RBC Bearings (RBC - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis maker of bearings and components is expected to post quarterly earnings of $3.42 per share in its upcoming report, which represents a year-over-year change of +20.4%.
Revenues are expected to be $508.64 million, up 16.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.57% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for RBC Bearings?For RBC Bearings, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.66%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that RBC Bearings will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that RBC Bearings would post earnings of $3.31 per share when it actually produced earnings of $3.62, delivering a surprise of +9.37%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
RBC Bearings appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Manufacturing - General Industrial industry, Idex (IEX - Free Report) , is soon expected to post earnings of $2.1 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +1.5%. Revenues for the quarter are expected to be $902.43 million, up 4.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Idex has been revised 0.1% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.67%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Idex will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends RBC Bearings (RBC - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this maker of bearings and components a great growth pick right now.
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for RBC Bearings is 27.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 17% this year, crushing the industry average, which calls for EPS growth of 11.1%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for RBC Bearings is 19.5%, which is higher than many of its peers. In fact, the rate compares to the industry average of 6.3%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 30.8% over the past 3-5 years versus the industry average of 9.1%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for RBC Bearings. The Zacks Consensus Estimate for the current year has surged 0.6% over the past month.
Bottom LineRBC Bearings has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions RBC Bearings well for outperformance, so growth investors may want to bet on it.
Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Is RBC Bearings (RBC - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
RBC Bearings is a member of the Industrial Products sector. This group includes 187 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. RBC Bearings is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for RBC's full-year earnings has moved 0.2% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, RBC has returned 30.5% so far this year. In comparison, Industrial Products companies have returned an average of 17.6%. As we can see, RBC Bearings is performing better than its sector in the calendar year.
Another stock in the Industrial Products sector, Stanley Black & Decker (SWK - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 18.7%.
The consensus estimate for Stanley Black & Decker's current year EPS has increased 2.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, RBC Bearings belongs to the Manufacturing - General Industrial industry, a group that includes 41 individual stocks and currently sits at #62 in the Zacks Industry Rank. On average, stocks in this group have gained 5.2% this year, meaning that RBC is performing better in terms of year-to-date returns.
In contrast, Stanley Black & Decker falls under the Manufacturing - Tools & Related Products industry. Currently, this industry has 8 stocks and is ranked #105. Since the beginning of the year, the industry has moved +3.4%.
RBC Bearings and Stanley Black & Decker could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.
California Public Employees Retirement System lifted its stake in shares of RBC Bearings Incorporated (NYSE:RBC – Free Report) by 1.9% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 51,856 shares of the industrial products company’s stock after acquiring an additional 944 shares during the period. California Public Employees Retirement System owned approximately 0.16% of RBC Bearings worth $28,164,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Comerica Bank boosted its position in shares of RBC Bearings by 19.5% during the fourth quarter. Comerica Bank now owns 90,283 shares of the industrial products company’s stock worth $40,486,000 after buying an additional 14,747 shares during the period. Wealth Enhancement Advisory Services LLC grew its holdings in shares of RBC Bearings by 263.5% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 3,737 shares of the industrial products company’s stock worth $1,788,000 after buying an additional 2,709 shares in the last quarter. Fifth Third Bancorp raised its position in RBC Bearings by 12,957.3% in the 1st quarter. Fifth Third Bancorp now owns 74,949 shares of the industrial products company’s stock valued at $40,707,000 after buying an additional 74,375 shares during the last quarter. M&T Bank Corp raised its position in RBC Bearings by 372.6% in the 4th quarter. M&T Bank Corp now owns 23,640 shares of the industrial products company’s stock valued at $10,601,000 after buying an additional 18,638 shares during the last quarter. Finally, Bessemer Group Inc. lifted its stake in RBC Bearings by 9.6% in the 4th quarter. Bessemer Group Inc. now owns 83,865 shares of the industrial products company’s stock valued at $37,607,000 after acquiring an additional 7,315 shares in the last quarter.
Insider Buying and Selling In other news, VP John J. Feeney sold 225 shares of RBC Bearings stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $657.94, for a total value of $148,036.50. Following the completion of the transaction, the vice president owned 2,378 shares of the company’s stock, valued at $1,564,581.32. This trade represents a 8.64% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Dolores J. Ennico sold 600 shares of RBC Bearings stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $636.11, for a total transaction of $381,666.00. Following the completion of the transaction, the director directly owned 7,254 shares of the company’s stock, valued at approximately $4,614,341.94. This trade represents a 7.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 1,425 shares of company stock worth $885,400. Insiders own 1.90% of the company’s stock.
Analyst Upgrades and Downgrades A number of research firms have weighed in on RBC. Truist Financial reaffirmed a “buy” rating and set a $615.00 price target (up from $599.00) on shares of RBC Bearings in a research report on Tuesday, May 19th. Morgan Stanley boosted their price objective on shares of RBC Bearings from $600.00 to $640.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 19th. Wall Street Zen cut shares of RBC Bearings from a “buy” rating to a “hold” rating in a report on Saturday, June 27th. Zacks Research cut shares of RBC Bearings from a “strong-buy” rating to a “hold” rating in a report on Wednesday, June 3rd. Finally, Weiss Ratings raised shares of RBC Bearings from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, July 15th. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $584.00.
Get Our Latest Stock Analysis on RBC Bearings
RBC Bearings Stock Up 2.7% RBC stock opened at $584.13 on Wednesday. The company has a quick ratio of 0.78, a current ratio of 2.18 and a debt-to-equity ratio of 0.21. The business has a 50 day moving average price of $597.69 and a two-hundred day moving average price of $565.13. The company has a market cap of $18.48 billion, a price-to-earnings ratio of 64.26, a P/E/G ratio of 3.26 and a beta of 1.40. RBC Bearings Incorporated has a twelve month low of $364.50 and a twelve month high of $667.69.
RBC Bearings (NYSE:RBC – Get Free Report) last posted its quarterly earnings results on Friday, May 15th. The industrial products company reported $3.62 earnings per share for the quarter, topping the consensus estimate of $3.31 by $0.31. The firm had revenue of $518.00 million for the quarter, compared to analyst estimates of $505.90 million. RBC Bearings had a return on equity of 11.35% and a net margin of 15.37%.The business’s quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.83 EPS. Analysts anticipate that RBC Bearings Incorporated will post 13.59 EPS for the current fiscal year.
RBC Bearings Profile (Free Report)
RBC Bearings Incorporated is a global designer, manufacturer and marketer of highly engineered precision bearings and components for extreme applications. The company’s product portfolio includes cylindrical roller bearings, spherical plain bearings, ball bearings, track rollers, and engineered components such as metal-to-metal and polymer bearings. These products are tailored to meet the demanding requirements of aerospace, defense and industrial customers where reliability under severe conditions is critical.
The company’s bearings and components find application in aircraft engines, auxiliary power units, landing gear systems, space and missile programs, industrial gas turbines, oil and gas drilling equipment, and heavy machinery.
Featured Articles Five stocks we like better than RBC Bearings Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding RBC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for RBC Bearings Incorporated (NYSE:RBC – Free Report).
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Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider RBC Bearings?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. RBC Bearings (RBC - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $3.45 a share 11 days away from its upcoming earnings release on July 31, 2026.
RBC Bearings' Earnings ESP sits at +1.77%, which, as explained above, is calculated by taking the percentage difference between the $3.45 Most Accurate Estimate and the Zacks Consensus Estimate of $3.39. RBC is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
RBC is just one of a large group of Industrial Products stocks with a positive ESP figure. Eaton (ETN - Free Report) is another qualifying stock you may want to consider.
Eaton is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on July 31, 2026. ETN's Most Accurate Estimate sits at $3.09 a share 11 days from its next earnings release.
The Zacks Consensus Estimate for Eaton is $3.08, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.32%.
Because both stocks hold a positive Earnings ESP, RBC and ETN could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? RBC Bearings (RBC - Free Report) , which belongs to the Zacks Manufacturing - General Industrial industry, could be a great candidate to consider.
When looking at the last two reports, this maker of bearings and components has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 8.02%, on average, in the last two quarters.
For the last reported quarter, RBC Bearings came out with earnings of $3.62 per share versus the Zacks Consensus Estimate of $3.31 per share, representing a surprise of 9.37%. For the previous quarter, the company was expected to post earnings of $2.85 per share and it actually produced earnings of $3.04 per share, delivering a surprise of 6.67%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for RBC Bearings. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
RBC Bearings currently has an Earnings ESP of +1.77%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
RBC Bearings Incorporated RBC has been benefiting from strength in the Aerospace/Defense segment, driven by solid momentum in the commercial aerospace market. Strong growth in orders from the OEM (original equipment manufacturer) and the aftermarket verticals is driving the segment's performance (revenues up 41.2% year over year in fourth-quarter fiscal 2026).
Key Takeaways RBC's Aerospace & Defense revenues jumped 41.2% year over year in fiscal Q4 2026.RBC benefits from a $2.3 billion backlog and strong execution on commercial aerospace orders.RBC saw defense revenues rise 64.5%, supported by marine and missile program demand. RBC Bearings Incorporated (RBC - Free Report) is benefiting from the strong performance of the Aerospace & Defense segment. Strength in the commercial aerospace market, driven by strong growth in orders from the OEM (original equipment manufacturer) and the aftermarket verticals, is driving the segment’s results. In the fourth quarter of fiscal 2026 (ended March 28, 2026), revenues from the segment surged 41.2% year over year.
The robust backlog level of $2.3 billion, exiting the quarter, along with the company’s strong execution on incremental orders in the commercial aerospace market, is expected to be a tailwind for the segment.
While the commercial aerospace market has remained a key driver for RBC, the defense side of the industry is also showing positive momentum. Solid demand for the company’s bearings and engineered component products in the defense market, supported by marine and missile programs, bodes well for the segment moving ahead. Within the segment, revenues from the commercial aerospace market increased 17.8% in the fiscal fourth quarter, while those from the defense market surged 64.5%.
RBC’s Aerospace & Defense unit is expected to maintain a strong growth trajectory going forward, supported by robust budgetary provisions for the U.S. defense sector and strength in air travel.
RBC’s Peers in the Aerospace & Defense MarketCommercial aircraft and aftermarket activity continue to support Textron Inc.’s (TXT - Free Report) Aviation franchise. In the first quarter of 2026, Textron Aviation revenues increased 22% year over year, driven by higher aircraft revenues and a 10% increase in aftermarket parts and services revenues. Backlog at Textron Aviation rose to $8.0 billion as of April 4, 2026, from $7.7 billion at year-end 2025.
RTX Corporation (RTX - Free Report) is witnessing solid momentum in commercial aerospace, strong defense orders and a robust backlog. Rising global air traffic, higher commercial OEM and aftermarket sales, and strong demand for large commercial engines and Pratt Canada operations should aid RTX’s growth. RTX Corp.’s defense business remains well-positioned, backed by strong bookings from the Pentagon and foreign allies.
RBC's Price Performance, Valuation and EstimatesShares of RBC Bearings have surged 38.7% in the past six months compared with the industry’s growth of 6.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, RBC is trading at a forward price-to-earnings ratio of 42.54X, above the industry’s average of 22.60X. RBC Bearings carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RBC’s fiscal 2027 (ending March 2027) earnings has been on the rise over the past 60 days.
Image Source: Zacks Investment Research
RBC Bearings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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RBC Bearings Incorporated (NYSE:RBC) will release earnings for its fourth quarter before the opening bell on Friday, May 15.
Analysts expect the Oxford, Connecticut-based company to report quarterly earnings of $3.32 per share, up from $2.83 per share in the year-ago period. The consensus estimate for RBC Bearings' quarterly revenue is $506.59 million (it reported $437.7 million last year), according to Benzinga Pro.
On Feb. 5, RBC Bearings posted better-than-expected earnings for the third quarter.
RBC Bearings shares fell 1.1% to close at $611.93 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period.
Considering buying RBC stock? Here’s what analysts think:
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Market News and Data brought to you by Benzinga APIs
RBC Bearings Incorporated (NYSE:RBC) will release earnings for its fourth quarter before the opening bell on Friday, May 15.
Analysts expect the Oxford, Connecticut-based company to report quarterly earnings of $3.32 per share, up from $2.83 per share in the year-ago period. The consensus estimate for RBC Bearings' quarterly revenue is $506.59 million (it reported $437.7 million last year), according to Benzinga Pro.
On Feb. 5, RBC Bearings posted better-than-expected earnings for the third quarter.
RBC Bearings shares fell 1.1% to close at $611.93 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period.
Considering buying RBC stock? Here’s what analysts think:
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OXFORD, Conn.--(BUSINESS WIRE)--RBC Bearings Incorporated (NYSE: RBC), a leading international manufacturer of highly engineered precision bearings, components and essential systems for the industrial, aerospace and defense markets, today reported results for the fourth quarter and full year fiscal 2026. Fourth Quarter Financial Highlights Fourth quarter net sales of $518.0 million increased 18.3% over last year, Aerospace & Defense up 41.2% and Industrial up 5.5%. Gross margin of 44.4% for.
RBC Bearings Incorporated Announces Fiscal Fourth Quarter and Full Year 2026 Results RBC Bearings Incorporated (NYSE: RBC), a leading international manufacturer of highly engineered precision bearings, components and essential systems for the industrial, aerospace and defense markets, today reported results for the fourth quarter and full year fiscal 2026.
Fourth Quarter Financial Highlights
Fourth quarter net sales of $518.0 million increased 18.3% over last year, Aerospace & Defense up 41.2% and Industrial up 5.5%. Gross margin of 44.4% for the fourth quarter of fiscal 2026 compared to 44.2% last year; Adjusted gross margin of 45.3% compared to 44.2% last year. Fourth quarter net income attributable to common stockholders as a percentage of net sales of 17.7% vs 16.6% last year; Adjusted EBITDA as a percentage of net sales of 32.6% vs 31.9% last year. Three Month Financial Highlights
($ in millions)
Fiscal 2026
Fiscal 2025
Change
GAAP
Adjusted (1)
GAAP
Adjusted (1)
GAAP
Adjusted (1)
Net sales
$518.0
$437.7
18.3%
Gross margin
$230.0
$234.9
$193.4
$193.4
18.9%
21.5%
Gross margin %
44.4%
45.3%
44.2%
44.2%
Operating income
$119.1
$124.3
$100.7
$101.6
18.3%
22.3%
Operating income %
23.0%
24.0%
23.0%
23.2%
Net income
$91.7
$114.9
$72.7
$89.3
26.1%
28.7%
Diluted EPS
$2.89
$3.62
$2.30
$2.83
25.7%
27.9%
(1) Results exclude items in reconciliation below.
Fiscal 2026 Financial Highlights
Fiscal 2026 net sales of $1,870.9 million increased 14.3% over last year, Aerospace & Defense up 32.9% and Industrial up 3.8%. Gross margin of 44.4% for fiscal 2026 compared to 44.4% last year; Adjusted gross margin of 45.2% compared to 44.4% last year. Fiscal 2026 net income attributable to common stockholders as a percentage of net sales of 15.4% vs 14.3% last year; Adjusted EBITDA as a percentage of net sales of 32.4% vs 31.8% last year. Twelve Month Financial Highlights
($ in millions)
Fiscal 2026
Fiscal 2025
Change
GAAP
Adjusted (1)
GAAP
Adjusted (1)
GAAP
Adjusted (1)
Net sales
$1,870.9
$1,636.3
14.3%
Gross margin
$830.2
$845.5
$726.1
$726.1
14.3%
16.4%
Gross margin %
44.4%
45.2%
44.4%
44.4%
Operating income
$421.0
$442.0
$369.9
$371.4
13.8%
19.0%
Operating income %
22.5%
23.6%
22.6%
22.7%
Net income
$287.6
$392.0
$246.2
$316.2
16.8%
24.0%
Net income attributable to common stockholders
$287.6
$392.0
$233.8
$303.8
23.0%
29.0%
Diluted EPS
$9.09
$12.39
$7.70
$10.01
18.1%
23.8%
(1) Results exclude items in reconciliation below.
Dr. Michael J. Hartnett, Chairman and Chief Executive Officer, stated, “We closed out fiscal year 2026 with another strong quarter, driven by continued expansion in our Aerospace & Defense segment and accelerating growth in our Industrial business. As we look ahead to fiscal year 2027, we remain highly encouraged by the strength of our operating environment and the momentum we are seeing across the businesses. This record year for RBC was a true team effort, and I want to thank our employees across the organization for their hard work, dedication, and continued commitment to serving our customers with excellence.”
Fourth Quarter Results
Net sales for the fourth quarter of fiscal 2026 were $518.0 million, an increase of 18.3% from $437.7 million in the fourth quarter of fiscal 2025. $30.0 of net sales this quarter came from VACCO, which we acquired on July 18, 2025. Net sales for the Industrial segment increased 5.5%, while net sales for the Aerospace & Defense segment increased 41.2%. Gross margin for the fourth quarter of fiscal 2026 was $230.0 million compared to $193.4 million for the same period last year. On an adjusted basis, gross margin was $234.9 million for the fourth quarter of fiscal 2026 compared to $193.4 million for the same period last year.
SG&A for the fourth quarter of fiscal 2026 was $86.9 million, an increase of $14.8 million from $72.1 million for the same period last year. As a percentage of net sales, SG&A was 16.8% for the fourth quarter of fiscal 2026 compared to 16.5% for the same period last year.
Other operating expenses for the fourth quarter of fiscal 2026 totaled $24.0 million compared to $20.6 million for the same period last year. For the fourth quarter of fiscal 2026, other operating expenses included $21.4 million of amortization of intangible assets, $0.2 million of acquisition costs, $0.1 of restructuring costs and $2.3 million of other items. For the fourth quarter of fiscal 2025, other operating expenses included $18.2 million of amortization of intangible assets, $0.9 million of restructuring costs, and $1.5 million of other items.
Operating income for the fourth quarter of fiscal 2026 was $119.1 million compared to $100.7 million for the same period last year. On an adjusted basis, operating income was $124.3 million for the fourth quarter of fiscal 2026 compared to $101.6 million for the same period last year. Refer to the tables below for details on the adjustments made to operating income to derive adjusted operating income.
Interest expense, net, was $11.2million for the fourth quarter of fiscal 2026 compared to $12.8 million for the same period last year. The decrease in interest expense between the periods was primarily due to the debt reduction efforts.
Other non-operating (income)/expense was $(1.0) million for the fourth quarter of fiscal 2026 compared to $(0.0) million for the same period last year.
Income tax expense for the fourth quarter of fiscal 2026 was $17.2 compared to $15.2 for the same period last year. The effective income tax rate for the fourth quarter of fiscal 2026 was 15.8% compared to 17.4% for the same period last year. The effective income tax rate for the fourth quarter of fiscal 2026 of 15.8% included a net $8.8 million tax benefit comprised primarily of revaluations of deferred taxes and valuation allowances, uncertain tax benefit statute of limitation lapses and true-ups, and stock-based compensation. The effective income tax rate without discrete items for the fourth quarter of fiscal 2026 would have been 23.8%. The effective income tax rate for the fourth quarter of fiscal 2025 of 17.4% included a $5.3 million net tax benefit comprised primarily of state nexus and apportionment changes based on fiscal 2024 tax income tax filings, the release of a valuation allowance in Canada, state nexus and apportionment changes based on fiscal 2024 income tax filings and stock-based compensation. The effective income tax rate without discrete items for the fourth quarter of fiscal 2025 would have been 23.4%.
Net income for the fourth quarter of fiscal 2026 was $91.7million compared to $72.7million for the same period last year. On an adjusted basis, net income was $114.9million for the fourth quarter of fiscal 2026 compared to $89.3million for the same period last year. Refer to the tables below for details on the adjustments made to net income to derive adjusted net income.
Diluted EPS for the fourth quarter of fiscal 2026 was $2.89 compared to $2.30 for the same period last year. On an adjusted basis, diluted EPS was $3.62 for the fourth quarter of fiscal 2026 compared to $2.83 for the same period last year. Refer to the tables below for details on the adjustments made to EPS to derive the adjusted numbers above.
Backlog as of March 28, 2026, was $2.3 billion compared to $2.1 billion as of December 27, 2025 and $0.9 billion as of March 29, 2025.
Outlook for the First Quarter Fiscal 2027
The Company expects net sales to be approximately $500.0 million to $510.0 million in the first quarter of fiscal 2027, compared to $436.0 million in the prior year, for a growth rate of 14.7% to 17.0%. Excluding $28.0 million of expected net sales from VACCO, net sales are expected to grow 8.3% to 10.6%. Adjusted gross margin is expected to be in the range of 45.25% to 45.5% and SG&A as a percentage of net sales is expected to be in the range of 16.50% to 16.75%.
Live Webcast
RBC Bearings Incorporated will host a webcast on Friday, May 15th, 2026, at 11:00 a.m. ET to discuss the quarterly results. To access the webcast, go to the investor relations portion of the Company’s website, investor.rbcbearings.com, and click on the webcast link. If you do not have access to the Internet and wish to listen to the call, dial 877-407-4019 (international callers dial +1 201-689-8337) and provide conference ID # 13760223. Investors are advised to dial into the call at least ten minutes prior to the call to register. An audio replay of the call will be available from 2:00 p.m. ET on the day of the call and will remain available for two weeks following the call. The replay can be accessed by dialing 877-660-6853 (international callers dial +1 201-612-7415) and providing conference ID # 13760223.
Non-GAAP Financial Measures
In addition to disclosing results of operations that are determined in accordance with U.S. generally accepted accounting principles (GAAP), this press release also discloses non-GAAP results of operations that exclude certain items. These non-GAAP measures adjust for items that management believes are unusual, as well as other non-cash items including but not limited to depreciation, amortization, and equity-based incentive compensation. Management believes that the presentation of these non-GAAP measures provides useful information to investors regarding the Company’s results of operations as these non-GAAP measures allow investors to better evaluate ongoing business performance. Investors should consider non-GAAP measures in addition to, not as a substitute for, financial measures prepared in accordance with GAAP. A reconciliation of the non-GAAP measures disclosed in this press release with the most comparable GAAP measures are included in the financial table attached to this press release.
Free Cash Flow Conversion
Free cash flow conversion measures our ability to convert operating profits into free cash flow and is calculated as free cash flow (cash provided by operating activities less capital expenditures) divided by net income.
Adjusted Gross Margin and Adjusted Operating Income
Adjusted gross margin excludes the impact of restructuring costs associated with the closing of a plant, acquisition related fair value adjustments to inventory or significant adjustments to existing manufacturing processes or product lines. Adjusted operating income excludes acquisition expenses (including the impact of acquisition-related fair value adjustments in connection with purchase), restructuring and other similar charges, and other non-operational, non-cash or non-recurring losses or gains. We believe that adjusted operating income is useful in assessing our financial performance by excluding items that are not indicative of our core operating performance or that may obscure trends useful in evaluating our continuing results of operations.
Adjusted Net Income Attributable to Common Stockholders and Adjusted Earnings Per Share Attributable to Common Stockholders
Adjusted net income attributable to common stockholders and adjusted earnings per share attributable to common stockholders (calculated on a diluted basis) exclude non-cash expenses for amortization related to acquired intangible assets other than internal-use software, stock-based compensation, amortization of deferred finance fees, acquisition expenses (including the impact of acquisition-related fair value adjustments in connection with purchase), restructuring and other similar charges, significant adjustments to existing manufacturing processes or product lines, gains or losses on divestitures, discontinued operations, gains or losses on extinguishment of debt, and other non-operational, non-cash or non-recurring losses or gains, net of their income tax impact and other tax matters, which may include certain discrete items and reserve-related items. We believe that adjusted net income and adjusted earnings per share are useful in assessing our financial performance by excluding items that are not indicative of our core operating performance or that may obscure trends useful in evaluating our continuing results of operations.
Adjusted EBITDA
We use the term “Adjusted EBITDA” to describe net income adjusted for the items summarized in the “Reconciliation of GAAP to Non-GAAP Financial Measures” table below. Adjusted EBITDA is intended to show our unleveraged, pre-tax operating results and therefore reflects our financial performance based on operational factors, excluding non-operational, non-cash or non-recurring losses or gains. In view of our debt level, Adjusted EBITDA aids our investors in understanding our compliance with our debt covenants. Management and various investors use the ratio of total debt less cash to Adjusted EBITDA, or “net debt leverage,” as a measure of our financial strength and ability to incur incremental indebtedness when making investment decisions and evaluating us against peers. Lastly, management and various investors use the ratio of the change in Adjusted EBITDA divided by the change in net sales (referred to as “incremental margin” in the case of an increase in net sales or “decremental margin” in the case of a decrease in net sales) as an additional measure of our financial performance and some investors utilize it when making investment decisions and evaluating us against peers.
Adjusted EBITDA is not a presentation made in accordance with GAAP, and our definition of Adjusted EBITDA may vary from the definition used by others in our industry. Adjusted EBITDA should not be considered as an alternative to net income, income from operations, or any other performance measures derived in accordance with GAAP. Adjusted EBITDA has important limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. For example, Adjusted EBITDA does not reflect (a) our capital expenditures, future requirements for capital expenditures or contractual commitments; (b) changes in, or cash requirements for, our working capital needs; (c) the significant interest expenses, or the cash requirements necessary to service interest or principal payments, on our debt; (d) tax payments that represent a reduction in cash available to us; (e) any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future; or (f) the impact of earnings or charges resulting from matters that we and the lenders under our credit agreement may not consider indicative of our ongoing operations. In particular, our definition of Adjusted EBITDA adds back certain non-cash, non-operating or non-recurring charges that are deducted in calculating net income, even though these are expenses that may recur or vary greatly, are difficult to predict, and can represent the effect of long-term strategies as opposed to short-term results. In addition, certain of these expenses can represent the reduction of cash that could be used for other corporate purposes. Further, although not included in the calculation of Adjusted EBITDA below, the measure may at times (i) include estimated cost savings and operating synergies related to operational changes ranging from acquisitions to dispositions to restructurings and/or (ii) exclude one-time transition expenditures that we anticipate we will need to incur to realize cost savings before such savings have occurred.
About RBC Bearings
RBC Bearings Incorporated is an international manufacturer and marketer of highly engineered precision bearings, components and essential systems. Founded in 1919, the Company is primarily focused on producing highly technical or regulated bearing products and components requiring sophisticated design, testing, and manufacturing capabilities for the diversified industrial, aerospace and defense markets. The Company is headquartered in Oxford, Connecticut.
Safe Harbor for Forward Looking Statements
Certain statements in this press release contain “forward-looking statements.” All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including the following: the section of this press release entitled “Outlook”; any projections of earnings, revenue or other financial items relating to the Company, any statement of the plans, strategies and objectives of management for future operations; any statements concerning proposed future growth rates in the markets we serve; any statements of belief; any characterization of and the Company’s ability to control contingent liabilities; anticipated trends in the Company’s businesses; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words “may,” “would,” “estimate,” “intend,” “continue,” “believe,” “expect,” “anticipate,” and other similar words. Although the Company believes that the expectations reflected in any forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties beyond the control of the Company. These risks and uncertainties include, but are not limited to, risks and uncertainties relating to general economic conditions, geopolitical factors including import/export tariffs, future levels of aerospace & defense and industrial market activity, future financial performance, our use of information technology systems, our disclosure controls and procedures and internal control over financial reporting, our debt level, our level of goodwill, market acceptance of new or enhanced versions of the Company’s products, the pricing of raw materials, changes in the competitive environments in which the Company’s businesses operate, increases in interest rates, the Company’s ability to acquire and integrate complementary businesses, and risks and uncertainties listed or disclosed in our reports filed with the Securities and Exchange Commission, including, without limitation, the risks identified under the heading “Risk Factors” set forth in the Company’s most recent Annual Report on Form 10-K filed with the SEC. The Company does not intend, and undertakes no obligation, to update or alter any forward-looking statements.
RBC Bearings Incorporated
Consolidated Statements of Operations
(dollars in millions, except per share data)
Three Months Ended
Twelve Months Ended
(Unaudited)
March 28,
March 29,
March 28,
March 29,
2026
2025
2026
2025
Net sales
$
518.0
$
437.7
$
1,870.9
$
1,636.3
Cost of sales
288.0
244.3
1,040.7
910.2
Gross margin
230.0
193.4
830.2
726.1
Operating expenses:
Selling, general and administrative
86.9
72.1
316.1
279.3
Other, net
24.0
20.6
93.1
76.9
Total operating expenses
110.9
92.7
409.2
356.2
Operating income
119.1
100.7
421.0
369.9
Interest expense, net
11.2
12.8
49.8
59.8
Other non-operating (income) / expense
(1.0
)
(0.0
)
1.9
(1.8
)
Income before income taxes
108.9
87.9
369.3
311.9
Provision for income taxes
17.2
15.2
81.7
65.7
Net income
91.7
72.7
287.6
246.2
Preferred stock dividends
-
-
-
12.4
Net income attributable to common stockholders
$
91.7
$
72.7
$
287.6
$
233.8
Net income per common share attributable to common stockholders:
Basic
$
2.91
$
2.32
$
9.14
$
7.76
Diluted
$
2.89
$
2.30
$
9.09
$
7.70
Weighted average common shares:
Basic
31,534,801
31,325,492
31,481,360
30,136,501
Diluted
31,710,228
31,546,961
31,634,888
30,354,470
Segment Data:
Three Months Ended
Twelve Months Ended
March 28,
March 29,
March 28,
March 29,
Net External Sales:
2026
2025
2026
2025
Aerospace & defense segment
$
222.1
$
157.3
$
788.0
$
592.8
Industrial segment
295.9
280.4
1,082.9
1,043.5
Total net external sales
$
518.0
$
437.7
$
1,870.9
$
1,636.3
Three Months Ended
Twelve Months Ended
Reconciliation of Reported Gross Margin to
March 28,
March 29,
March 28,
March 29,
Adjusted Gross Margin:
2026
2025
2026
2025
Reported gross margin
$
230.0
$
193.4
$
830.2
$
726.1
Transaction and related costs
5.7
-
13.2
-
Restructuring and consolidation
(0.8
)
-
2.1
-
Adjusted gross margin
$
234.9
$
193.4
$
845.5
$
726.1
Three Months Ended
Twelve Months Ended
Reconciliation of Reported Operating Income to
March 28,
March 29,
March 28,
March 29,
Adjusted Operating Income:
2026
2025
2026
2025
Reported operating income
$
119.1
$
100.7
$
421.0
$
369.9
Transaction and related costs
5.9
-
14.8
-
Restructuring and consolidation
(0.7
)
0.9
6.2
1.5
Adjusted operating income
$
124.3
$
101.6
$
442.0
$
371.4
Three Months Ended
Twelve Months Ended
Reconciliation of Reported Net Income to Adjusted Net
March 28,
March 29,
March 28,
March 29,
Income Attributable to Common Stockholders:
2026
2025
2026
2025
Reported net income
$
91.7
$
72.7
$
287.6
$
246.2
Transaction and related costs
5.9
-
14.8
-
Restructuring and consolidation
(0.7
)
0.9
6.2
1.5
M&A related amortization
19.5
16.4
73.7
65.6
Stock compensation expense
11.2
8.1
34.5
28.4
Amortization of deferred finance fees
0.6
0.7
3.0
2.4
Legal settlement
-
-
-
(4.0
)
Tax impact of adjustments and other tax matters*
(13.3
)
(9.5
)
(27.8
)
(23.9
)
Adjusted net income
$
114.9
$
89.3
$
392.0
$
316.2
Preferred stock dividends
-
-
-
12.4
Adjusted net income attributable to common stockholders
$
114.9
$
89.3
$
392.0
$
303.8
Adjusted net income per common share attributable
to common stockholders:
Basic
$
3.64
$
2.85
$
12.45
$
10.08
Diluted
$
3.62
$
2.83
$
12.39
$
10.01
Weighted average common shares:
Basic
31,534,801
31,325,492
31,481,360
30,136,501
Diluted
31,710,228
31,546,961
31,634,888
30,354,470
*Overall tax rate applied to adjusted pre-tax earnings was 21.0% and 21.7% for the three-month periods ended March 28, 2026 and March 29, 2025, respectively and 21.8% and 22.1% for the twelve-month periods ended March 28, 2026, and March 29, 2025, respectively.
Three Months Ended
Twelve Months Ended
Reconciliation of Reported Net Income to
March 28,
March 29,
March 28,
March 29,
Adjusted EBITDA:
2026
2025
2026
2025
Reported net income
$
91.7
$
72.7
$
287.6
$
246.2
Interest expense, net
11.2
12.8
49.8
59.8
Provision for income taxes
17.2
15.2
81.7
65.7
Stock compensation expense
11.2
8.1
34.5
28.4
Depreciation and amortization
33.4
30.1
128.8
120.0
Other non-operating (income) / expense
(1.0
)
(0.0
)
1.9
2.2
Transaction and related costs
5.9
-
14.8
-
Restructuring and consolidation
(0.7
)
0.9
6.2
1.5
Legal settlement
-
-
-
(4.0
)
Adjusted EBITDA
$
168.9
$
139.8
$
605.3
$
519.8
Consolidated Balance Sheets
(dollars in millions, except per share data)
March 28,
March 29,
2026
2025
Assets
Cash
$
57.3
$
36.8
Accounts receivable, net of allowance for credit losses
340.6
307.6
Inventory, net
762.8
654.5
Prepaid expenses and other current assets
29.1
28.4
Total current assets
1,189.8
1,027.3
Property, plant and equipment, net
419.0
359.0
Operating lease assets
68.7
58.6
Goodwill
2,003.4
1,872.2
Intangible assets, net
1,378.2
1,325.1
Other noncurrent assets
63.6
43.0
Total assets
$
5,122.7
$
4,685.2
Liabilities and Stockholders' Equity
Liabilities
Accounts payable
$
147.0
$
138.4
Accrued expenses and other current liabilities
214.7
166.0
Current operating lease liabilities
10.7
9.2
Current portion of long-term debt
173.8
1.7
Total current liabilities
546.2
315.3
Long-term debt, less current portion
701.7
918.4
Noncurrent operating lease liabilities
59.0
50.3
Deferred income taxes
267.3
257.8
Other noncurrent liabilities
187.5
112.0
Total liabilities
1,761.7
1,653.8
Stockholders' equity
Common stock, $.01 par value
0.3
0.3
Additional paid‑in capital
1,735.4
1,682.5
Accumulated other comprehensive income/(loss)
2.1
(1.4
)
Retained earnings
1,738.2
1,450.6
Treasury stock, at cost
(115.0
)
(100.6
)
Total stockholders' equity
3,361.0
3,031.4
Total liabilities and stockholders' equity
$
5,122.7
$
4,685.2
Consolidated Statements of Cash Flows
(dollars in millions)
Twelve Months Ended
March 28,
March 29,
2026
2025
Cash flows from operating activities:
Net income
$
287.6
$
246.2
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
128.8
120.0
Deferred income taxes
10.9
(26.8
)
Amortization of deferred financing costs
3.0
2.4
Stock-based compensation
34.5
28.4
Noncash operating lease expense
7.2
6.3
Loss on disposition of assets
0.6
0.4
Restructuring and other noncash charges
3.0
0.5
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable
(19.4
)
(53.3
)
Inventory
(43.7
)
(32.3
)
Prepaid expenses and other current assets
10.5
(3.9
)
Other noncurrent assets
(16.7
)
0.5
Accounts payable
1.4
22.2
Accrued expenses and other current liabilities
(16.4
)
(2.3
)
Other noncurrent liabilities
24.4
(14.7
)
Net cash provided by operating activities
415.7
293.6
Cash flows from investing activities:
Capital expenditures
(73.1
)
(49.8
)
Proceeds from sale of assets
0.1
0.0
Acquisition of business
(276.7
)
-
Net cash used in investing activities
(349.7
)
(49.8
)
Cash flows from financing activities:
Proceeds received from revolving credit facilities
200.0
67.0
Repayments of revolving credit facilities
(5.0
)
(82.4
)
Repayments of term loans
(240.0
)
(262.0
)
Repayments of notes payable
(1.7
)
(1.6
)
Finance fees paid in connection with credit facilities
(1.8
)
-
Proceeds from mortgage
-
4.5
Principal payments on finance lease obligations
(4.6
)
(4.1
)
Preferred stock dividends paid
-
(17.2
)
Exercise of equity awards
24.2
34.9
Tax withholding for common stock issued under equity incentive plans
(14.4
)
(9.5
)
Net cash used in financing activities
(43.3
)
(270.4
)
Effect of exchange rate changes on cash
(2.2
)
(0.1
)
Cash:
Increase / (decrease) during the period
20.5
(26.7
)
Cash, at beginning of period
36.8
63.5
Cash, at end of period
$
57.3
$
36.8
Supplemental disclosures of cash flow information:
Cash paid for:
Income taxes
$
71.6
$
101.3
Interest
48.4
55.4
FY2027 Q1 Outlook - Modeling Items:
Net sales
$500.0 - $510.0
Adjusted gross margin (as a percentage of net sales)
45.25% - 45.5%
SG&A (as a percentage of net sales)
16.50% - 16.75%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260515220342/en/
RBC Bearings (RBC - Free Report) came out with quarterly earnings of $3.62 per share, beating the Zacks Consensus Estimate of $3.31 per share. This compares to earnings of $2.83 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +9.43%. A quarter ago, it was expected that this maker of bearings and components would post earnings of $2.85 per share when it actually produced earnings of $3.04, delivering a surprise of +6.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
RBC Bearings, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $518 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.51%. This compares to year-ago revenues of $437.7 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
RBC Bearings shares have added about 36.5% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for RBC Bearings?While RBC Bearings has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for RBC Bearings was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.37 on $493.31 million in revenues for the coming quarter and $14.15 on $2.12 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, ATS (ATS - Free Report) , is yet to report results for the quarter ended March 2026.
This automation services provider is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +14.3%. The consensus EPS estimate for the quarter has been revised 10% lower over the last 30 days to the current level.
ATS's revenues are expected to be $546.61 million, up 36.7% from the year-ago quarter.
RBC Bearings Stock is Rolling ForwardRBC Bearings NYSE: RBC reported a record fiscal fourth quarter for 2026, with management pointing to strong aerospace and defense demand, steady industrial growth and continued debt reduction as key themes from the period.
Chairman, President and Chief Executive Officer Dr. Michael Hartnett said fourth-quarter net sales increased 18.3% year over year to $518 million, driven by “continued momentum” in aerospace and defense and steady gains in the company’s industrial businesses. Adjusted diluted earnings per share rose to $3.62 from $2.83 in the prior-year period, while adjusted EBITDA increased 21% to $168.9 million.
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The company generated $67.5 million of free cash flow during the quarter and paid down an additional $116 million of debt. Chief Financial Officer Rob Sullivan said RBC Bearings paid off another $27 million after the quarter ended and remains on track to pay off the remainder of its term loan by November 2026.
Aerospace and defense drives growth RBC Bearings said approximately 43% of fourth-quarter revenue came from its aerospace and defense segment, while 57% came from industrial. Aerospace and defense revenue increased 41.2% from the prior-year quarter. Excluding the VACCO acquisition, aerospace and defense sales increased 22.8%, which Sullivan said reflected continued strength in legacy commercial and defense markets.
Hartnett said the aerospace and defense backlog has continued to expand and now stands at approximately $2.3 billion. For the full year, aerospace and defense revenue increased 32%, including 19.1% organic growth. Commercial aircraft revenue increased 17.8%, including 17.3% organic growth, while defense revenue rose 65.4%, including 22.1% organic growth.
Management highlighted several areas supporting the aerospace and defense outlook, including submarines, missiles, space and commercial aircraft production. Hartnett said marine has been a significant contributor to backlog growth, driven by the build-out of the submarine fleet, including Virginia and Columbia class programs and fleet spares. He said the company is adding machinery and floor space to support higher production rates.
“We are definitely going to double our revenues in that sector over the next 24 to 36 months,” Hartnett said during the question-and-answer portion, referring to the marine business.
Missiles and space remain key end markets Hartnett said missile-related revenue exceeded $45 million for the fiscal year, with some of the gain coming from the VACCO acquisition. He said the growth reflects increased content across several leading missile programs and expanding demand tied to current global conditions.
In response to a question from Morgan Stanley analyst Kristine Liwag, Hartnett said VACCO provides components used to manage fuel systems, particularly where liquid propulsion is involved, and noted usage on “significant programs like the Tomahawk.” He also said RBC Bearings has content on a broad range of systems, including Patriot, GMLRS, Tomahawk, Standard Missile, JAGM, ASTER and hypersonic missile programs.
Hartnett said RBC Bearings is expanding production capability to support those programs and is also working to increase ship-set content, though he noted that increasing mix can take longer because it requires tooling.
Space revenue came in just above $70 million for the year, including $30 million from eight months of VACCO contribution. Hartnett contrasted that with about $4 million of space-related revenue in 2021. He said customers include both traditional aerospace and defense companies and newer space companies, citing Boeing, Lockheed, Northrop, Raytheon, Collins, SpaceX, Blue Origin and Rocket Lab among those serving the sector.
Asked by Deutsche Bank analyst Scott Deuschle whether SpaceX’s Starship production ramp could accelerate RBC Bearings’ space revenue growth, Hartnett said the impact would be “modest” based on the current outlook.
Industrial business posts steady gains In the industrial segment, Hartnett said performance remained “steady and up,” with original equipment manufacturer revenue increasing 7.8% and distribution revenue growing 4.5% during the quarter. The company cited strength in aggregates, warehousing, food and beverage, grain and semiconductor end markets.
Hartnett said industrial momentum that began earlier in the year had held up into the first quarter, though he characterized it as modest. He also linked strength in aggregates to infrastructure and construction activity tied to artificial intelligence and server farm build-outs, saying RBC Bearings’ aggregate business was up around 17% to 20%.
On industrial automation, Hartnett said RBC Bearings’ exposure as a supplier is relatively small, in the range of $40 million to $50 million annually. He said semiconductor-related demand, including robotic components for chip manufacturing, has been strong and is expected to become a more significant contributor in fiscal 2027. He described humanoid robot activity as still small and primarily related to samples and industry development, with no volume yet visible.
Margins improve as debt reduction continues Consolidated gross margin was 44.4% in the fourth quarter, or 45.3% on an adjusted basis, compared with 44.2% in the same period last year. Sullivan said aerospace and defense gross margin was 41.6%, or 44.2% adjusted, while industrial margins were 46.5%, or 46.2% adjusted. Excluding VACCO, aerospace and defense gross margin was 43.7%.
Sullivan said margin improvement in aerospace and defense has been supported by increased efficiencies, higher volumes and newly awarded contracts, though he said the benefits would flow through gradually. He also said SG&A totaled $86.9 million, or 16.8% of net sales, in the quarter. In response to a question, Sullivan said higher SG&A was driven primarily by personnel costs, compensation items, stock compensation and other administrative costs.
Interest expense declined 12.5% year over year to $11.2 million, reflecting improved leverage and lower interest rates, Sullivan said. For the full fiscal year, free cash flow was $342.6 million, with conversion of 119.1%, compared with $243.8 million and 99% in the prior year.
Company issues first-quarter guidance For the first quarter of fiscal 2027, RBC Bearings guided for revenue of $500 million to $510 million, representing year-over-year growth of 14.7% to 17%. The company expects adjusted gross margin of 45.25% to 45.5% and SG&A as a percentage of net sales of 16.5% to 16.75%.
Sullivan said the guidance reflects a range of outcomes across aerospace and industrial markets, as well as the faster growth of aerospace and defense, which can have a dilutive impact on consolidated margins because industrial margins are higher. For the full year, he said RBC Bearings believes it can expand consolidated gross margins by about 50 basis points.
Hartnett said the company expects commercial aerospace growth of more than 15% in fiscal 2027, while defense and space together are expected to grow faster than commercial aerospace. He also said RBC Bearings has not yet seen headwinds in the commercial aerospace aftermarket from airlines tightening spending amid higher jet fuel prices, though management is watching the issue.
Asked about mergers and acquisitions, Hartnett said the preferred target profile would be a mechanical products company serving a customer base similar to RBC Bearings’ existing customers, preferably distressed and in a geography that would be easy for the company to access and repair.
About RBC Bearings NYSE: RBCRBC Bearings Incorporated is a global designer, manufacturer and marketer of highly engineered precision bearings and components for extreme applications. The company's product portfolio includes cylindrical roller bearings, spherical plain bearings, ball bearings, track rollers, and engineered components such as metal-to-metal and polymer bearings. These products are tailored to meet the demanding requirements of aerospace, defense and industrial customers where reliability under severe conditions is critical.
The company's bearings and components find application in aircraft engines, auxiliary power units, landing gear systems, space and missile programs, industrial gas turbines, oil and gas drilling equipment, and heavy machinery.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Top Headline
RBC Bearings Inc (NYSE:RBC) reported upbeat earnings for the first quarter on Friday.
The company posted quarterly earnings of $3.62 per share which beat the analyst consensus estimate of $3.32 per share. The company reported quarterly sales of $518.000 million which beat the analyst consensus estimate of $506.590 million.
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The NY Empire State Manufacturing Index rose to 19.6 in May from 11 in the previous month, also topping market estimates of 7.5. U.S. industrial production rose 0.7% in April, after falling 0.3% in March. Photo via Shutterstock
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Key Takeaways RBC Bearings Q4 EPS jumped 27.9% and beat estimates as revenues rose 18.3%.RBC Aerospace & Defense sales surged 41.2%, supported by strong demand momentum.Backlog reached $2.3 billion as margins and operating cash flow improved year over year. RBC Bearings Incorporated’s (RBC - Free Report) fourth-quarter fiscal 2026 (ended March 28, 2026) adjusted earnings of $3.62 per share beat the Zacks Consensus Estimate of $3.31. The figure increased 27.9% from the year-ago adjusted earnings of $2.83 per share, supported by higher revenues.
RBC’s Revenue DetailsRBC Bearings’ revenues were $518 million, which increased 18.3% year over year. Also, the figure surpassed the Zacks Consensus Estimate of $505 million.
While exiting the reported quarter, RBC had a backlog of $2.3 billion compared with $2.1 billion at the end of the third quarter of fiscal 2026 (ended Dec. 27, 2025).
For fiscal 2026, RBC’s net sales totaled $1.87 billion, reflecting an increase of 14.3% year over year. Adjusted earnings came in at $12.39 per share, up 23.8% from the previous fiscal year.
RBC Bearings’ Segmental DetailsThe company currently has two reportable segments, namely Aerospace/Defense and Industrial. Its segmental performance for the fiscal fourth quarter is briefly discussed below:
Industrial revenues of $295.9 million (representing 57.1% of the quarter’s revenues) were up 5.5% year over year. The consensus estimate for the Industrial segment’s revenues was pegged at $260 million.
Aerospace & Defense revenues totaled $222.1 million (42.9%), up 41.2% year over year. The consensus estimate for the Aerospace/Defense segment’s revenues was pegged at $289 million.
RBC’s Margin ProfileThe company’s cost of sales rose 17.9% year over year to $288 million. Gross profit (on a reported basis) grew 18.9% to $230 million. The gross margin was up 20 bps from the year-ago figure to 44.4%. However, the adjusted gross margin increased 110 bps to 45.3%.
Selling, general and administrative expenses (SG&A) were $86.9 million, up 20.5% year over year. Adjusted EBITDA jumped 20.8% to $168.9 million. The adjusted EBITDA margin was 32.6%, up 70 bps year over year.
Adjusted operating income increased 22.3% year over year to $124.3 million. The adjusted margin increased 80 bps to 24%. Net interest expenses were $11.2 million compared with $12.8 million in the year-ago quarter.
RBC Bearings’ Balance Sheet and Cash FlowAt the time of exiting the fiscal fourth quarter, RBC had cash and cash equivalents of $57.3 million compared with $36.8 million at the end of fiscal 2025. Long-term debt (less current portion) was $701.7 million, down from $918.4 million at the end of fiscal 2025.
In fiscal 2026, the company generated net cash of $415.7 million from operating activities, which increased 41.6% on a year-over-year basis. Capital expenditure of $73.1 million increased 46.8% year over year.
RBC’s OutlookFor the first quarter of fiscal 2027 (ending June 2026), management anticipates net sales to be in the range of $500.0-$510.0 million, indicating an increase of 14.7-17% from the prior-year figure of $436 million. On an organic basis (excluding VACCO), net sales are projected to increase 8.3-10.6%.
It expects the gross margin to be in the band of 45.25-45.50% and SG&A (as a percentage of net sales) to be in the range of 16.50-16.75%.
RBC’s Zacks Rank & Other Key PicksThe company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the same space are discussed below:
Tennant Company (TNC - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tennant’s earnings surpassed the consensus estimate by 141.7% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for TNC’s 2026 earnings has increased 6.2%.
Helios Technologies (HLIO - Free Report) presently carries a Zacks Rank of 2. Helios Technologies’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 15.7%. In the past 60 days, the Zacks Consensus Estimate for Helios Technologies’ fiscal 2026 earnings has increased 4%.
Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank of 2. Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 0.7%.
On May 18, 2026, RBC Bearings Inc (RBC) shares fell 3.1% today, bringing the current price to $551.12. Over the past week, the stock has dropped 10.2%, and in t
Key Takeaways RBC projects 14.2% earnings growth this year as estimates edged up over the past 60 days.HLIO expects 14.2% earnings growth, with next-year earnings estimates rising 4%.LXFR and PRLB saw earnings estimates rise as AI demand and factory output strengthened. The U.S. manufacturing sector, which struggled for nearly three years, is finally trying to make a rebound. Rising inflation, high oil prices and higher tariffs remain a challenge for the sector. Yet, robust demand for goods has been helping the sector make a solid recovery.
A jump in manufacturing activity and industrial production is proof that the sector is on track for solid growth in the near term.
Given the positive sentiment, it would be ideal to invest in four stocks from the manufacturing sector — RBC Bearings Incorporated (RBC - Free Report) , Helios Technologies, Inc. (HLIO - Free Report) , Luxfer Holdings PLC (LXFR - Free Report) and Proto Labs, Inc. (PRLB - Free Report) — that we have detailed below. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy) and assures good returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Industrial Production JumpsU.S. industrial production rose a solid 0.6% sequentially in April, surpassing the consensus estimate of a rise of 0.2% and the largest increase since February 2025, according to data from the Federal Reserve. This follows an upwardly revised rise of 0.1% in March.
On a year-over-year basis, industrial production rose 1.3% in April. The jump in April was primarily driven by a surge in output of motor vehicles and parts, which rose 3.7%.
Also, robust demand for technology goods, especially computers and peripherals, boosted factory output. Output of high-technology industries jumped 1% in April after rising 0.5% in the prior month. Durable goods production rose 1.2% in April.
The Fed’s report came days after the ISM Manufacturing Index showed that the PMI reading rose to 52.7 in April. Manufacturing accounts for 9.4% of the overall economy. Billions of dollars are being pumped into development toward artificial intelligence (AI), as an increasing number of businesses adapt to AI.
Output of semiconductors and related electronic components jumped 1%. Production of communications equipment gained 0.6%.
High inflation, owing to the ongoing Iran war and the impact of tariffs, remains a headwind for the overall economy. However, robust demand, thanks to the robust spending on AI, has been boosting the manufacturing sector.
4 Industrial Products Stocks With UpsideRBC Bearings IncorporatedRBC Bearings Incorporated manufactures and distributes engineered bearings and precision components. RBC’s bearings are tools that reduce damage and energy loss, and enable proper power transmission in most machines and mechanical systems.
RBC Bearings’expected earnings growth for the current year is 14.2%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. RBC has a Zacks Rank #2 at present.
Helios TechnologiesHelios Technologies, Inc. is an industrial technology company. HLIO develops and manufactures hydraulic and electronic control solutions. Helios Technologies’ operating subsidiaries include Sun Hydraulics, Enovation Controls and Faster Group.
Helios Technologies’ expected earnings growth for the current year is 14.2%. The Zacks Consensus Estimate for next year's earnings has improved 4% over the past 60 days. Currently, HLIO has a Zacks Rank #2.
Luxfer HoldingsLuxfer Holdings PLC is a materials technology company specializing in the design, manufacture and supply of high-performance materials, components and gas cylinders. LXFR had two divisions, Elektron and Gas Cylinders. The Elektron division focuses on specialty materials based on magnesium, zirconium and rare earths. The Gas Cylinders division manufactures products made from aluminum, composites and other metals using technically advanced processes.
Luxfer Holdings’ expected earnings growth for the current year is 8.1%. The Zacks Consensus Estimate for next year's earnings has improved 7.1% over the past 60 days. LXFR currently sports a Zacks Rank #1.
Proto LabsProto Labs, Inc. is an online and technology-enabled quick-turn manufacturer of custom parts for prototyping and short-run production. PRLB produces CNC-machined and injection-molded plastic parts.
Proto Labs’ expected earnings growth for the current year is 24.7%. The Zacks Consensus Estimate for current-year earnings has improved 15% over the past 60 days. PRLB currently carries a Zacks Rank #2.
Key Takeaways RBC Aerospace and Defense revenues surged 41.2% year over year in fiscal Q4 2026.RBC's defense market sales jumped 64.5% on strong marine and missile application demand.RBC exited fiscal Q4 with a $2.3 billion backlog supporting future aerospace growth. RBC Bearings Incorporated (RBC - Free Report) is witnessing solid momentum in aerospace and defense markets. Persistent strength in the commercial aerospace market, driven by strong growth in orders from the OEM (original equipment manufacturer) and the aftermarket verticals, is driving the company’s Aerospace & Defense segment. In the fourth-quarter fiscal 2026 (ended March 28, 2026), revenues from the segment surged 41.2% year over year.
The robust backlog level of $2.3 billion, exiting the fiscal fourth quarter, along with the company’s strong execution on incremental orders in the commercial aerospace market, is expected to act as a tailwind for the segment.
Growth in demand for the company’s bearings and engineered component products in the defense market, supported by growth in marine and missile applications orders, will likely continue to augur well for the segment in the quarters ahead. Within the segment, revenues from the commercial aerospace market increased 17.8%, while those from the defense market were up 64.5% in the fourth quarter.
RBC Bearings’ aerospace and defense unit is poised to maintain solid demand momentum in the quarters ahead, supported by robust budgetary provisions for the U.S. defense sector and strength in air travel.
Segment Snapshot of RBC’s PeersHowmet Aerospace Inc. (HWM - Free Report) has also been witnessing positive momentum in the defense sector, cushioned by steady government support. Howmet has been witnessing robust orders for engine spares for legacy fighters. In the first quarter, revenues from the defense aerospace market surged 10% year over year, constituting 16% of the company’s revenues.
Improving commercial air passenger traffic has been benefiting Textron Inc.’s (TXT - Free Report) Aviation business unit. Strong fleet utilization, backed by improving commercial air travel, contributed to Textron Aviation unit’s revenue growth of 22% in the first quarter. Thanks to growing air travel, Textron has also been witnessing strong order activity, which resulted in a backlog of $8 billion (exiting first quarter) for the Aviation segment.
RBC's Price Performance, Valuation and EstimatesShares of RBC Bearings have surged 31.9% in the past six months compared with the industry’s growth of 2.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, RBC is trading at a forward price-to-earnings ratio of 39.23X, above the industry’s average of 21.30X. RBC Bearings carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RBC’s fiscal 2027 (ending March 2027) earnings has been on the rise over the past 60 days.
Image Source: Zacks Investment Research
RBC Bearings currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RBC Bearings Incorporated (NYSE: RBC), a leading international manufacturer of highly engineered precision bearings, components and essential systems for the industrial, aerospace and defense industries, today announced that Daniel Bergeron, Director, Vice President and Chief Operating Officer, and Robert Sullivan, Vice President and Chief Financial Officer, will participate in three upcoming investor conferences, including:
KeyBanc Capital Markets Industrials & Basic Materials Conference on May 28, 2026, in Boston, MA William Blair 46th Annual Growth Stock Conference on June 3, 2026, in Chicago, IL 2026 Truist Securities Industrials & Services Conference on June 16, 2026, in New York, NY Materials shared during the conference will be available online at: https://investor.rbcbearings.com.
About RBC Bearings
RBC Bearings Incorporated is an international manufacturer and marketer of highly engineered precision bearings, components and essential systems. Founded in 1919, the Company is primarily focused on producing highly technical or regulated bearing products and components requiring sophisticated design, testing, and manufacturing capabilities for the diversified industrial, aerospace and defense markets. The Company is headquartered in Oxford, Connecticut.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260526863754/en/
OXFORD, Conn.--(BUSINESS WIRE)--RBC Bearings Incorporated (NYSE: RBC), a leading international manufacturer of highly engineered precision bearings, components and essential systems for the industrial, aerospace and defense industries, today announced that Daniel Bergeron, Director, Vice President and Chief Operating Officer, and Robert Sullivan, Vice President and Chief Financial Officer, will participate in three upcoming investor conferences, including: KeyBanc Capital Markets Industrials &a.
The Zacks Manufacturing – General Industrial industry is benefiting from solid momentum in the manufacturing sector, increased investments in product development and technological advancements. The industry participants’ efforts to digitalize business operations and expand market presence through strategic acquisitions are also expected to support the industry’s growth.
However, cost inflation and challenges due to a shortage of skilled labor have marred the industry's outlook. RBC Bearings Incorporated (RBC - Free Report) , IDEX Corporation (IEX - Free Report) , Watts Water Technologies, Inc. (WTS - Free Report) and Helios Technologies, Inc. (HLIO - Free Report) are a few industry participants that are likely to capitalize on the prevalent opportunities.
About the Industry The Zacks Manufacturing – General Industrial industry comprises companies that produce a wide range of industrial equipment. Some industry players offer power transmission products, bearings, engineered fluid power components and systems, industrial rubber products, vapor-abrasive blasting equipment, vehicle-powered truck refrigeration systems, adhesive, gel coat equipment, flow-control components and linear motion components. Industrial manufacturing companies also reconstruct and assemble pumps, valves, speed reducers and hydraulic motors. The companies provide services to original equipment manufacturing and maintenance, repair and overhaul customers. These end users belong to the mining, oil and gas, forest products, agriculture and food processing, fabricated metals, chemicals and petrochemicals, transportation and utilities industries.
Major Trends Shaping the Future of the Manufacturing General Industrial Industry Strength in the Manufacturing Sector: The industry has been benefiting from an increase in manufacturing activities. After witnessing a contraction in economic activities for 10 successive months till December 2025, the manufacturing sector expanded for the fourth consecutive month in April. Per the Institute for Supply Management’s (ISM) report, the Manufacturing Purchasing Manager’s Index touched 52.7% in April. A figure more than 50% indicates an expansion in manufacturing activity. Also, the New Orders Index expanded, registering 54.1% in the same month.
Investments in Innovation & Technological Advancements: The industry participants’ constant focus on innovation, product upgrades and the development of new products to stay competitive in the market should drive growth. With the gradual development of business models and cutting-edge technologies, several industry players have been banking on digitizing their business operations for a while now. Digitization enables industry participants to boost their competitiveness through enhanced operational productivity, product quality and better cost management.
Acquisition-Based Growth Strategy: The industry players rely on an acquisition-based growth strategy to broaden their customer base and enhance their product portfolio. This helps them foray into new markets and solidify their competitive position. Exposure to various end markets helps industrial manufacturing companies offset risks associated with a single market.
Rising Costs Hurt Margins: Industry participants have been encountering input cost inflation and other expenses, which have been denting profitability. Also, supply-chain issues might increase raw material and other logistics expenses. The latest ISM report’s Supplier Deliveries Index reflects slower deliveries for the fifth straight month in April. The rise in expenses, along with a tough labor market, poses a threat to margins. However, companies have been focused on cost management initiatives to mitigate cost-related challenges. These efforts include simplifying operations, improving supply-chain efficiency and applying disciplined pricing strategies.
Zacks Industry Rank Indicates Bright Prospects The Zacks Manufacturing – General Industrial industry, housed within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #74. This rank places it in the top 30% of 245 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Given the industry’s bright near-term prospects, we will present a few promising stocks for your portfolio. But before that, it is worth taking a look at the industry’s stock market performance and current valuation.
Industry Lags Sector and the S&P 500 The Zacks Manufacturing – General Industrial industry has underperformed the broader sector and the Zacks S&P 500 composite index over the past year. Over this period, the industry has grown 11.7% compared with the sector and the S&P 500 Index’s rise of 26.3% and 31.4%, respectively.
One-Year Price Performance
Industry's Current Valuation On the basis of forward 12-month Price-to-Earnings (P/E), which is a commonly used multiple for valuing manufacturing stocks, the industry is currently trading at 21.62X compared with the S&P 500’s 22.18X. It is above the sector’s P/E ratio of 21.59X.
In the past five years, the industry has traded as high as 24.77X and as low as 20.68X, with the median being 21.69X, as the chart below shows.
Price-to-Earnings Ratio vs. SP500
Price-to-Earnings Ratio vs. Sector
4 Manufacturing-General Industrial Stocks Leading the Pack Helios Technologies: This Sarasota, FL-based company supplies engineered motion control and electronic controls technology solutions in the Americas, the Middle East, Africa, Europe and the Asia Pacific. Strength in the mobile end market, aided by infrastructure-driven construction activity, is supporting HLIO’s performance. Also, recovery in the agriculture end market and improved distributor inventory levels bode well for the company.
The consensus estimate for this Zacks Rank #1 (Strong Buy) company’s 2026 earnings has been revised 4% upward over the past 60 days. The company outpaced estimates in each of the trailing four quarters, the average earnings surprise being 15.7%. Shares of Helios surged 174.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: HLIO
IDEX: Headquartered in Lake Forest, IL, IDEX is an applied solutions company that specializes in a diverse range of applications such as fluid and metering technologies, health and science technologies and fire, safety and other products. The company is benefiting from strength in the Fluid & Metering Technologies segment, driven by an increase in demand for products across the municipal water end market. Higher demand for mining application solutions is also supporting the company’s performance.
This Zacks Rank #2 (Buy) stock has gained 15.3% in the past year. The company outpaced estimates in each of the trailing four quarters, the average earnings surprise being 6%. The Zacks Consensus Estimate for its 2026 earnings has been revised 2.9% upward over the past 60 days.
Price and Consensus: IEX
RBC Bearings: Headquartered in Oxford, CT, RBC Bearings manufactures and distributes engineered bearings and precision components. RBC is well-positioned to gain from solid momentum in its Aerospace/Defense segment, driven by strength in the commercial aerospace market. An increase in demand for the company’s bearings and engineered component products in the defense market is expected to be beneficial as well.
Shares of this Zacks Rank #2 company have gained 58.2% in the past year. The company outpaced estimates in each of the trailing four quarters, the average earnings surprise being 6.2%. The Zacks Consensus Estimate for fiscal 2027 earnings has been revised 0.5% upward over the past 60 days.
Price and Consensus: RBC
Watts Water: Headquartered in North Andover, MA, Watts Water designs, manufactures and sells various water safety and flow control products to promote safety, energy efficiency and water conservation for commercial and residential buildings. It is well-positioned to gain from pricing discipline, productivity under the One Watts performance system and integration of recent acquisitions. Also, solid demand for data center cooling applications bodes well.
Shares of this Zacks Rank #2 company have gained 28.3% in the past year. WTS outpaced estimates in each of the trailing four quarters, the average earnings surprise being 11.8%. The Zacks Consensus Estimate for 2026 earnings has been revised 2.2% upward over the past 60 days.
Vitrafy Life Sciences, Inc., a life sciences company redefining cryopreservation, today announced a partnership with Vitalant Innovation Center for testing services as Vitrafy seeks to advance, approve, and deploy its next-generation cryopreservation ecosystem. The Innovation Center is part of Vitalant, one of the largest nonprofit blood and biotherapies healthcare organizations in the United States. The collaboration addresses a pivotal industry transition: as glycerol-based frozen red blood cell (RBC) technology reaches the expected end of its operational life, the U.S. blood community requires a successor to preserve and build upon decades of established capability.
A Generational Transition for Cryopreserved Blood
Glycerol-based cryopreservation has been the foundation of frozen RBC programs in the United States for decades, reliably supporting rare-donor programs, mass-trauma preparedness, and military forward deployment. Each year, more than 13.6 million units of whole blood and apheresis RBCs are collected to sustain these capabilities across the civilian and military blood system.
That technology is now reaching the natural end of its serviceable life. The processing equipment and materials that enable glycerol-based cryopreservation are being phased out, and no approved replacement currently exists. Preserving the frozen blood capabilities the U.S. blood system has come to depend on — and extending them — requires a new generation of technology to be validated and deployed before the transition is complete.
“The Vitalant Innovation Center is designed to support testing and process development for innovative ideas. As glycerol-based cryopreservation reaches end of life, we are pleased to partner with Vitrafy to support what can come next through our testing services at the Vitalant Innovation Center,” said Susanne Marschner, Ph.D., Vice President of Research and Scientific Programs, Vitalant Innovation Center.
Vitrafy’s proprietary cryopreservation ecosystem integrates freezing technology, software, formulations, and workflows into a unified, liquid nitrogen–free solution. Designed to be deployed close to the point of collection, the platform enables mobile, decentralized cryopreservation with the speed, consistency, and quality control that civilian healthcare and military operations require.
Vitalant Innovation Center brings both the clinical depth and operational scale needed to generate a robust, multi-environment evidence base as the platform advances toward broad commercial deployment. The partnership builds on Vitrafy’s existing industry collaborations and is structured to produce outcomes that benefit the wider blood community, not just a single network.
Beyond replacing existing capability, the platform’s portability and independence from fixed cold-chain infrastructure point toward an expanded future for frozen blood. Settings where current cryopreservation methods have never been practical — including pre-hospital environments and austere forward-deployed locations — represent a meaningful and largely unserved opportunity. As the technology matures through regulatory and clinical validation, the possibility of bringing frozen blood to these settings for the first time is a horizon Vitrafy and its partners are actively working toward.
“Vitalant is a pioneer in the U.S. blood market and one of the most respected organizations in the sector — there is no better partner to help establish what next-generation cryopreservation looks like at scale. But this work is bigger than any single partnership. The platform we’re building is designed to serve the entire blood community, and we genuinely hope other blood networks will join us in shaping it. We welcome that collaboration, and we look forward to government, regulatory, and military stakeholders engaging as the program moves forward,” said Brent Owens, CEO, Vitrafy Life Sciences.
An Open Invitation to the Blood Community
Under the partnership agreement, Vitrafy and Vitalant Innovation Center will execute a phased program covering planning, technology integration, and evaluation of frozen RBC outcomes against defined performance, regulatory, and operational milestones. The intent is for the in vitro findings to determine regulatory pathways and scaled deployment approaches that extend nationally and beyond this collaboration.
Vitrafy welcomes engagement from other blood services organizations, federal agencies, regulatory and standards bodies, and military and civilian leaders who wish to contribute to — or benefit from — the development of a next-generation cryopreservation standard for the United States. Vitrafy believes that a challenge of this scale is best solved together, and the program has been structured with that in mind.
About Vitrafy Life Sciences
Vitrafy Life Sciences, Inc. is focused on the development and commercialization of a decentralized cryopreservation ecosystem for blood and cell-based products. Vitrafy’s technology is designed to address critical supply, availability, and scalability challenges across the blood and advanced therapy sectors.
About the Vitalant Innovation Center
The Vitalant Innovation Center helps turn promising ideas into real-world solutions by providing the infrastructure and agility to test, validate and implement new technologies, helping to shape the future of transfusion medicine. The Innovation Center is part of Vitalant, one of the nation’s largest nonprofit blood and biotherapies healthcare organizations, providing hospitals and patients across the U.S. a safe blood supply, specialized laboratory services, transfusion medicine expertise and world-renowned research.For more information, visit research.vitalant.org.
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Key Takeaways U.S. manufacturing PMI rose to 54 in May, its highest level in four years, signaling expansion.New Orders Index reached 56.8% and Production Index rose to 54.3%, extending growth trends.HLIO, LXFR, RBC and WTS were highlighted as manufacturing stocks with earnings growth prospects. The U.S. manufacturing sector is making a solid rebound after months of struggle. Although supply constraints have shown signs of growing lately, manufacturing activity increased at a rapid pace in May after growing in the past three months.
So far, it has been an impressive show by the manufacturing sector in 2026. Higher prices remain a challenge, but robust demand has been boosting manufacturing activity.
Given the positive sentiment, it would be ideal to invest in four stocks from the manufacturing sector — Helios Technologies, Inc. (HLIO - Free Report) , Luxfer Holdings PLC (LXFR - Free Report) , RBC Bearings Incorporated (RBC - Free Report) and Watts Water Technologies, Inc. (WTS - Free Report) — that we have detailed below.
Manufacturing Activity Grows SteadilyThe ISM Manufacturing PMI jumped to 54 in May, to hit its highest level in four years, after increasing to 52.7 in April. May’s reading also surpassed analysts’ expectations of the PMI rising to 53.
Any reading above 50 suggests an expansion. This was also the fifth straight month that the PMI was above the 50 reading, indicating that the sector is on track for a steady recovery. President Donald Trump’s aggressive tariffs weighed on manufacturing activity last year, but the sector has still managed to grow owing to robust demand.
Sixteen industries reported growth in May, led by textile mills. Also, other industries like electrical equipment, paper products and appliances grew at an impressive pace last month. Although tariffs remain a concern, the New Orders Index grew for the fifth straight month, with a reading of 56.8%, up 2.7% from 54.1% in April. The Production Index came up with a reading of 54.3%, increasing 0.9% sequentially.
Oil prices have surged nearly 40% since the beginning of the Iran war, which has resulted in a spike in inflation. However, investors are hopeful that a deal with Iran could be reached soon after Trump hinted at making a decision on ending the war.
4 Industrial Products Stocks With UpsideHelios TechnologiesHelios Technologies, Inc. is an industrial technology company. HLIO develops and manufactures hydraulic and electronic control solutions. Helios Technologies’ operating subsidiaries include Sun Hydraulics, Enovation Controls and Faster Group.
Helios Technologies’ expected earnings growth for the current year is 12.9%. The Zacks Consensus Estimate for next year's earnings has improved 4% over the past 60 days. Currently, HLIO has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Luxfer HoldingsLuxfer Holdings PLC is a materials technology company specializing in the design, manufacture and supply of high-performance materials, components and gas cylinders. LXFR had two divisions, Elektron and Gas Cylinders. The Elektron division focuses on specialty materials based on magnesium, zirconium and rare earths. The Gas Cylinders division manufactures products made from aluminum, composites and other metals using technically advanced processes.
Luxfer Holdings’ expected earnings growth for the current year is 8.1%. The Zacks Consensus Estimate for next year's earnings has improved 7.1% over the past 60 days. LXFR currently sports a Zacks Rank #1.
RBC Bearings IncorporatedRBC Bearings Incorporated manufactures and distributes engineered bearings and precision components. RBC’s bearings are tools that reduce damage and energy loss, and enable proper power transmission in most machines and mechanical systems.
RBC Bearings’expected earnings growth for the current year is 14.2%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. RBC has a Zacks Rank #2 at present.
Watts Water TechnologiesWatts Water Technologies, Inc. designs, manufactures and sells various water safety and flow control products to promote safety, energy efficiency, and water conservation for commercial and residential buildings.
Watts Water Technologies’ expected earnings growth for the current year is 12.5%. The Zacks Consensus Estimate for current-year earnings has improved 2.2% over the past 60 days. WTC has a Zacks Rank #2 at present.
During the first quarter of 2026, the largest portfolio sector weightings were Health Care and Industrials. RBC Bearings Incorporated, Cognex Corporation and Nebius Group were among the top contributors to performance. Repligen Corporation, Agilysys, Inc., and GeneDx Holdings Corp. were among the top detractors from performance.
