How did RBC's revenue and expenses trend in Q3 2025?

**RBC Bearings Inc. (RBC) experienced a positive revenue trend with improved gross margins and financial flexibility in Q3 2025**, as evidenced by the following key points: 1. **Revenue Growth**: RBC's Aerospace/Defense segment showcased robust performance with a 10.7% year-over-year sales increase despite headwinds from a commercial aerospace OEM strike. The Industrial segment also saw growth, with revenues up 2.7% year-over-year in Q3 2025. This broad-based revenue growth reflects RBC's strategic focus on organic growth initiatives and market share gains. 2. **Gross Margin Improvement**: The company reported a decrease in interest expense from $19.3 million in Q3 2024 to $14.2 million in Q3 2025, indicating improved financial efficiency. This reduction is attributed to debt repayment and lower interest rates, which has significantly improved RBC's financial flexibility. 3. **Financial Flexibility and Debt Reduction**: RBC Bearings has made substantial progress in reducing its long-term debt, which stood at $188 million as of March 2024. The company's debt reduction strategy has enhanced its ability to pursue strategic acquisitions or organic growth initiatives, leveraging improved free cash flow conversion. 4. **Strategic Initiatives**: RBC Bearings has been actively pursuing strategic initiatives to strengthen its business, including the acquisition of Specline, Inc. in August 2023, which expanded its aerospace product offerings and boosted production capacity. The company remains committed to rewarding shareholders through dividends and share buybacks, with significant amounts distributed in recent years. In conclusion, RBC Bearings Inc. demonstrated strong revenue growth, improved gross margins, and enhanced financial flexibility in Q3 2025, positioning the company well for future expansion and value creation for its shareholders.