Wasatch Global Investors, an asset management company, released its "Small Cap Growth Strategy" Q4 2025 investor letter. A copy of the letter can be downloaded here. The Wasatch Small Cap Growth Strategy experienced a challenging fourth quarter as small-cap equities lagged broader market indices, reflecting investor caution and a continued preference for larger, more liquid stocks. During the period, the Russell 2000® Growth Index gained 1.22%, while the strategy finished the quarter in negative territory, ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, February 12th:Allied Gold Corporation (AAUC) : This gold producer, which operates a portfolio of producing assets and development projects located principally in Cote d'Ivoire, Mali and Ethiopia, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.8% over the last 60 days.Allied Gold Corporation’s shares gained 87.6% over the last three ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong growth stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - RBC Bearings is identified as a cutting-edge growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company is a manufacturer of bearings and components, which positions it well for growth [3] Group 2: Earnings Growth - Historical EPS growth rate for RBC Bearings is 27.4%, with projected EPS growth of 22.7% this year, significantly higher than the industry average of 10.1% [5] Group 3: Cash Flow Growth - RBC Bearings has a year-over-year cash flow growth of 8.3%, surpassing the industry average of 3.6% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 21.3%, compared to the industry average of 10.3% [7] Group 4: Earnings Estimate Revisions - Current-year earnings estimates for RBC Bearings have been revised upward, with the Zacks Consensus Estimate increasing by 4.1% over the past month [9] Group 5: Investment Positioning - RBC Bearings holds a Zacks Rank of 2 and a Growth Score of B, indicating strong potential for outperformance in the growth stock category [10]

Core Insights - The company reported strong performance in the aerospace and defense (A&D) markets, with total A&D sales increasing by 41.5% year-over-year, driven by a 21.5% rise in commercial aerospace and an 86.2% increase in defense sales [1][6] - The company achieved net sales of $461 million in the third quarter, reflecting a 17% increase from the previous year, with adjusted diluted earnings per share rising to $3.04, a 30% improvement [3][7] - The company is focused on debt reduction, having paid down $81 million during the quarter and an additional $67 million since, targeting full term-loan payoff by November 2026 [2][16] Financial Performance - Adjusted EBITDA increased to $149.6 million from $122.6 million, marking a 22% rise year-over-year [2] - Free cash flow for the quarter was reported at $99.1 million, with a free cash flow conversion rate of 147%, up from 127% the previous year [2][16] - The company guided for Q4 revenue between $495 million and $505 million, indicating a year-over-year growth of 13.1% to 15.4% [5][18] Market Dynamics - A&D gross margin was reported at 40.1% (or 42.2% adjusted), with improvements attributed to better plant efficiencies and pricing on customer contracts [8] - The backlog for A&D activities exceeded $2 billion, with potential incremental backlog of $500 million to $1 billion from extended contract awards [6][8] - Industrial revenue grew modestly by 3.1% year-over-year, with signs of improving demand in sectors such as semiconductors, food and beverage, and warehousing [10][11] Strategic Initiatives - The company plans to introduce several new industrial products through fiscal 2027, leveraging the Dodge acquisition for product development [12] - Management highlighted the importance of product availability and brand strength in the MRO sector, particularly for the Dodge brand [14] - A new service center is being opened in the Midwest to enhance customer service capabilities [12]

Core Insights - RBC Bearings Incorporated reported adjusted earnings of $3.04 per share for Q3 fiscal 2026, exceeding the Zacks Consensus Estimate of $2.85, marking a 29.9% increase from the previous year's adjusted earnings of $2.34 per share, driven by higher revenues [1][10] Revenue Details - RBC Bearings' revenues reached $461.6 million, reflecting a 17% year-over-year increase and surpassing the Zacks Consensus Estimate of $461.1 million [2] - The company ended the quarter with a backlog of $2.1 billion, up from $1.6 billion at the end of Q2 fiscal 2026 [2] Segmental Performance - The Industrial segment generated revenues of $259.1 million, accounting for 56.1% of total revenues, which is a 3.1% increase year over year, slightly below the consensus estimate of $260 million [3] - Aerospace/Defense segment revenues totaled $202.5 million, representing 43.9% of total revenues, and increased by 41.5% year over year, exceeding the consensus estimate of $190 million [4] Margin Profile - Cost of sales rose 17.2% year over year to $257.2 million, while gross profit increased by 16.9% to $204.4 million, maintaining a gross margin of 44.3% [5] - Adjusted gross margin improved by 80 basis points to 45.1% [5] - Selling, general and administrative expenses (SG&A) were $77.9 million, up 11.1% year over year, with adjusted EBITDA rising 22% to $149.6 million and an adjusted EBITDA margin of 32.4%, up 130 basis points [5] Balance Sheet and Cash Flow - At the end of Q3 fiscal 2026, RBC had cash and cash equivalents of $107.6 million, up from $36.8 million at the end of fiscal 2025, and long-term debt decreased to $701.6 million from $918.4 million [7] - In the first nine months of fiscal 2026, net cash generated from operating activities was $330.5 million, a 47.3% increase year over year, with capital expenditure rising 55.6% to $55.4 million [8] Outlook - For Q4 fiscal 2026, management expects net sales to be between $495.0 million and $505.0 million, indicating a year-over-year increase of 13.1% to 15.4%, with an organic growth projection of 6.4% to 8.7% [11] - Gross margin is anticipated to be in the range of 45% to 45.25%, and SG&A as a percentage of net sales is expected to be between 16% and 16.25% [11]

Company Overview - RBC Bearings Incorporated (NYSE:RBC) develops and sells engineered precision bearings, components, and essential systems, operating through Aerospace/Defense and Industrial segments. The company offers various types of bearings, including journal, roller, and spherical plain bearings, and specializes in plain bearings with metal-to-metal or self-lubricating designs [3]. Analyst Ratings and Price Targets - On January 9, Michael Ciarmoli from Truist Financial raised his price target for RBC Bearings from $471 to $542 and reaffirmed his buy rating, citing a positive outlook for the Aerospace & Defense industry in 2026 driven by increased aircraft manufacturing and sustained aftermarket demand [1]. - KeyBanc analyst Steve Barger also raised his price target on RBC Bearings from $475 to $535 and assigned an Overweight rating, based on expectations of elevated revenues, improved margins, and a modestly lower tax bill [2]. Industry Outlook - The Aerospace & Defense industry is expected to maintain a positive outlook due to strong performance in the previous year, with demand supported by recapitalization, geopolitical developments, and replenishment needs, despite fewer catalysts for growth [1].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 27, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-40840 RBC BEARINGS INCORPORATED (Exact name of registrant as specified in its charter) | Delaware | 95-4372080 | | --- | --- | | (State ...

Financial Data and Key Metrics Changes - Third quarter net sales were $461 million, a 17% increase year-over-year [4] - Consolidated gross margin for the quarter was 44.3%, with an adjusted gross margin of 45.1% [4][13] - Adjusted diluted EPS was $3.04, representing a 30% improvement from $2.34 a year ago [4] - EBITDA increased to $149.6 million, up 22% from $122.6 million last year [4][16] - Free cash flow for the period was $99.1 million, with a conversion rate of 147% [16] Business Line Data and Key Metrics Changes - Aerospace & Defense (A&D) sales increased by 41.5% year-over-year, with commercial aerospace expanding by 21.5% and defense by 86.2% [5][13] - Industrial business grew by 3.1%, with industrial distribution up 1.5% and OEM sector up 7% [10][11] - A&D gross margins were 40.1%, or 42.2% on an adjusted basis, while industrial margins were 47.5% [14] Market Data and Key Metrics Changes - 56% of revenues were from industrial sectors, while 44% came from A&D [5] - The company has exceeded a $2 billion backlog, indicating strong demand across A&D sectors [5] - The semiconductor industry showed significant demand growth, contributing positively to order trends [11] Company Strategy and Development Direction - The company is focused on expanding its A&D revenues by adding machinery and staff to support growth [10] - A five-year plan is in place to enhance production capabilities across existing sites [10] - The company aims to maintain a capital allocation strategy focused on deleveraging and paying off debt [16] Management's Comments on Operating Environment and Future Outlook - Management described the A&D sector's outlook as extremely robust, driven by national defense priorities and commercial aircraft build rates [6][10] - The company expects continued margin improvement in A&D due to increased efficiencies and better pricing on contracts [14] - For the fourth quarter, revenue guidance is set at $495 million to $505 million, representing year-over-year growth of 13.1% to 15.4% [17] Other Important Information - The company paid down an additional $81 million of debt during the third quarter [5][16] - Interest expense decreased by 8.5% year-over-year, reflecting improved leverage and lower interest rates [15] Q&A Session Summary Question: Can you provide details on the industrial business outlook for Q4 and 2027 growth? - Management expects Q4 growth to be similar to Q3, with positive PMI trends indicating a bullish sign for the business [20] Question: What is the composition of the backlog and its relationship with revenue? - Over 90% of the backlog is from the A&D market, with some contracts extending beyond 12-24 months [28] Question: How do you view the growth potential for the missile business relative to commercial aerospace? - Management indicated that while missile business growth is significant, it is not expected to surpass the commercial aircraft business [48] Question: Can you clarify the production rates for Boeing and Airbus programs? - Boeing is increasing production rates, with the 737 aiming for 60 units per month in the near future [57] Question: What is the expected capital expenditure for the upcoming periods? - Capital expenditures are expected to remain around 3.5% of revenue, with modest investments to meet demand [75]

Financial Data and Key Metrics Changes - Third quarter net sales were $461 million, a 17% increase year-over-year [4] - Consolidated gross margin for the quarter was 44.3%, with an adjusted gross margin of 45.1% [4][13] - Adjusted diluted EPS was $3.04, representing a 30% improvement from $2.34 a year ago [4] - EBITDA increased to $149.6 million, up 22% from $122.6 million last year [4][16] - Free cash flow for the period was $99.1 million, with a conversion rate of 147% [16] Business Line Data and Key Metrics Changes - Aerospace & Defense (A&D) sales increased by 41.5% year-over-year, with commercial aerospace expanding by 21.5% and defense by 86.2% [5][13] - Industrial business grew by 3.1%, with industrial distribution up 1.5% and OEM sector up 7% [10][11] - A&D gross margins were 40.1%, or 42.2% on an adjusted basis, while industrial margins were 47.5% [13][14] Market Data and Key Metrics Changes - 56% of revenues were from industrial sectors, while 44% came from A&D [5] - Demand in the A&D sector remains robust, with a backlog exceeding $2 billion [5][6] - The semiconductor industry showed significant recovery, contributing positively to order demand [11] Company Strategy and Development Direction - The company is focused on expanding its A&D revenues by adding machinery and staff to support growth [10] - A five-year plan is in place to enhance production capabilities across existing sites [10] - The capital allocation strategy emphasizes deleveraging by using generated cash to pay off debt [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the A&D sector, describing it as extremely robust with unprecedented demand for products [6][10] - The outlook for the fourth quarter projects revenues between $495 million and $505 million, indicating year-over-year growth of 13.1% to 15.4% [17] - Management expects continued margin improvement driven by efficiencies and better pricing on customer contracts [14] Other Important Information - The company paid down an additional $81 million of debt during the third quarter [5][16] - Interest expense decreased by 8.5% year-over-year, reflecting improved leverage and lower interest rates [15] Q&A Session Summary Question: Can you provide insights on the industrial business and revenue outlook for Q4? - Management expects Q4 growth to resemble Q3, with a slightly conservative outlook for the industrial side [20] Question: Are there other applications for the quiet running valve technology outside submarines? - The technology has applications in space on satellites [21] Question: What is the composition of the backlog and its relationship with future revenue? - Over 90% of the backlog is from the A&D market, with some contracts extending beyond 12-24 months [28] Question: How do you see the industrial business performing relative to peers? - Management anticipates the industrial business will outperform peers, expecting high single-digit growth [92] Question: Can you clarify the production rates for Boeing and Airbus programs? - Boeing is increasing production rates, with the 737 aiming for 60 per month in the near future [57] Question: What is the expected growth for the missile business relative to commercial aerospace? - The missile business is expected to grow but will not reach the size of the commercial aircraft business [48]