RBC Bearings(US:RBC)2025-10-31 13:27Financial Performance - Net sales for Q2 fiscal 2026 were $455.3 million, a 14.4% increase from $397.9 million in Q2 fiscal 2025, with Aerospace/Defense up 38.8% and Industrial up 0.7%[4] - Net income attributable to common stockholders for Q2 fiscal 2026 was $60.0 million, a 23.7% increase from $48.5 million in Q2 fiscal 2025[4] - Diluted EPS for Q2 fiscal 2026 was $1.90, up 15.2% from $1.65 in Q2 fiscal 2025; adjusted diluted EPS was $2.88 compared to $2.29 last year[4] - Net sales for the three months ended September 27, 2025, were $455.3 million, a 14.5% increase from $397.9 million for the same period in 2024[28] - Net income attributable to common stockholders for the three months ended September 27, 2025, was $60.0 million, compared to $48.5 million for the same period in 2024, reflecting a 23.5% increase[28] - Adjusted net income attributable to common stockholders for the three months ended September 27, 2025, was $91.2 million, compared to $67.0 million for the same period in 2024, marking a 36.0% increase[30] - Net income for the six months ended September 27, 2025, was $128.5 million, compared to $115.6 million for the same period in 2024, reflecting an increase of 11.1%[35] Margins and Expenses - Gross margin for Q2 fiscal 2026 was 44.1%, compared to 43.7% in the same period last year; adjusted gross margin was 44.9%[4] - SG&A as a percentage of net sales for Q2 fiscal 2026 was 17.0%, down from 17.5% in the same period last year[8] - Adjusted gross margin for Q3 fiscal 2026 is anticipated to be in the range of 44.0% to 44.25%[16] - SG&A expenses are anticipated to be between 17.0% and 17.25% of net sales for FY2026 Q3[35] Cash Flow and Assets - Free cash flow for Q2 fiscal 2026 was $71.7 million, significantly higher than $26.8 million in Q2 fiscal 2025, with a conversion rate of 119.5%[4] - Net cash provided by operating activities was $208.4 million for the six months ended September 27, 2025, compared to $140.4 million in the prior year, marking a rise of 48.5%[35] - Cash at the end of the period was $91.2 million, an increase from $36.8 million at the beginning of the period, representing a growth of 147.3%[35] - Total assets increased to $5,110.8 million as of September 27, 2025, up from $4,685.2 million on March 29, 2025, representing a growth of 9.1%[33] Backlog and Future Expectations - Backlog as of September 27, 2025, was $1.6 billion, up from $1.0 billion as of June 28, 2025, and $0.9 billion as of September 28, 2024[15] - The company expects Q3 fiscal 2026 net sales to be between $454.0 million and $462.0 million, representing a growth rate of 15.1% to 17.1%[16] - The company anticipates continued growth in the aerospace and defense markets, driven by increased demand and operational efficiencies[25] Capital Expenditures and Liabilities - Capital expenditures for the six months ended September 27, 2025, were $32.4 million, up from $25.2 million in the same period of 2024, indicating a growth of 28.6%[35] - The company reported a total current liabilities of $375.1 million as of September 27, 2025, an increase from $315.3 million on March 29, 2025, which is a 19.0% increase[33] Interest and Tax - Interest expense for Q2 fiscal 2026 decreased to $13.4 million from $15.6 million in the same period last year due to debt reduction efforts[11] - The overall tax rate applied to adjusted pre-tax earnings was 22.0% for the three-month period ended September 27, 2025[30] Segment Performance - The aerospace and defense segment reported net external sales of $198.8 million for the three months ended September 27, 2025, a 38.9% increase from $143.2 million in the same period last year[29] - The industrial segment generated net external sales of $256.5 million for the three months ended September 27, 2025, slightly up from $254.7 million in the prior year[29]