RBC Bearings(RBC) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter net sales reached $437.7 million, a 5.8% increase from $413.7 million in the same quarter last year, with Aerospace/Defense up 10.6% and Industrial up 3.3%[4] - Fiscal 2025 net sales totaled $1,636.3 million, marking a 4.9% increase year-over-year, with Aerospace/Defense up 14.1% and Industrial up 0.2%[8] - Net income attributable to common stockholders for the three months ended March 29, 2025, was $72.7 million, an increase of 16.0% from $61.6 million in the same period in 2024[27] - Net income for the twelve months ended March 29, 2025, was $246.2 million, an increase from $209.9 million in the prior year, representing a growth of approximately 17.0%[33] Profitability Metrics - Gross margin for the fourth quarter was 44.2%, compared to 43.1% in the previous year, reflecting an increase in profitability[4] - Adjusted EBITDA for fiscal 2025 was 31.8% of net sales, up from 30.9% in the previous year, indicating improved operational efficiency[8] - Adjusted EBITDA for the twelve months ended March 29, 2025, was $519.8 million, compared to $482.2 million for the previous year, indicating a growth of 7.8%[29] - Basic net income per common share attributable to common stockholders for the three months ended March 29, 2025, was $2.32, up from $1.93 in the same period last year, an increase of 20.2%[27] Cash Flow and Leverage - The company generated free cash flow of $275 million, reducing net leverage to 1.7x, the lowest since the Dodge acquisition[6] - Net cash provided by operating activities increased to $293.6 million from $274.7 million, reflecting a rise of about 6.5% year-over-year[33] - Interest expense for Q4 fiscal 2025 decreased to $12.8 million from $18.8 million in the same period last year, attributed to debt reduction and lower interest rates[12] - Interest expenses decreased to $55.4 million from $75.7 million, indicating improved debt management[33] Sales and Backlog - As of March 29, 2025, the backlog was $940.7 million, up from $896.5 million at the end of December 2024, indicating strong future demand[16] - For Q1 fiscal 2026, the company expects net sales between $424.0 million and $434.0 million, representing a growth rate of 4.4% to 6.8% compared to the prior year[16] Segment Performance - The aerospace and defense segment reported net external sales of $157.3 million for the three months ended March 29, 2025, up from $142.4 million in the same period last year, marking an increase of 10.0%[28] - The industrial segment achieved net external sales of $280.4 million for the three months ended March 29, 2025, compared to $271.3 million in the same period in 2024, reflecting a growth of 3.9%[28] Expenses and Investments - SG&A expenses for Q4 fiscal 2025 were $72.1 million, up from $64.4 million in the same quarter last year, with SG&A as a percentage of net sales increasing to 16.5%[9] - SG&A expenses are anticipated to be between 16.75% and 17.25% of net sales for FY2026 Q1, indicating a focus on managing operational costs[33] - The company reported capital expenditures of $49.8 million, up from $33.2 million, indicating a significant increase in investment activities[33] Balance Sheet Highlights - Total assets increased from $4,668.5 million to $4,678.6 million, reflecting a growth of 0.2%[31] - Total liabilities increased from $1,653.8 million to $1,926.7 million, an increase of 16.5%[31] - Total equity decreased from $3,031.4 million to $2,751.9 million, a decline of 9.2%[31] - Long-term debt, less current portion, increased from $918.4 million to $1,188.1 million, an increase of 29.4%[31]