were $13.0 million compared with $14.2 million in the year-ago quarter.

RBC Bearings’ Balance Sheet and Cash Flow

At the time of exiting the fiscal third quarter, RBC had cash and cash equivalents of $107.6 million compared with $36.8 million at the end of fiscal 2025. Long-term debt (less current portion) was $701.6 million, down from $918.4 million at the end of fiscal 2025.

In the first nine months of fiscal 2026, the company generated net cash of $330.5 million from operating activities, which increased 47.3% on a year-over-year basis. Capital expenditure of $55.4 million increased 55.6% year over year. In the first nine months of fiscal 2026, RBC Bearings did not repurchase shares.

RBC’s Outlook

For the fourth quarter of fiscal 2026 (ending March 2026), management anticipates net sales to be in the range of $495.0-$505.0 million, indicating an increase of 13.1-15.4% from the prior-year figure of $437.7 million. On an organic basis (excluding VACCO), net sales are projected to increase 6.4-8.7%.

It expects the gross margin to be in the band of 45-45.25% and SG&A (as a percentage of net sales) to be in the range of 16-16.25%.

RBC’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). 

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

Performance of Other Companies

Graco Inc. GGG posted quarterly earnings of 77 cents per share in the fourth quarter of 2025, in line with the Zacks Consensus Estimate. This compares with earnings of $0.64 per share a year ago.

Graco posted revenues of $593.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.39%. This compares with year-ago revenues of $548.67 million.

Baker Hughes Company BKR reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.

Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.

3M Company MMM delivered adjusted earnings of $1.83 per share in the fourth quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.

MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research