RBC Bearings Q3 Earnings & Revenues Surpass Estimates, Rise Y/Y

Core Insights - RBC Bearings Incorporated reported adjusted earnings of $3.04 per share for Q3 fiscal 2026, exceeding the Zacks Consensus Estimate of $2.85, marking a 29.9% increase from the previous year's adjusted earnings of $2.34 per share, driven by higher revenues [1][10] Revenue Details - RBC Bearings' revenues reached $461.6 million, reflecting a 17% year-over-year increase and surpassing the Zacks Consensus Estimate of $461.1 million [2] - The company ended the quarter with a backlog of $2.1 billion, up from $1.6 billion at the end of Q2 fiscal 2026 [2] Segmental Performance - The Industrial segment generated revenues of $259.1 million, accounting for 56.1% of total revenues, which is a 3.1% increase year over year, slightly below the consensus estimate of $260 million [3] - Aerospace/Defense segment revenues totaled $202.5 million, representing 43.9% of total revenues, and increased by 41.5% year over year, exceeding the consensus estimate of $190 million [4] Margin Profile - Cost of sales rose 17.2% year over year to $257.2 million, while gross profit increased by 16.9% to $204.4 million, maintaining a gross margin of 44.3% [5] - Adjusted gross margin improved by 80 basis points to 45.1% [5] - Selling, general and administrative expenses (SG&A) were $77.9 million, up 11.1% year over year, with adjusted EBITDA rising 22% to $149.6 million and an adjusted EBITDA margin of 32.4%, up 130 basis points [5] Balance Sheet and Cash Flow - At the end of Q3 fiscal 2026, RBC had cash and cash equivalents of $107.6 million, up from $36.8 million at the end of fiscal 2025, and long-term debt decreased to $701.6 million from $918.4 million [7] - In the first nine months of fiscal 2026, net cash generated from operating activities was $330.5 million, a 47.3% increase year over year, with capital expenditure rising 55.6% to $55.4 million [8] Outlook - For Q4 fiscal 2026, management expects net sales to be between $495.0 million and $505.0 million, indicating a year-over-year increase of 13.1% to 15.4%, with an organic growth projection of 6.4% to 8.7% [11] - Gross margin is anticipated to be in the range of 45% to 45.25%, and SG&A as a percentage of net sales is expected to be between 16% and 16.25% [11]