RBC Bearings Q1 Sales Surge 19%, Guides Q2 Above Consensus; Backlog Holds at $2.3B
RBC sits 52% above its 52-week low of $364.5.
Summary
RBC Bearings reported fiscal Q1 2027 results well above expectations, with sales up 19% and adjusted EPS of $3.88. Q2 guidance of $505M-$515M signals continued strength, supported by a $2.3B backlog.
Key Events · Earnings and Guidance · RBC
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Q1 Sales Jump 19% to $519.5M
Net sales rose 19.2% year-over-year, driven by a 36.9% surge in Aerospace & Defense (to $225.4M) and 8.4% growth in Industrial (to $294.1M). The VACCO acquisition contributed $33.3M in defense and commercial aerospace sales.
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Earnings Per Share Soar to $3.20
Diluted EPS of $3.20 was up 47.5% from $2.17 a year ago, reflecting strong operating leverage. Net income reached $101.5M, a 48.2% increase.
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Gross Margin Expands to 47.7%
Gross margin improved 290 basis points year-over-year, benefiting from higher volumes, favorable mix, and a temporary tariff refund that added approximately 100 basis points. Both segments saw margin expansion.
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Q2 Guidance Implies Double-Digit Growth
Management expects Q2 fiscal 2027 net sales of $505M-$515M, representing 10.9%-13.1% growth over the prior year. This range likely exceeds consensus and reflects sustained demand across end markets.
Analysis · RBC · Technology
A standout quarter saw sales climb 19% to $519.5 million and earnings per share reach $3.20, both well above the prior year. The Aerospace & Defense segment led the charge, growing 37% on surging defense demand and the VACCO acquisition. Gross margins expanded nearly 300 basis points to 47.7%, helped by volume leverage and a one-time tariff refund. Management guided Q2 sales to $505-$515 million, implying double-digit growth and likely exceeding Street expectations. The $2.3 billion backlog—double last year's level—provides visibility into sustained momentum. The balance sheet strengthened further with a $50 million debt paydown after the quarter, leaving ample liquidity. This report confirms RBC is executing at a high level across both segments, with the aerospace cycle and industrial recovery providing a powerful tailwind.
At the time of this filing, RBC was trading at $554.05 on NYSE in the Technology sector, with a market capitalization of approximately $17.5B. The 52-week trading range was $364.50 to $667.69. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.