RBC Bearings Incorporated (RBC) Q2 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 31 2025
0mins
Should l Buy RBC?
Source: SeekingAlpha
Net Sales $455.3 million, a 14.4% increase year-over-year, driven by strong performance in Aerospace and Defense segment and steady performance in industrial businesses.
Consolidated Gross Margin 44.1% versus 43.7% last year, reflecting improved operational efficiencies.
Adjusted EPS $2.88, a 25.8% increase from $2.29 last year, attributed to strong revenue growth and operational performance.
Free Cash Flow $71.7 million, compared to $26.8 million last year, driven by increased earnings and working capital management.
Aerospace and Defense Sales Up 38.8% year-over-year, with Commercial Aerospace expanding 21.6% and Defense expanding 73.3%, driven by strong demand and backlog growth.
Industrial Business Performance Overall up 0.7%, with Industrial Distribution up 3.3% and OEM sector down 4.7%, impacted by weakness in oil, semiconductor machinery, and European machine tools markets.
Adjusted EBITDA $145.3 million, a 17.7% increase year-over-year, reflecting strong performance across business segments.
Interest Expense $13.4 million, down 14.1% year-over-year, due to debt payments and lower interest rates.
Diluted EPS $1.90, compared to $1.65 last year, reflecting improved profitability.
Backlog $1.6 billion, up from $940 million in March and $860 million last year, driven by strong demand in Aerospace and Defense.
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Analyst Views on RBC
Wall Street analysts forecast RBC stock price to fall
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 550.400
Low
485.00
Averages
517.80
High
542.00
Current: 550.400
Low
485.00
Averages
517.80
High
542.00
About RBC
RBC Bearings Incorporated is an international manufacturer and marketer of engineered precision bearings, components and essential systems. It is focused on producing technical or regulated bearing products and components requiring design, testing, and manufacturing capabilities for the diversified industrial, aerospace and defense channels. Its segments include Aerospace/Defense and Industrial. The Aerospace/Defense segment represents the end markets for the Company’s engineered bearings and precision components used in commercial aerospace, defense aerospace, defense marine, defense ground vehicles, missiles and guided munitions, and space and satellite applications. The Industrial segment represents the end markets for the Company’s engineered bearings, gearing and precision components used in various industrial applications, including construction, mining, forestry, energy, agricultural and other machinery. The Company also offers engineered mission-critical components.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Geneva Capital Sells Shares of Ollie's Bargain Outlet
- Share Sale Details: Geneva Capital Management sold 95,151 shares of Ollie's Bargain Outlet in Q4 2026, with an estimated transaction value of $11.47 million, demonstrating the firm's adaptability amid market fluctuations.
- Ownership Percentage Change: Following the sale, Geneva's stake in Ollie's decreased from 2.34% to 2.13%, indicating a cautious approach towards the stock while still retaining a degree of investment confidence.
- Market Performance Analysis: As of February 11, 2026, Ollie's shares were priced at $113.75, reflecting a 10% increase over the year, yet underperforming the S&P 500 by 4.39 percentage points, suggesting mixed market expectations for future growth.
- Expansion Plans: Ollie's opened 86 new stores and acquired Big Lots in fiscal 2025, showcasing its commitment to expansion in an uncertain economic environment, potentially laying the groundwork for future revenue growth.
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- Strong Performance of S&P 500 and Nasdaq: The S&P 500 rose by 1.97% to close at 6,932.30, while the Nasdaq Composite jumped 2.18% to 23,031.21, indicating a robust rebound in tech and large-cap stocks, further boosting market confidence.
- Analyst Rating Discrepancies: Despite daily new stock picks from Wall Street analysts, the wide variance in analyst ratings and price targets leaves investors confused about which analyst opinions to trust, potentially impacting the effectiveness of investment decisions.
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- Significant Sales Growth: RBC Bearings reported net sales of $461 million for Q3 2026, marking a 17% year-over-year increase, primarily driven by strong performance in the Aerospace & Defense (A&D) segment, which saw a 41.5% rise, highlighting the company's competitive edge in a rapidly growing market.
- Margin Improvement: The company reported a gross margin of 44.3%, reflecting a 16.9% increase compared to the same period last year, indicating successful cost control and pricing strategies that further enhance financial health.
- Strong Cash Flow: Free cash flow reached $99.1 million, demonstrating operational efficiency, while the company paid down $81 million in debt during the quarter, showcasing robust financial management.
- Optimistic Outlook: Management anticipates Q4 revenues between $495 million and $505 million, representing year-over-year growth of 13.1% to 15.4%, with projected gross margins of 45% to 45.25%, reflecting confidence in future growth.
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RBC Bearings Q3 Earnings Exceed Expectations
- Strong Performance: RBC Bearings reported a Q3 non-GAAP EPS of $3.04, beating expectations by $0.18, indicating robust profitability growth for the company.
- Revenue Growth: The company achieved revenues of $461.6 million in Q3, a 17.0% year-over-year increase, with $29.2 million attributed to the VACCO acquisition, demonstrating the effectiveness of its acquisition strategy in driving sales.
- Segment Performance: The Industrial segment saw a 3.1% increase in net sales, while the Aerospace/Defense segment surged by 41.5%, highlighting the company's strong performance in high-demand sectors and further solidifying its market position.
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RBC Bearings Set to Release Q3 Earnings on February 5
- Earnings Announcement: RBC Bearings is set to announce its Q3 earnings on February 5 before market open, with a consensus EPS estimate of $2.86, reflecting a 0.7% year-over-year decline, which may impact investor confidence in the company's profitability.
- Revenue Expectations: The expected revenue for Q3 is $460.36 million, representing a 1.1% year-over-year increase, indicating stability in the company's market position, which could help maintain investor interest.
- Historical Performance: Over the past two years, RBC Bearings has beaten EPS estimates 75% of the time and revenue estimates 38% of the time, suggesting relative stability in profitability that may attract more investor attention.
- Estimate Revisions: In the last three months, EPS estimates have seen 6 upward revisions and no downward revisions, while revenue estimates have experienced 3 upward and 3 downward revisions, reflecting varying market perceptions of the company's future performance.
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- Earnings Release Schedule: RBC Bearings is set to announce its Q3 FY2026 financial results before the market opens on February 5, highlighting the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call at 11:00 AM ET on February 5, featuring Chairman and CEO Michael J. Hartnett and other executives recapping quarterly performance, aimed at enhancing investor understanding of operations.
- Webcast Access: Investors can access the webcast through the investor relations section of the company's website, demonstrating RBC Bearings' efforts in digital communication to ensure widespread information dissemination.
- Replay Availability: An audio replay of the conference call will be available from 2:00 PM ET on the day of the call and will remain accessible for two weeks, ensuring that investors who could not participate live can still obtain key information.
See More
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- Share Sale Details: Geneva Capital Management sold 95,151 shares of Ollie's Bargain Outlet in Q4 2026, with an estimated transaction value of $11.47 million, demonstrating the firm's adaptability amid market fluctuations.
- Ownership Percentage Change: Following the sale, Geneva's stake in Ollie's decreased from 2.34% to 2.13%, indicating a cautious approach towards the stock while still retaining a degree of investment confidence.
- Market Performance Analysis: As of February 11, 2026, Ollie's shares were priced at $113.75, reflecting a 10% increase over the year, yet underperforming the S&P 500 by 4.39 percentage points, suggesting mixed market expectations for future growth.
- Expansion Plans: Ollie's opened 86 new stores and acquired Big Lots in fiscal 2025, showcasing its commitment to expansion in an uncertain economic environment, potentially laying the groundwork for future revenue growth.
See More
Dow Jones Index Hits Record Highs Over 50,000 Points
- Dow Jones Surge: On Friday, the Dow Jones index surged over 1,200 points during trading, closing at 50,115.67, marking a historic high that signifies a strong market recovery and may attract more investors.
- Strong Performance of S&P 500 and Nasdaq: The S&P 500 rose by 1.97% to close at 6,932.30, while the Nasdaq Composite jumped 2.18% to 23,031.21, indicating a robust rebound in tech and large-cap stocks, further boosting market confidence.
- Analyst Rating Discrepancies: Despite daily new stock picks from Wall Street analysts, the wide variance in analyst ratings and price targets leaves investors confused about which analyst opinions to trust, potentially impacting the effectiveness of investment decisions.
- Market Sentiment Recovery: The Dow's milestone of surpassing 50,000 points reflects optimistic expectations for economic recovery, which could lead to increased capital inflow into the stock market, thereby driving further overall market gains.
See More
RBC Bearings Reports Strong Q3 2026 Earnings with Robust A&D Growth
- Significant Sales Growth: RBC Bearings reported net sales of $461 million for Q3 2026, marking a 17% year-over-year increase, primarily driven by strong performance in the Aerospace & Defense (A&D) segment, which saw a 41.5% rise, highlighting the company's competitive edge in a rapidly growing market.
- Margin Improvement: The company reported a gross margin of 44.3%, reflecting a 16.9% increase compared to the same period last year, indicating successful cost control and pricing strategies that further enhance financial health.
- Strong Cash Flow: Free cash flow reached $99.1 million, demonstrating operational efficiency, while the company paid down $81 million in debt during the quarter, showcasing robust financial management.
- Optimistic Outlook: Management anticipates Q4 revenues between $495 million and $505 million, representing year-over-year growth of 13.1% to 15.4%, with projected gross margins of 45% to 45.25%, reflecting confidence in future growth.
See More
RBC Bearings Q3 Earnings Exceed Expectations
- Strong Performance: RBC Bearings reported a Q3 non-GAAP EPS of $3.04, beating expectations by $0.18, indicating robust profitability growth for the company.
- Revenue Growth: The company achieved revenues of $461.6 million in Q3, a 17.0% year-over-year increase, with $29.2 million attributed to the VACCO acquisition, demonstrating the effectiveness of its acquisition strategy in driving sales.
- Segment Performance: The Industrial segment saw a 3.1% increase in net sales, while the Aerospace/Defense segment surged by 41.5%, highlighting the company's strong performance in high-demand sectors and further solidifying its market position.
- Future Outlook: RBC expects Q4 net sales to range between $495 million and $505 million, although below the consensus of $508.89 million, still reflecting a growth of 13.1% to 15.4% compared to last year, showcasing ongoing growth potential.
See More
RBC Bearings Set to Release Q3 Earnings on February 5
- Earnings Announcement: RBC Bearings is set to announce its Q3 earnings on February 5 before market open, with a consensus EPS estimate of $2.86, reflecting a 0.7% year-over-year decline, which may impact investor confidence in the company's profitability.
- Revenue Expectations: The expected revenue for Q3 is $460.36 million, representing a 1.1% year-over-year increase, indicating stability in the company's market position, which could help maintain investor interest.
- Historical Performance: Over the past two years, RBC Bearings has beaten EPS estimates 75% of the time and revenue estimates 38% of the time, suggesting relative stability in profitability that may attract more investor attention.
- Estimate Revisions: In the last three months, EPS estimates have seen 6 upward revisions and no downward revisions, while revenue estimates have experienced 3 upward and 3 downward revisions, reflecting varying market perceptions of the company's future performance.
See More
RBC Bearings to Release Q3 FY2026 Financial Results on February 5
- Earnings Release Schedule: RBC Bearings is set to announce its Q3 FY2026 financial results before the market opens on February 5, highlighting the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call at 11:00 AM ET on February 5, featuring Chairman and CEO Michael J. Hartnett and other executives recapping quarterly performance, aimed at enhancing investor understanding of operations.
- Webcast Access: Investors can access the webcast through the investor relations section of the company's website, demonstrating RBC Bearings' efforts in digital communication to ensure widespread information dissemination.
- Replay Availability: An audio replay of the conference call will be available from 2:00 PM ET on the day of the call and will remain accessible for two weeks, ensuring that investors who could not participate live can still obtain key information.
See More
