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RBC Bearings (RBC)
NYSE:RBC
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RBC Bearings
(NYSE:RBC)
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Rating:77Outperform
Price Target:
$503.00
▲(11.83% Upside)
RBC Bearings' strong financial performance and positive earnings call insights are the most significant factors driving the stock score. The bullish technical indicators support the positive outlook, though the high valuation and challenges in certain segments temper the overall score.
Positive Factors
Aerospace and Defense Growth
Strong growth in the Aerospace and Defense segment indicates robust demand and strengthens RBC Bearings' market position in these critical sectors.
Backlog Growth
A growing backlog suggests sustained demand and revenue visibility, supporting long-term financial stability and operational planning.
Strong Free Cash Flow
Robust free cash flow generation enhances financial flexibility, allowing RBC Bearings to invest in growth opportunities and manage debt effectively.
Negative Factors
Industrial OEM Sector Decline
Weakness in the industrial OEM sector could impact revenue diversification and growth, posing a challenge to maintaining balanced segment performance.
VACCO Margin Drag
The margin impact from the VACCO acquisition could pressure profitability, necessitating strategic adjustments to integrate and optimize acquired operations.
Rising Debt Levels
Rising debt levels may strain financial resources and limit flexibility, potentially affecting the company's ability to fund future growth initiatives.
RBC Bearings (RBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.07B
Dividend YieldN/A
Average Volume (3M)173.49K
Price to Earnings (P/E)54.9
Beta (1Y)0.93
Revenue Growth8.27%
EPS Growth19.06%
CountryUS
Employees5,302
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)2.88
Shares Outstanding31,611,443
10 Day Avg. Volume196,308
30 Day Avg. Volume173,487
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 Cap0.94
Enterprise Value/Revenue7.66
Enterprise Value/Gross Profit17.29
Enterprise Value/Ebitda26.14
Forecast
1Y Price Target
$495.75Price Target Upside10.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)11.81
Revenue Forecast (FY)$1.86B
RBC Bearings Business Overview & Revenue Model
Company DescriptionRBC Bearings is a leading manufacturer and designer of highly engineered precision bearings and components, primarily serving the aerospace, defense, and industrial markets. The company offers a wide range of products, including roller bearings, ball bearings, and custom-engineered solutions tailored to meet specific customer needs. RBC Bearings operates through various segments, including Aerospace, Industrial, and Defense, focusing on innovation and quality to maintain a competitive edge in the bearing industry.
How the Company Makes MoneyRBC 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 original equipment manufacturers (OEMs) and distributors. Key revenue streams include standard product lines and custom-engineered solutions that cater to specific customer requirements. The company also benefits from long-term contracts and relationships with major aerospace and defense contractors, which provide stability and predictability in revenue. Additionally, RBC Bearings invests in research and development to innovate and expand its product offerings, further enhancing its market position and driving sales growth.
RBC Bearings Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong growth and performance in the Aerospace and Defense segment, significant backlog growth, and improved financial metrics such as gross margin and adjusted EPS. However, there were challenges in the industrial OEM sector and the impact of the VACCO acquisition on margins. Overall, the strong performance in key segments and strategic acquisitions indicate a positive outlook.Q2-2026 Updates
Positive Updates
Strong Revenue Growth
Net sales for the second quarter were $455.3 million, marking a 14.4% increase over the previous year. This growth was driven by strong performance in the Aerospace and Defense segment.
Aerospace and Defense Segment Expansion
Aerospace and Defense sales increased by 38.8% year-on-year, with commercial aerospace expanding 21.6% and defense expansion at 73.3%.
Backlog Growth
The backlog increased to $1.6 billion from $940 million in March and $860 million last year, with expectations to approach $2 billion by year's end.
Gross Margin Improvement
Consolidated gross margin for the quarter was 44.1%, up from 43.7% the previous year.
Adjusted EPS Increase
Adjusted earnings per share increased to $2.88 from $2.29 last year, representing a 25.8% increase.
Strong Free Cash Flow
Free cash flow for the period was strong at $71.7 million, with a conversion rate of 119.5%.
Successful Acquisition
The acquisition of VACCO contributed $24.7 million of net sales during the period.
Negative Updates
Industrial OEM Sector Decline
The industrial OEM sector saw a decline of 4.7%, with continued weakness in markets such as oil, semiconductor machinery, and European machine tools.
Sequential Decline in Industrial Distribution
Industrial distribution was up 3.3% year-on-year but down 8% sequentially, attributed to strong orders in the first quarter not repeating.
VACCO Margin Drag
The VACCO acquisition resulted in a dilution of approximately 360 basis points on margins, with current margins in the mid-20s compared to RBC's typical margins.
Company Guidance
During RBC Bearings' Fiscal Second Quarter 2026 Earnings Call, company leadership provided robust guidance and insights into their financial performance and future outlook. The company reported net sales of $455.3 million, marking a 14.4% increase year-over-year, driven by strong growth in the Aerospace and Defense (A&D) segment, which saw total sales rise by 38.8%. Consolidated gross margin improved to 44.1%, with adjusted EPS at $2.88, up from $2.29 the prior year. Free cash flow was recorded at $71.7 million. The company's backlog surged to $1.6 billion, with expectations to approach $2 billion by fiscal year-end. For the third quarter, RBC Bearings is guiding revenues between $454 million and $462 million, indicating year-over-year growth of 15.1% to 17.1%, and projecting adjusted gross margins between 44% and 44.25%. The company is actively expanding manufacturing capacities to meet strong demand, particularly from their marine, aircraft, and engine customers, and has extended its credit facility to support these efforts.RBC Bearings Financial Statement Overview
Summary
RBC Bearings shows strong financial performance with robust revenue growth, improved net profit margins, and efficient cash flow management. The balance sheet is solid with low debt levels and strong equity, supporting financial stability.Income Statement
RBC Bearings demonstrates strong revenue growth, with a TTM increase of 8.85% from the previous annual report. Gross Profit Margin is stable at approximately 44.26%. Net Profit Margin has improved to 15.2% TTM, indicating enhanced profitability. EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio is low, with a notable reduction in total debt, improving financial stability. Stockholders' equity covers 65.06% of total assets, indicating a solid equity base. Return on Equity of 8.13% TTM shows reasonable profitability on shareholder investments.78
Positive
Cash Flow
Free Cash Flow has grown by 6.52% over the last year, showcasing efficient cash management. The operating cash flow to net income ratio of 1.25 TTM suggests effective operational cash generation. Free cash flow to net income ratio of 1.03 indicates strong cash conversion.82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.72B | 1.64B | 1.56B | 1.47B | 942.90M | 609.00M |
| Gross Profit | 764.10M | 726.10M | 670.50M | 604.80M | 357.10M | 234.10M |
| EBITDA | 505.30M | 491.70M | 459.80M | 401.80M | 185.70M | 146.80M |
| Net Income | 259.10M | 246.20M | 209.90M | 166.70M | 54.70M | 90.10M |
Balance Sheet | ||||||
| Total Assets | 5.11B | 4.69B | 4.68B | 4.69B | 4.85B | 1.43B |
| Cash, Cash Equivalents and Short-Term Investments | 91.20M | 36.80M | 63.50M | 65.40M | 182.86M | 241.34M |
| Total Debt | 1.14B | 1.03B | 1.29B | 1.49B | 1.78B | 51.81M |
| Total Liabilities | 1.92B | 1.65B | 1.93B | 2.15B | 2.47B | 202.16M |
| Stockholders Equity | 3.19B | 3.03B | 2.75B | 2.54B | 2.37B | 1.23B |
Cash Flow | ||||||
| Free Cash Flow | 304.60M | 243.80M | 241.50M | 178.60M | 150.50M | 140.60M |
| Operating Cash Flow | 361.60M | 293.60M | 274.70M | 220.60M | 180.30M | 152.40M |
| Investing Cash Flow | -332.00M | -49.80M | -52.20M | -14.00M | -2.85B | -101.50M |
| Financing Cash Flow | -27.40M | -270.40M | -223.50M | -322.80M | 2.70B | -3.40M |
RBC Bearings Technical Analysis
Positive
449.77
Price Trends
423.97
Positive
406.64
Positive
381.62
Positive
Market Momentum
7.64
Positive
57.39
Neutral
56.99
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 449.77 is above the 20-day moving average (MA) of 443.81, above the 50-day MA of 423.97, and above the 200-day MA of 381.62, indicating a bullish trend. The MACD of 7.64 indicates Positive momentum. The RSI at 57.39 is Neutral, neither overbought nor oversold. The STOCH value of 56.99 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $18.00B | 18.14 | 17.96% | 2.56% | 0.24% | -1.85% | |
77 Outperform | $14.07B | 54.88 | 8.54% | ― | 8.27% | 19.06% | |
77 Outperform | $13.32B | 25.95 | 38.11% | 1.23% | 3.27% | 10.89% | |
76 Outperform | $5.86B | 19.90 | 9.80% | 1.64% | -1.01% | -12.13% | |
72 Outperform | $2.17B | 23.40 | 7.36% | 2.81% | -2.63% | -4.46% | |
68 Neutral | $11.14B | 24.88 | 4.92% | 4.52% | -1.40% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
RBC
RBC Bearings
449.77
143.49
46.85%
KMT
Kennametal
28.43
4.71
19.86%
LECO
Lincoln Electric Holdings
243.69
56.72
30.34%
SNA
Snap-on
345.94
11.41
3.41%
SWK
Stanley Black & Decker
72.94
-5.40
-6.89%
TKR
Timken Company
84.92
14.57
20.71%
RBC Bearings Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
RBC Bearings Extends Credit Agreement with Wells Fargo
Positive
Oct 30, 2025
On October 28, 2025, RBC Bearings Incorporated and its subsidiary, Roller Bearing Company of America, Inc., amended their Credit Agreement with Wells Fargo Bank to extend the expiration date of their $500 million revolving credit facility to October 28, 2030, and remove the consolidated interest coverage ratio covenant. This amendment maintains the existing terms of the $1.3 billion term loan, which remains due on November 2, 2026, potentially enhancing the company’s financial flexibility and operational stability.
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.