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Mar 29

RBC Bearings Q4 2025 Earnings Report

RBC Bearings posted solid top-line and bottom-line growth in Q4 2025 driven by strong Aerospace/Defense demand.

Key Takeaways

RBC Bearings delivered a strong Q4 2025 with 5.8% revenue growth, improved gross margins, and higher net income. The Aerospace/Defense segment was the primary growth driver, while the company also reduced interest expenses and enhanced free cash flow conversion.

Revenue grew 5.8% year-over-year to $437.7 million.

Aerospace/Defense segment revenue increased 10.6%.

Net income attributable to common stockholders rose to $72.7 million.

Adjusted EPS reached $2.83, up from $2.47 last year.

Total Revenue
$438M
Previous year: $414M
+5.8%
EPS
$2.83
Previous year: $2.47
+14.6%
Organic Sales Growth
5.8%
Share Repurchase
$9.5M
Adjusted EBITDA
$140M
Previous year: $130M
+7.4%
Gross Profit
$193M
Previous year: $161M
+20.4%
Cash and Equivalents
$36.8M
Previous year: $63.5M
-42.0%
Total Assets
$1.7B
Previous year: $4.68B
-63.7%

RBC Bearings

RBC Bearings

RBC Bearings Revenue by Segment

Forward Guidance

RBC Bearings expects continued top-line growth and strong margins in Q1 FY2026, led by Aerospace/Defense strength.

Positive Outlook

  • Q1 FY26 sales projected at $424M to $434M.
  • Expected gross margin of 44.25% to 44.75%.
  • SG&A expected to remain controlled at 16.75% to 17.25% of sales.
  • Momentum from Aerospace/Defense expected to continue.
  • Strong cash flow allows for continued debt reduction.

Challenges Ahead

  • Industrial markets largely contracted in FY2025.
  • Slight increase in SG&A as a percentage of sales year-over-year.
  • Inventory and accounts receivable increases impacted operating cash flow.
  • Free cash flow impacted by higher capital expenditures.
  • Interest rate environment remains a risk despite lower expenses.

Revenue & Expenses

Visualization of income flow from segment revenue to net income