RBC Bearings (B1X) Q2 2027 Earnings Report
DE:B1X Q2 2027 EPS Results
- Actual EPS
- EUR 3.32
- Consensus EPS
- EUR 3.13
- Beat/Miss
- Beat by +EUR 0.19
- One Year Ago EPS
- EUR 2.56
DE:B1X Q2 2027 Revenue Results
- Actual Revenue
- EUR 466.13M
- Expected Revenue
- EUR 456.67M
- Beat/Miss
- Beat by +EUR 9.46M
- YoY Revenue Growth
- +15.22%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/30/2026
- Time
- Before Open
- Conference Call
- Friday, October 30, 2026
RBC Bearings's next earnings date is estimated for February 11, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
The call was strongly positive overall. The company reported double-digit revenue growth, expanding margins, substantially higher adjusted EPS and EBITDA, strong demand across aerospace, defense, space, and industrial markets, debt reduction, and favorable fiscal 2027 guidance. The main challenges were marine production delays and related margin pressure, seasonal and customer-approval timing risks, supply-chain and equipment lead times, and some expected SG&A timing pressure, but management described these issues as manageable and expected production improvements and capacity investments to support future growth.
For the third quarter of fiscal 27, the company is guiding revenues of $525 million to $530 million, representing year over year growth of 12.7% to 13.7%; on a 9 month basis, sales of $1.56 billion to $1.57 billion, representing growth of 15.6% to 16% year over year. Adjusted gross margins in the next quarter are expected to be in the range of 45.5% to 45.75%, and SG&A as a percentage of net sales is expected to be in the range 16.25% to 16.5%, reflecting the normal seasonal impact of the holiday period. The company expects to be north of 15% on the A&D side of the business, maybe hovering closer to 20, and is budgeting a high single digits expansion on the industrial side; it expects to be past 70% next year on the marine output plan, be in FY 2028, and round that off in FY 2029. The company said 100 basis points is very, very achievable for full-year margin expansion, Tomahawk production is going to 1 thousand a year kind of rate, GMLRS is at least a 20% step up in volume, and the hypersonic Sentinel program is probably 18 months away from release for manufacturing.
- Strong Second-Quarter Revenue GrowthNet sales increased 15.2% year over year to $525 million, ahead of expectations, driven by continued demand in aerospace and defense and 14.8% growth in the industrial business.
- Improved Gross MarginConsolidated gross margin was 45.6%, compared with 44.1% reported and 44.9% adjusted in the prior-year period. Management attributed the improvement to increased production volumes, contract renewals, and favorable mix. The company said its outlook for 100 basis points of full-year margin expansion remains achievable.
- Adjusted EPS and EBITDA GrowthAdjusted diluted EPS increased 29.9% year over year to $3.74 from $2.84. Adjusted EBITDA rose 20.4% to $175 million from $145 million, representing 33.4% of revenue.
- Strong Cash Flow and Debt ReductionFree cash flow remained strong at $85.2 million net of a $24 million acquisition; the CFO later reported $85.7 million, or 91.4% conversion of net income, compared with $71.7 million and 119.5% in the prior-year quarter. Six-month conversion stood at 119%. The company retired $96 million of debt, including the remaining term loan balance, ahead of its November 2026 target.
- Aerospace and Defense Segment ExpansionAerospace and defense revenue increased 15.8% year over year and represented 44% of total sales. Commercial aerospace grew 17.4% and defense grew 13.6%. Both were constrained by production capacity, which management said is easing as new equipment comes online.
- Record Aerospace and Defense Order ActivityAcross aerospace and defense, including space, management reported record order activity, increasing inquiries, customer requests for expedited deliveries, and long-term commitments.
- Rapid Space Business GrowthSpace revenue expanded 78% in the first half. Management said VACCO made up a large portion of the growth, while the business was also up by a few million dollars organically in the second quarter compared with the prior-year quarter. The company is planning future expansions for the space business.
- Industrial Business Growth Across Broad End MarketsIndustrial revenue increased 14.8% overall, with OEM revenue up 24.2% and distribution revenue up 10.6%; the CFO also cited OEM growth of 24.6%. Growth was reported across aggregates, metals, food and beverage, warehousing, semiconductors, grain, power generation, mining, and oil and gas, with no significant contraction in core industrial markets.
- Strong Industrial Service LevelsManagement said Dodge has product availability of approximately 95% to 97% of the time across thousands of line items, supporting aftermarket sales when customers need replacement parts quickly. Management described the company's service levels as industry leading.
- Defense Program Volume OpportunitiesManagement said build rates for programs including Tomahawk, GMLRS, Standard Missile, and hypersonic systems have stepped up or are expected to step up. Tomahawk production was described as increasing from approximately 200 per year to approximately 1,000 per year, and GMLRS was described as having at least a 20% volume step-up. RBC is laying out floor space for higher Tomahawk component production and said it can meet the GMLRS increase.
- Commercial Aerospace OEM and Market Share MomentumCommercial OEM revenue was $114.9 million, commercial aerospace distribution revenue was $21.5 million, defense OEM revenue was $67.5 million, and defense distribution revenue was $26.4 million. Management reported consistent sequential growth in aerospace OEM revenue and said RBC is gaining business from former Boeing suppliers that have exited the supply chain.
- Backlog Increase and Broad DemandThe sequential backlog increase was described as broad across aerospace, including Boeing-related business, Sergeant marine business, and other aerospace contracts.
- Capacity Expansion Investments Expected to Support GrowthManagement said investments made over the past several years in capacity, machinery, trained personnel, logistics, and supply-chain capabilities are expected to produce dividends over the next six months, with a greater contribution expected in the fourth quarter.
- Positive Third-Quarter and Nine-Month Revenue GuidanceThird-quarter fiscal 2027 revenue guidance is $525 million to $530 million, representing year-over-year growth of 12.7% to 13.7%. Nine-month revenue is expected to be $1.56 billion to $1.57 billion, representing growth of 15.6% to 16% year over year.
- Stable Near-Term Margin OutlookAdjusted gross margin guidance for the next quarter is 45.5% to 45.75%, while SG&A as a percentage of net sales is expected to be 16.25% to 16.5%.
- Lower Interest Expense and SG&A DisciplineQuarterly interest expense declined 30.6% year over year to $9.3 million, reflecting improved leverage and lower interest rates. SG&A was $83.4 million, or 15.9% of sales, and management said the quarter reflected strong cost control and continued leverage compared with approximately 17% a year earlier.
- Deleveraging and Capital Allocation FlexibilityManagement said leverage is below 1 and that the improved balance sheet provides flexibility for a balanced capital allocation strategy. The company plans to continue paying down debt, investing in organic growth, and pursuing acquisitions.
- Ongoing M&A StrategyRBC said it has completed more than 27 acquisitions over 23 years and continues to evaluate transactions. Management said it favors deals that add products and technology that can be sold across its existing customer base, including defense, aerospace, and industrial assets.
- Mexico Operations Provide Labor and Equipment AvailabilityManagement said recent approvals for plants in Mexico provide plenty of labor availability and machine-tool capacity, and that labor is currently only a fringe constraint on growth.
- Marine Production Expansion PlanRBC is working to triple submarine-component output from its baseline. Management said the effort was approximately 30% complete, with 70% remaining, and that continued expansion is planned through fiscal 2028. The company expects to be past 70% completion in the following year and to finish the effort in fiscal 2029.
DE:B1X Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 11, 2027 | 2027 (Q3) | 3.24- | 2.7 | ― | ― |
| Oct 30, 2026 | 2027 (Q2) | 3.133.32 | 2.56 | 29.86% (+0.76) | |
| Jul 31, 2026 | 2027 (Q1) | 3.043.45 | 2.52 | 36.62% (+0.92) | |
| May 15, 2026 | 2026 (Q4) | 2.963.22 | 2.51 | 27.92% (+0.70) | |
| Feb 05, 2026 | 2026 (Q3) | 2.542.70 | 2.08 | 29.91% (+0.62) | |
| Oct 31, 2025 | 2026 (Q2) | 2.432.56 | 2.03 | 25.76% (+0.52) | |
| Aug 01, 2025 | 2026 (Q1) | 2.442.52 | 2.26 | 11.81% (+0.27) | |
| May 16, 2025 | 2025 (Q4) | 2.412.51 | 2.19 | 14.57% (+0.32) | |
| Jan 31, 2025 | 2025 (Q3) | 1.952.08 | 1.64 | 26.49% (+0.44) | |
| Nov 01, 2024 | 2025 (Q2) | 2.032.03 | 1.93 | 5.53% (+0.11) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
