RBC Bearings Gains From Business Strength Amid Persisting Headwinds

RBC Bearings Incorporated RBC has been witnessing solid momentum in the Aerospace/Defense segment. Strength in the commercial aerospace market, driven by strong growth in orders from the OEM (original equipment manufacturer) and the aftermarket verticals, is supporting the segment’s performance. The robust backlog level, along with the company’s strong execution on incremental orders in the commercial aerospace market, is expected to be beneficial as well. An increase in demand for its bearings and engineered component products in the defense market, supported by growth in marine, helicopter and missile applications orders, will also continue to augur well for the Aerospace/Defense segment in the quarters ahead.RBC is also benefiting from strength in the Industrial segment. Stable demand for highly engineered bearings and precision components in the metals and mining, warehousing and logistics, forest products and food and beverage markets bodes well for the segment.RBC Bearings solidified its product portfolio and leveraged business opportunities through asset additions. In July 2025, the company completed the acquisition of VACCO Industries from ESCO Technologies. The inclusion of VACCO’s expertise in engineered valves, regulators and manifolds, supported by its strong designing, engineering and production capabilities, will enable RBC to expand its customer offerings in the defense, space and commercial markets. It also acquired Carson City, NV-based precision bearings manufacturer Specline, Inc. in August 2023. Specline’s unique bearing and manufacturing processes expanded RBC Bearings’ aerospace product offerings and boosted the company’s production capacity.The company is committed to rewarding its shareholders handsomely through dividend payments and share buybacks. Though the company did not pay any dividend or repurchase shares in the first three months of fiscal 2026 (ended June 2025), in fiscal 2025 (ended March 2025), it paid preferred stock dividends of $17.2 million and repurchased shares for $9.5 million.Price Performance of RBCIn the past year, this current Zacks Rank #3 (Hold) company’s shares have risen 37.1% compared with the industry’s 3.6% growth.Image Source: Zacks Investment ResearchHowever, weak refinery demand is affecting the oil and gas end markets, which remains a persistent concern for RBC. Also, softness in the semiconductor equipment market due to a slowdown in the overall manufacturing sector might impede the company’s growth in the near term.RBC Bearings is currently dealing with the rising cost of sales. Increasing raw material costs are pushing up the cost of sales. In first-quarter fiscal 2026, its cost of sales increased 8.3% year over year. In the same period, the company’s SG&A expenses also rose 9.3% year over year, due to increased personnel costs, stock compensation costs, travel costs and professional fees. High costs and expenses, if uncontrolled, may adversely impact the company’s margins and profitability in the quarters ahead.Stocks to ConsiderSome better-ranked companies are discussed below.Crane Company CR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CR delivered a trailing four-quarter average earnings surprise of 7.5%. In the past 60 days, the Zacks Consensus Estimate for Crane’s 2025 earnings has increased 0.9%.Flowserve Corporation FLS presently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 5.5%.In the past 60 days, the consensus estimate for Flowserve’s 2025 earnings has increased 0.9%.Parker-Hannifin Corporation PH presently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 4.5%.In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 0.1%.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Parker-Hannifin Corporation (PH): Free Stock Analysis Report RBC Bearings Incorporated (RBC): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report Crane Company (CR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks