RBC Bearings Surpasses Expectations in Q4 2025 with Strong Sales Growth and Margin Expansion
RBC Bearings, a leading global supplier of precision bearings and components, has delivered an impressive performance in its fiscal fourth quarter 2025, surpassing expectations with strong sales growth and margin expansion.
The company reported a 5.8% increase in quarterly sales to $438 million, driven by continued robust performance in its Aerospace & Defense (A&D) segment and industrial businesses. Consolidated gross margin for the quarter was 44.2%, up from 43.1% in the same period last year, while adjusted diluted earnings per share (EPS) were $2.83 a share, representing a 14.6% increase over the prior year.
The A&D segment stood out, with total sales increasing by 10.6% year-over-year, fueled by growth across various sub-segments. Commercial aerospace and defense sales grew by 11.6% and 8.2%, respectively, while industrial sales rose by 3.3%. Notably, the company's leading sources of growth came from engine OEMs, commercial spare parts, commercial fixed-wing aircraft, missiles, guided munitions, and space.
Despite challenges faced by the industry, including FAA-constrained production and a prolonged strike at its largest customer, RBC Bearings still managed to grow its A&D business by 14% for the full year, with commercial aerospace up 13.3% and defense up 15.9%. The company attributed this success to the breadth and diversity of its portfolio, providing exposure to multiple customers and supply chain segments.
RBC Bearings also highlighted its ability to deliver high service levels, internal can-do spirit, and incremental progress on new product introductions as key factors in achieving 3.3% growth in its industrial segment. The company's outperformance relative to peers and the broader industrial economy was notable, with CEO Dr. Michael Hartnett crediting the team for their relentless focus on organic growth.
Looking ahead to fiscal 2026, RBC Bearings is optimistic about commercial aerospace growth, predicting at least a 15% increase driven by Boeing and Airbus production growth. The company believes its diversified portfolio and targeted organic growth initiatives position it well for continued success in the coming year.
