RBC Bearings (RBC) Q4 2026 earnings summary

Executive summary

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

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

• Adjusted diluted EPS increased to $3.62 from $2.83 year-over-year; adjusted EBITDA up 21% to $168.9 million for Q4 and $605.3 million for the year.

• Backlog expanded to $2.3 billion as of March 28, 2026, reflecting robust demand in defense, space, and commercial aerospace.

• Free cash flow was $67.5 million for Q4 and $342.6 million for the year; $116 million of debt paid down.

Financial highlights

• Consolidated gross margin was 44.4% (45.3% adjusted) for Q4; full-year adjusted gross margin was 45.2%.

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

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

• Tax rate for adjusted EPS was 21% for Q4, with Q4 effective tax rate at 15.8% due to discrete items.

• Full-year free cash flow conversion reached 119.1%.

Outlook and guidance

• Q1 FY27 revenue guidance: $500–$510 million, up 14.7%–17% year-over-year; excluding $28 million from VACCO, growth is 8.3%–10.6%.

• Adjusted gross margin expected at 45.25%–45.5%; SG&A at 16.5%–16.75% of net sales.

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

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