RBC Bearings Delivers Strong Q2 2027 Performance with 15.2% Year-Over-Year Net Sales Growth
RBC Bearings, a leading global supplier of precision bearings and related products, reported a robust second quarter 2027 performance, with net sales increasing 15.2% year-over-year to $524.6 million.
During the quarter, the company's Aerospace & Defense segment continued to expand, with sales growing 15.8%. This growth was driven by increased demand in commercial aerospace and defense markets, which saw a 17.4% and 13.6% increase in sales, respectively. The components were constrained by production capacity, but new equipment coming online is expected to alleviate this issue.
The company's Industrial segment also performed well, with net sales increasing 14.8%. This growth was driven by strong OEM revenue increases of 24.2%, as well as a 10.6% increase in distribution revenues. The Industrial sector saw growth across various markets, including aggregates, metals, food and beverage, warehousing, semiconductors, grain, and power generation.
"We are pleased with the strong performance of our two business segments during the quarter," said Dr. Mike Hartnett, Chairman, President, and Chief Executive Officer of RBC Bearings. "The continued growth in our Aerospace & Defense segment is a testament to the company's position as a trusted supplier to this critical industry."
"Our Industrial segment continues to perform well, with strong OEM revenue increases and solid distribution revenues," added Dr. Hartnett. "We are invigorated by the strength, breadth, and outlook of our total RBC business."
Adjusted EPS increased 29.9% year-over-year to $3.74, compared to $2.84 in the prior year. Adjusted EBITDA rose 20.4% to $175 million versus $145.3 million last year, representing 33.4% of revenues. Free cash flow remained strong at $85.2 million, and the company retired $96 million of debt during the period.
Rob Sullivan, Vice President and Chief Financial Officer, added that the company's gross margins reflect the benefits of increased volumes running through production facilities, as well as contract renewals and favorable mix. Gross margins were 45.6% on both reported and adjusted basis, compared to 44.1% reported and 44.9% adjusted in the same period last year.
The company's results demonstrate its ability to execute on its strategy of delivering high-quality products and services to meet the evolving needs of its customers. As RBC Bearings continues to grow and expand its capabilities, it remains well-positioned to capitalize on emerging trends and opportunities across various industries."
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