RBC Bearings (RBC) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2027 rose 19.2% year-over-year to $519.5 million, driven by strong Aerospace & Defense (up 36.9%) and Industrial (up 8.4%) segment growth.

• Net income increased 48.2% to $101.5 million, with adjusted net income at $123.0 million and diluted EPS at $3.20; adjusted EPS was $3.88, up 36.6%.

• Backlog remained robust at $2.3 billion as of June 27, 2026, supporting future growth.

• Free cash flow was $146.9 million, with $77 million of debt eliminated during the quarter.

• VACCO acquisition contributed to A&D growth, with $34.4 million in Q1 net sales.

Financial highlights

• Gross margin improved to 47.7% from 44.8% last year, aided by higher volumes, favorable mix, and one-time tariff refunds.

• Adjusted EBITDA reached $181.2 million, up from $141.5 million year-over-year; adjusted EBITDA margin was 34.9%.

• SG&A expenses were $85.8 million (16.5% of sales), up from $73.9 million (16.9% of sales) year-over-year.

• Interest expense declined to $10.1 million from $12.2 million due to debt reduction.

• Operating cash flow increased to $171.8 million from $120.0 million year-over-year.

Outlook and guidance

• Q2 FY2027 net sales expected between $505 million and $515 million, up 10.9%–13.1% year-over-year.

• Six-month sales expected at $1.024–$1.035 billion, up 14.9%–16.1% year-over-year.

• Gross margin guidance for Q2: 45.5%–45.75%; SG&A as a percentage of sales: 16.5%–16.75%.

• Management expressed confidence in continued robust demand and positive outlook for the year.