Company Overview - RBC Bearings Incorporated (RBC) shares increased by 9.4% to close at $333.39, following a period of 10.7% loss over the past four weeks, indicating a significant recovery in stock performance [1] - The company is expected to report quarterly earnings of $2.68 per share, reflecting an 8.5% year-over-year increase, with revenues projected at $440.81 million, up 6.6% from the previous year [2] Market Drivers - The recent rally in RBC's stock is primarily attributed to optimism surrounding the commercial aerospace market, bolstered by strong growth in aftermarket orders [2] - Additional strength in sectors such as mining, metals, food, and beverage markets is also favorable for the company's outlook [2] Earnings Estimates and Stock Performance - The consensus EPS estimate for RBC has remained unchanged over the last 30 days, suggesting stability in earnings expectations [4] - Historical data indicates a strong correlation between earnings estimate revisions and stock price movements, highlighting the importance of monitoring future revisions for RBC [3][4] Industry Context - RBC Bearings is part of the Zacks Manufacturing - General Industrial industry, where another company, Tennant (TNC), saw a 5.9% increase in its stock price, although it has experienced an 18.4% decline over the past month [4] - Tennant's EPS estimate has also remained unchanged, with a year-over-year change of -23.8%, and it currently holds a Zacks Rank of 4 (Sell) [5]

Core Viewpoint - RBC Bearings has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, making it a valuable tool for investors [2][4]. - For the fiscal year ending March 2025, RBC Bearings is expected to earn $9.83 per share, reflecting a 14% increase from the previous year, with a 2.4% rise in the Zacks Consensus Estimate over the past three months [8]. Investment Implications - The upgrade to Zacks Rank 1 suggests that RBC Bearings is positioned in the top 5% of stocks covered by Zacks, indicating strong potential for price appreciation in the near term due to improved earnings outlook [10]. - The Zacks Rank system has a proven track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988, highlighting the effectiveness of earnings estimate revisions in predicting stock performance [7].

Core Viewpoint - RBC Bearings Incorporated is positioned to benefit from strong business performance, acquisition synergies, and shareholder-friendly policies, focusing on growth opportunities and long-term market strength [1]. End-Market Strength - The Aerospace/Defense segment is experiencing strong performance, with revenues increasing by 15.5% year over year in the first nine months of fiscal 2025, driven by robust orders from OEM and aftermarket verticals [2]. - Increased demand for bearings and engineered components in the defense market, particularly in marine, helicopter, and missile applications, is expected to positively impact the Aerospace/Defense segment in upcoming quarters [3]. Industrial Segment Recovery - The Industrial segment is recovering, with revenues up 2.7% year over year in the third quarter of fiscal 2025, supported by stable demand in various markets including mining, food and beverage, and power generation [4]. - For the fourth quarter of fiscal 2025, RBC Bearings anticipates net sales between $434 million and $444 million, reflecting a year-over-year increase of 4.9% to 7.3% [4]. Acquisition Benefits - The company has enhanced its business through acquisitions, notably acquiring Specline, Inc. for $18.7 million in August 2023, which expanded its aerospace product offerings and production capacity [5]. Shareholder-Friendly Policies - RBC Bearings is committed to increasing shareholder value through dividends and share repurchases, having paid preferred dividends of $17.2 million and repurchased shares worth $8.6 million, a 12.9% increase year over year [7]. Estimate Revisions - The Zacks Consensus Estimate for RBC Bearings' fiscal 2025 earnings has increased by 1.2% in the past 60 days, while the estimate for fiscal 2026 has been revised upward by 4.7% [8].

Company Overview - RBC Bearings currently has a Momentum Style Score of B, indicating potential for strong performance based on recent price trends and earnings estimate revisions [3][12] - The company is rated 1 (Strong Buy) by Zacks Rank, which has a strong track record of outperforming the market [4][12] Price Performance - Over the past week, RBC shares have increased by 10.99%, while the Zacks Manufacturing - General Industrial industry has seen a slight decline of 0.12% [6] - In a longer time frame, RBC's shares have risen by 24.06% over the past month, significantly outperforming the industry's 2.68% [6] - Over the past quarter, RBC shares have increased by 17.05%, and over the last year, they have gained 35.38%, compared to the S&P 500's increases of 5.14% and 24.19%, respectively [7] Trading Volume - RBC's average 20-day trading volume is 163,584 shares, which serves as a baseline for price-to-volume analysis; a rising stock with above-average volume is generally considered bullish [8] Earnings Outlook - In the past two months, one earnings estimate for RBC has moved higher, while one has moved lower, resulting in an increase in the consensus estimate from $9.71 to $9.76 [10] - For the next fiscal year, two estimates have moved upwards with no downward revisions, indicating positive sentiment regarding future earnings [10]

Core Viewpoint - RBC Bearings Incorporated reported strong adjusted earnings for the third quarter of fiscal 2025, exceeding expectations and showing significant year-over-year growth driven by higher revenues [1]. Revenue Details - RBC Bearings' revenues reached $394.4 million, marking a 5.5% increase year over year, although it fell short of the Zacks Consensus Estimate of $401 million [2]. - The company ended the quarter with a backlog of $896.5 million, up from $864 million at the end of the previous quarter [2]. Segmental Performance - The company operates in two segments: Aerospace/Defense and Industrial. - Industrial revenues were $143.2 million, accounting for 63.7% of total revenues, and increased by 2.7% year over year [3]. - Aerospace/Defense revenues totaled $149.1 million, representing 36.3% of total revenues, with a year-over-year increase of 10.8% [3]. Margin Profile - Cost of sales rose by 1.7% year over year to $219.5 million, while gross profit increased by 10.7% to $174.9 million, resulting in a gross margin expansion of 200 basis points to 44.3% [4]. - Selling, general and administrative expenses were $70.1 million, up 9.7% year over year. Adjusted EBITDA increased by 12% to $122.6 million, with an adjusted EBITDA margin of 31.1%, up 180 basis points year over year [4]. Operating Income and Expenses - Adjusted operating income rose by 13.7% year over year to $85.7 million, with an adjusted margin increase of 150 basis points to 21.7% [5]. - Net interest expenses decreased to $14.2 million from $19.3 million in the same quarter last year [5]. Balance Sheet and Cash Flow - At the end of the fiscal third quarter, RBC had cash and cash equivalents of $60.6 million, down from $63.5 million a year earlier. Long-term debt decreased to $999.7 million from $1.19 billion [6]. - In the first nine months of fiscal 2025, the company generated net cash of $224.4 million from operating activities, a 15% increase year over year. Capital expenditure rose by 50.2% to $35.6 million [7]. Outlook - For the fiscal fourth quarter, management projects net sales to be between $434 million and $444 million, indicating a year-over-year increase of 4.9% to 7.3% from $413.7 million [8].

Financial Performance - Net sales for the three-month period ended December 28, 2024, increased by 5.5% to $394.4 million compared to $373.9 million in the same period last fiscal year [116]. - Net income attributable to common stockholders for the third quarter of fiscal 2025 was $56.9 million, a 39.6% increase from $40.8 million in the prior year [117]. - For the nine-month period ended December 28, 2024, total net sales increased by 4.5% to $1,198.6 million compared to $1,146.6 million in the prior year [118]. - Net income attributable to common stockholders for the nine months ended December 28, 2024, was $161.1 million, a 23.0% increase from $131.0 million in the same period last fiscal year [119]. Sales Segments - The Aerospace/Defense segment saw a 10.7% increase in net sales, while the Industrial segment increased by 2.7% quarter over quarter [110]. - Total net sales for the Aerospace/Defense segment in Q3 fiscal 2025 were $143.2 million, an increase of $14.0 million or 10.7% from $129.2 million in Q3 fiscal 2024 [135]. - For the first nine months of fiscal 2025, total net sales in the Aerospace/Defense segment were $435.5 million, an increase of $58.5 million or 15.5% from $377.0 million in the same period last year [137]. - Total net sales for the three months ended December 28, 2024, were $251.2 million, an increase of $6.5 million or 2.7% compared to $244.7 million in the same period last year [139]. Gross Margin - Gross margin for the third quarter of fiscal 2025 improved to 44.3% of net sales, up from 42.3% in the same quarter of fiscal 2024 [121]. - Gross margin for the Aerospace/Defense segment in Q3 fiscal 2025 was $57.9 million, representing 40.5% of segment net sales, down from 41.2% in the same period last year [136]. - Gross margin as a percentage of segment net sales for the first nine months of fiscal 2025 was 40.8%, up from 40.1% in the same period last year, driven by efficiencies and favorable product mix [138]. - Gross margin for the same period improved to 46.5% of net sales, up from 42.8% in the comparable period, driven by product mix and manufacturing efficiencies [140]. Expenses - SG&A expenses for Q3 fiscal 2025 were $70.1 million, an increase of $6.2 million or 9.8% compared to $63.9 million in Q3 fiscal 2024, representing 17.8% of net sales [123]. - For the first nine months of fiscal 2025, SG&A expenses totaled $207.2 million, up $18.1 million or 9.6% from $189.1 million in the same period last year, accounting for 17.3% of net sales [124]. - Other operating expenses for Q3 fiscal 2025 were $19.2 million, a slight increase of $0.3 million or 1.3% from $18.9 million in Q3 fiscal 2024, representing 4.8% of net sales [125]. - Corporate SG&A expenses for the three months ended December 28, 2024, increased to $25.5 million, representing 6.5% of total net sales, compared to $21.4 million or 5.7% in the same period last year [144]. Interest and Tax Expenses - Interest expense, net for Q3 fiscal 2025 was $14.2 million, down $5.1 million or 26.9% from $19.3 million in Q3 fiscal 2024, constituting 3.6% of net sales [128]. - For the first nine months of fiscal 2025, interest expense, net was $47.0 million, a decrease of $12.9 million or 21.6% from $59.9 million in the same period last year, representing 3.9% of net sales [129]. - Income tax expense for Q3 fiscal 2025 was $16.8 million, compared to $10.2 million in Q3 fiscal 2024, with an effective tax rate of 22.5% versus 18.1% [132]. Cash Flow and Capital Expenditures - The company generated $224.4 million from operating activities in the first nine months of fiscal 2025, an increase of $29.2 million compared to $195.2 million in the same period of fiscal 2024 [169]. - Cash used in investing activities decreased to $35.6 million in fiscal 2025 from $42.7 million in fiscal 2024, primarily due to a $19.3 million decrease in business acquisition costs [173]. - Cash used in financing activities increased to $191.3 million in fiscal 2025 from $147.0 million in fiscal 2024, mainly due to $60.4 million more in payments related to the Revolving Credit Facility [174]. - Capital expenditures for the first nine months of fiscal 2025 were $35.6 million, up from $23.7 million in the same period of the prior fiscal year, with expectations of an additional $10.0 to $15.0 million in capital expenditures for the remainder of fiscal 2025 [175]. Debt and Financial Instruments - The company has a $1.3 billion Term Loan and a $500 million Revolving Credit Facility, with $500 million outstanding under the Term Loan as of December 28, 2024 [150][157]. - The company entered into an Interest Rate Swap with a notional amount of $600 million to hedge against interest rate fluctuations, with a fixed rate of 4.455% [165]. - A Cross Currency Swap was established with a notional amount of CHF 69.4 million ($80 million) to hedge against foreign exchange rate fluctuations related to its European subsidiary [167]. - The company has $3.7 million of outstanding standby letters of credit under the Revolving Credit Facility [178]. Future Outlook - The company expects net sales for the fourth quarter of fiscal 2025 to be between $434.0 million and $444.0 million, representing a growth of 4.9% to 7.3% compared to the fourth quarter of 2024 [112]. - The company expects operating cash flows and available credit to adequately fund internal growth initiatives for at least the next 12 months [146]. - The company plans to fund capital expenditures principally through existing cash and internally generated funds, with potential additional expenditures related to acquisitions [175]. - The company expects to save $23.0 million annually due to the retirement of 4,600,000 shares of MCPS and the conversion into common stock [168]. Currency Impact - Approximately 12% of net sales were impacted by foreign currency fluctuations for both the three- and nine-month periods ended December 28, 2024 [182].

RBC Bearings (RBC) came out with quarterly earnings of $2.34 per share, beating the Zacks Consensus Estimate of $2.20 per share. This compares to earnings of $1.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.36%. A quarter ago, it was expected that this maker of bearings and components would post earnings of $2.30 per share when it actually produced earnings of $2.29, delivering a surprise of -0.43%.Over the last four qu ...

Exhibit 99.1 RBC Bearings Incorporated Announces Fiscal Third Quarter 2025 Results Oxford, CT – January 31, 2025 – RBC Bearings Incorporated (NYSE: RBC), a leading international manufacturer of highly engineered precision bearings, components and essential systems for the industrial, defense and aerospace industries, today reported results for the third quarter of fiscal 2025. Third Quarter Financial Highlights Three Month Financial Highlights | | | | Fiscal 2025 | | | | Fiscal 2024 | | Change | | | --- | - ...

Investment Service Overview - The service focuses on oil and natural gas investments, emphasizing cash flow analysis and companies with strong value and growth potential [1] - Subscribers gain access to a model account with over 50 stocks, in-depth cash flow analyses of E&P firms, and live chat discussions about the sector [2] - A two-week free trial is available for new subscribers [3] Investment Strategy - The "hold" rating indicates that the stock is expected to perform in line with the broader market in the foreseeable future [1] - The service prioritizes cash flow generation as a key metric for identifying value and growth opportunities in the oil and gas sector [1]

RBC Bearings Incorporated (RBC) is benefiting from persistent strength in the Aerospace/Defense segment. Strength in the commercial aerospace market, driven by strong growth in orders from the OEM (original equipment manufacturer) and the aftermarket verticals, is driving the segment’s performance.The robust backlog level, along with the company’s strong execution on incremental orders in the commercial aerospace market, has been proving beneficial. In the first six months of fiscal 2025 (ended September 20 ...