RBC Bearings (RBC) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 net sales reached $1,870.9 million, up 14.3% year-over-year, with Q4 net sales at $518 million, up 18.3% from the prior year, driven by strong A&D and steady industrial growth.

• Aerospace & Defense segment grew 32.9% for the year and 41.2% in Q4; Industrial segment up 3.8% for the year and 5.5% in Q4.

• Adjusted diluted EPS increased to $3.62 in Q4 from $2.83 year-over-year; fiscal 2026 adjusted EPS was $12.39, up from $10.01.

• Adjusted EBITDA for fiscal 2026 was $605.3 million, up from $519.8 million last year; Q4 adjusted EBITDA grew 21% to $168.9 million.

• Backlog as of March 28, 2026, was $2.3 billion, up from $0.9 billion a year earlier, reflecting robust demand in A&D.

Financial highlights

• Consolidated gross margin was 44.4% (45.3% adjusted) in Q4; fiscal 2026 adjusted gross margin was 45.2%, up from 44.4% last year.

• Q4 net income attributable to common stockholders was $91.7 million (17.7% of net sales), up from $72.7 million (16.6%) last year.

• Interest expense fell 12.5% year-over-year to $11.2 million.

• Tax rate for adjusted EPS was 21% in Q4, down from 21.7% last year; Q4 effective tax rate was 15.8% with discrete items.

• Free cash flow conversion was 73.6% for the quarter and 119.1% for the year.

Outlook and guidance

• Q1 FY2027 net sales expected between $500 million and $510 million, up 14.7% to 17% year-over-year.

• Adjusted gross margin for Q1 FY2027 projected at 45.25% to 45.5%; SG&A as a percentage of net sales expected at 16.5% to 16.75%.

• Full-year consolidated gross margin expected to expand by 50 basis points.

• Commercial aerospace growth planned above 15% for FY27; defense and space expected to grow faster.

• Excluding $28 million from VACCO, Q1 net sales growth expected at 8.3% to 10.6%.