Q1 FY2027
Filed Jul 31, 2026RBC Bearings Incorporated Announces Fiscal First Quarter 2027 Results
Net sales increased 19.2%, GAAP operating income increased 39.3%, GAAP net income increased 48.2%, and gross margin expanded to 47.7% from 44.8%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $519.5 million | – | 19.2% |
| Gross marginGAAP | $247.8 million | – | 26.9% |
| Gross margin %GAAP | 47.7% | – | – |
| Adjusted gross marginnon-GAAP | $247.8 million | – | 25.1% |
| Adjusted gross margin %non-GAAP | 47.7% | – | – |
| SG&AGAAP | $85.8 million | – | – |
| SG&A as a percentage of net salesGAAP | 16.5% | – | – |
| Other operating expensesGAAP | $21.2 million | – | – |
| Operating incomeGAAP | $140.8 million | – | 39.3% |
| Operating income %GAAP | 27.1% | – | – |
| Adjusted operating incomenon-GAAP | $141.2 million | – | 34.1% |
| Adjusted operating income %non-GAAP | 27.2% | – | – |
| Interest expense, netGAAP | $10.1 million | – | – |
| Other non-operating expenseGAAP | $0.5 million | – | – |
| Income tax expenseGAAP | $28.7 | – | – |
| Effective income tax rateGAAP | 22.1% | – | – |
| Net incomeGAAP | $101.5 million | – | 48.2% |
| Net income as a percentage of net salesGAAP | 19.5% | – | – |
| Adjusted net incomenon-GAAP | $123.0 million | – | 37.3% |
| Diluted EPSGAAP | $3.20 | – | 47.5% |
| Adjusted diluted EPSnon-GAAP | $3.88 | – | 36.6% |
| Adjusted EBITDA as a percentage of net salesnon-GAAP | 34.9% | – | – |
| Backlogother | $2.3 billion | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| IndustrialNet sales increased 8.4%. | not reported | – | 8.4% |
| Aerospace & DefenseNet sales increased 36.9%. | not reported | – | 36.9% |
second quarter of fiscal 2027 outlook
- Revenue$505.0 million to $515.0 million
- Gross margin45.5% to 45.75%
- Operating expensesSG&A as a percentage of net sales is expected to be in the range of 16.5% to 16.75%
- NoteNet sales growth rate of 10.9% to 13.1%.
- NoteNet sales compared to $455.3 million in the prior year.
What drove it
- $34.4 of net sales this quarter came from VACCO, which the Company acquired on July 18, 2025.
- Aerospace & Defense net sales increased 36.9%.
- Industrial net sales increased 8.4%.
- Gross margin was 47.7% compared to 44.8% last year.
- SG&A as a percentage of net sales was 16.5% compared to 16.9% last year.
Concerns
- Second-quarter gross-margin guidance of 45.5% to 45.75% is below the first-quarter gross margin of 47.7%.
- Second-quarter net-sales growth guidance is 10.9% to 13.1%, compared with first-quarter net-sales growth of 19.2%.
- Other operating expenses increased to $21.2 million from $20.2 million, including $21.0 million of amortization of intangible assets.
What to watch
- Execution against second-quarter net-sales guidance of $505.0 million to $515.0 million.
- Second-quarter gross margin relative to guidance of 45.5% to 45.75%.
- Aerospace & Defense and Industrial segment sales growth.
- Backlog conversion from the $2.3 billion reported as of June 27, 2026.
- Continued debt reduction efforts and associated interest expense.
Balance sheet and cash flow
- Backlog as of June 27, 2026, was $2.3 billion compared to $2.3 billion as of March 28, 2026 and $1.0 billion as of June 28, 2025.
- Interest expense, net, was $10.1 million for the first quarter of fiscal 2027 compared to $12.2 million for the same period last year.
- The decrease in interest expense between the periods was primarily due to continued debt reduction efforts.
Analysis
RBC Bearings reported a strong fiscal first quarter, with net sales of $519.5 million, up 19.2% from $436.0 million. Aerospace & Defense was the principal reported growth contributor, with sales up 36.9%, while Industrial sales increased 8.4%. The Company also stated that $34.4 of quarterly net sales came from VACCO, acquired on July 18, 2025. Backlog was $2.3 billion as of June 27, 2026, unchanged from March 28, 2026 and above $1.0 billion as of June 28, 2025.
Profitability improved materially. GAAP gross margin increased to 47.7% from 44.8%, and GAAP operating income rose 39.3% to $140.8 million. GAAP operating-income margin reached 27.1%, compared with 23.2% last year. SG&A rose to $85.8 million from $73.9 million, but declined as a percentage of sales to 16.5% from 16.9%. Adjusted EBITDA margin increased to 34.9% from 32.5%.
GAAP net income was $101.5 million, up 48.2%, and diluted EPS was $3.20, up 47.5%. Adjusted net income was $123.0 million and adjusted diluted EPS was $3.88. Net interest expense declined to $10.1 million from $12.2 million, which the Company attributed primarily to continued debt reduction efforts. The effective income tax rate was 22.1%, compared with 21.9% last year.
For the second quarter of fiscal 2027, RBC expects net sales of approximately $505.0 million to $515.0 million, representing growth of 10.9% to 13.1% compared to $455.3 million in the prior year. The outlook calls for gross margin of 45.5% to 45.75% and SG&A as a percentage of net sales of 16.5% to 16.75%. The guided gross-margin range is below the 47.7% reported in the first quarter, while guided sales growth is below the first-quarter 19.2% growth rate.
Management, verbatim
Sales in our first quarter expanded by 19% as margins, cash flow and backlog achieved record levels. Today we are operating extremely well in a robust commercial environment where the vast majority of our end markets are expanding. I am proud of our many teams and their dedication to maintain the high levels of service expected of RBC in these demanding markets. Clearly, we are excited and confident in the positive outlook for the balance of the year.
Dr. Michael J. Hartnett, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Industrial segment revenue
- Aerospace & Defense segment revenue
- Segment prior-year revenue
- Operating cash flow
- Capital expenditures
- Free cash flow
- Free cash flow conversion
- Cash balance
- Total debt
- Share repurchases
- Dividends
- Adjusted EBITDA amount
- Second-quarter tax-rate guidance
- Prior-quarter comparisons for income-statement metrics
- Previous-release outlook for comparison with reported results
AlphaAI 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.