RBC Bearings Inc (RBC) Q2 2025 Earnings Call Highlights: Strong A&D Growth Amid Industrial ...

GuruFocus.com11-02

Net Sales: $398 million, a 3.2% increase year-over-year. A&D Sales Growth: 12.5% year-over-year, with defense up 17.3% and commercial aerospace up 10.3%. Industrial Segment Sales: Down 1.4% year-over-...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRBC Bearings Inc (RBC) Q2 2025 Earnings Call Highlights: Strong A&D Growth Amid Industrial ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-02 15:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/rbc-bearings-inc-rbc-q2-070444241.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Net Sales: $398 million, a 3.2% increase year-over-year.\nA&D Sales Growth: 12.5% year-over-year, with defense up 17.3% and commercial aerospace up 10.3%.\nIndustrial Segment Sales: Down 1.4% year-over-...</p>\n\n<a href=\"https://finance.yahoo.com/news/rbc-bearings-inc-rbc-q2-070444241.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"https://finance.yahoo.com/news/rbc-bearings-inc-rbc-q2-070444241.html","article_id":"2480817076","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/KjtjP8Qn9XYRUe4Xwgmnvw--~B/aD0zOTc7dz0zOTc7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/f733a0409bd1ff969fd0d779e22eacbf"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480817076","pubTimestamp":1730531084,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Net Sales: $398 million, a 3.2% increase year-over-year.A&D Sales Growth: 12.5% year-over-year, with defense up 17.3% and commercial aerospace up 10.3%.Industrial Segment Sales: Down 1.4% year-over-year; OEM down 2.5%, aftermarket down 0.9%.Gross Margin: $173.8 million or 43.7% of sales, a 55 basis point increase year-over-year.Adjusted EPS: $2.29 per share, compared to $2.17 per share last year.Cash from Operations: $43 million, compared to $53 million last year.Debt Reduction: Over $35 million in the quarter, with a year-to-date total of $128.7 million.Adjusted EBITDA: $123.4 million, up 1.1% year-over-year; margin of 31%.Tax Rate: 22.1%, consistent with last year's rate.Free Cash Flow Conversion: Approximately 100% of net income for the first six months of fiscal 2025.Third Quarter Revenue Guidance: $390 million to $400 million, representing 4.3% to 7% year-over-year growth.Third Quarter Gross Margin Guidance: 42.5% to 43.5%, an increase of roughly 70 basis points year-over-year at ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"RBC轴承(RBC)2025年第二季度收益看涨期权亮点：工业领域A&D强劲增长...","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RBC":1,"BA":0.9,"RRX":0.9},"content_text":"Net Sales: $398 million, a 3.2% increase year-over-year.\nA&D Sales Growth: 12.5% year-over-year, with defense up 17.3% and commercial aerospace up 10.3%.\nIndustrial Segment Sales: Down 1.4% year-over-year; OEM down 2.5%, aftermarket down 0.9%.\nGross Margin: $173.8 million or 43.7% of sales, a 55 basis point increase year-over-year.\nNet Income: $67 million, up 6% year-over-year.\nAdjusted EPS: $2.29 per share, compared to $2.17 per share last year.\nCash from Operations: $43 million, compared to $53 million last year.\nDebt Reduction: Over $35 million in the quarter, with a year-to-date total of $128.7 million.\nAdjusted EBITDA: $123.4 million, up 1.1% year-over-year; margin of 31%.\nInterest Expense: $15.6 million, down 22% year-over-year.\nTax Rate: 22.1%, consistent with last year's rate.\nFree Cash Flow Conversion: Approximately 100% of net income for the first six months of fiscal 2025.\nThird Quarter Revenue Guidance: $390 million to $400 million, representing 4.3% to 7% year-over-year growth.\nThird Quarter Gross Margin Guidance: 42.5% to 43.5%, an increase of roughly 70 basis points year-over-year at the midpoint.\n\n\nWarning! GuruFocus has detected 6 Warning Sign with RBC.\n\nRelease Date: November 01, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nRBC Bearings Inc (NYSE:RBC) reported a 3.2% increase in net sales for the second quarter, driven by strong performance in the Aerospace and Defense (A&D) segment.\nThe A&D segment saw a 12.5% year-over-year growth, with defense sales up 17.3% and commercial aerospace sales up 10.3%.\nGross margin improved to 43.7% of sales, a 55 basis point increase year-over-year, attributed to increased absorption in A&D capacity and ongoing synergies from the Dodge acquisition.\nNet income rose by 6% year-over-year, translating into an adjusted EPS of $2.29 per share, up from $2.17 per share last year.\nRBC Bearings Inc (NYSE:RBC) reduced its debt by over $35 million in the quarter, with a year-to-date debt reduction of $128.7 million, positioning the balance sheet well for future acquisitions.\n\n Negative Points \n\nThe industrial segment experienced a 1.4% decline year-over-year, with OEM sales down 2.5% and aftermarket sales down 0.9%.\nUnexpected headwinds, including a Boeing strike and the impact of Hurricane Beryl, resulted in a revenue impact of $4 million to $5 million during the period.\nCash from operations decreased to $43 million compared to $53 million last year, primarily due to the timing and scope of cash tax payments.\nAdjusted EBITDA margin decreased by 66 basis points year-over-year to 31%, despite being above the full-year 2024 margin.\nThe company faces uncertainty regarding Boeing's production rates, particularly for the 737, which could impact future revenue projections.\n\n Q & A Highlights \nQ: Can you quantify the impact of the Boeing strike and the hurricane on gross margins? A: Michael Hartnett, CEO: While it's possible to quantify, I can't do it here. The consolidated gross margin reflects those impacts, and using it for EPS contribution is fair.\nQ: Has the exposure to Boeing decreased further, and is there a risk of destocking once production ramps up? A: Michael Hartnett, CEO: Our exposure is at a low point. Once Boeing resumes production, they will likely create a strong demand, so I don't foresee a destocking issue.\nQ: Are you seeing any slowdown in defense bookings due to the continuing resolution for the Department of Defense? A: Michael Hartnett, CEO: No, our defense bookings are primarily with OEMs, not directly with the Department of Defense, and they are firm contracts extended over many years.\nQ: What is driving the confidence in industrial sales growth for the next quarter, and do you expect both OEM and aftermarket to return to positive growth? A: Daniel Bergeron, COO: Growth is driven by mining, multi-industrial, food and beverage, and warehousing sectors. We expect oil and gas and semiconductor sectors to recover in the fourth quarter or first quarter.\nQ: How is the M&A landscape, and are there opportunities due to stress in the Boeing supply chain? A: Michael Hartnett, CEO: We see opportunities, especially in A&D, but competition from private equity is strong. Many businesses have significant challenges that require a comprehensive approach to resolve.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480817076"}