RBC Bearings Reports 3.2% Revenue Growth and 4.8% Net Income Increase in Q2 2024

RBC Bearings Incorporated reported its financial results for the three and six months ended September 28, 2024, showing notable growth in revenue and profitability compared to the same periods in the previous fiscal year.

For the three months ended September 28, 2024, net sales reached $397.9 million, a 3.2% increase from $385.6 million in the same quarter of the prior year. The six-month net sales also rose to $804.2 million, up 4.1% from $772.7 million. The Aerospace/Defense segment was a significant contributor, with sales increasing by 12.5% to $143.2 million for the quarter, driven by a 17.3% rise in defense sales. In contrast, the Industrial segment experienced a slight decline of 1.4% in sales for the quarter.

Net income for the three months ended September 28, 2024, was $54.2 million, compared to $51.7 million in the prior year, marking a 4.8% increase. For the six-month period, net income rose to $115.6 million from $101.7 million, reflecting a 13.3% increase. Net income attributable to common stockholders for the three months was $48.5 million, up from $45.9 million, while for the six months, it increased to $104.2 million from $90.2 million.

The company’s gross margin for the second quarter improved to 43.7%, up from 43.1% in the previous year, with gross margin for the six months also increasing to 44.5% from 43.2%. However, selling, general, and administrative (SG&A) expenses rose to $69.5 million for the quarter, up from $60.5 million, attributed to higher personnel costs and professional fees.

RBC Bearings reported total assets of $4,712.8 million as of September 28, 2024, an increase from $4,678.6 million at the end of the previous fiscal year. Total liabilities decreased to $1,829.5 million from $1,926.7 million, contributing to an increase in total stockholders’ equity to $2,883.3 million from $2,751.9 million.

The company also highlighted strategic developments, including the conversion of 4,598,500 shares of its mandatory convertible preferred stock into common stock, which is expected to save approximately $23 million annually in dividend payments. Additionally, RBC Bearings maintained compliance with all debt covenants under its credit agreement, with available borrowing capacity of $496.3 million as of September 28, 2024.

Cash and cash equivalents increased to $89.1 million from $63.5 million at the end of the previous fiscal year, supported by net cash provided by operating activities of $140.4 million for the six-month period, up from $114.8 million in the prior year.