RBC Bearings shares fall 3.5% after Q2 sales rise 15%

RBC Bearings (RBC) said on Oct. 30 that second-quarter net income rose to $93.8 million from $60.0 million a year earlier, as net sales grew 15.2%. The results cover the quarter ended Sept. 26.

Shares fell 3.5% in regular trading as of 10:12 a.m. ET, from a regular-session close of $495.74.

The company is an international manufacturer of highly engineered precision bearings, components and essential systems. It was founded in 1919 and is headquartered in Oxford, Connecticut.

Here's how the company did:

• Net sales: $524.6 million vs. $455.3 million a year earlier
• Diluted EPS, GAAP: $2.96 vs. $1.90 a year earlier
• Adjusted diluted EPS: $3.74 vs. $2.88 a year earlier
• Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, excluding certain items: $175.0 million vs. $145.3 million a year earlier

Excluding $2.0 million of sales from the PSC acquisition, which closed on Aug. 10 and is included in the Industrial segment, organic net sales increased by $67.3 million, or 14.8%.

“RBC seems to be operating in an environment that is tailor-made for our products,” Chairman and Chief Executive Officer Michael J. Hartnett said.

“Backlog increased and considerable debt was retired,” he said. Backlog was $2.4 billion as of Sept. 26, up from $2.3 billion as of March 28 and $1.6 billion as of Sept. 27, 2025.

Segment results

Aerospace and defense segment sales were $230.2 million, up 15.8% from $198.8 million a year earlier.

Industrial segment sales were $294.4 million, up 14.8% from $256.5 million, or 14.0% on an organic basis.

Margins and operating income

Gross margin was $239.0 million, compared with $200.6 million a year earlier, and 45.6% of net sales against 44.1%. The quarter included $1.7 million of tariff refunds.

On an adjusted basis, gross margin was $239.0 million, compared with $204.3 million a year earlier.

Operating income was $131.6 million, up from $97.8 million. Adjusted operating income was $132.7 million, compared with $105.0 million.

Debt and costs

Interest expense, net, fell to $9.3 million from $13.4 million. The company attributed the decline to continued debt reduction, and said the term loan was fully repaid during the quarter.

Restructuring costs were $1.1 million in the quarter.

Revenue has risen in each of the last three quarters, from $455.3 million in the second quarter of fiscal 2026 to $519.5 million in the first quarter of fiscal 2027, according to its SEC filings.

Net income has risen in each of the last three quarters, from $60.0 million in the second quarter of fiscal 2026 to $101.5 million in the first quarter of fiscal 2027, according to its SEC filings.

Third-quarter guidance

The company expects third-quarter net sales of $520.0 million to $525.0 million, a growth rate of 12.7% to 13.7% from $461.6 million a year earlier.

It expects gross margin of 45.5% to 45.75% and SG&A of 16.25% to 16.5% of net sales.

On July 31 the company had forecast second-quarter net sales of $505.0 million to $515.0 million. Reported sales of $524.6 million came in above that range.