RBC Bearings Acquires PSC Couplings for $24M Amid Strong Quarterly Profits

The acquisition follows RBC Bearings’ strong fiscal first-quarter results. Net sales rose 19.2% to $519.5 million, while gross margin increased to 47.7% from 44.8%. Diluted earnings per share also rose to $3.20 from $2.17.

RBC Bearings had a backlog of $2.3 billion as of June 27, more than double the $1 billion reported a year earlier.

For the second quarter, the company expects sales growth of 10.9% to 13.1%, with gross margin expected to fall to 45.5%–45.75%.

RBC Bearings had a backlog of $2.3 billion as of June 27, more than double the $1 billion reported a year earlier. Net interest expense also fell to $10.1 million from $12.2 million as the company continued to reduce its debt.

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For the second quarter of fiscal 2027, RBC expects net sales of $505 million to $515 million representing 10.9% to 13.1% growth. This is lower than the 19.2% growth reported in the previous quarter. Gross margin is expected to be 45.5% to 45.75%, below the 47.7% reported in the first quarter.

The backlog remained at $2.3 billion between March 28 and June 27, showing no growth during the period. The company also reported $21 million in amortization of intangible assets, up from $17.9 million a year earlier.

Sixty hedge funds held RBC Bearings in the latest quarter, up from 51 in the previous quarter. Short interest was 1.67% of the company’s float, while the forward P/E stood at 37.04 as of September 18.

The PSC Couplings acquisition is relatively small compared with RBC Bearings’ overall business. Investors will likely focus more on whether the company can maintain its growth and profit margins as it expects slower growth in the next quarter.

The company’s future performance will depend on order growth, margins, and its ability to maintain earnings growth at its current valuation.

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