RBC Bearings Incorporated Announces Fiscal Second Quarter 2027 Results
RBC Bearings INC (RBC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 RBC Bearings Incorporated Announces Fiscal Second Quarter 2027 Results Oxford, CT – October 30, 2026 – RBC Bearings Incorporated (NYSE: RBC), a leading international manufacturer of highly engineered precision bearings, components and essential systems for the indust
How this was made
The 30-second read
Why it matters
The earnings beat and updated guidance suggest a favorable outlook for the company's core segments.
Market read
Strong quarterly performance may drive short‑term buying interest in RBC and related industrial stocks.
What to watch
Potential headwinds from supply‑chain constraints or future tariff changes are not addressed.
Second-quarter net sales increased 15.2% to $524.6 million, GAAP diluted EPS increased 55.8% to $2.96, and the Company guided third-quarter net sales to approximately $520.0 million to $525.0 million.
The reported quarter combined 15.2% net-sales growth across both segments, GAAP gross-margin expansion to 45.6%, operating-income growth of 34.6%, net-income growth of 56.3%, and reduced interest expense following repayment of the Term Loan.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 26, 2026 net salesGAAP | $524.6M | – | 15.2% |
| Three months ended September 26, 2026 cost of salesGAAP | $285.6M | – | – |
| Three months ended September 26, 2026 gross marginGAAP | $239M | – | 19.1% |
| Three months ended September 26, 2026 gross margin percentageGAAP | 45.6% | – | – |
| Three months ended September 26, 2026 adjusted gross marginnon-GAAP | $239M | – | 17.0% |
| Three months ended September 26, 2026 adjusted gross margin percentagenon-GAAP | 45.6% | – | – |
| Three months ended September 26, 2026 selling, general and administrative expenseGAAP | $83.4M | – | increase of $6.0 million |
| Three months ended September 26, 2026 selling, general and administrative expense as a percentage of net salesGAAP | 15.9% | – | – |
| Three months ended September 26, 2026 other operating expensesGAAP | $24M | – | – |
| Three months ended September 26, 2026 operating incomeGAAP | $131.6M | – | 34.6% |
| Three months ended September 26, 2026 operating income percentageGAAP | 25.1% | – | – |
| Three months ended September 26, 2026 adjusted operating incomenon-GAAP | $132.7M | – | 26.4% |
| Three months ended September 26, 2026 adjusted operating income percentagenon-GAAP | 25.3% | – | – |
| Three months ended September 26, 2026 interest expense, netGAAP | $9.3M | – | decrease |
| Three months ended September 26, 2026 provision for income taxesGAAP | $28.7M | – | – |
| Three months ended September 26, 2026 effective income tax rateGAAP | 23.4% | – | – |
| Three months ended September 26, 2026 net incomeGAAP | $93.8M | – | 56.3% |
| Three months ended September 26, 2026 adjusted net incomenon-GAAP | $118.7M | – | 30.2% |
| Three months ended September 26, 2026 diluted EPSGAAP | $2.96 | – | 55.8% |
| Three months ended September 26, 2026 adjusted diluted EPSnon-GAAP | $3.74 | – | 29.9% |
| Three months ended September 26, 2026 adjusted EBITDAnon-GAAP | $175M | – | – |
| Three months ended September 26, 2026 adjusted EBITDA as a percentage of net salesnon-GAAP | 33.4% | – | – |
| Six months ended September 26, 2026 net salesGAAP | $1.04B | – | 17.1% |
| Six months ended September 26, 2026 gross marginGAAP | $486.8M | – | 23.0% |
| Six months ended September 26, 2026 gross margin percentageGAAP | 46.6% | – | – |
| Six months ended September 26, 2026 adjusted gross marginnon-GAAP | $486.8M | – | 21.0% |
| Six months ended September 26, 2026 adjusted gross margin percentagenon-GAAP | 46.6% | – | – |
| Six months ended September 26, 2026 operating incomeGAAP | $272.4M | – | 37.0% |
| Six months ended September 26, 2026 adjusted operating incomenon-GAAP | $273.9M | – | 30.2% |
| Six months ended September 26, 2026 net incomeGAAP | $195.3M | – | 52.0% |
| Six months ended September 26, 2026 adjusted net incomenon-GAAP | $241.7M | – | 33.7% |
| Six months ended September 26, 2026 diluted EPSGAAP | $6.16 | – | 51.4% |
| Six months ended September 26, 2026 adjusted diluted EPSnon-GAAP | $7.62 | – | 33.2% |
| Six months ended September 26, 2026 adjusted EBITDAnon-GAAP | $356.2M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Aerospace and defense segment, three months ended September 26, 2026Net sales for the Aerospace & Defense segment increased 15.8%. | $230.2M | – | 15.8% |
| Industrial segment, three months ended September 26, 2026Net sales for the Industrial segment increased 14.8%, 14.0% organically. The PSC acquisition contributed $2.0 million of net sales and is included within the Industrial segment. | $294.4M | – | 14.8% |
| Aerospace and defense segment, six months ended September 26, 2026No segment-specific six-month growth rate was reported. | $455.6M | – | – |
| Industrial segment, six months ended September 26, 2026No segment-specific six-month growth rate was reported. | $588.5M | – | – |
third quarter fiscal 2027 outlook
- Revenueapproximately $520.0 million to $525.0 million
- Gross margin45.5% to 45.75%
- Operating expensesSG&A as a percentage of net sales of 16.25% to 16.5%
- NoteNet sales compared to $461.6 million in the prior year, for a growth rate of 12.7% to 13.7%.
What drove it
- Second-quarter organic net sales increased by $67.3 million or 14.8%, excluding $2.0 million of net sales related to the PSC acquisition.
- Gross margin was favorably impacted by $1.7 million of tariff refunds.
- The decrease in interest expense between periods was primarily due to continued debt reduction efforts.
- Backlog as of September 26, 2026 was $2.4 billion, compared to $2.3 billion as of March 28, 2026 and $1.6 billion as of September 27, 2025.
Concerns
- The Company identified general economic conditions, geopolitical factors including import/export tariffs, future levels of aerospace & defense and industrial market activity, debt level, goodwill, raw-material pricing and interest rates among risks and uncertainties.
- Second-quarter gross margin was favorably impacted by $1.7 million of tariff refunds.
- The effective income tax rate of 23.4% included $0.5 million of discrete tax benefits associated with stock-based compensation, partially offset by $0.4 million of expense related to other items.
What to watch
- Third-quarter fiscal 2027 net sales guidance of approximately $520.0 million to $525.0 million.
- Third-quarter fiscal 2027 gross-margin guidance of 45.5% to 45.75%.
- Third-quarter fiscal 2027 SG&A as a percentage of net sales guidance of 16.25% to 16.5%.
- Backlog progression from $2.4 billion as of September 26, 2026.
- Industrial organic growth and the contribution from the PSC acquisition.
Balance sheet and cash flow
- Cash as of September 26, 2026 was $89.3 million, compared to $57.3 million as of March 28, 2026.
- Current portion of long-term debt as of September 26, 2026 was $0.7 million, compared to $173.8 million as of March 28, 2026.
- Long-term debt, less current portion, as of September 26, 2026 was $709.8 million, compared to $701.7 million as of March 28, 2026.
- The Term Loan was fully repaid during the second quarter of fiscal 2027.
- Six-month net cash provided by operating activities was $278.2 million, compared to $208.4 million.
- Six-month capital expenditures were $45.6 million, compared to $32.4 million.
- Six-month acquisition of business was $24.2 million, compared to $275.0 million.
- Six-month repayments of term loans were $173.0 million, compared to $45.0 million.
- Cash increased during the six-month period by $32.0 million, compared to $54.4 million.
- Inventory as of September 26, 2026 was $790.0 million, compared to $762.8 million as of March 28, 2026.
Analysis
RBC Bearings reported a strong fiscal second quarter. Net sales were $524.6 million, up 15.2% from $455.3 million, with Aerospace & Defense sales up 15.8% to $230.2 million and Industrial sales up 14.8% to $294.4 million. Excluding $2.0 million of PSC acquisition sales in Industrial, organic net sales increased by $67.3 million or 14.8%. Backlog was $2.4 billion as of September 26, 2026, compared with $2.3 billion as of March 28, 2026 and $1.6 billion as of September 27, 2025.
Profitability expanded materially. GAAP gross margin was 45.6%, compared with 44.1%, while GAAP operating income increased 34.6% to $131.6 million and GAAP operating margin was 25.1%, compared with 21.5%. Adjusted operating income increased 26.4% to $132.7 million. Gross margin benefited from $1.7 million of tariff refunds, while SG&A was 15.9% of net sales, compared with 17.0% in the prior-year quarter.
GAAP net income rose 56.3% to $93.8 million and diluted EPS rose 55.8% to $2.96. Adjusted net income was $118.7 million and adjusted diluted EPS was $3.74. Interest expense, net, declined to $9.3 million from $13.4 million, primarily due to continued debt reduction efforts, and the Term Loan was fully repaid during the second quarter. For the first six months, net cash provided by operating activities was $278.2 million, while capital expenditures were $45.6 million and repayments of term loans were $173.0 million.
The third-quarter outlook calls for net sales of approximately $520.0 million to $525.0 million, compared with $461.6 million in the prior year, representing growth of 12.7% to 13.7%. Management expects gross margin of 45.5% to 45.75% and SG&A as a percentage of net sales of 16.25% to 16.5%. The guide places the next quarter's gross-margin range near the reported second-quarter GAAP gross margin of 45.6%, while the Company continues to cite tariffs, aerospace and defense and industrial activity, raw-material pricing, and debt as relevant risks.
Management, verbatim
RBC seems to be operating in an environment that is tailor-made for our products. Revenues in both A&D and industrial products grew at mid-teen levels while year on year gross margins expanded. Backlog increased and considerable debt was retired. We are thrilled to report the next six months are positioned to show an even better second half.
Dr. Michael J. Hartnett, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Free cash flow and free cash flow conversion were not reported as figures.
- Quarterly operating cash flow, quarterly capital expenditures, and quarterly free cash flow were not reported.
- Capital-return figures for share repurchases and dividends were not reported.
- Forward guidance for EPS, operating income, adjusted EBITDA, cash flow, capital expenditures, debt, and tax rate was not reported.
- Third-quarter segment-level revenue guidance was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
RBC Bearings is a precision‑bearing manufacturer serving industrial, aerospace, and defense markets.
Ticker impact
RBC Bearings reported Q2 fiscal 2027 results with 15.2% revenue growth and higher margins, a fresh earnings disclosure.
likely upside as investors price in stronger revenue and margin expansion
Quarterly numbers exceed prior year and the company issued guidance for Q3 sales of $520‑$525M, indicating continued growth.
Market effects
Positive earnings may lift the industrial and aerospace & defense components sector.
U.S. industrial stocks could see modest gains.
Limited to companies with similar precision‑bearing product lines.
Counterpoint
If the market has already priced in the beat, any upside may be limited.
Key entities
- companyRBC Bearings
Precision bearing manufacturer reporting Q2 fiscal 2027 results.
