RBC Bearings Q4 Earnings Surpass Estimates, Revenues Rise Y/Y

Core Insights - RBC Bearings Incorporated reported adjusted earnings of $2.83 per share for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate of $2.68, and reflecting a 14.6% increase from $2.47 per share in the previous year, driven by higher revenues [1] - The company's revenues for the quarter were $437.7 million, a 5.8% year-over-year increase, but fell short of the Zacks Consensus Estimate of $441 million [1] Revenue Details - RBC's backlog at the end of the reported quarter was $940.7 million, up from $896.5 million at the end of Q3 fiscal 2025 [2] - Industrial segment revenues were $280.4 million, accounting for 64.1% of total revenues, representing a 3.4% year-over-year increase, but below the consensus estimate of $283 million [3] - Aerospace/Defense segment revenues totaled $157.3 million, or 35.9% of total revenues, marking a 10.5% year-over-year increase, also missing the consensus estimate of $159 million [4] Margin Profile - Cost of sales increased by 3.8% year over year to $244.3 million, while gross profit rose by 8.4% to $193.4 million, resulting in a gross margin expansion of 110 basis points to 44.2% [5] - Selling, general and administrative expenses (SG&A) were $72.1 million, up 12% year over year, with adjusted EBITDA increasing by 7.4% to $139.8 million, leading to an adjusted EBITDA margin of 31.9%, up 50 basis points [5] - Adjusted operating income rose by 5.4% year over year to $101.6 million, with the adjusted margin decreasing by 10 basis points to 23.2% [6] Balance Sheet and Cash Flow - At the end of Q4 fiscal 2025, RBC had cash and cash equivalents of $36.8 million, down from $63.5 million at the end of fiscal 2024, while long-term debt decreased to $918.4 million from $1.19 billion [7] - The company generated net cash of $293.6 million from operating activities in fiscal 2025, a 6.9% year-over-year increase, with capital expenditure rising by 50% to $49.8 million [7] Share Repurchase - In fiscal 2025, RBC Bearings repurchased shares worth $9.5 million, a decrease of 14% year over year [8] Outlook - For Q1 fiscal 2026, management expects net sales to be between $424 million and $434 million, indicating a year-over-year increase of 4.4% to 6.8% from $406.3 million [9] - Gross margin is anticipated to be in the range of 44.25% to 44.75%, with SG&A as a percentage of net sales projected between 16.75% and 17.25% [9]