RBC Bearings (NYSE: RBC) delivered a significant earnings beat for its fiscal third quarter on Thursday, as a 41.5% explosion in Aerospace and Defense (A&D) revenue propelled the stock to a new 52-week high.
The Oxford, Connecticut-based manufacturer reported adjusted earnings of $3.04 per share, easily clearing the Zacks consensus estimate of $2.85.
Total revenue reached $461.6 million, a 17% increase year-over-year, as the company benefited from accelerating build rates at Boeing and Airbus, alongside a massive uptick in naval defense and missile applications.
While the Industrial segment showed modest growth of 3.1%, the outsized performance of the A&D division—which now represents nearly half of total sales—provided high-margin tailwinds that expanded the company’s cash conversion to record levels.
A key highlight of the report was the company’s exceptional cash generation.
RBC reported $99.1 million in free cash flow for the quarter, a 35% increase from last year.
This cash engine has allowed the company to rapidly deleverage following its acquisition of VACCO Industries in July 2025.
With a record backlog now exceeding $1.6 billion and industrial synergies from the Dodge acquisition continuing to yield results, management is successfully navigating global supply chain volatility to deliver industry-leading EBITDA margins of 32.4%.
Looking ahead to the final quarter of fiscal 2026, RBC issued bullish guidance, projecting revenue between $495 million and $505 million.