RBC Bearings (RBC)
NYSE:RBC
Top Page
RBC Bearings
(NYSE:RBC)
Select Model
Select Model
Rating:79Outperform
Price Target:
$596.00
▲(2.66% Upside)
Action:ReiteratedDate:02/06/26
Score is driven primarily by strong financial fundamentals (high margins, robust free cash flow, and a materially de-risked balance sheet) and a positive earnings update with solid growth and guidance. Offsetting factors are a rich valuation (P/E ~61) and somewhat extended technical momentum (RSI ~72, Stoch ~85), which can raise near-term downside risk despite the uptrend.
Positive Factors
High gross margins & profitability
Sustained high gross and operating margins reflect engineering-led pricing power and product complexity in aerospace, defense and industrial niches. These margins support durable operating cash flow, fund reinvestment in R&D/capacity, and sustain competitive advantage over multi-year cycles.
Negative Factors
Backlog concentrated in A&D
Heavy backlog concentration in aerospace & defense creates revenue concentration risk tied to program timing and government/prime contractor cycles. Industrial demand remains short-cycle, offering less multi-year revenue visibility and increasing sensitivity to A&D cadence and contract extensions.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins & profitability
Sustained high gross and operating margins reflect engineering-led pricing power and product complexity in aerospace, defense and industrial niches. These margins support durable operating cash flow, fund reinvestment in R&D/capacity, and sustain competitive advantage over multi-year cycles.
Read all positive factors
RBC Bearings (RBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.36B
Dividend YieldN/A
Average Volume (3M)176.68K
Price to Earnings (P/E)53.4
Beta (1Y)0.93
Revenue Growth8.27%
EPS Growth19.06%
CountryUS
Employees5,302
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)3.04
Shares Outstanding31,618,961
10 Day Avg. Volume145,226
30 Day Avg. Volume176,680
Financial Highlights & Ratios
PEG Ratio1.98
Price to Book (P/B)3.24
Price to Sales (P/S)6.00
P/FCF Ratio40.25
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue10.81
Enterprise Value/Gross Profit25.66
Enterprise Value/Ebitda37.08
Forecast
1Y Price Target
$622.25Price Target Upside7.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)13.95
Revenue Forecast (FY)$2.08B
RBC Bearings Business Overview & Revenue Model
Company Description
RBC Bearings Incorporated manufactures and markets engineered precision bearings and components in the United States and internationally. It operates through two segments, Aerospace/Defense and Industrial. The company produces plain bearings with ...
How the Company Makes Money
RBC Bearings generates revenue through the sale of its precision bearings and related products to various sectors, including aerospace, defense, and industrial applications. The company's revenue model is primarily based on direct sales to origina...
RBC Bearings Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 15, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial performance with notable strengths: double‑digit consolidated revenue growth (17%), robust A&D expansion (41.5%), margin improvement (44.3% consolidated, 45.1% adjusted), substantial EBITDA and EPS growth (~22% and ~30% respectively), strong free cash flow and aggressive debt reduction. Management highlighted a healthy backlog, secular tailwinds in A&D (submarines, missiles, space, commercial aircraft), and improving industrial end‑markets with new products supporting FY27. Key risks include modest industrial growth (3.1%), A&D/ VACCO integration timing and lumpiness, an A&D vs industrial margin gap that will improve gradually, and seasonal/absorption headwinds. Overall, the positives (top‑line momentum, margin recovery, cash generation, debt paydown, and a strong backlog) outweigh the lowlights.Positive Updates
Revenue Growth
Net sales of $161.0M, up 17.0% year‑over‑year, driven by strength in aerospace & defense and industrial businesses.
Negative Updates
Relatively Modest Industrial Growth
Industrial revenue rose only 3.1% year‑over‑year (distribution +1.5%, OEM +7%), indicating industrial remains a slower growth area compared with A&D despite improving end‑market signals.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Net sales of $161.0M, up 17.0% year‑over‑year, driven by strength in aerospace & defense and industrial businesses.
Read all positive updates
Company Guidance
The company guided Q4 revenues of $495–$550 million (year‑over‑year growth of +13.1% to +15.4%), adjusted gross margin of 45.0%–45.25%, and SG&A of 16.0%–16.25% of sales. For context, Q3 results included net sales of $161 million (+17% YoY), adjusted gross margin 45.1% (reported 44.3%), adjusted diluted EPS $3.04 (+29.9% YoY), adjusted EBITDA $149.6 million (32.4% of sales, +22% YoY), free cash flow $99.1 million (147% cash conversion), interest expense $13 million (‑8.5% YoY), and $81 million of debt paid down in the quarter (plus $67 million since quarter end); management reiterated a capital‑allocation focus on deleveraging (expecting to retire the term loan by November 2026), a full‑year CapEx run‑rate of roughly 3.5%–<4% of sales, and noted backlog slightly above $2.0 billion (A&D >90% of backlog) with a potential incremental $0.5–$1.0 billion if contract scopes are extended.RBC Bearings Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.79B | 1.64B | 1.56B | 1.47B | 942.90M | 609.00M |
| Gross Profit | 754.40M | 726.10M | 670.50M | 604.80M | 357.10M | 234.10M |
| EBITDA | 521.90M | 491.70M | 459.80M | 401.80M | 185.70M | 146.80M |
| Net Income | 268.60M | 246.20M | 209.90M | 166.70M | 54.70M | 90.10M |
Balance Sheet | ||||||
| Total Assets | 5.14B | 4.69B | 4.68B | 4.69B | 4.85B | 1.43B |
| Cash, Cash Equivalents and Short-Term Investments | 107.60M | 36.80M | 63.50M | 65.40M | 182.86M | 241.34M |
| Total Debt | 1.11B | 1.03B | 1.29B | 1.49B | 1.78B | 51.81M |
| Total Liabilities | 1.88B | 1.65B | 1.93B | 2.15B | 2.47B | 202.16M |
| Stockholders Equity | 3.26B | 3.03B | 2.75B | 2.54B | 2.37B | 1.23B |
Cash Flow | ||||||
| Free Cash Flow | 330.10M | 243.80M | 241.50M | 178.60M | 150.50M | 140.60M |
| Operating Cash Flow | 399.70M | 293.60M | 274.70M | 220.60M | 180.30M | 152.40M |
| Investing Cash Flow | -344.60M | -49.80M | -52.20M | -14.00M | -2.85B | -101.50M |
| Financing Cash Flow | -7.30M | -270.40M | -223.50M | -322.80M | 2.70B | -3.40M |
RBC Bearings Technical Analysis
Positive
580.55
Price Trends
545.57
Positive
501.38
Positive
446.40
Positive
Market Momentum
0.51
Negative
53.28
Neutral
65.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBC, the sentiment is Positive. The current price of 580.55 is above the 20-day moving average (MA) of 546.01, above the 50-day MA of 545.57, and above the 200-day MA of 446.40, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 65.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBC.
RBC Bearings Risk Analysis
RBC Bearings disclosed 10 risk factors in its most recent earnings report. RBC Bearings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RBC Bearings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $18.36B | 53.36 | 8.53% | ― | 8.27% | 19.06% | |
78 Outperform | $19.76B | 17.98 | 17.70% | 2.52% | 0.24% | -1.85% | |
72 Outperform | $13.94B | 25.51 | 37.15% | 1.22% | 3.27% | 10.89% | |
72 Outperform | $7.36B | 20.35 | 9.35% | 1.61% | -1.01% | -12.13% | |
65 Neutral | $2.89B | 16.15 | 8.61% | 2.74% | -2.63% | -4.46% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $11.09B | 28.82 | 4.47% | 4.42% | -1.40% | ― |
* Industrials Sector Average
RBC
RBC Bearings
580.55
255.30
78.49%
KMT
Kennametal
37.93
20.18
113.70%
LECO
Lincoln Electric Holdings
254.40
79.82
45.72%
SNA
Snap-on
380.62
66.80
21.29%
SWK
Stanley Black & Decker
71.49
15.50
27.67%
TKR
Timken Company
105.88
46.65
78.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.