RBC Bearings Reports 5.5% Revenue Growth and 39.6% Net Income Increase in Q3 Fiscal 2025

RBC Bearings Incorporated reported a solid financial performance for the third quarter of fiscal 2025, with net sales reaching $394.4 million, a 5.5% increase from $373.9 million in the same period last year. The company's net income attributable to common stockholders also saw significant growth, rising 39.6% to $56.9 million, compared to $40.8 million in the prior year. This translated to a diluted earnings per share of $1.82, up from $1.39 in the previous year. For the nine-month period ending December 28, 2024, net sales totaled $1.198 billion, reflecting a 4.5% increase year-over-year, while net income rose to $161.1 million from $131.0 million.

The company experienced notable growth in its Aerospace/Defense segment, which reported a 10.7% increase in sales for the quarter, driven by a 14.6% rise in commercial aerospace sales. The Industrial segment also contributed to the overall growth, with a 2.7% increase in sales. However, the Industrial segment's performance was mixed, with some markets like logistics and warehousing showing strength, while others, such as semiconductors and oil and gas, faced challenges. The gross margin improved to 44.3% of net sales for the quarter, up from 42.3% in the same period last year, attributed to favorable product mix and operational efficiencies.

RBC Bearings has been actively pursuing strategic initiatives, including the expansion of its customer base and product offerings. The company reported a backlog of $896.5 million as of December 28, 2024, compared to $821.5 million at the end of the previous fiscal year, indicating strong demand for its products. The company also highlighted its focus on increasing aftermarket sales, which are expected to enhance revenue predictability. Additionally, RBC Bearings completed the conversion of its mandatory convertible preferred stock into common stock, resulting in a cash savings of approximately $23 million annually due to the elimination of preferred stock dividends.

Operationally, RBC Bearings has maintained a strong balance sheet, with total assets of $4.665 billion and total liabilities of $1.727 billion as of December 28, 2024. The company reported cash and cash equivalents of $60.6 million, with approximately $22.4 million held by foreign subsidiaries. RBC Bearings anticipates continued growth in the Aerospace/Defense sector and expects fourth-quarter net sales to range between $434 million and $444 million, representing a year-over-year increase of 4.9% to 7.3%. The company remains optimistic about its ability to fund internal growth initiatives through operating cash flows and available credit under its revolving credit facility.