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Strength in Defense Aerospace Drives RBC Bearings: Can the Momentum Sustain?

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Key Takeaways

  • RBC's Aerospace/Defense segment revenues rose 10.4% year over year in fiscal Q1 2026.
  • Commercial aerospace sales grew 9.6%, while defense market revenues climbed 11.9%.
  • Backlog of $1.02B and strong demand in OEM and aftermarket support future growth.

RBC Bearings Incorporated (RBC - Free Report) is benefiting from solid momentum in aerospace and defense markets. Strength in the commercial aerospace market, driven by strong growth in orders from the OEM (original equipment manufacturer) and the aftermarket verticals, is driving the company’s Aerospace/Defense segment. Revenues from the segment increased 10.4% year over year in first-quarter fiscal 2026 (ended June 28, 2025). The robust backlog level ($1.02 billion, exiting the fiscal first quarter), along with the company’s strong execution on incremental orders in the commercial aerospace market, is expected to be beneficial for the segment.

An increase in demand for the company’s 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. Within the segment, revenues from the commercial aerospace market increased 9.6%, while those from the defense market were up 11.9% in first-quarter fiscal 2026.

A robust budgetary provision for the U.S. defense sector and strength in air travel set the stage for RBC Bearings, which remains focused on its aerospace and defense business, to win more contracts, which is likely to boost its top line.

Segment Snapshot of RBC’s Peers

Among its major peers, Howmet Aerospace Inc. (HWM - Free Report) is gaining momentum backed by the persistent strength in its defense aerospace market. In the second quarter of 2025, Howmet’s revenues from the defense aerospace market jumped 21% year over year, which accounted for 17% of its total sales. The surge in Howmet’s revenues was fueled by robust demand for engine spares, particularly related to the F-35 program and an increase in orders for new builds and legacy fighter jet parts.

It's another peer, Parker-Hannifin Corporation’s (PH - Free Report) Aerospace Systems segment is benefiting from strong momentum in the commercial and military markets across both the OEM and aftermarket channels. Revenues from Parker-Hannifin’s Aerospace Systems segment jumped 12.9% year over year in fiscal 2025 (ended June 2025). Parker-Hannifin’s Aerospace Systems segment is poised to gain from strong demand for its products and aftermarket support services in the general aviation market.

RBC's Price Performance, Valuation and Estimates

Shares of RBC Bearings have surged 35% in the past year compared with the industry’s growth of 12%.

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From a valuation standpoint, RBC is trading at a forward price-to-earnings ratio of 31.08X, above the industry’s average of 21.45X. RBC Bearings carries a Value Score of F.

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The Zacks Consensus Estimate for RBC’s fiscal 2026 (ending March 2026) earnings has been on the rise over the past 60 days.

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RBC Bearings currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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