$RBC · RBC Bearings INC
RBC Bearings reported Q2 FY2027 results with net sales of $524.6M (+15.2% YoY), GAAP diluted EPS of $2.96, and adjusted diluted EPS of $3.74. Gross margin improved to 45.6%. The company fully repaid its Term Loan during the quarter and guided Q3 revenue to $520M-$525M with gross margin of 45.5%-45.75%.
- Q2 net sales of $524.6M, up 15.2% YoY; Aerospace & Defense +15.8%, Industrial +14.8%
- Adjusted diluted EPS of $3.74 vs $2.88 last year, a 29.9% increase
- Gross margin expanded to 45.6% from 44.1% last year; adjusted gross margin 45.6% vs 44.9%
- Term Loan fully repaid during Q2; interest expense fell to $9.3M from $13.4M YoY
- Backlog reached $2.4B, up from $1.6B a year ago and $2.3B at fiscal year-end
Stock down 2.24% to $484.66 despite strong results — likely profit-taking or guidance below whisper expectations, as Q3 revenue guide of $520M-$525M implies sequential deceleration from Q2's $524.6M.
RBC's combination of mid-teen organic growth, margin expansion, full debt retirement, and a $2.4B backlog signals strong operational momentum in both aerospace and industrial end markets.
RBC's mid-teen organic growth across both A&D and Industrial segments stands out in the precision components sector, where many peers are seeing uneven demand. The $2.4B backlog provides multi-quarter visibility.
Forward-looking statement risks include geopolitical factors such as import/export tariffs, raw material pricing, and interest rate increases. Tariff refunds of $1.7M favorably impacted Q2 gross margin — a non-recurring tailwind.