
RBC Bearings Fiscal First Quarter 2026 Results Financial Highlights RBC Bearings reported strong Q1 FY2026 results with net sales up 7.3% to $436.0 million, adjusted diluted EPS growing 11.8% to $2.84, and robust free cash flow of $104.3 million | ($ in millions) | GAAP | Adjusted (1) | GAAP | Adjusted (1) | GAAP | Adjusted (1) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Fiscal 2026 | | Fiscal 2025 | | Change | | | Net sales | $436.0 | | $406.3 | | 7.3% | | | Gross margin | $195.2 | $198.1 | $184.0 | $184.0 | 6.1% | 7.7% | | Operating income | $101.1 | $105.3 | $97.5 | $97.5 | 3.7% | 8.0% | | Net income | $68.5 | $89.6 | $61.4 | $80.2 | 11.6% | 11.7% | | Net income attributable to common stockholders | $68.5 | $89.6 | $55.7 | $74.5 | 23.0% | 20.3% | | Diluted EPS | $2.17 | $2.84 | $1.90 | $2.54 | 14.2% | 11.8% | - First quarter net sales increased 7.3% year-over-year, with the Aerospace/Defense segment growing 10.4% and the Industrial segment growing 5.5%6 - Free cash flow for the quarter was $104.3 million, compared to $88.4 million in the prior year, representing a free cash flow conversion of 152.3%6 Detailed First Quarter Results The company achieved 7.3% sales growth, with gross margin up 6.1% to $195.2 million, operating income increasing 3.7% to $101.1 million, and diluted EPS rising 14.2% to $2.17, alongside a growing backlog of $1,017.3 million | Metric | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $436.0M | $406.3M | +7.3% | | Gross Margin | $195.2M | $184.0M | +6.1% | | Operating Income | $101.1M | $97.5M | +3.7% | | Net Income | $68.5M | $61.4M | +11.6% | | Diluted EPS | $2.17 | $1.90 | +14.2% | - SG&A expenses increased to $73.9 million (16.9% of net sales) from $67.6 million (16.6% of net sales) in the prior year8 - Interest expense decreased to $12.2 million from $17.2 million year-over-year, primarily due to debt reduction efforts and lower interest rates11 - Backlog grew to $1,017.3 million as of June 28, 2025, up from $940.7 million at the end of the previous quarter and $825.8 million a year ago15 Segment Performance The Aerospace and Defense segment drove Q1 growth with a 10.4% increase in net sales to $164.6 million, complemented by a 5.5% rise in Industrial segment sales to $271.4 million | Net External Sales ($ in millions) | Q1 FY2026 | Q1 FY2025 | YoY Change | | :--- | :--- | :--- | :--- | | Aerospace and defense segment | $164.6 | $149.1 | +10.4% | | Industrial segment | $271.4 | $257.2 | +5.5% | | Total net external sales | $436.0 | $406.3 | +7.3% | - CEO Dr. Michael J. Hartnett highlighted the solid performance, with A&D and Industrial segment sales up 10.4% and 5.5%, respectively, and noted strong gross margin performance driven by the Industrial segment and expansion in Aerospace5 Outlook for Q2 Fiscal 2026 RBC Bearings projects continued growth for Q2 FY2026, forecasting net sales between $445.0 million and $455.0 million, representing an 11.8% to 14.4% year-over-year increase | Q2 FY2026 Guidance | Range | | :--- | :--- | | Net Sales | $445.0M - $455.0M | | Gross Margin % | 44.0% - 44.25% | | SG&A as % of Sales | 17.0% - 17.25% | Non-GAAP Financial Measures and Reconciliations The company uses non-GAAP metrics to clarify core operating performance, with Q1 FY2026 adjusted operating income at $105.3 million, adjusted net income at $89.6 million, and adjusted EBITDA at $141.5 million Explanation of Non-GAAP Measures Management uses non-GAAP measures like Adjusted Gross Margin, Operating Income, Net Income, EPS, and EBITDA to provide investors with a clearer view of ongoing business performance by excluding unusual or non-cash items - Non-GAAP measures are presented to provide useful information to investors regarding the Company's results of operations by allowing them to better evaluate ongoing business performance18 - Adjusted operating income excludes acquisition expenses, restructuring charges, and other non-operational or non-recurring items to better assess core financial performance20 - Adjusted EBITDA is used to show unleveraged, pre-tax operating results and aids investors in understanding compliance with debt covenants and financial strength22 GAAP to Non-GAAP Reconciliations Q1 FY2026 GAAP figures were reconciled to non-GAAP, with reported gross margin of $195.2 million adjusted to $198.1 million, operating income of $101.1 million adjusted to $105.3 million, and net income of $68.5 million adjusted to $89.6 million, yielding an adjusted EBITDA of $141.5 million Reconciliation of Reported Operating Income to Adjusted Operating Income | ($ in millions) | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Reported operating income | $101.1 | $97.5 | | Transaction and related costs | $0.1 | - | | Restructuring and consolidation | $4.1 | - | | Adjusted operating income | $105.3 | $97.5 | Reconciliation of Reported Net Income to Adjusted Net Income | ($ in millions) | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Reported net income | $68.5 | $61.4 | | Adjustments (Transaction costs, Restructuring, M&A amortization, etc.) | $21.4 | $23.5 | | Tax impact of adjustments | ($6.7) | ($4.7) | | Adjusted net income | $89.6 | $80.2 | Reconciliation of Reported Net Income to Adjusted EBITDA | ($ in millions) | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Reported net income | $68.5 | $61.4 | | Interest expense, net | $12.2 | $17.2 | | Provision for income taxes | $19.2 | $18.5 | | Depreciation and amortization | $29.6 | $30.0 | | Other adjustments | $12.0 | $6.9 | | Adjusted EBITDA | $141.5 | $134.0 | Financial Statements Consolidated Statements of Operations For Q1 FY2026, RBC Bearings reported net sales of $436.0 million, operating income of $101.1 million, and net income attributable to common stockholders of $68.5 million, or $2.17 per diluted share | ($ in millions, except per share data) | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | | :--- | :--- | :--- | | Net sales | $436.0 | $406.3 | | Gross margin | $195.2 | $184.0 | | Operating income | $101.1 | $97.5 | | Net income | $68.5 | $61.4 | | Net income attributable to common stockholders | $68.5 | $55.7 | | Diluted EPS | $2.17 | $1.90 | Consolidated Balance Sheets As of June 28, 2025, total assets reached $4.79 billion, with cash increasing to $132.9 million, total liabilities at $1.67 billion, and total stockholders' equity growing to $3.12 billion | ($ in millions) | June 28, 2025 | March 29, 2025 | | :--- | :--- | :--- | | Assets | | | | Cash | $132.9 | $36.8 | | Total current assets | $1,135.2 | $1,027.3 | | Goodwill | $1,876.2 | $1,872.2 | | Total assets | $4,789.7 | $4,685.2 | | Liabilities and Stockholders' Equity | | | | Total current liabilities | $341.3 | $315.3 | | Long-term debt, less current portion | $913.8 | $918.4 | | Total liabilities | $1,673.3 | $1,653.8 | | Total stockholders' equity | $3,116.4 | $3,031.4 | Consolidated Statements of Cash Flows For Q1 FY2026, the company generated $120.0 million in net cash from operating activities, leading to a $96.1 million increase in the cash balance after accounting for investing and financing activities | ($ in millions) | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $120.0 | $97.4 | | Net cash used in investing activities | ($15.7) | ($9.0) | | Net cash used in financing activities | ($7.9) | ($74.7) | | Increase / (decrease) in cash | $96.1 | $13.3 | | Cash, at end of period | $132.9 | $76.8 |