Aerospace & Defense Leads the Charge: Record Revenue and Margin Expansion in Fiscal 2026
Fiscal 2026 was a record-setting year for RBC Bearings Incorporated, with the company reporting standout performance anchored by remarkable growth in its aerospace & defense segment. Net sales for the year reached $1.87 billion, a sharp 14.3% increase compared to the prior year, with aerospace & defense sales surging 32.9% and industrial sales climbing 3.8%. The company's robust performance in these strategic markets highlights the success of its highly engineered product portfolio and strong customer demand.
Sustained Margin Strength: Adjusted Operating Performance Hits New Highs
Profitability metrics underscore RBC Bearings' operational momentum. The company achieved an adjusted gross margin of 45.2% for fiscal 2026, up from 44.4% a year earlier. Adjusted EBITDA margin also climbed to 32.4%. Net income attributable to common stockholders expanded 23% to $287.6 million on a GAAP basis, while adjusted net income rose 29% to $392.0 million. Diluted EPS increased to $9.09, or $12.39 on an adjusted basis — reflecting 23.8% year-over-year growth.
| Key Financial Metrics | Fiscal 2026 | Fiscal 2025 | Change |
|---|---|---|---|
| Net Sales ($M) | 1,870.9 | 1,636.3 | +14.3% |
| Adjusted Gross Margin (%) | 45.2% | 44.4% | +0.8 pts |
| Adjusted Operating Income ($M) | 442.0 | 371.4 | +19.0% |
| Adjusted Net Income ($M) | 392.0 | 303.8 | +29.0% |
| Adjusted Diluted EPS | 12.39 | 10.01 | +23.8% |
Fourth Quarter Performance: Aerospace & Defense Up 41.2% Year-over-Year
The fourth quarter further accelerated RBC's momentum, with total sales climbing to $518 million — up 18.3% over the same period last year. Aerospace & defense revenues soared 41.2% for the quarter, while industrial revenues grew 5.5%. Adjusted gross margin for the quarter stood at 45.3%, and adjusted net income reached $114.9 million, up from $89.3 million a year ago.
| Q4 Segment Sales ($M) | 2026 | 2025 | Change |
|---|---|---|---|
| Aerospace & Defense | 222.1 | 157.3 | +41.2% |
| Industrial | 295.9 | 280.4 | +5.5% |
Backlog Surpasses $2.3 Billion: Growth Trajectory Extends into 2027
Backlog at the end of March 2026 reached $2.3 billion, up from $2.1 billion in December and $0.9 billion a year ago, providing a strong cushion of future business. Management projects net sales between $500 million and $510 million for the first quarter of fiscal 2027, representing 14.7% to 17% expected growth year-over-year, with adjusted gross margin anticipated to remain at elevated levels between 45.25% and 45.5%.
Balance Sheet and Cash Flow: Healthy Liquidity Supports Long-Term Growth
RBC Bearings improved its balance sheet over the year, reducing long-term debt and expanding total assets to $5.12 billion. Operating cash flow for fiscal 2026 was $415.7 million, highlighting the business’s ability to convert earnings into cash and support ongoing investments in engineering, capacity, and acquisitions.
Looking Ahead: Positive Outlook Backed by Strong Fundamentals
Commenting on the results, Chairman and CEO Dr. Michael Hartnett credited broad-based strength across RBC Bearings’ markets for the record year and reaffirmed confidence in continued momentum for fiscal 2027. Segment-leading growth in aerospace & defense, resilient industrial demand, and consistently high margins position the company on solid footing as it enters the new fiscal year.
The combination of double-digit revenue growth, expanding margins, substantial backlog, and disciplined cost management all point to a positive near-term and long-term outlook for RBC Bearings. Investors will be watching the company’s Q1 performance and webcast on May 15th for further updates on strategic initiatives and guidance for the year ahead.
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