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Dec 28, 2024

RBC Bearings Q3 2025 Earnings Report

RBC Bearings reported strong operational performance with increased sales in both A&D and Industrial segments and strong free cash flow conversion.

Key Takeaways

RBC Bearings reported a 5.5% increase in net sales for Q3 2025, driven by growth in both Aerospace/Defense and Industrial segments. The company also saw improvements in gross margin and operating income, with a significant increase in net income compared to the same period last year.

Net sales increased by 5.5% to $394.4 million compared to Q3 2024.

Aerospace/Defense segment sales rose by 10.7% year over year.

Industrial segment sales increased by 2.7% year over year.

Diluted EPS attributable to common stockholders was $1.82, compared to $1.39 for the same period last year.

Total Revenue
$394M
Previous year: $374M
+5.5%
EPS
$2.34
Previous year: $1.85
+26.5%
Gross Profit
$175M
Previous year: $158M
+10.7%
Cash and Equivalents
$60.6M
Previous year: $71.6M
-15.4%
Free Cash Flow
$73.6M
Total Assets
$4.67B
Previous year: $4.69B
-0.6%

RBC Bearings

RBC Bearings

Forward Guidance

The Company expects net sales to be approximately $434.0 million to $444.0 million in the fourth quarter of fiscal 2025, compared to $413.7 million last year, a growth rate of 4.9% to 7.3%. Gross margin is expected to be in the range of 44.0% to 44.5% and SG&A as a percentage of net sales is expected to be in the range of 16.0% to 16.5%.

Positive Outlook

  • Net sales are expected to increase by 4.9% to 7.3% in Q4 2025.
  • Net sales are expected to be approximately $434.0 million to $444.0 million
  • Gross margin is expected to be in the range of 44.0% to 44.5%.
  • SG&A as a percentage of net sales is expected to be in the range of 16.0% to 16.5%.
  • Not paying preferred stock dividends in the future will lead to $23.0 million of annual cash savings in future periods.