Net sales up 19.2% in RBC Bearings's first quarter reporting
RBC Bearings Inc., an international manufacturer of highly engineered precision bearings, components and essential systems for the industrial, aerospace and defense markets, reported that its first quarter net sales of $519.5 million increased 19.2% over last year.
Aerospace & Defense was up 36.9% and Industrial climbed 8.4%.
Gross margin of 47.7% for the first quarter of fiscal 2027 compared to 44.8% last year; adjusted gross margin of 47.7% compared to 45.4% last year.
First quarter net income as a percentage of net sales was 19.5% versus 15.7% last year.
Dr. Michael J. Hartnett, chairman and CEO, said, "Sales in our first quarter expanded by 19% as margins, cash flow and backlog achieved record levels. Today we are operating extremely well in a robust commercial environment where the vast majority of our end markets are expanding. I am proud of our many teams and their dedication to maintain the high levels of service expected of RBC in these demanding markets. Clearly, we are excited and confident in the positive outlook for the balance of the year."
First Quarter Results
Net sales for the first quarter of fiscal 2027 were $519.5 million, an increase of 19.2% from $436.0 million in the first quarter of fiscal 2026. $34.4 of net sales this quarter came from VACCO, which we acquired on July 18, 2025. Net sales for the Industrial segment increased 8.4%, while net sales for the Aerospace & Defense segment increased 36.9%. Gross margin for the first quarter of fiscal 2027 was $247.8 million compared to $195.2 million for the same period last year. On an adjusted basis, gross margin was $247.8 million for the first quarter of fiscal 2027 compared to $198.1 million for the same period last year.
SG&A for the first quarter of fiscal 2027 was $85.8 million, an increase of $11.9 million from $73.9 million for the same period last year. As a percentage of net sales, SG&A was 16.5% for the first quarter of fiscal 2027 compared to 16.9% for the same period last year.
Other operating expenses for the first quarter of fiscal 2027 totaled $21.2 million compared to $20.2 million for the same period last year. For the first quarter of fiscal 2027, other operating expenses included $21.0 million of amortization of intangible assets and $0.4 of restructuring costs offset by $0.2 million of other items. For the first quarter of fiscal 2026, other operating expenses included $17.9 million of amortization of intangible assets, $1.2 million of restructuring costs, $0.1 of acquisition costs and $1.0 million of other expense items.
Operating income for the first quarter of fiscal 2027 was $140.8 million compared to $101.1 million for the same period last year. On an adjusted basis, operating income was $141.2 million for the first quarter of fiscal 2027 compared to $105.3 million for the same period last year. Refer to the tables below for details on the adjustments made to operating income to derive adjusted operating income.
Interest expense, net, was $10.1 million for the first quarter of fiscal 2027 compared to $12.2 million for the same period last year. The decrease in interest expense between the periods was primarily due to continued debt reduction efforts.
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