RBC Bearings (NYSE:RBC) Posts Quarterly Earnings Results, Beats Estimates By $0.21 EPS

RBC Bearings (NYSE:RBC) released its quarterly earnings results on Thursday. The industrial products company reported $3.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.83 by $0.21, Briefing.com reports. The company had revenue of $461.60 million during the quarter, compared to analysts’ expectations of $460.69 million. RBC Bearings had a return on equity of 10.47% and a net margin of 15.03%.The company’s revenue for the quarter was up 17.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.34 earnings per share.

Here are the key takeaways from RBC Bearings’ conference call:

• $461 million in Q3 sales (up 17%), adjusted EPS of $3.04 (up 30%), adjusted EBITDA of $149.6M (up 22%), and $99.1M of free cash flow, while the company paid down $81M of debt this quarter.
• Aerospace & Defense momentum is robust — A&D sales rose 41.5% YoY (defense +86.2%, commercial aerospace +21.5%) and backlog modestly exceeds $2 billion with another $500M–$1B of potential contracted work if R&D orders are included; the company is adding capacity under a five‑year per‑site plan.
• Industrial revenue grew 3.1% (OEM +7%), with a semiconductor rebound and new products from the Dodge acquisition plus a new Midwest service center expected to accelerate industrial growth into FY2027.
• Management guided Q4 revenue of $495M–$505M (13.1%–15.4% YoY), adjusted gross margins ~45% and SG&A ~16% of sales, while keeping capex targeted around 3.5%–4% of sales and prioritizing continued deleveraging (term loan expected paid off by Nov 2026).
• More than 90% of backlog is concentrated in A&D, creating revenue sensitivity to program timing and lumpiness (e.g., VACO quarter-to-quarter variability), which raises execution and timing risk despite strong demand.

RBC Bearings Stock Up 0.8%

Shares of NYSE:RBC opened at $520.67 on Friday. The company has a 50 day moving average of $472.96 and a 200-day moving average of $424.72. The company has a debt-to-equity ratio of 0.34, a current ratio of 3.18 and a quick ratio of 1.13. RBC Bearings has a one year low of $297.28 and a one year high of $528.74. The stock has a market cap of $16.46 billion, a price-to-earnings ratio of 63.57, a P/E/G ratio of 3.45 and a beta of 1.52.

More RBC Bearings News

Here are the key news stories impacting RBC Bearings this week:

• Positive Sentiment: Q3 results beat expectations — RBC reported $3.04 EPS (vs. consensus ~ $2.83) and $461.6M in revenue, with revenue up ~17% YoY. The beat reinforces the company’s growth in aerospace & defense and supports the current premium valuation. RBC Bearings (RBC) Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Backlog strength: A&D backlog has surpassed $2 billion and management described accelerating demand—this underpins forward revenue visibility and supports upside if conversion continues. RBC Bearings projects $495M–$505M Q4 revenue as A&D backlog surpasses $2B amid accelerating demand
• Positive Sentiment: Investor and analyst interest rising — Hedge funds rank RBC among attractive industrial names and Truist raised its price target (to $542) while reaffirming a buy, signaling conviction from institutional investors and analysts. Here is Why Hedge Funds Strongly Favor RBC Bearings (RBC)
• Neutral Sentiment: Call transcript available — Management commentary from the Q3 earnings call provides detail on end-market trends, margin drivers and capital allocation; useful for building a short-term model but largely informational. RBC Bearings Incorporated (RBC) Q3 2026 Earnings Call Transcript
• Negative Sentiment: Q4 revenue guide slightly below consensus — Management guided Q4 revenue to $495M–$505M vs. a ~$508M consensus, which may limit near-term upside despite the strong backlog. Investors will watch execution and margins in the next quarter. RBC Bearings projects $495M–$505M Q4 revenue as A&D backlog surpasses $2B amid accelerating demand

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on RBC. KeyCorp reaffirmed an “overweight” rating on shares of RBC Bearings in a research note on Friday. Truist Financial set a $542.00 target price on RBC Bearings in a research note on Friday, January 9th. Bank of America raised RBC Bearings from a “neutral” rating to a “buy” rating and increased their price objective for the company from $390.00 to $500.00 in a report on Thursday, November 6th. Weiss Ratings restated a “buy (b-)” rating on shares of RBC Bearings in a report on Monday, December 22nd. Finally, Deutsche Bank Aktiengesellschaft set a $527.00 price objective on shares of RBC Bearings and gave the stock a “buy” rating in a research note on Wednesday, December 17th. Six research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, RBC Bearings currently has a consensus rating of “Moderate Buy” and an average target price of $489.17.

Insider Activity

In other RBC Bearings news, Director Steven H. Kaplan sold 700 shares of the company’s stock in a transaction that occurred on Wednesday, November 12th. The shares were sold at an average price of $443.00, for a total value of $310,100.00. Following the completion of the sale, the director owned 1,999 shares of the company’s stock, valued at approximately $885,557. This represents a 25.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On RBC Bearings

Hedge funds have recently modified their holdings of the stock. Advisors Asset Management Inc. bought a new position in shares of RBC Bearings in the 1st quarter valued at about $26,000. Larson Financial Group LLC increased its position in RBC Bearings by 148.5% during the third quarter. Larson Financial Group LLC now owns 82 shares of the industrial products company’s stock worth $32,000 after buying an additional 49 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in RBC Bearings by 123.3% during the second quarter. EverSource Wealth Advisors LLC now owns 96 shares of the industrial products company’s stock worth $37,000 after buying an additional 53 shares during the last quarter. Measured Wealth Private Client Group LLC bought a new position in shares of RBC Bearings during the 3rd quarter worth approximately $55,000. Finally, Danske Bank A S acquired a new position in shares of RBC Bearings during the 3rd quarter worth approximately $78,000.

About RBC Bearings

RBC Bearings Incorporated is a global designer, manufacturer and marketer of highly engineered precision bearings and components for extreme applications. The company’s product portfolio includes cylindrical roller bearings, spherical plain bearings, ball bearings, track rollers, and engineered components such as metal-to-metal and polymer bearings. These products are tailored to meet the demanding requirements of aerospace, defense and industrial customers where reliability under severe conditions is critical.

The company’s bearings and components find application in aircraft engines, auxiliary power units, landing gear systems, space and missile programs, industrial gas turbines, oil and gas drilling equipment, and heavy machinery.