On August 2, 2024, RBC Bearings Inc (RBC, Financial) released its 8-K filing announcing the financial results for the first quarter of fiscal 2025. RBC Bearings Inc is an international manufacturer and marketer of highly engineered precision bearings, components, and essential systems for the industrial, defense, and aerospace industries. The company operates through two segments: Aerospace Defense and Industrial, with the latter contributing the majority of its revenue.
Performance Overview
RBC Bearings Inc reported net sales of $406.3 million for Q1 fiscal 2025, reflecting a 5.0% increase from $387.1 million in the same period last year. The company's performance was bolstered by a 23.7% increase in the Aerospace/Defense segment, although the Industrial segment saw a 3.5% decline in net sales.
Despite the revenue growth, RBC Bearings Inc's earnings per share (EPS) fell short of analyst expectations. The company reported a diluted EPS of $1.90, missing the estimated EPS of $1.98. However, on an adjusted basis, diluted EPS was $2.54, up from $2.13 in the previous year.
Financial Achievements and Challenges
RBC Bearings Inc achieved a gross margin of $184.0 million, up 9.6% from $167.9 million in Q1 fiscal 2024. The gross margin percentage improved to 45.3% from 43.4%. Operating income also saw a significant increase, reaching $97.5 million, a 14.7% rise from $85.0 million in the previous year.
“RBC continued to deliver strong operational performance in the first quarter with 5.0% sales growth, 11.3% adjusted EBITDA growth, and 19.2% adjusted diluted earnings per share growth,” said Dr. Michael J. Hartnett, Chairman and Chief Executive Officer.
However, the company faced challenges in its Industrial segment, which experienced a decline in net sales. Additionally, the interest expense for the quarter was $17.2 million, down from $20.5 million in the previous year, but still a significant cost.
Key Financial Metrics
| Metric | Q1 Fiscal 2025 | Q1 Fiscal 2024 | Change |
|---|---|---|---|
| Net Sales | $406.3 million | $387.1 million | 5.0% |
| Gross Margin | $184.0 million | $167.9 million | 9.6% |
| Operating Income | $97.5 million | $85.0 million | 14.7% |
| Net Income | $61.4 million | $50.0 million | 22.8% |
| Diluted EPS | $1.90 | $1.52 | 25.0% |
Income Statement Highlights
RBC Bearings Inc reported an increase in SG&A expenses to $67.6 million, up from $64.7 million in the previous year. As a percentage of net sales, SG&A was 16.6%, slightly down from 16.7% last year. Other operating expenses totaled $18.9 million, compared to $18.2 million in the same period last year.
Balance Sheet and Cash Flow
The company's backlog as of June 29, 2024, was $825.8 million, up from $821.5 million as of March 30, 2024, and $765.2 million as of July 1, 2023. This indicates strong future demand for RBC Bearings Inc's products.
Outlook
For the second quarter of fiscal 2025, RBC Bearings Inc expects net sales to be in the range of $395.0 million to $405.0 million, compared to $385.6 million in the same period last year, representing a growth rate of 2.4% to 5.0%.
For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from RBC Bearings Inc for further details.
