Reasons to Hold RBC Bearings (RBC) in Your Portfolio Now

Group 1: Industry Outlook - Strong U.S. and international defense budgets, along with robust demand for commercial air travel, are expected to positively impact the Aerospace & Defense segment in the upcoming quarters [1] - For the first quarter of fiscal 2025, overall net sales are anticipated to be in the range of $415-$420 million, indicating a year-over-year growth of 7.2-8.5% [1] Group 2: Company Developments - The company is focused on expanding its portfolio through acquisitions, such as the acquisition of Specline, a precision bearings manufacturer, which enhanced its aerospace product offerings and production capacity [2] - RBC Bearings has been rewarding shareholders through dividends and share buybacks, paying out $22.9 million in dividends and repurchasing shares worth $11 million, a 41.4% increase year over year [3] Group 3: Financial Performance - In the fourth quarter of fiscal 2024, revenues from the Aerospace & Defense segment increased by 16.8% year over year, driven by recovery in build rates from large OEMs and stability in the aftermarket [9] - The company's cost of sales rose by 3.2% year over year due to increased raw material costs, while selling, general, and administrative expenses escalated by 8.1% year over year [5]