RBC Bearings (RBC) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 FY26 rose 17% year-over-year to $461.6 million, driven by 41.5% growth in Aerospace/Defense and 3.1% in Industrial, with the VACCO acquisition contributing $29.2 million.

• Adjusted diluted EPS increased 30% to $3.04, and adjusted EBITDA rose 22% to $149.6 million.

• Net income attributable to common stockholders was $67.4 million, up 18.5% year-over-year.

• Free cash flow reached $99.1 million, with conversion at 147% and $81 million in debt repaid during the quarter.

• Backlog grew to $2.1 billion, up from $0.9 billion a year earlier, reflecting strong contract wins.

Financial highlights

• Consolidated gross margin was 44.3%, or 45.1% on an adjusted basis, up from 44.3% last year.

• Q3 net income attributable to common stockholders was $67.4 million (14.6% of sales), up from $56.9 million.

• Adjusted EBITDA margin was 32.4% of sales; interest expense declined to $13.0 million.

• Free cash flow for nine months was $330.5 million, up from $224.4 million.

• SG&A expenses for the quarter were $77.9 million (16.9% of sales), up due to growth investments and VACCO integration.

Outlook and guidance

• Q4 FY26 net sales expected at $495–$505 million, up 13.1%–15.4% year-over-year.

• Excluding VACCO, Q4 net sales growth expected at 6.4%–8.7%.

• Adjusted gross margin forecasted at 45.0%–45.25%; SG&A at 16.0%–16.25% of sales.

• Industrial growth for Q4 expected to be similar or slightly below Q3; FY27 anticipated to be a higher growth year for industrial.

• Backlog reached $2.1 billion, including $0.5 billion from VACCO, with strong defense and commercial aerospace demand expected to continue.