Posted August 4, 2023

RBC Bearings's net sales climb 9.3% 

RBC Bearings Inc., an international manufacturer of highly engineered precision bearings, components, and essential systems for the industrial, defense, and aerospace industries, reported first quarter net sales of $387.1 million, an increase of 9.3% over last year. Aerospace/defense rose 21.2%, and industrial jumped 4.7%.

Other higlights:

  • Gross margin of 43.4% in the first quarter of fiscal 2024 compared to 39.9% for the same quarter last year. Up 400bps from adjusted gross margin for fiscal year 2022.
  • First quarter net income as a percentage of net sales of 12.9% vs 10.6% last year; Adjusted EBITDA as a percentage of net sales of 31.1% vs 28.4% last year.
  • Free cash flow of $55.1 million, net debt to TTM adjusted EBITDA reduced to 2.84.
  • GAAP diluted EPS of $1.52 and adjusted diluted EPS of $2.13.

“We are pleased with our first quarter results, as net sales increased 9.3% during the period,” said Chairman and CEO Dr. Michael J. Hartnett. “As anticipated, we see strong demand for products from the aerospace and defense marine sectors. Our aircraft customers’ pursuit of even greater plane build rates has pushed RBC sales growth well into the double digits; and our industrial sector experiences continuing benefit from healthy order rates for bearings servicing high-growth markets.”

Outlook for the Second Quarter Fiscal 2024

The company expects net sales to be approximately $380.0 million to $390.0 million in the second quarter of fiscal 2024, compared to $369.2 million last year, a growth rate of 2.9% to 5.6%. According to a press release, its first and fourth quarters are historically its strongest as second and third quarter holidays reduce production days. "We are on track to reach full year fiscal 2024 net sales of approximately $1.6 billion," the company stated.