RBC Bearings beats Q3 profit estimates on aero, defense sector growth

Overview

• Precision bearings maker's fiscal Q3 net sales grew 17%, slightly beating analyst expectations

• Adjusted EPS for fiscal Q3 beat analyst expectations

• Company's results driven by strong Aerospace/Defense segment growth

Outlook

• Company expects Q4 fiscal 2026 net sales between $495.0 mln and $505.0 mln

• RBC Bearings anticipates Q4 adjusted gross margin of 45.0% to 45.25%

• Company forecasts Q4 SG&A as percentage of net sales at 16.0% to 16.25%

Result Drivers

• AEROSPACE/DEFENSE GROWTH - Net sales in the Aerospace/Defense segment increased 41.5%, contributing significantly to overall revenue growth

• VACCO ACQUISITION - $29.2 million of net sales came from VACCO, acquired in July 2025

• FREE CASH FLOW CONVERSION - Free cash flow conversion improved to 147% from 127.1% last year, indicating efficient cash generation

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for RBC Bearings Inc is $517.50, about 0.1% above its February 4 closing price of $516.78

• The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 40 three months ago

Press Release: ID:nBw4ZrbfHa

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