What is the market's earnings forecast for RBC Bearings next quarter?

What factors drove the changes in RBC Bearings's revenue and profit?

What guidance did RBC Bearings's management provide for the next earnings period?

What is the revenue and EPS growth rate for RBC Bearings year over year?

What is RBC Bearings's gross profit margin?

What were the key takeaways from RBC Bearings’s earnings call?

What is RBC Bearings's latest dividend and current dividend yield?

What were the key takeaways from RBC Bearings's earnings call?

- **Revenue Surge**: Q2 sales up 14.4% YoY to $455.3M, driven by 38.8% A&D growth (Commercial +21.6%, Defense +73.3%).
- **Backlog Milestone**: A&D backlog hits $1.6B (vs. $940M Q1), targeting $2B by year-end with submarine and aircraft programs.
- **AI Efficiency**: Engineers using AI tools to solve complex problems in minutes, e.g., tribological coupling analysis.
- **VACCO Integration**: Q2 A&D sales include $24.7M from VACCO, with organic growth 22.4%; VACCO margins expected to improve with RBC synergies.
- **Margin Expansion**: Gross margin 44.1%, free cash flow $71.7M, with Q3 guidance for 44.0-44.25% gross margin.
- **Defense Resilience**: No impact from government shutdown; defense programs remain strong.


**【CEO Summary Section】**
- **Revenue Growth**: Q2 net sales of $455.3 million, up 14.4% YoY, driven by Aerospace & Defense (A&D) segment growth of 38.8% (Commercial: +21.6%, Defense: +73.3%).
- **Backlog Expansion**: A&D backlog reached $1.6 billion (from $940 million in Q1), targeting $2 billion by year-end. Key drivers include submarine and commercial aircraft programs.
- **Capacity Expansion**: Investing in marine and aircraft plants to meet demand, with production capacity constrained but expanding quarterly.
- **AI Adoption**: Using AI tools like ChatGPT for engineering problem-solving, e.g., tribological coupling analysis, to accelerate design iterations.

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EPS of $2.88 (+25.8% YoY), gross margin 44.1% (vs. 43.7% last year), free cash flow $71.7 million (119.5% of net income).
- **VACCO Integration**: Q2 A&D sales included $24.7 million from VACCO, with organic A&D growth 22.4%. VACCO margins (~25%) expected to improve with RBC operational synergies.
- **Debt Management**: Reduced term loan by $45 million in Q2, targeting full term loan payoff by Nov 2026. Revolver extended to 2030.
- **Q3 Guidance**: Revenue $454-462 million (+15.1%-17.1% YoY), gross margin 44.0-44.25%, EBITDA ~$145 million.

**【Q&A Highlights】**
- **Backlog Breakdown**: ~$500 million of Q2 backlog growth attributed to VACCO, rest from organic A&D growth (>20% YoY). 90%+ of backlog in A&D.
- **Production Utilization**: Aerospace plants at 100% capacity, adding shifts and capital to expand. Defense programs (e.g., Virginia/Columbia submarines) driving MRO demand.
- **AI Impact**: Engineers using AI for rapid problem-solving (e.g., tribological coupling queries resolved in 30s vs. weeks). No plans to reduce engineering headcount; AI enhances, doesn't replace, expertise.
- **Boeing Contracts**: New airframe contracts expected to improve margins starting Q1 2027, with most shipments after Jan 1 reflecting renegotiated terms.
- **Defense Resilience**: No impact from government shutdown on order flow; defense programs insulated from political disruptions.
- **VACCO Synergies**: Integrating VACCO's West Coast manufacturing with RBC's Southern California plants to boost production rates and margins.


RBC Bearings Incorporated (RBC) Q2 2026 Earnings Call Transcript

- **Record Q1 Performance**: $436M revenue (+7.3% YoY), $2.84 EPS, and $104.3M free cash flow set new benchmarks.
- **Segment Strength**: A&D up 10.4% YoY, Industrial +5.5% YoY, with $1B+ backlog driven by defense and aerospace.
- **Strategic Acquisitions Paying Dividends**: VACCO to add $15-20M Q2 revenue, aligning with 5-year growth plan.
- **Policy Tailwinds**: U.S. tax incentives for industrial investment poised to boost demand in 2026.
- **Defense Growth Engine**: Backlog exceeds $1B, with potential to double in 12 months, fueled by U.S. submarine fleet expansion.


**【CEO Summary Section】**
- **Q1 2026 Financial Highlights**: Revenue of $436 million (+7.3% YoY), adjusted EPS of $2.84 (+11.8% YoY), and record free cash flow of $104.3 million.
- **Segment Growth**: Aerospace & Defense (A&D) up 10.4% YoY (9.6% commercial aerospace, 11.9% defense), Industrial up 5.5% YoY (distribution & aftermarket +10%).
- **Backlog Milestone**: Exceeds $1 billion for the first time, with $100 million in industrial products.
- **Strategic Acquisitions**: VACCO acquisition to drive defense growth; marine business demand driven by U.S. submarine fleet expansion.
- **Policy Impact**: U.S. tax incentives for industrial capacity investment expected to boost demand for RBC products in 2026.

**【CFO Financial Commentary】**
- **Profitability**: Gross margin 44.8% (44.8% adjusted), EBITDA $141.5 million (+5.6% YoY), interest expense down 29.1% YoY.
- **Free Cash Flow**: $104.3 million (152% conversion), with $200 million revolver draw for VACCO acquisition.
- **Q2 Guidance**: Revenue $445-455 million (+11.8-14.4% YoY), gross margin 44-44.25%, SG&A 17-17.25% of sales.
- **VACCO Contribution**: $15-20 million Q2 revenue, 25-30% margins, with full-year impact to be detailed in next call.

**【Q&A Key Highlights】**
- **5-Year Business Plan**: Detailed revenue and margin projections by account, with focus on aerospace OEMs and defense contracts.
- **CapEx Strategy**: Depreciation ~3-4% of revenue; no significant increase beyond current rates.
- **Industrial Recovery**: 10% Q1 growth in distribution business; tax incentives likely to accelerate small industrial customer expansion.
- **Defense Backlog**: $1 billion+ backlog, primarily defense-related, with potential to double in 12 months.
- **VACCO Integration**: Synergies in engineering, manufacturing, and supply chain; margin improvement expected within 18-24 months.
- **Aerospace Trends**: Strong aftermarket growth (+22.6% in aircraft aftermarket), cautious outlook on commercial aerospace production schedules.
- **Supply Chain**: No major constraints; exotic materials procurement managed through long-term contracts and inventory.


RBC Bearings Incorporated (RBC) Q1 2026 Earnings Call Transcript

- **Revenue growth**: Q4 2025 up 5.8% YoY to $438M, driven by 10.6% A&D growth and 3.3% Industrial expansion. 
- **Margin expansion**: Gross margin 44.2% (vs. 43.1% YoY), with A&D at 41.5% and Industrial at 45.7%. 
- **Debt deleverage**: FY2025 debt repayment of $275M reduces net leverage to 1.7x. 
- **2026 outlook**: Commercial aerospace +15%, defense mid- to high-single digits, with A&D plants at 70% capacity. 
- **M&A focus**: Aerospace/defense and industrial deals with accretive synergies. 
- **Tariff resilience**: Minimal impact expected, with pricing and supply chain mitigation strategies. 
- **Free cash flow**: Targeting 100% conversion, with $275M+ annual debt repayment. 


**【CEO Summary Section】**
- Q4 2025 revenue: $438 million (+5.8% YoY), driven by 10.6% growth in A&D segment and 3.3% in Industrial. 
- Gross margin: 44.2% (vs. 43.1% YoY), with A&D at 41.5% and Industrial at 45.7%. 
- Adjusted EPS: $2.83 (+14.6% YoY). 
- FY2025 A&D growth: 14% (13.3% commercial, 15.9% defense). 
- FY2025 debt repayment: $275M, reducing net leverage to 1.7x. 
- 2026 outlook: Commercial aerospace +15%, defense mid- to high-single digits. 

**【CFO Financial Commentary】**
- Q4 2025: 
  - Free cash flow: $55M (76% conversion). 
  - Interest expense: $12.8M (-31.8% YoY). 
  - Tax rate: 21.7%. 
- Q1 2026 guidance: 
  - Revenue: $424-434M (+4.4%-6.8% YoY). 
  - Gross margin: 44.25-44.75% (midpoint +100bps YoY). 
  - Full year margin expansion: 50-100bps. 
- 2026 priorities: Margin expansion, M&A, 3%-3.5% CapEx. 

**【Q&A Highlights】**
- **Commercial aerospace**: Boeing 737 MAX production ramping to 38/month, targeting 50/month in 2026. 
- **Industrial growth**: Dodge OEM sales +10% QoQ, driven by service level improvements and new product launches. 
- **Tariffs**: Minimal impact expected, with pricing and supply chain mitigation strategies. 
- **M&A pipeline**: Active in aerospace/defense and industrial, focusing on accretive deals with strong customer overlap. 
- **Capacity constraints**: 70% of A&D plants at capacity, with $275M+ invested in 2025 to expand production. 
- **Defense demand**: Submarines, missiles, and space programs driving double-digit growth. 
- **Free cash flow**: Targeting 100% conversion, with $275M+ annual debt repayment. 


RBC Bearings (RBC)-16 May 25-2025 Q4 Earnings call transcript

- **Revenue growth**: Q3 2025 net sales $394 million (+5.5% YoY), driven by A&D (+10.7% YoY) and Industrial (+2.7% YoY). 
- **Margin expansion**: Gross margin 44.3% (+205 bps YoY), EBITDA margin 31.1% (+180 bps YoY). 
- **Debt deleveraging**: $100 million debt reduction, net leverage 1.8x. 
- **FY25 outlook**: A&D mid-teens growth, Industrial flat YoY with H2 strength. 
- **Tariff resilience**: Minimal impact from Mexico tariffs; China tariffs (10%) negligible. 
- **M&A focus**: Active pipeline, prioritizing accretive deals post-deleveraging.

**【CEO Opening Remarks】**
- Q3 2025 net sales: $394 million (+5.5% YoY), driven by Aerospace & Defense (A&D) segment growth of 10.7% YoY.
- A&D breakdown: Commercial Aerospace +14.6%, Defense +3%. Industrial segment +2.7% YoY (distribution & aftermarket +8%, OEM -8.2%).
- Gross margin improved 205 bps YoY to 44.3%, driven by capacity utilization, Dodge synergies, and operational efficiency.
- Free cash flow: $74 million (+4.2% YoY). Debt reduced by $100 million, net leverage 1.8x.
- FY25 outlook: A&D mid-teens growth, Industrial flat YoY with strong H2 exit.
- Tariffs & M&A: Mexico plants' minimal impact from tariffs; M&A pipeline active, focusing on accretive deals post-deleveraging.

**【CFO Financial Details】**
- Adjusted EBITDA: $122.6 million (+12% YoY), margin 31.1% (up 180 bps YoY).
- Interest expense: $14.2 million (-26.4% YoY) due to debt repayment and lower rates.
- Q4 2025 guidance: Revenue $434-444 million (+4.9%-7.3% YoY), gross margin 44.0-44.5%, SG&A 16-16.5% of sales.
- Preferred stock conversion removes $23 million annual dividend, enhancing cash flow.

**【Q&A Highlights】**
- **Industrial recovery**: Ex-oil & gas, Industrial +4.4% YoY; oil & gas OEM down due to inventory correction, expected normalization by mid-2026.
- **Defense capacity**: Submarine plant expansion in Tucson (leased, no capex impact); munitions capacity additions within capex budget.
- **Tariff resilience**: Mexico plants' minimal tariff exposure; China tariffs (if 10%) negligible, 50% tariffs could drive supply chain shifts.
- **Aerospace visibility**: Boeing/Airbus 12-year backlog; FY26 Commercial Aerospace comps favorable, potential mid-teens+ growth.
- **M&A strategy**: Prioritize organic growth; seek top-tier management teams, scale, and strategic fit; cautious amid high PE valuations.

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