Analysis RBC
RBC Bearings clears its sales forecast as industrial growth revives
RBC Bearings beat its own sales forecast as its industrial business regained momentum. The company also paid off its term loan, while other debt remains.
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RBC Bearings Incorporated
RBC Bearings makes precision bearings, components and systems for industrial, aerospace and defense customers. Its fiscal second quarter of 2027 ended on September 26, 2026.
- Ticker
- RBC
- Exchange
- XNYS
- SEC CIK
- 0001324948
Latest financial snapshot
RBC's second quarter of fiscal 2027 ended on September 26, 2026. The comparison below is with its second quarter of fiscal 2026, which ended on September 27, 2025. Reported figures follow standard U.S. accounting rules.
| Measure | Fiscal Q2 2027 | Fiscal Q2 2026 |
|---|---|---|
| Sales | $524.6 | $455.3 |
| Operating profit | $131.6 | $97.8 |
| Net profit | $93.8 | $60.0 |
| Reported diluted earnings per share | $2.96 | $1.90 |
| Adjusted diluted earnings per share | $3.74 | $2.88 |
| Reported gross margin | 45.6% | 44.1% |
Diluted earnings per share allows for potential extra shares that could reduce each share's claim on profit. Adjusted earnings remove costs such as employee share awards and the gradual write-down of assets such as customer relationships acquired in past deals. They supplement the reported result.
Business trends
Quarterly sales grew 15.2%. Industrial sales increased 14.8%, including a small contribution from PSC Couplings; growth excluding PSC was 14%. The division's growth had been 8.4% in the previous quarter and 0.7% in the year-earlier quarter. All of these growth rates compare with the corresponding quarter a year earlier. Aerospace & Defense sales grew 15.8% in the latest quarter.
Reported operating profit grew about 35%. Lower net interest expense and a lower effective tax rate also helped net profit, which grew 56%. Reported gross margin included $1.7 million of tariff refunds.
Cash generation and borrowing
For the first six months of fiscal 2027, operating activities generated $278.2 million in cash, compared with $208.4 million in the corresponding six months a year earlier. These are half-year totals, rather than quarterly figures. RBC repaid $173 million of term-loan principal during the half year and completed repayment of that loan in the second quarter.
| Measure | September 26, 2026 | March 28, 2026 |
|---|---|---|
| Cash | $89.3 | $57.3 |
| Long-term debt, excluding current portion | $709.8 | $701.7 |
| Debt classified as current | $0.7 | $173.8 |
Repaying the term loan did not eliminate all borrowing. The two debt rows are amounts recorded on the balance sheet; operating lease liabilities are reported separately.
PSC Couplings acquisition completed
RBC's Dodge Industrial subsidiary acquired the business assets of PSC Couplings on August 10, 2026 for $24.2 million in cash. PSC makes disc couplings for industrial applications and contributed $2 million of sales to the latest quarter. The September balance sheet above is from after the purchase.
Expectations and delivery
In July, RBC forecast sales of $505 million to $515 million for fiscal Q2 2027. The actual $524.6 million exceeded the upper end, including after removing PSC's $2 million contribution. Reported gross margin of 45.6% was within the forecast range of 45.5% to 45.75%.
For fiscal Q3 2027, management forecasts sales of $520 million to $525 million, or growth of 12.7% to 13.7% against the year-earlier quarter. It expects gross margin of 45.5% to 45.75%. These are forecasts, not completed-quarter results.
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