Want to see RBC full AI Analyst Report?
Top Page
RBC Bearings
(NYSE:RBC)
Select Model
Select Model
Rating:72Outperform
Price Target:
$549.00
â–²(10.68% Upside)
Action:Upgraded
Date:09/14/26
The score is driven primarily by strong financial performance (improving margins, significant deleveraging, and robust free cash flow) and a constructive earnings outlook with double-digit revenue growth guidance. These positives are meaningfully offset by weak technical conditions (price below major averages with negative MACD) and a demanding valuation (high P/E with no dividend support), which raise near-term risk and execution sensitivity.
Positive Factors
Strong aerospace and defense growth
RBC is benefiting from broad aerospace and defense demand, including higher aircraft and engine production rates, rising RFQs, and additional capacity requests. Organic growth indicates that the core platform is expanding beyond acquisition effects, supporting durable revenue momentum.
Negative Factors
Capacity constraints limit growth
Demand exceeding available capacity creates an execution constraint: RBC may be unable to accept attractive short-term opportunities while protecting long-term commitments. Unless capacity expands effectively, this bottleneck could defer revenue, limit customer responsiveness, and restrain growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong aerospace and defense growth
RBC is benefiting from broad aerospace and defense demand, including higher aircraft and engine production rates, rising RFQs, and additional capacity requests. Organic growth indicates that the core platform is expanding beyond acquisition effects, supporting durable revenue momentum.
Read all positive factors
RBC Bearings (RBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.32B
Dividend Yield3.96%
Average Volume (3M)293.60K
Price to Earnings (P/E)50.7
Beta (1Y)0.83
Revenue Growth17.31%
EPS Growth27.05%
CountryUS
Employees5,816
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)10.17
Shares Outstanding31,659,245
10 Day Avg. Volume279,823
30 Day Avg. Volume293,596
Financial Highlights & Ratios
PEG Ratio3.27
Price to Book (P/B)4.99
Price to Sales (P/S)8.96
P/FCF Ratio48.91
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue10.61
Enterprise Value/Gross Profit23.50
Enterprise Value/Ebitda35.30
Forecast
1Y Price Target
$647.20Price Target Upside30.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)14.94
Revenue Forecast (FY)$2.13B
RBC Bearings Business Overview & Revenue Model
Company Description
RBC Bearings Incorporated (RBC) is a global enterprise specializing in the design, production, and distribution of precisely engineered bearings and a wide array of related mechanical components. The company strategically operates through two core...
How the Company Makes Money
RBC makes money primarily by manufacturing and selling engineered bearings and precision components to customers in aerospace/defense and industrial end markets. Revenue is generated through (1) aerospace/defense product sales, where RBC supplies ...
RBC Bearings Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall. RBC reported broad-based revenue growth, substantial adjusted EPS and EBITDA gains, strong Aerospace and Defense and space demand, expanding margins, robust free cash flow, and significant debt reduction. The main challenges were lower expected second-quarter margins after one-time benefits and seasonality, marine and broader supply-chain complexity, capacity constraints, and a flat metals market, but management indicated that most marine supply-chain issues are behind the company and maintained a favorable outlook.Positive Updates
Strong First-Quarter Financial Performance
Fiscal first-quarter net sales increased 19.2% year-over-year to $519.5 million. Adjusted EPS increased 36.6% to $3.88 from $2.84, adjusted EBITDA rose 28.1% to $181.2 million from $141.5 million, and free cash flow was $146.9 million.
Negative Updates
Second-Quarter Gross Margin Expected to Decline Sequentially
Adjusted gross margin guidance for the second quarter is 45.5% to 45.75%, below the first-quarter 47.7%. Management said the first quarter benefited from approximately 100 basis points from tariff refunds and 50 to 60 basis points from specific contract resolutions, while Q4 and Q1 are historically the strongest margin quarters and the second quarter has fewer production days.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong First-Quarter Financial Performance
Fiscal first-quarter net sales increased 19.2% year-over-year to $519.5 million. Adjusted EPS increased 36.6% to $3.88 from $2.84, adjusted EBITDA rose 28.1% to $181.2 million from $141.5 million, and free cash flow was $146.9 million.
Read all positive updates
Company Guidance
For the second quarter of fiscal 2027, RBC Bearings is guiding revenues of $505 million to $515 million, representing year-over-year growth of 10.9% to 13.1%; on a 6-month basis, sales are expected to be $1.024 billion to $1.035 billion, representing growth of 14.9% to 16.1% year-over-year, with adjusted gross margins in the range of 45.5% to 45.75% and SG&A as a percentage of net sales in the range of 16.5% to 16.75%. The company remains on track to pay off the remainder of the term loan by November of 2026, expects to expand Marine shipments significantly in the second half of our year, and said there’s a good consolidated point, 1.5 points there, from where it finished FY '26 to where it will finish FY '27.RBC Bearings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.95B | 1.87B | 1.64B | 1.56B | 1.47B | 942.90M |
| Gross Profit | 882.80M | 830.20M | 726.10M | 670.50M | 604.80M | 357.10M |
| EBITDA | 587.70M | 547.90M | 491.70M | 459.80M | 401.80M | 185.70M |
| Net Income | 320.60M | 287.60M | 246.20M | 209.90M | 166.70M | 54.70M |
Balance Sheet | ||||||
| Total Assets | 5.20B | 5.12B | 4.69B | 4.68B | 4.69B | 4.85B |
| Cash, Cash Equivalents and Short-Term Investments | 124.50M | 57.30M | 36.80M | 63.50M | 65.40M | 182.86M |
| Total Debt | 878.10M | 991.40M | 1.03B | 1.29B | 1.49B | 1.78B |
| Total Liabilities | 1.73B | 1.76B | 1.65B | 1.93B | 2.15B | 2.47B |
| Stockholders Equity | 3.46B | 3.36B | 3.03B | 2.75B | 2.54B | 2.37B |
Cash Flow | ||||||
| Free Cash Flow | 385.20M | 342.60M | 243.80M | 241.50M | 178.60M | 150.50M |
| Operating Cash Flow | 467.50M | 415.70M | 293.60M | 274.70M | 220.60M | 180.30M |
| Investing Cash Flow | -358.90M | -349.70M | -49.80M | -52.20M | -14.00M | -2.85B |
| Financing Cash Flow | -114.80M | -43.30M | -270.40M | -223.50M | -322.80M | 2.70B |
RBC Bearings Technical Analysis
Neutral
496.01
Price Trends
519.80
Negative
558.49
Negative
549.44
Negative
Market Momentum
-1.44
Negative
54.17
Neutral
81.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBC, the sentiment is Neutral. The current price of 496.01 is below the 20-day moving average (MA) of 497.05, below the 50-day MA of 519.80, and below the 200-day MA of 549.44, indicating a neutral trend. The MACD of -1.44 indicates Negative momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 81.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RBC.
RBC Bearings Risk Analysis
RBC Bearings disclosed 27 risk factors in its most recent earnings report. RBC Bearings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RBC Bearings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $19.08B | 18.52 | 17.41% | 2.65% | 4.02% | 4.39% | |
72 Outperform | $16.32B | 50.69 | 9.66% | 3.96% | 17.31% | 27.05% | |
72 Outperform | $8.48B | 33.00 | 8.13% | 1.16% | 5.45% | -16.03% | |
68 Neutral | $148.09M | 18.43 | 6.39% | 1.79% | -13.66% | -33.94% | |
68 Neutral | $14.96B | 27.17 | 37.21% | 1.15% | 9.14% | 12.52% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $2.49B | 7.26 | 24.79% | 2.45% | 19.82% | 272.31% |
* Industrials Sector Average
RBC
RBC Bearings
515.56
141.11
37.68%
EML
Eastern Company
24.61
2.79
12.78%
KMT
Kennametal
32.60
11.20
52.32%
LECO
Lincoln Electric Holdings
274.38
40.91
17.53%
SNA
Snap-on
368.90
37.32
11.26%
TKR
Timken Company
122.44
46.71
61.68%
RBC Bearings Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
RBC Bearings Shareholders Support Board and Governance Decisions
Positive
Sep 9, 2026
At RBC Bearings’ annual meeting of stockholders held on September 3, 2026, shareholders elected all company nominees to the board, including Dr. Michael J. Hartnett and Dolores J. Ennico, solidifying continuity in the firm’s leadership...
Business Operations and StrategyM&A Transactions
RBC Bearings Expands Portfolio With PSC Couplings Acquisition
Positive
Aug 11, 2026
On Aug. 10, 2026, RBC Bearings said its Dodge Industrial, Inc. subsidiary acquired the business assets of PSC Couplings, LLC, a disc coupling solutions manufacturer based in Richfield, Wisconsin, for a cash purchase price of $24.2 million. PSC pro...
Business Operations and StrategyExecutive/Board Changes
RBC Bearings Updates CEO and COO Employment Agreements
Positive
Jun 24, 2026
On June 23, 2026, RBC Bearings amended and restated the employment agreement with its President, Chief Executive Officer and Chairman, Dr. Michael J. Hartnett, formalizing updated terms for the company’s top executive. On the same date, the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.