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RBC Bearings Incorporated
$14.8B
Market Cap
58.6
P/E
2.58
PEG
8.0%
ROCE
9.0%
ROE
0.23
D/E
22.5%
OPM
-23.7%
% from 52W High
59
α RS
🔍 RBC is showing a high-conviction setup because it matches 3 of 39 tracked screener presets, Sector RRG has Industrials in the Improving quadrant with the trail still strengthening, and an ECS of 60.1 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RRG ECS
Sources
Conviction 3/39 · Industrials in Improving quadrant · ECS 60.1
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Currency-adjusted total returns for RBC including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
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About

RBC Bearings Incorporated manufactures and markets engineered precision bearings, components, and systems in the United States and internationally. It operates through two segments: Aerospace/Defense and Industrial. The company produces plain bearings with self-lubricating or metal-to-metal designs, including rod end bearings, spherical plain bearings, and journal bearings; roller bearings, such as tapered roller bearings, needle roller bearings, and needle bearing track rollers and cam followers, which are anti-friction products that are used in industrial applications and military aircraft platforms; and ball bearings that include high precision aerospace, airframe control, thin section, and industrial ball bearings that utilize high precision ball elements to reduce friction in high-speed applications. In addition, it offers mounted bearing products include mounted ball bearings, mounted roller bearings, and mounted plain bearings; and enclosed gearing product lines, including quantis gearmotor, torque arm, tigear, magnagear and maxum, and controlled start transmission. Further, the company’s power transmission components include mechanical drive components, couplings, and conveyor components; engineered hydraulics and valves for aircraft and submarine applications, and aerospace and defense aftermarket services; fasteners; precision mechanical components, for use in various general industrial applications; and machine tool collets that are used for holding circulars or rod-like pieces. It serves commercial and defense aerospace,, construction, mining, forestry, energy, agricultural, food and beverage, metals and mining material handling, chemicals, oil and gas production, warehousing and logistics, semiconductor equipment, waste and water management, and rail and transportation applications through its direct sales force, and a network of industrial and aerospace distributors. The company was founded in 1919 and is based in Oxford, Connecticut.

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Good quarter Investor Presentation One-Pager? Q1 2027
Revenue
$519.5M
+19.2% YoY
Operating Income
$140.8M
+39.3% YoY
Operating Margin
27.1%
+3.9pp YoY
Net Income
$101.5M
+48.2% YoY
What Went Right
  • Aerospace & Defense sales grew 36.9% YoY, with organic A&D up 16.6%.
  • Adjusted EPS rose 36.6% to $3.88 and adjusted EBITDA grew 28.1% to $181.2M.
  • Space business contributed $25M in Q1, putting it on a strong FY27 run-rate.
What to Watch
  • Gross margin included ~100bps of one-time tariff refunds and ~50-60bps of contract-resolution benefits.
  • Q2 adjusted gross margin guided lower at 45.5%-45.75% vs Q1's 47.7%.
  • Backlog was flat sequentially; supply chain still has some 'double knots', mainly in marine.
Management Guidance
  • Q2 FY27 revenue guided at $505M-$515M, up 10.9%-13.1% YoY.
  • Q2 adjusted gross margin expected at 45.5%-45.75%; SG&A at 16.5%-16.75% of sales.
  • Remaining term loan expected to be paid off by November 2026.
Investor Lens
The thesis is stronger after this call: A&D momentum is broad-based, space is inflecting, and deleveraging is running ahead of plan. Industrial growth remains healthy at +8.4%, with only metals flat. Q1 margins were flattered by one-time benefits, but full-year margin expansion remains supported by new contracts and insourcing. Demand signals—RFQs, long-term agreements and record backlog—point to durable growth.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: revenue up 19.2%, adjusted EPS up 36.6% to $3.88.
Revenue
Q1 FY27 net sales were $519.5M, up 19.2% YoY. Aerospace & Defense rose 36.9% (organic +16.6%) and Industrial increased 8.4%.
Profitability
GAAP net income was $101.5M, up 48.2% YoY, while adjusted diluted EPS was $3.88, up 36.6%. Adjusted EBITDA increased 28.1% to $181.2M.
Margins
Consolidated adjusted gross margin was 47.7% vs 45.4% a year ago. A&D gross margin expanded 180bps+ to 44.5%, and Industrial expanded 300bps+ to 50.2%. Q1 included ~100bps of one-time tariff refunds and ~50-60bps of contract-resolution benefits.
Balance Sheet
Free cash flow was $146.9M, representing 144.7% conversion of net income. Debt was reduced $77M in Q1 plus $50M after quarter-end, and the company remains on track to pay off the term loan by November 2026.
Key Risks
Tariff refunds were a one-time benefit; ongoing global tariff costs remain a margin drag. Marine supply-chain knot issues have mostly been untied, but some 'double knots' could still surface. Overall capacity is constrained relative to demand, creating risk if management overbooks plants.
Outlook
For Q2 FY27, revenue is guided at $505M-$515M, up 10.9%-13.1% YoY. Adjusted gross margin is expected at 45.5%-45.75% with SG&A at 16.5%-16.75% of sales.
Generated by AI · Q1 2027 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q1 2027 Q1 2027 2026-07-31
First quarter net sales rose 19.2% year-over-year, with strong growth in both A&D and Industrial segments. Adjusted EPS increased 36.6%, and gross margin benefited from one-time items. Guidance calls for continued double-digit revenue growth and robust margins.
Q4 2026 Q4 2026 2026-05-15
Q4 net sales rose 18.3% year-over-year, with strong A&D and industrial growth, and adjusted EPS up 27.9%. Backlog reached $2.3 billion, and guidance for Q1 FY27 projects 14.7%–17% revenue growth. Capacity expansion and deleveraging remain priorities.
Q3 2026 Q3 2026 2026-02-05
Third quarter net sales rose 17% year-over-year, led by 41.5% A&D growth and solid industrial performance. Adjusted EPS increased 30%, and free cash flow was strong, supporting further debt reduction. Q4 guidance projects continued double-digit revenue growth and margin expansion.
Q2 2026 Q2 2026 2025-10-31
Net sales rose 14.4% to $455.3M, driven by robust Aerospace & Defense growth and steady Industrial performance. Adjusted EPS increased 25.8% to $2.88, with strong free cash flow and a record backlog, while guidance points to continued double-digit growth and margin expansion.
Q1 2026 Q1 2026 2025-08-01
First quarter sales rose 7.3% year-over-year to $436 million, with record free cash flow and strong growth in AeroSpace, Defense, and industrial segments. The VACO acquisition and robust backlog position the company for continued expansion, with Q2 revenue guidance of $445–$455 million.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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