RBC Bearings Q3 Earnings Surpass Estimates, Revenues Up Y/Y

Core Viewpoint - RBC Bearings Incorporated reported strong adjusted earnings for the third quarter of fiscal 2025, exceeding expectations and showing significant year-over-year growth driven by higher revenues [1]. Revenue Details - RBC Bearings' revenues reached $394.4 million, marking a 5.5$401 million [2]. - The company ended the quarter with a backlog of $896.5 million, up from$864 million at the end of the previous quarter [2]. Segmental Performance - The company operates in two segments: Aerospace/Defense and Industrial. - Industrial revenues were $143.2 million, accounting for 63.7$149.1 million, representing 36.3% of total revenues, with a year-over-year increase of 10.8% [3]. Margin Profile - Cost of sales rose by 1.7% year over year to $219.5 million, while gross profit increased by 10.7$174.9 million, resulting in a gross margin expansion of 200 basis points to 44.3% [4]. - Selling, general and administrative expenses were $70.1 million, up 9.7$122.6 million, with an adjusted EBITDA margin of 31.1%, up 180 basis points year over year [4]. Operating Income and Expenses - Adjusted operating income rose by 13.7% year over year to $85.7 million, with an adjusted margin increase of 150 basis points to 21.7$14.2 million from $19.3 million in the same quarter last year [5]. Balance Sheet and Cash Flow - At the end of the fiscal third quarter, RBC had cash and cash equivalents of$60.6 million, down from $63.5 million a year earlier. Long-term debt decreased to$999.7 million from $1.19 billion [6]. - In the first nine months of fiscal 2025, the company generated net cash of$224.4 million from operating activities, a 15% increase year over year. Capital expenditure rose by 50.2% to $35.6 million [7]. Outlook - For the fiscal fourth quarter, management projects net sales to be between$434 million and $444 million, indicating a year-over-year increase of 4.9$413.7 million [8].