RBC Bearings Reports Strong Financial Results

By Tamara Parker • Friday, May 17 15:18 • Permanent Link

RBC Bearings Incorporated (NYSE: RBC, RBCP) has announced its financial results for the fourth quarter and full year fiscal 2024, and the numbers are looking quite strong. Let's dive into the specifics of the report.

For the fourth quarter of fiscal 2024, RBC Bearings reported a 4.9% increase in net sales, reaching $413.7 million compared to $394.4 million in the same period last year. The aerospace/defense segment saw a notable surge in net sales, up by 16.8%, while the industrial segment experienced a slight dip of 0.4%.

The company's gross margin for the fourth quarter of fiscal 2024 stood at 43.1%, marking an improvement from 42.2% in the previous year. Additionally, the net income attributable to common stockholders as a percentage of net sales increased to 13.5% from 11.0% in the same period last year. Adjusted EBITDA as a percentage of net sales also saw a rise to 31.4% from 30.7% in the comparable period.

Moving on to the full fiscal year 2024, RBC Bearings reported a 6.2% increase in net sales, reaching $1,560.3 million compared to $1,469.3 million in the prior year. The aerospace/defense segment experienced substantial growth with net sales up by 20.7%, while the industrial segment saw a modest increase of 0.2%.

The gross margin for fiscal 2024 improved to 43.0% from 41.2% in the previous year. Net income attributable to common stockholders as a percentage of net sales also saw a healthy increase to 12.0% from 9.8% in the prior year. Adjusted EBITDA as a percentage of net sales rose to 30.9% from 29.5% in the comparable period.

The company's free cash flow conversion was also impressive, standing at 115.0% in fiscal 2024, up from 107.2% in fiscal 2023.

Dr. Michael J. Hartnett, Chairman and CEO of RBC Bearings, expressed optimism about the results, citing another record year for the company. He highlighted the strong performance of the aerospace and defense segment, as well as the industrial segment's outgrowth relative to peers. Additionally, healthy margin expansion and record levels of free cash flow generation were noted.

Looking at the outlook, the company anticipates net sales to be approximately $415.0 million to $420.0 million in the first quarter of fiscal 2025, reflecting a growth rate of 7.2% to 8.5%.

The market has reacted to these announcements by moving the company's shares 7.3% to a price of $287.19. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.