RBC Bearings beats Q3 profit estimates on aero, defense sector growth

RBC Bearings

05/02/2026 13:07

Overview

Precision bearings maker's fiscal Q3 net sales grew 17%, slightly beating analyst expectations

Adjusted EPS for fiscal Q3 beat analyst expectations

Company's results driven by strong Aerospace/Defense segment growth

Outlook

Company expects Q4 fiscal 2026 net sales between $495.0 mln and $505.0 mln

RBC Bearings anticipates Q4 adjusted gross margin of 45.0% to 45.25%

Company forecasts Q4 SG&A as percentage of net sales at 16.0% to 16.25%

Result Drivers

AEROSPACE/DEFENSE GROWTH - Net sales in the Aerospace/Defense segment increased 41.5%, contributing significantly to overall revenue growth

VACCO ACQUISITION - $29.2 million of net sales came from VACCO, acquired in July 2025

FREE CASH FLOW CONVERSION - Free cash flow conversion improved to 147% from 127.1% last year, indicating efficient cash generation

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Slight Beat*
$461.60 mln
$460.35 mln (7 Analysts)
Q3 Adjusted EPS
Beat
$3.04
$2.86 (8 Analysts)
Q3 EPS
$2.13
Q3 Adjusted Net Income
Beat
$96.30 mln
$84.13 mln (5 Analysts)
Q3 Net Income
$67.40 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for RBC Bearings Inc is $517.50, about 0.1% above its February 4 closing price of $516.78

The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 40 three months ago

Press Release: ID:nBw4ZrbfHa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)