RBC Bearings Soars to New Heights in Q4 2026 with Record-Breaking Earnings
RBC Bearings Inc. has made history by achieving an extraordinary $518 million in net sales for its fiscal fourth quarter of 2026, marking a staggering 18.3% year-over-year increase.
According to Dr. Hartnett, Chairman, President, and Chief Executive Officer, the company's impressive performance is largely driven by continued momentum in its A&D segment and steady growth in its industrial businesses. The consolidated gross margin was an enviable 44.4%, with adjusted diluted EPS increasing year-over-year to $3.62 compared to $2.83 in the prior year period.
Adjusted EBITDA rose a remarkable 21% to $168.9 million, up from $139.8 million last year. Free cash flow remained robust at $67.5 million, and RBC Bearings successfully paid down an additional $116 million of debt during the quarter.
The company's A&D business has been on fire, with segment revenue increasing a whopping 41.2% compared to the prior year period. This exceptional performance is reflected in its backlog, which currently stands at approximately $2.3 billion. Driven by robust demand across the defense and space markets, along with unprecedented commercial aircraft build rates at major builders, RBC Bearings' A&D business has continued to deliver stellar results.
Breaking down the company's revenue drivers, Dr. Hartnett highlighted marine as a significant contributor to its backlog growth, driven by accelerating build-out of the submarine fleet. Given the strategic importance of submarines within today's defense strategies, RBC Bearings expects this to remain a meaningful tailwind as production rates continue to ramp across all subcontractors for both the Virginia and Columbia class programs.
Missile-related revenue was also up significantly this year, with revenue exceeding $45 million in the fiscal year. This growth reflects increased content across several top missile programs and expanding demand given current global conditions. RBC Bearings is planning for sustained growth in requirements for this sector in the current and future years.
The company's space business has seen an impressive ramp as investments in this sector continue to hit record levels. During the year, space revenues came in just above $70 million, including $30 million from 8 months' contribution by VACCO. This growth is especially notable considering that space-related revenue was only $4 million for RBC back in 2021.
On top of this strong momentum, RBC Bearings is also supporting unprecedented production rates for commercial aircraft and engines. As the company is deeply embedded across these markets on three continents, it expects to see continued growth at both the OEM and aftermarket levels.
In its industrial business, performance remained steady and up during the period, with OEM revenue increasing 7.8% and distribution revenue growing at 4.5%. The company saw strength in aggregates, warehousing, food and beverage, grain, and semiconductor end markets.
Looking to fiscal year 2027, RBC Bearings is encouraged by the continued strength of its operating environment and the building momentum across many businesses. With this exceptional performance, it's clear that RBC Bearings will continue to be a leader in the industry."
