RBC

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at RBC Bearings (NYSE:RBC) and its peers. Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings. The 13 engineered components and systems stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.4% while next quarter’s revenue guidance was 1.6% above. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.6% since the latest earnings results. With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE:RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries. RBC Bearings reported revenues of $519.5 million, up 19.2% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. RBC Bearings delivered the weakest guidance update of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 12.2% since reporting and currently trades at $493.19. Read why we think that RBC Bearings is one of the best engineered components and systems stocks, our full report is free. Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE:NPO) designs, manufactures, and sells products used for machinery in various industries. Enpro reported revenues of $338.8 million, up 17.6% year on year, outperforming analysts’ expectations by 4.7%. The business had an exceptional quarter with full-year EBITDA guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 11.3% since reporting. It currently trades at $296.26. Is now the time to buy Enpro? Access our full analysis of the earnings results here, it’s free. Founded by a steel salesman, Worthington (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets. Worthington reported revenues of $371.5 million, up 16.9% year on year, falling short of analysts’ expectations by 4%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. Worthington delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 2.2% since the results and currently trades at $57.45. Read our full analysis of Worthington’s results here. Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors. Graham Corporation reported revenues of $71.34 million, up 28.6% year on year. This result topped analysts’ expectations by 8.7%. It was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. The stock is down 16.5% since reporting and currently trades at $87.22. Read our full, actionable report on Graham Corporation here, it’s free. Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally. Arrow Electronics reported revenues of $9.99 billion, up 31.8% year on year. This print beat analysts’ expectations by 4.7%. Overall, it was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and EPS guidance for next quarter beating analysts’ expectations. Arrow Electronics delivered the highest guidance raise and fastest revenue growth among its peers. The stock is down 8.1% since reporting and currently trades at $204.35. Read our full, actionable report on Arrow Electronics here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

RBC Bearings has delivered a strong 5 year share return, yet current valuation checks suggest the stock is trading at a premium to what its cash flows and market multiples imply. The stock has returned 115.2% over 5 years, which sets a high bar for any further gains to be justified by fundamentals. Expectations for steady cash flow generation from RBC Bearings' engineered components business can support the current price, while any pressure on margins or delays in converting earnings into cash may weigh on that support. The broader valuation checks lean expensive, with a low value score of 1 out of 6, which suggests RBC Bearings is not a clear bargain on these measures. The issue now is whether the current market price of RBC Bearings leaves enough room above the intrinsic value estimate from the Discounted Cash Flow model to appeal to new investors. Balance the premium price of RBC Bearings with a broader watchlist by reviewing 45 high quality undervalued stocks, which screen as higher quality on both cash flows and balance sheet strength. The Discounted Cash Flow (DCF) model here uses RBC Bearings' projected future free cash flows to estimate what the stock could be worth today. On the latest twelve month figures, the company generated free cash flow of about $402 million, and the model assumes that these cash flows continue to grow over time rather than contract. On those assumptions, the DCF points to an estimated intrinsic value of about $408 per share. With the current share price sitting above that mark, the model suggests RBC Bearings trades at a premium of roughly 21.1%, so the stock screens as overvalued on this cash flow view. On the DCF numbers alone, RBC Bearings currently looks overvalued relative to its modeled intrinsic value. Our Discounted Cash Flow (DCF) analysis suggests RBC Bearings may be overvalued by 21.1%. Discover 45 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for RBC Bearings. The P/E ratio is a useful cross check for RBC Bearings because earnings are a core focus for many investors in established industrial businesses. RBC Bearings currently trades on a P/E of about 48.7x, which is well above the Machinery industry average of roughly 26.1x and also above the peer group average of about 29.7x. The fair P/E ratio implied by the valuation framework is about 29.5x. That is closer to the peer and industry benchmarks and suggests a level more in line with RBC Bearings' sector, size and risk profile. The gap between the current 48.7x and this 29.5x fair ratio indicates that investors are paying a steep premium for the stock on earnings. On the P/E multiple, RBC Bearings currently appears expensive relative to both its sector and the model's fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the RBC Bearings valuation question leaves off and focus on what would need to be true about the company’s future for today’s price to make sense. Each narrative spells out the growth, margin and earnings assumptions behind a fair value view so you can compare those expectations with RBC Bearings' actual results as new data is reported, all on the Community page. You can add your voice to the Simply Wall St community by sharing a Narrative on RBC Bearings that lays out your numbers based view on where its growth, margins and execution go from here. Set out your thesis today and see how it stacks up as new results and data points arrive. Do you think there's more to the story for RBC Bearings? Head over to our Community to see what others are saying! For RBC Bearings, both the Discounted Cash Flow (DCF) intrinsic value estimate and the earnings multiple view currently point to the stock screening as overvalued. The key question from here is whether the company can deliver cash flow and earnings that grow into this premium over time, or whether the valuation multiple settles closer to peers. The crux of the bull versus bear debate is how resilient margins and cash conversion prove to be if the operating backdrop becomes more demanding. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RBC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

RBC Bearings Incorporated RBC reported adjusted earnings of $3.88 per share for the first quarter of fiscal 2027 (ended June 27, 2026), up 36.6% year over year. The figure surpassed the Zacks Consensus Estimate of $3.42 by 13.5%.Revenues increased 19.2% year over year to $519.5 million and beat the consensus estimate of $509 million by 2.2%. Strong Aerospace & Defense sales, improved margins and the VACCO acquisition supported the results. RBC Bearings generated $34.4 million in quarterly revenues from VACCO, which it acquired in July 2025. Excluding this contribution, the company still benefited from broad expansion across most of its end markets.Sales originating in the United States totaled $467 million, while international revenues were $52.5 million. Point-in-time revenues represented 95% of the total, with the remaining 5% recognized over time. RBC Bearings Incorporated price-consensus-eps-surprise-chart | RBC Bearings Incorporated Quote Industrial segment revenues increased 8.4% year over year to $294.1 million. The business accounted for 56.6% of total quarterly sales, maintaining its position as the company’s largest revenue contributor.Aerospace & Defense revenues surged 36.9% to $225.4 million and represented 43.4% of sales. The segment’s sharp growth was the primary operating driver behind the company’s double-digit top-line increase. Gross profit rose 26.9% year over year to $247.8 million. Gross margin expanded 290 basis points to 47.7%, reflecting stronger operating performance and a favorable revenue mix.Adjusted operating income increased 34.1% to $141.2 million. The adjusted operating margin improved to 27.2% from 24.2% in the prior-year quarter, showing that revenue growth translated into stronger operating leverage. Selling, general and administrative expenses increased 8% to $85.8 million. However, SG&A expenses declined as a percentage of revenues to 16.5% from 16.9%, indicating improved cost absorption.Adjusted EBITDA advanced 28.1% year over year to $181.2 million. The adjusted EBITDA margin expanded 240 basis points to 34.9%. Net interest expense decreased to $10.1 million from $12.2 million, primarily due to continued debt reduction. Net cash provided by operating activities increased 43.2% year over year to $171.8 million. Capital expenditures totaled $24.9 million compared with $15.7 million in the prior-year period.Cash rose to $124.5 million at the end of the quarter from $57.3 million at the end of fiscal 2026. RBC repaid $77 million of term loans during the period, while total debt stood at $806.2 million, including current and long-term obligations. Backlog was $2.3 billion at the end of the quarter, unchanged sequentially but sharply above $1 billion a year earlier. The elevated order level provides meaningful revenue visibility, particularly within the Aerospace & Defense business.For contracts lasting more than a year, remaining performance obligations totaled approximately $1.29 billion. The company expects to recognize about 42% of that amount over the next 12 months, with the balance recognized thereafter. Management expects second-quarter fiscal 2027 net sales of $505-$515 million. The projection implies growth of 10.9-13.1% from the prior-year quarter’s revenues of $455.3 million.Gross margin is projected between 45.50% and 45.75%. SG&A expenses are expected to represent 16.50-16.75% of sales. Management expressed confidence in the company’s outlook, citing expanding end markets, record margins, strong cash flow and a robust backlog. The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the same space are discussed below:Applied Industrial Technologies AIT carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Applied Industrial’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 4.0%.  In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s fiscal 2026 bottom line has inched up 0.1%.IDEX Corporation IEX presently carries a Zacks Rank of 2. IDEX’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 7.7%. In the past 60 days, the Zacks Consensus Estimate for IEX’s 2026 earnings has increased 1.4%.The Middleby Corporation MIDD currently carries a Zacks Rank of 2. Middleby’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 10.4%. In the past 60 days, the Zacks Consensus Estimate for MIDD’s 2026 earnings has increased 0.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RBC Bearings Incorporated (RBC) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report IDEX Corporation (IEX) : Free Stock Analysis Report The Middleby Corporation (MIDD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in RBC Bearings Incorporated? Here are five stocks we like better. Strong first-quarter performance: Fiscal Q1 2027 sales rose 19.2% to $519.5 million, while adjusted EPS increased 36.6% to $3.88 and adjusted EBITDA grew 28.1% to $181.2 million. Free cash flow reached $146.9 million, enabling $77 million of debt repayment during the quarter and an additional $50 million afterward. Aerospace and Industrial demand remained robust: Aerospace & Defense revenue grew 36.9%, led by commercial aerospace, defense and expanding space activity, while Industrial sales increased 8.4% across most end markets. The company also cited a $2.3 billion marine backlog and expectations for significantly higher marine shipments in the second half of fiscal 2027. Growth is expected to continue alongside deleveraging: RBC Bearings forecasts fiscal Q2 revenue of $505 million to $515 million, representing 10.9% to 13.1% year-over-year growth, although margins are expected to decline sequentially after tariff refunds and contract resolutions benefited Q1. Management aims to repay the remaining term loan by November 2026. RBC Bearings Stock is Rolling Forward RBC Bearings (NYSE:RBC) reported fiscal first-quarter 2027 results marked by double-digit sales growth, higher margins, strong free cash flow and continued debt reduction, driven primarily by demand in Aerospace & Defense and broad-based growth in its Industrial segment. Net sales increased 19.2% year over year to $519.5 million. Adjusted diluted earnings per share rose 36.6% to $3.88, while adjusted EBITDA increased 28.1% to $181.2 million. The company generated $146.9 million in free cash flow during the quarter and paid down $77 million of debt, followed by another $50 million repayment on its term loan after the quarter ended. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Chairman, President and CEO Michael Hartnett said the company saw exceptional Aerospace & Defense demand and strong Industrial growth. Aerospace & Defense accounted for 43% of quarterly revenue, while Industrial represented approximately 57%. Aerospace & Defense segment revenue rose 36.9% from the prior-year period, including 16.6% organic growth excluding the VACCO acquisition. Commercial aerospace revenue grew 21.8%, or 20.3% organically, while defense revenue increased 64.6%, including 10% organic growth. → Microsoft Just Flipped the AI Spending Narrative Overnight Hartnett said the company is seeing healthy order activity, rising request-for-quote volumes, contract awards and customer requests for more capacity. RBC Bearings is expanding production rates for commercial aircraft and engine programs at several North American and European sites, he said. The company also highlighted accelerating activity in space. Its space business generated approximately $70 million in fiscal 2026 revenue and contributed $25 million in the fiscal first quarter, Hartnett said. RBC Bearings now serves more than a dozen space customers and sees commercial and government spending supporting a longer-term growth opportunity. → Carrier Earnings Could Send the Stock to a New All-Time High During the question-and-answer session, Hartnett cited SpaceX, Blue Origin, Amazon-related projects and government space programs as sources of activity. He said demand signals from Blue Origin had not changed following a recent launch-pad explosion mentioned by an analyst. Marine backlog stood at $2.3 billion, much of it tied to marine programs. Hartnett said complex supply-chain issues had constrained production but that the company had resolved most of those issues and expects to expand marine shipments significantly in the second half of fiscal 2027. Industrial segment sales increased 8.4% year over year. Within the segment, OEM revenue rose 21.5% and distribution revenue increased 3.1%. Hartnett said the company experienced growth in aggregate and cement, food and beverage, warehousing, semiconductors and grain markets. He told analysts that metals was the only Industrial sector that did not grow during the period, describing it as flat year over year. Growth across the company’s Industrial markets continued through July, according to Hartnett. Chief Financial Officer Rob Sullivan said Industrial gross margin was 50.2% in the quarter, while Aerospace & Defense gross margin was 44.5%. Industrial adjusted gross margin expanded more than 300 basis points year over year, and Aerospace & Defense margin expanded by more than 180 basis points. Consolidated gross margin was 47.7%, compared with 45.4% on an adjusted basis in the prior-year period. Sullivan attributed the improvement to higher production volumes, operating efficiencies, favorable product mix and contract resolutions. He said the timing of tariff refunds provided nearly 100 basis points of gross-margin benefit during the quarter, primarily in the Industrial segment. Contract resolutions in Aerospace & Defense also contributed to revenue and margin, adding an estimated 50 to 60 basis points of benefit, Sullivan said in response to analyst questions. Hartnett said Aerospace & Defense margins should continue to improve as newer contracts reflect inflation adjustments and the company benefits from insourcing bottleneck production processes. He said RBC Bearings expects approximately 1.5 points of consolidated margin improvement from the end of fiscal 2026 to the end of fiscal 2027. SG&A expense totaled $85.8 million, or 16.5% of sales. Interest expense declined 17.2% year over year to $10.1 million, which Sullivan attributed to lower debt and lower interest rates. The adjusted tax rate was 22%, compared with 22.5% a year earlier. For fiscal second-quarter 2027, RBC Bearings projected revenue of $505 million to $515 million, representing year-over-year growth of 10.9% to 13.1%. The outlook implies first-half sales of $1.024 billion to $1.035 billion, or growth of 14.9% to 16.1% from the prior-year period. Expected second-quarter adjusted gross margin: 45.5% to 45.75% Expected SG&A as a percentage of sales: 16.5% to 16.75% Term loan repayment target: remainder to be paid by November 2026 Sullivan said second-quarter margins are expected to decline sequentially because the first and fourth fiscal quarters have historically been the company’s strongest margin periods, while tariff refunds and contract resolutions benefited the first quarter. Management said its capital-allocation priority remains deleveraging, while Hartnett said the company remains open to acquisitions that complement its existing capabilities and help it serve customers. He added that RBC Bearings is prioritizing long-term customers as demand exceeds available capacity in some areas, rather than accepting short-term orders that could disrupt service levels. 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. 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]. The article "RBC Bearings Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strong start to fiscal 2027 with net sales up 19.2% year-over-year to $519.5 million, driven by exceptional demand in aerospace and defense and strong growth in industrial. Adjusted EPS increased 36.6% year-over-year to $3.88, and adjusted EBITDA rose 28.1% to $181.2 million, reflecting robust operational performance. Aerospace and defense segment revenue grew 36.9% year-over-year, with commercial aerospace up 21.8% and defense up 64.6%, supported by healthy order activity and increasing RFQ volumes. Space business is gaining momentum, contributing $25 million in revenue in Q1 alone, with more than a dozen customers, positioning it as a significant long-term growth opportunity. Industrial segment showed broad-based growth, with OEM revenue up 21.5% and distribution up 3.1%, and only a few end markets (like metals) flat, indicating a healthy and durable industrial cycle. Strong free cash flow of $146.9 million and debt reduction of $77 million in Q1, with plans to pay off the remaining term loan by November 2026, improving financial flexibility. Gross margin guidance for Q2 is lower (45.5-45.75%) compared to Q1's 47.7%, partly due to one-time tariff refunds and contract resolutions that boosted Q1 margins. Backlog was flat sequentially, which may raise concerns about future order visibility, though management notes long-term contracts are not fully reflected in backlog. Supply chain challenges persist, particularly in marine and complex metallurgical parts, with some 'double knots' still unresolved, potentially impacting production and shipments. Labor shortages in certain U.S. regions (e.g., Northeast, Orange County) could constrain capacity expansion, despite mitigation through Mexican facilities and training programs. The company faces potential headwinds from global tariff costs, which are expected to continue impacting margins beyond the temporary refunds received in Q1. Management acknowledges that demand exceeds capacity in many areas, which could lead to service level issues if not managed carefully, and they are cautious about overbooking. Warning! GuruFocus has detected 3 Warning Sign with RBC. Is RBC fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the one-time items that drove the robust 47.7% gross margin in Q1, and how conservative is the Q2 outlook of 45.5% to 45.75%? A: Rob Sullivan, CFO, explained that the Q1 gross margin benefited from roughly 100 basis points of one-time tariff refunds and an additional 50-60 basis points from specific contract resolutions. He noted that Q4 and Q1 are historically the strongest margin quarters due to seasonality and fewer production days, which accounts for the sequential decrement baked into the Q2 guidance. Q: As industrial margins have been higher than aerospace and defense for several quarters, how should we think about the margin convergence dynamic between the two segments going forward? A: Dr. Michael Hartnett, CEO, stated that A&D margins will continue to expand and "catch up" to industrial levels, though full convergence remains to be seen. He attributed the expansion to new contracts reflecting inflation adjustments, as well as insourcing bottleneck processes that improve plant absorption and material savings. Q: Can you provide more color on your space business exposure, including the mix between government and commercial customers, and the growth trajectory? A: Dr. Hartnett highlighted strong relationships with SpaceX and Blue Origin, noting long-term agreements and involvement with Amazon projects. He also mentioned significant government space programs in the pipeline, stating the sector is "capacity demanding" and will require substantial support, with no deficiency in demand expected. Q: Backlog was flat sequentially for the first time in a while. Can you talk about what's going on with backlog, especially given strong marine, missile, and space programs? A: Dr. Hartnett explained that many long-term contracts, particularly in airframe and engine, are not reflected in the reported backlog. He noted that large sole-source programs are inbound that will materially change the backlog, and the release of the 7th lot of Virginia-class submarines is a significant event expected in the next 12-18 months. Q: The press release said the vast majority of end markets are growing. What isn't growing, and is the industrial cycle broadening into something more durable? A: Dr. Hartnett stated that metals was the only sector that was flat, while virtually every other industrial sector was up, with some growing double-digits. He confirmed that this growth trend has continued through July, reinforcing the view that the industrial environment remains healthy and poised for continued growth. Q: How did the tariff refund benefits split between the industrial and A&D segments? A: Rob Sullivan, CFO, clarified that the majority of the tariff refund benefits went through the industrial segment, not A&D. Q: Is there any impact to the space growth outlook from the recent Blue Origin launchpad explosion, or is their demand signal unchanged? A: Dr. Hartnett confirmed that the demand signal from Blue Origin is unchanged despite the recent launchpad explosion. Q: Are your commercial aerospace competitors getting better at meeting demand, or is their performance still creating opportunities for RBC to gain share? A: Dr. Hartnett noted that many customers are having difficulty getting product from competitors, which is unusual. However, he emphasized RBC's disciplined approach: prioritizing long-term contractual customers and avoiding overbooking capacity, which would compromise service levels. Q: How is labor retention and attraction going given the strong demand, and how is the internal training program progressing? A: Dr. Hartnett stated that labor availability varies by region, with Mexico being a significant advantage with over 1,000 employees and no labor shortage. He noted the training program has scaled to about 100 people at any given time, providing a deep base of talent across engineering, manufacturing, and business management. Q: Are there any remaining "knots" in the supply chain that you worry about, particularly with complex parts? A: Dr. Hartnett acknowledged there are still some "double knots" in the supply chain, particularly with complex metallurgical parts where suppliers have gone out of business. He stated that while most have been identified, some remain unseen and will be dealt with as they surface, especially given the busy A&D and space environment in Los Angeles. Q: Are you seeing any headwinds as a result of the Middle East situation and higher jet fuel environment? A: Dr. Hartnett stated they are not seeing any headwinds, though some customers have mentioned potential headwinds in the aftermarket. RBC is not currently experiencing or feeling any impact. Q: What is your appetite for expanding through M&A to take advantage of growth in missiles and space? A: Dr. Hartnett indicated RBC is not adverse to M&A and prefers acquisitions that complement existing operations and help serve the customer base. He noted that in the current acquisition environment, the company can become aggressive when the right opportunities arise. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

OXFORD, Conn., July 31, 2026--(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 first quarter fiscal 2027. First Quarter Financial Highlights First quarter net sales of $519.5 million increased 19.2% over last year, Aerospace & Defense up 36.9% and Industrial up 8.4%. Gross margin of 47.7% for the first quarter of fiscal 2027 compared to 44.8% last year; Adjusted gross margin of 47.7% compared to 45.4% last year. First quarter net income as a percentage of net sales of 19.5% vs 15.7% last year; Adjusted EBITDA as a percentage of net sales of 34.9% vs 32.5% last year. Three Month Financial Highlights Dr. Michael J. Hartnett, Chairman and Chief Executive Officer, stated, "Sales in our first quarter expanded by 19% as margins, cash flow and backlog achieved record levels. Today we are operating extremely well in a robust commercial environment where the vast majority of our end markets are expanding. I am proud of our many teams and their dedication to maintain the high levels of service expected of RBC in these demanding markets. Clearly, we are excited and confident in the positive outlook for the balance of the year." First Quarter Results Net sales for the first quarter of fiscal 2027 were $519.5 million, an increase of 19.2% from $436.0 million in the first quarter of fiscal 2026. $34.4 of net sales this quarter came from VACCO, which we acquired on July 18, 2025. Net sales for the Industrial segment increased 8.4%, while net sales for the Aerospace & Defense segment increased 36.9%. Gross margin for the first quarter of fiscal 2027 was $247.8 million compared to $195.2 million for the same period last year. On an adjusted basis, gross margin was $247.8 million for the first quarter of fiscal 2027 compared to $198.1 million for the same period last year. SG&A for the first quarter of fiscal 2027 was $85.8 million, an increase of $11.9 million from $73.9 million for the same period last year. As a percentage of net sales, SG&A was 16.5% for the first quarter of fiscal 2027 compared to 16.9% for the same period last year. Other operating expenses for the first quarter of fiscal 2027 totaled $21.2 million compared to $20.2 million for the same period last year. For the first quarter of fiscal 2027, other operating expenses included $21.0 million of amortization of intangible assets and $0.4 of restructuring costs offset by $0.2 million of other items. For the first quarter of fiscal 2026, other operating expenses included $17.9 million of amortization of intangible assets, $1.2 million of restructuring costs, $0.1 of acquisition costs and $1.0 million of other expense items. Operating income for the first quarter of fiscal 2027 was $140.8 million compared to $101.1 million for the same period last year. On an adjusted basis, operating income was $141.2 million for the first quarter of fiscal 2027 compared to $105.3 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 $10.1 million for the first quarter of fiscal 2027 compared to $12.2 million for the same period last year. The decrease in interest expense between the periods was primarily due to continued debt reduction efforts. Other non-operating expense was $0.5 million for the first quarter of fiscal 2027 compared to $1.2 million for the same period last year. Income tax expense for the first quarter of fiscal 2027 was $28.7 compared to $19.2 for the same period last year. The effective income tax rate for the first quarter of fiscal 2027 was 22.1% compared to 21.9% for the same period last year. The effective income tax rate for the first quarter of fiscal 2027 of 22.1% included $1.4 of discrete tax benefits associated with stock-based compensation and $0.1 of other items. The effective income tax rate without discrete items for the first quarter of fiscal 2027 would have been 23.2%. The effective income tax rate for the first quarter of fiscal 2026 of 21.9% included $2.3 of discrete tax benefits associated with stock-based compensation partially offset by $1.3 of other items. The effective income tax rate without discrete items for the first quarter of fiscal 2026 would have been 23.1%. Net income for the first quarter of fiscal 2027 was $101.5 million compared to $68.5 million for the same period last year. On an adjusted basis, net income was $123.0 million for the first quarter of fiscal 2027 compared to $89.6 million 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 first quarter of fiscal 2027 was $3.20 compared to $2.17 for the same period last year. On an adjusted basis, diluted EPS was $3.88 for the first quarter of fiscal 2027 compared to $2.84 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 June 27, 2026, was $2.3 billion compared to $2.3 billion as of March 28, 2026 and $1.0 billion as of June 28, 2025. Outlook for the Second Quarter Fiscal 2027 The Company expects net sales to be approximately $505.0 million to $515.0 million in the second quarter of fiscal 2027, compared to $455.3 million in the prior year, for a growth rate of 10.9% to 13.1%. Gross margin is expected to be in the range of 45.5% to 45.75% and SG&A as a percentage of net sales is expected to be in the range of 16.5% to 16.75%. Live Webcast RBC Bearings Incorporated will host a webcast on Friday, July 31st, 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 # 13761571. 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 # 13761571. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260731711418/en/ Contacts Mike Cummings or Josh [email protected]

Ingersoll Rand Inc. IR reported second-quarter 2026 adjusted earnings of 86 cents per share, beating the Zacks Consensus Estimate of 83 cents by 3.6%. The bottom line increased 7.5% from the year-ago quarter.Revenues of $2.05 billion surpassed the consensus estimate of $1.96 billion by 4.5% and rose 8.5% year over year. Organic revenues increased 4.1%, while acquisitions and favorable foreign currency movements contributed 2.8% and 1.6%, respectively. In the second quarter of 2026, its total orders increased 5.3% to $2.04 billion. Organic orders increased 1.6% year over year. Acquisitions added 2.4% to order growth, while foreign currency translation contributed 1.3%. Management noted healthy underlying demand and strengthening order momentum. Ingersoll Rand also reported double-digit order growth through the first four weeks of July, supported by the realization of longer-cycle orders that had been delayed during the first half and continued strength in short-to-medium-cycle demand. Industrial Technologies and Services generated revenues of $1.62 billion, up 8.7% year over year and accounting for about 79% of total revenues. Organic revenues increased 4.2%, with positive growth across all regions. Acquisitions and foreign currency added 2.8% and 1.7%, respectively. The segment recorded a book-to-bill ratio of 1.0, indicating that quarterly orders were broadly aligned with revenues.The segment's adjusted EBITDA increased 1.7% to $434.5 million, while its margin contracted 180 basis points to 26.8%. Organic orders were approximately flat as strong compressor activity, particularly in North America, was offset by the timing of longer-cycle blower and vacuum orders in Europe and continued pressure in the Middle East.Precision and Science Technologies recorded revenues of $426.7 million, up 7.7%. Organic revenues increased 3.9%, while acquisitions and currency contributed 2.9% and 0.9%, respectively. Organic orders rose 7.4%, led by low-double-digit growth in Life Sciences Technologies and mid-single-digit growth in Precision Technologies.The segment's adjusted EBITDA increased 15.2% to $134.5 million. Its adjusted EBITDA margin expanded 200 basis points to 31.5%, reflecting strong operational execution supported by the Ingersoll Rand Execution Excellence system. Ingersoll Rand Inc. price-consensus-eps-surprise-chart | Ingersoll Rand Inc. Quote The company’s total adjusted EBITDA increased 2.1% year over year to $519.9 million. However, the adjusted EBITDA margin contracted 160 basis points to 25.4%. The decline reflected challenges in offsetting inflation with pricing, primarily in China, continued commercial investments to support growth and higher corporate costs.In the quarter, IR’s cost of sales increased 11.6% to $1.19 billion, while selling and administrative expenses rose 8% to $400.8 million. Adjusted net income increased to $339.3 million from $325.2 million, though the adjusted net income margin declined to 16.6% from 17.2%. Cash provided by operating activities totaled $295.9 million in the second quarter, up from $245.7 million in the year-ago quarter. Capital expenditures declined to $27 million from $35.3 million, lifting free cash flow to $268.9 million from $210.4 million. The free cash flow margin improved 200 basis points to 13.1%.IR ended the quarter with $3.8 billion in available liquidity, including $1.17 billion in cash and $2.6 billion of undrawn revolving credit capacity. The company paid out dividends of $8 million and repurchased shares worth $240 million. It also deployed $110 million toward acquisitions.Long-term debt (less of current maturities) was $4.07 billion, lower than $4.78 billion recorded at the end of 2025. Net debt to adjusted EBITDA remained at 1.7 times. Ingersoll Rand raised its 2026 revenue growth outlook to 4.5-6.5%. The forecast assumes organic growth of 1-3%, an approximately 1% currency benefit and a roughly 2.5% contribution from acquisitions.The company maintained its adjusted EBITDA guidance of $2.13-$2.19 billion and adjusted earnings forecast of $3.45-$3.57 per share. Management projects adjusted earnings to be near the high end of this range. Free cash flow conversion is projected at approximately 95% of adjusted net income. The company completed the acquisition of a U.S.-based blower manufacturer with approximately $50 million in annual revenues. The transaction expands Ingersoll Rand's blower technologies and aftermarket capabilities.IR also entered into a deal to acquire Fai Filtri, an Italian industrial filtration company with about $30 million in annual revenues, with closing expected in the fourth quarter. The acquisition pipeline includes more than 200 companies, with 11 additional transactions at the letter-of-intent phase. The company currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are discussed below:Applied Industrial Technologies AIT carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Applied Industrial’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 4.0%.  In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s fiscal 2026 bottom line has inched up 0.1%.RBC Bearings Incorporated RBC presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.2%. In the past 60 days, the Zacks Consensus Estimate for RBC’s fiscal 2027 earnings has increased 0.8%.Generac Holdings GNRC currently carries a Zacks Rank of 2. Generac Holdings’ earnings topped the consensus estimate twice and missed on the other two occasions in the trailing four quarters. The average earnings surprise was 7.4%. In the past 60 days, the Zacks Consensus Estimate for GNRC’s 2026 earnings has increased 0.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report RBC Bearings Incorporated (RBC) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RBC Bearings (RBC) came out with quarterly earnings of $3.88 per share, beating the Zacks Consensus Estimate of $3.42 per share. This compares to earnings of $2.84 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +13.45%. A quarter ago, it was expected that this maker of bearings and components 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 surpassed consensus EPS estimates four times. RBC Bearings, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $519.5 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.14%. This compares to year-ago revenues of $436 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 25.3% since the beginning of the year versus the S&P 500's gain of 8.7%. 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 $3.60 on $515.36 million in revenues for the coming quarter and $14.50 on $2.14 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 24% 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. Another stock from the same industry, Nordson (NDSN), has yet to report results for the quarter ended July 2026. This maker of adhesives and industrial coatings is expected to post quarterly earnings of $3.09 per share in its upcoming report, which represents a year-over-year change of +13.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Nordson's revenues are expected to be $779 million, up 5.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RBC Bearings Incorporated (RBC) : Free Stock Analysis Report Nordson Corporation (NDSN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research