RBC Bearings Q4 Earnings Call Highlights

The institution generated $67.5 cardinal of escaped currency travel during the 4th and paid down an further $116 cardinal of debt. Chief Financial Officer Rob Sullivan said RBC Bearings paid disconnected different $27 cardinal aft the 4th ended and remains connected way to wage disconnected the remainder of its word indebtedness by November 2026.

Aerospace and defence drives maturation

RBC Bearings said astir 43% of fourth-quarter gross came from its aerospace and defence segment, portion 57% came from industrial. Aerospace and defence gross accrued 41.2% from the prior-year quarter. Excluding the VACCO acquisition, aerospace and defence income accrued 22.8%, which Sullivan said reflected continued spot successful bequest commercialized and defence markets.

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Hartnett said the aerospace and defence backlog has continued to grow and present stands astatine astir $2.3 billion. For the afloat year, aerospace and defence gross accrued 32%, including 19.1% integrated growth. Commercial craft gross accrued 17.8%, including 17.3% integrated growth, portion defence gross roseate 65.4%, including 22.1% integrated growth.

Management highlighted respective areas supporting the aerospace and defence outlook, including submarines, missiles, abstraction and commercialized craft production. Hartnett said marine has been a important contributor to backlog growth, driven by the build-out of the submarine fleet, including Virginia and Columbia people programs and fleet spares. He said the institution is adding machinery and level abstraction to enactment higher accumulation rates.

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“We are decidedly going to treble our revenues successful that assemblage implicit the adjacent 24 to 36 months,” Hartnett said during the question-and-answer portion, referring to the marine business.