RBC Bearings(US:RBC)2025-08-01 16:48Part I - Financial Information Consolidated Financial Statements This section presents the unaudited interim consolidated financial statements for RBC Bearings Incorporated, including balance sheets, income statements, cash flows, and detailed notes Key Financial Highlights (Q1 FY2026 vs Q1 FY2025) | Metric | Q1 FY2026 (ended June 28, 2025) ($) | Q1 FY2025 (ended June 29, 2024) ($) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $436.0 million | $406.3 million | +7.3% | | Gross Margin | $195.2 million | $184.0 million | +6.1% | | Operating Income | $101.1 million | $97.5 million | +3.7% | | Net Income | $68.5 million | $61.4 million | +11.6% | | Diluted EPS | $2.17 | $1.90 | +14.2% | Balance Sheet Summary | Account | June 28, 2025 ($) | March 29, 2025 ($) | | :--- | :--- | :--- | | Total Assets | $4,789.7 million | $4,685.2 million | | Total Liabilities | $1,673.3 million | $1,653.8 million | | Total Stockholders' Equity | $3,116.4 million | $3,031.4 million | Cash Flow Summary (Three Months Ended) | Activity | June 28, 2025 ($) | June 29, 2024 ($) | | :--- | :--- | :--- | | Net Cash from Operating Activities | $120.0 million | $97.4 million | | Net Cash used in Investing Activities | ($15.7 million) | ($9.0 million) | | Net Cash used in Financing Activities | ($7.9 million) | ($74.7 million) | | Cash Increase/(Decrease) | $96.1 million | $13.3 million | - Subsequent to the quarter's end, on July 18, 2025, the company acquired VACCO Industries for $275.0 million in cash, funded by a $200.0 million drawdown on its Revolving Credit Facility and cash on hand100 Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management discusses Q1 FY2026 financial performance, highlighting a 7.3% net sales increase, segment growth, liquidity, and Q2 FY2026 outlook - Net sales for Q1 FY2026 increased 7.3% YoY to $436.0 million, driven by a 10.4% increase in the Aerospace/Defense segment and a 5.5% increase in the Industrial segment112117 - The company's backlog grew to $1,017.3 million as of June 28, 2025, up from $940.7 million at the end of the previous fiscal year (March 29, 2025)112 - For the second quarter of fiscal 2026, the company projects net sales to be between $445.0 million and $455.0 million, representing an increase of 11.8% to 14.4% compared to the prior year's second quarter114 Q1 FY2026 vs Q1 FY2025 Performance | Metric | Q1 FY2026 ($) | Q1 FY2025 ($) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $436.0 million | $406.3 million | +7.3% | | Gross Margin | $195.2 million (44.8%) | $184.0 million (45.3%) | +6.1% | | SG&A | $73.9 million (16.9%) | $67.6 million (16.6%) | +9.3% | | Interest Expense, Net | $12.2 million | $17.2 million | -29.1% | | Net Income (to common stockholders) | $68.5 million | $55.7 million | +23.0% | Segment Information Aerospace/Defense net sales grew 10.4% to $164.6 million, while Industrial segment net sales increased 5.5% to $271.4 million Aerospace/Defense Segment Performance (Q1 FY2026 vs Q1 FY2025) | Metric | Q1 FY2026 ($) | Q1 FY2025 ($) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $164.6 million | $149.1 million | +10.4% | | Gross Margin | $70.2 million | $63.1 million | +11.3% | | Gross Margin % | 42.6% | 42.3% | +30 bps | - Within Aerospace/Defense, commercial aerospace markets (OEM and aftermarket) grew 9.6%, while defense markets grew 11.9%, driven by marine and missiles128 Industrial Segment Performance (Q1 FY2026 vs Q1 FY2025) | Metric | Q1 FY2026 ($) | Q1 FY2025 ($) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $271.4 million | $257.2 million | +5.5% | | Gross Margin | $125.0 million | $120.9 million | +3.4% | | Gross Margin % | 46.1% | 47.0% | -90 bps | - The Industrial segment's gross margin was impacted by $2.9 million in restructuring costs related to inventory rationalization at a manufacturing plant132 Liquidity and Capital Resources The company maintains strong liquidity with $132.9 million cash, $120.0 million operating cash flow, and available credit facilities - Generated $120.0 million in cash from operating activities during the first three months of fiscal 2026, a $22.6 million increase from the prior year period158 - As of June 28, 2025, the company had $132.9 million in cash and $496.3 million available for borrowing under its Revolving Credit Facility138145 - Total debt outstanding was $915.6 million as of June 28, 2025, consisting primarily of a $413.0 million Term Loan and $500.0 million in Senior Notes847677 - Capital expenditures for fiscal 2026 are projected to be between 3.0% and 3.5% of net sales162 Quantitative and Qualitative Disclosures About Market Risk The company manages market risks from interest rates and foreign currency fluctuations through swaps, with 66% of debt fixed and 11% of sales exposed to currency - The company is exposed to interest rate risk on its variable-rate Term Loan. An interest rate swap is used to manage this exposure, and as of June 28, 2025, approximately 66% of the company's debt bears interest at a fixed rate167 - Foreign currency exchange rate fluctuations impact approximately 11% of net sales. The company is exposed to changes in the Australian dollar, Canadian dollar, Chinese yuan, euro, British pound, Indian rupee, Mexican peso, Polish zloty, and Swiss franc168 - A cross-currency swap is utilized to hedge the company's net investment in its European subsidiary, Schaublin, against adverse changes in the Swiss franc/U.S. dollar exchange rate170156 Controls and Procedures Management concluded disclosure controls and procedures were effective as of June 28, 2025, with no material changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 28, 2025171 - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls172 Part II - Other Information Legal Proceedings No new reportable legal proceedings or material developments in previously disclosed cases occurred during the quarter - No legal proceeding became a reportable event during the quarter174 Risk Factors No material changes to the company's risk factors have been reported since the last Annual Report on Form 10-K - No material changes to risk factors were reported since the last Annual Report175 Unregistered Sales of Equity Securities and Use of Proceeds The company did not issue unregistered equity securities but repurchased 33,281 shares for tax obligations, with no buybacks under the $100.0 million program - During the first quarter of fiscal 2026, the company did not issue any common stock that was not registered under the Securities Act of 1933176 - A total of 33,281 shares were repurchased from employees at an average price of $365.64 per share to fund tax withholding obligations upon the vesting of equity awards178 - As of June 28, 2025, the company has not repurchased any shares under its $100.0 million stock repurchase program authorized in 2019179 Defaults Upon Senior Securities This section is not applicable for the current reporting period Mine Safety Disclosures This section is not applicable for the current reporting period Other Information This section is not applicable for the current reporting period Exhibits This section lists all exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL data files