RBC Bearings Incorporated RBC is witnessing persistent strength in aerospace and defense markets. Strong momentum in the commercial aerospace market, driven by higher aircraft build rates and growth in OEM (original equipment manufacturer) and aftermarket orders, is driving the company’s Aerospace & Defense segment. Following year-over-year growth of 32.9% in fiscal 2026 (ended March 28, 2026), revenues from the segment surged 36.9% in the first quarter of fiscal 2027 (ended June 27, 2026) to $225.4 million.
Solid demand for the company’s bearings and engineered component products in the defense market, supported by growth in missile and space applications orders, augmented the segment’s performance in the quarter. Within the segment, revenues from the commercial aerospace market increased 21.8%, while those from the defense market were up 64.6% in the fiscal first quarter. The company’s VACCO Industries buyout (July 2025) also contributed to the revenue increase.
The robust backlog level of $2.3 billion at the end of the fiscal first quarter, along with the company’s strong execution on incremental orders in the commercial aerospace market, is expected to act as a tailwind for the segment.
RBC Bearings’ aerospace & defense segment is poised to maintain solid demand momentum in the quarters ahead, supported by robust budgetary provisions for the U.S. defense sector and strength in air travel. Driven by strength across both its Aerospace & Defense and Industrial segments, RBC anticipates net sales of $505-$515 million for second-quarter fiscal 2027, suggesting a year-over-year increase of 10.9-13.1%.
Segment Snapshot of RBC’s Peers
Howmet Aerospace Inc. HWM has also been witnessing positive momentum in the defense sector, cushioned by steady government support. Howmet has been witnessing robust orders for engine spares for legacy fighters. In the second quarter, revenues from the defense aerospace market surged 11% year over year, constituting 15% of the company’s revenues.
GE Aerospace GE is benefiting from persistent strength in its Defense & Propulsion Technologies segment. Revenues from the segment increased 16% year over year to $3.4 billion in second-quarter 2026. The top-line growth was supported by healthy demand for GE Aerospace’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense market.
RBC's Price Performance, Valuation and Estimates
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Shares of RBC Bearings have gained 11.3% in the year-to-date period compared with the industry’s growth of 2%.
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From a valuation standpoint, RBC is trading at a forward price-to-earnings ratio of 31.75X, above the industry’s average of 20.93X. RBC Bearings carries a Value Score of F.
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The Zacks Consensus Estimate for RBC’s fiscal 2027 (ending March 2027) earnings has been on the rise over the past 60 days.
RBC Bearings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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