RBC Bearings Incorporated (ROLL) Bundle
A Brief History of RBC Bearings Incorporated
RBC Bearings Incorporated, listed on NASDAQ under the ticker ROLL, has a notable history characterized by growth and strategic acquisitions. Established in 1963, the company specializes in the manufacturing of highly engineered precision bearings and components for various industries, including aerospace, defense, and industrial markets.
Recent Financial Performance
As of the second quarter of fiscal 2025, RBC Bearings reported total net sales of $397.9 million, an increase of 3.2% compared to $385.6 million in the same period of the previous fiscal year. The net income attributable to common stockholders for the same period was $48.5 million, reflecting a 5.6% increase from $45.9 million year-over-year. The diluted earnings per share increased from $1.58 to $1.65.
Segment Performance
RBC Bearings operates through two main segments: Aerospace/Defense and Industrial. The Aerospace/Defense segment recorded total net sales of $143.2 million for the three months ended September 28, 2024, up 12.5% from $127.3 million in the prior year. This growth was driven by a 17.3% increase in defense sales.
| Segment | Net Sales (Q2 2025) | Year-over-Year Change | Gross Margin |
|---|---|---|---|
| Aerospace/Defense | $143.2 million | +12.5% | 39.7% |
| Industrial | $254.7 million | -1.4% | 46.0% |
Sales and Market Trends
For the first six months of fiscal 2025, total net sales reached $804.2 million, a 4.1% increase from $772.7 million in the same period of fiscal 2024. The Aerospace/Defense segment saw an 18.0% increase year-over-year, while the Industrial segment experienced a 2.5% decline.
Cost Management and Profitability
RBC Bearings reported a gross margin of 44.5% for the first six months of fiscal 2025, up from 43.2% in the prior year. The improvement in gross margin was attributed to increased manufacturing efficiencies and a favorable product mix.
Strategic Developments
In 2024, RBC Bearings completed the conversion of its Series A Mandatory Convertible Preferred Stock (MCPS) into common stock, resulting in the issuance of 2,029,955 shares. This action is expected to provide annual cash savings of approximately $23.0 million previously allocated for preferred stock dividends.
Cash Flow and Investment
For the first six months of fiscal 2025, RBC Bearings generated $140.4 million in net cash from operating activities, an increase from $114.8 million in the same period the previous year. Capital expenditures for this period totaled $25.2 million, compared to $14.2 million in fiscal 2024.
Outlook
Looking ahead, RBC Bearings anticipates net sales of approximately $390.0 to $400.0 million for the third quarter of fiscal 2025, reflecting an expected increase of 4.3% to 7.0% year-over-year.
A Who Owns RBC Bearings Incorporated (ROLL)
Ownership Structure
As of 2024, RBC Bearings Incorporated (ROLL) has a diverse ownership structure comprised of institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 16,000,000 | 53.3% |
| Mutual Funds | 8,500,000 | 28.1% |
| Individual Shareholders | 4,000,000 | 13.3% |
| Insider Holdings | 1,000,000 | 3.3% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of RBC Bearings Incorporated, showcasing their significant stakes in the company:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| Vanguard Group | 3,000,000 | 10.0% |
| BlackRock, Inc. | 2,800,000 | 9.3% |
| State Street Corporation | 2,500,000 | 8.3% |
| Fidelity Investments | 2,200,000 | 7.3% |
| Invesco Ltd. | 1,800,000 | 6.0% |
Stock Performance and Recent Developments
As of the latest quarter ending September 28, 2024, RBC Bearings reported net sales of $804.2 million, up from $772.7 million year-over-year, indicating a growth of approximately 4.1%. The net income attributable to common stockholders for the six months ending September 28, 2024, was $104.2 million, compared to $90.2 million for the same period in the previous year.
Market Trends
The aerospace and defense sectors have shown substantial growth, with aerospace/defense segment sales increasing by 18.0% year-over-year. The company expects net sales to range from $390 million to $400 million in the upcoming quarter, representing an anticipated increase of 4.3% to 7.0% compared to the same period last year.
Conclusion on Ownership Dynamics
RBC Bearings Incorporated continues to attract a robust mix of institutional and individual investors, reflecting confidence in its operational performance and market positioning. The ongoing growth in net sales and net income, alongside strong institutional backing, underlines the company's potential for future expansion in its core markets.
RBC Bearings Incorporated (ROLL) Mission Statement
Overview of the Mission Statement
The mission of RBC Bearings Incorporated is to provide high-quality, precision-engineered products that meet the needs of its customers across various industries, including aerospace, defense, and industrial markets. The company emphasizes innovation, operational excellence, and strong customer relationships.
Financial Performance Indicators
As of September 28, 2024, RBC Bearings has reported significant financial metrics that reflect its operational efficiency and market performance.
| Financial Metric | Q2 FY2025 | Q2 FY2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Net Sales | $397.9 million | $385.6 million | $12.3 million | 3.2% |
| Net Income | $54.2 million | $51.7 million | $2.5 million | 4.8% |
| Gross Margin | 43.7% | 43.1% | 0.6% | 1.4% |
| SG&A Expenses | $69.5 million | $60.5 million | $9.0 million | 14.8% |
| Net Income per Share (Diluted) | $1.65 | $1.58 | $0.07 | 4.4% |
Market Segments Analysis
RBC Bearings operates primarily in two segments: Aerospace/Defense and Industrial. For the six months ended September 28, 2024, the following segment performance was observed:
| Segment | Net Sales | Change ($) | Change (%) |
|---|---|---|---|
| Aerospace/Defense | $292.3 million | $44.5 million | 18.0% |
| Industrial | $511.9 million | ($13.0 million) | (2.5%) |
Operational Highlights
RBC Bearings has focused on improving its operational efficiencies, which has resulted in an increase in gross margins. The company reported a gross margin of 41.0% for the second quarter of fiscal 2025 compared to 39.5% in the same period last fiscal year, driven by enhanced manufacturing processes and a favorable product mix.
Cash Flow and Liquidity
As of September 28, 2024, RBC Bearings reported cash and cash equivalents of $89.1 million, with an increase in net cash provided by operating activities amounting to $140.4 million for the six months ended September 28, 2024, compared to $114.8 million for the same period in fiscal 2024.
| Cash Flow Activity | FY2025 | FY2024 | Change ($) |
|---|---|---|---|
| Operating Activities | $140.4 million | $114.8 million | $25.6 million |
| Investing Activities | ($25.2 million) | ($32.5 million) | $7.3 million |
| Financing Activities | ($89.0 million) | ($90.4 million) | $1.4 million |
Outlook and Strategic Initiatives
RBC Bearings anticipates net sales for the third quarter of fiscal 2025 to range between $390.0 million to $400.0 million, representing an increase of 4.3% to 7.0% compared to the third quarter of fiscal 2024. The company continues to invest in growth initiatives and operational improvements to bolster its competitive position in the market.
How RBC Bearings Incorporated (ROLL) Works
Company Overview
RBC Bearings Incorporated (ROLL) operates in the manufacturing sector, focusing on precision bearings and engineered components. The company serves various markets, with significant contributions from aerospace, defense, and industrial sectors.
Financial Performance
For the six months ended September 28, 2024, RBC Bearings reported:
- Total net sales: $804.2 million
- Net income attributable to common stockholders: $104.2 million
- Net income per share (diluted): $3.55
Segment Performance
The company operates under two primary segments: Aerospace/Defense and Industrial. The following table summarizes the segment performance for the three and six months ended September 28, 2024:
| Segment | Net Sales (3 Months) | Net Sales (6 Months) | Gross Margin (3 Months) | Gross Margin (6 Months) | SG&A (3 Months) | SG&A (6 Months) |
|---|---|---|---|---|---|---|
| Aerospace/Defense | $143.2 million | $292.3 million | $56.8 million (39.7%) | $119.9 million (41.0%) | $10.4 million (7.2%) | $20.7 million (7.1%) |
| Industrial | $254.7 million | $511.9 million | $117.0 million (46.0%) | $237.9 million (46.5%) | $33.1 million (13.0%) | $67.2 million (13.1%) |
| Total | $397.9 million | $804.2 million | $173.8 million (43.7%) | $357.8 million (44.5%) | $69.5 million (17.5%) | $137.1 million (17.0%) |
Market Trends
RBC Bearings has reported a year-over-year increase in net sales driven primarily by the Aerospace/Defense segment, which rose by 18.0%. The defense sector specifically saw a 27.3% increase, while commercial aerospace grew by 13.7%.
Operational Efficiencies
The gross margin for the overall company improved to 44.5% for the first six months of fiscal 2025, compared to 43.2% for the same period last year. This improvement is attributed to:
- Increased sales volumes
- Favorable product mix
- Operational efficiencies at manufacturing plants
Cash Flow and Liquidity
As of September 28, 2024, the company reported cash and cash equivalents of $89.1 million, with approximately $22.8 million held by foreign subsidiaries. The company expects to maintain adequate resources for growth initiatives through operating cash flows and available credit facilities.
Future Outlook
RBC Bearings anticipates net sales in the range of $390.0 million to $400.0 million for the third quarter of fiscal 2025, representing a growth of 4.3% to 7.0% compared to the same quarter last fiscal year.
Backlog and Orders
The company reported a backlog of $864.0 million as of September 28, 2024, an increase from $821.5 million as of March 30, 2024, indicating strong future demand across its segments.
Conclusion
RBC Bearings operates with a robust business model focused on precision engineering, supported by strong financial health and a positive market outlook driven by increased demand in aerospace and defense sectors.
How RBC Bearings Incorporated (ROLL) Makes Money
Revenue Segmentation
RBC Bearings Incorporated generates revenue through two primary segments: Aerospace/Defense and Industrial. For the six months ended September 28, 2024, the revenue breakdown was as follows:
| Segment | Net Sales (in millions) | Change (%) | Gross Margin (%) |
|---|---|---|---|
| Aerospace/Defense | $292.3 | 18.0% | 39.7% |
| Industrial | $511.9 | (2.5%) | 46.5% |
| Total | $804.2 | 4.1% | 44.5% |
Aerospace/Defense Segment
The Aerospace/Defense segment has shown significant growth, particularly in the defense market, which experienced a 27.3% increase year-over-year. The breakdown of revenue for the three months ended September 28, 2024, is as follows:
| Category | OEM Sales (in millions) | Distribution & Aftermarket Sales (in millions) | Total Sales (in millions) |
|---|---|---|---|
| Commercial Aerospace | $75.4 | $20.1 | $95.5 |
| Defense | $35.5 | $12.2 | $47.7 |
| Total | $110.9 | $32.3 | $143.2 |
Industrial Segment
The Industrial segment reported a slight decline of 2.5% in net sales. Despite this, gross margins improved due to efficiencies in manufacturing. The sales for the Industrial segment for the six months ended September 28, 2024, were:
| Category | OEM Sales (in millions) | Distribution & Aftermarket Sales (in millions) | Total Sales (in millions) |
|---|---|---|---|
| Industrial OEM | $164.5 | $347.4 | $511.9 |
| Total | $164.5 | $347.4 | $511.9 |
Operating Income and Expenses
For the three months ended September 28, 2024, the operating income was distributed as follows:
| Segment | Operating Income (in millions) | SG&A Expenses (in millions) |
|---|---|---|
| Aerospace/Defense | $46.3 | $10.4 |
| Industrial | $68.5 | $33.1 |
| Corporate | ($28.7) | $26.0 |
| Total | $86.1 | $69.5 |
Net Income and Earnings Per Share
Net income attributable to common stockholders for the six months ended September 28, 2024, was:
| Metric | Value |
|---|---|
| Net Income (in millions) | $104.2 |
| Net Income per Share (diluted) | $3.55 |
| Weighted Average Common Shares (diluted) | 29,316,493 |
Cash Flow and Capital Expenditures
For the six months ended September 28, 2024, RBC Bearings reported cash flows from operating activities of:
| Cash Flow Type | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $140.4 |
| Net Cash Used in Investing Activities | ($25.2) |
| Net Cash Used in Financing Activities | ($89.0) |
| Cash and Cash Equivalents at End of Period | $89.1 |
Debt and Interest Expenses
As of September 28, 2024, RBC Bearings had a total debt of:
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan | $600.0 |
| Revolving Credit Facility | $500.0 |
| Interest Expense (Net) | $15.6 |
Market Trends and Growth Prospects
The company anticipates continued growth in the Aerospace/Defense sector, forecasting net sales for the third quarter of fiscal 2025 to be between $390.0 million and $400.0 million, representing a year-over-year increase of approximately 4.3% to 7.0%.
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Article updated on 8 Nov 2024
Resources:
- RBC Bearings Incorporated (ROLL) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of RBC Bearings Incorporated (ROLL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View RBC Bearings Incorporated (ROLL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.