RBC Bearings Posts Stellar First Quarter 2027 Results: Strong Demand Across End Markets
RBC Bearings, a leading global manufacturer of highly engineered precision bearings and components, has kicked off fiscal year 2027 with an impressive first quarter. The company's net sales surged 19.2% year-over-year to $519.5 million, driven by exceptional demand in its Aerospace & Defense business and strong growth across the Industrial segment.
Consolidated and adjusted gross margins for the quarter were a healthy 47.7%, while adjusted EPS increased 36.6% year-over-year to $3.88 compared to $2.84 in the prior year's period. Adjusted EBITDA rose 28.1% to $181.2 million, up from $141.5 million last year.
In a call with investors on July 31st, Dr. Hartnett, Chairman, President, and Chief Executive Officer of RBC Bearings, highlighted the company's strong start to fiscal 2027. "We delivered a strong start to fiscal 2027," he said. "Our first quarter net sales increased 19.2% year-over-year to $519.5 million. This was driven by exceptional demand in our Aerospace & Defense business, followed by strong growth across our Industrial segment."
The company's Aerospace & Defense business continued to perform exceptionally well, with segment revenue increasing 36.9% compared to the prior year period. Commercial Aerospace growth was 21.8%, while Defense was up 64.6%. Dr. Hartnett noted that the company is observing healthy order activity, increasing RFQ volumes, contract inkings, and daily customer requests for additional capacity.
RBC Bearings' space sector also showed impressive momentum, with revenue growing from $70 million in fiscal 2026 to $25 million in the first quarter alone. The company now serves more than a dozen space customers, driven by robust investments by major customers across both commercial and government space markets.
Dr. Hartnett highlighted the complexity of production growth in the marine sector, citing knots in the supply chain that had appeared previously. However, he noted that the company has untied most of those knots and is planning to expand shipments from this sector significantly in the second half of its year.
In contrast, RBC Bearings' Industrial business remained strong during the period, with OEM revenue increasing 21.5% and distribution revenue growing 3.1%. The company saw growth across various sectors, including aggregate and cement, food and beverage, warehousing, semiconductors, and grain industries.
Overall, RBC Bearings is energized by the strength and outlook of its core business sectors. Dr. Hartnett noted that the company's priorities remain focused on executing efficiently, supporting customers, investing in capacity and capabilities needed to meet growing demands for RBC products. The company believes its differentiators – outstanding service levels, strong brands, leading market positions, technical expertise, and most of all, employees – make a difference.
