RBC Bearings(US:RBC) ZACKSยท2024-09-20 11:01Core Insights - RBC Bearings Incorporated (RBC) is experiencing growth in its Aerospace/Defense segment, which enhances its attractiveness to investors [1][4] - The company's shares have appreciated by 29% over the past year, and it holds a Zacks Rank of 2 (Buy) [3] Business Strength - The Aerospace/Defense segment is performing strongly, driven by increased orders from both OEMs and aftermarket sectors in commercial aerospace [4] - A robust backlog and effective execution on incremental orders are expected to benefit the segment [4] - Demand for bearings and engineered components in the defense market is also increasing, particularly in marine, helicopter, and missile applications [4] Product Portfolio - RBC has a well-diversified product portfolio, including spherical bearings, sealed bearings, rod ends, and precision dowel pins [5] - Investments in manufacturing processes are anticipated to yield long-term benefits [5] - A new 100,000-square-foot plant in Takata, Mexico, was completed in early 2024 to enhance production capacity [5] Expansion Efforts - The company is expanding through acquisitions, including the purchase of Specline, Inc. for $18.7 million in August 2023, which enhances its aerospace product offerings and production capacity [6] Shareholder Rewards - RBC is committed to rewarding shareholders through dividends and share buyback programs, paying $5.7 million in dividends and repurchasing shares worth $8 million in the first three months of fiscal 2025 [7] - Share repurchases increased by 17.7% year over year, with $11 million in shares repurchased and preferred dividends of $22.9 million distributed in fiscal 2024 [7]