RBC Bearings (RBC) Q4 2026 earnings summary

Executive summary

• Fourth quarter net sales rose 18.3% year-over-year to $518 million, driven by strong Aerospace & Defense (A&D) and steady industrial growth.

• Fiscal 2026 ended with record results, with full-year net sales up 14.3% to $1,870.9 million; A&D up 32.9%, Industrial up 3.8%.

• Adjusted diluted EPS increased to $3.62 in Q4 and $12.39 for the year.

• Backlog expanded to $2.3 billion, reflecting robust demand in A&D.

• VACCO acquisition contributed $30 million to Q4 sales and supported segment growth.

Financial highlights

• Q4 gross margin was 44.4% (45.3% adjusted); full-year gross margin 44.4% (45.2% adjusted); adjusted EBITDA margin 32.6% in Q4, 32.4% for the year.

• Q4 net income was $91.7 million (adjusted $114.9 million); full-year net income $287.6 million (adjusted $392.0 million).

• Interest expense fell 12.5% year-over-year to $11.2 million.

• Free cash flow conversion was 73.6% for Q4 and 119.1% for the year.

• Net cash from operating activities was $415.7 million for FY2026.

Outlook and guidance

• Q1 FY27 revenue guidance: $500–$510 million, up 14.7%–17% year-over-year; excluding VACCO, growth expected at 8.3%–10.6%.

• Adjusted gross margin expected at 45.25%–45.5%; SG&A at 16.5%–16.75% of sales.

• Full-year consolidated gross margin expected to expand by 50 basis points.

• Commercial aerospace growth planned above 15% for FY27; defense and space expected to grow faster.