January 31, 2025 08:00 AM Eastern Standard Time

OXFORD, Conn.--(BUSINESS WIRE)--RBC Bearings Incorporated (NYSE: RBC), a leading international manufacturer of highly engineered precision bearings, components and essential systems for the industrial, defense and aerospace industries, today reported results for the third quarter of fiscal 2025.

Third Quarter Financial Highlights

• Net sales of $394.4 million increased 5.5% over last year; Aerospace/Defense segment up 10.7% and Industrial segment up 2.7%.
• Gross margin of 44.3% compared to 42.3% last year.
• Net income attributable to common stockholders increased 39.6% over last year, up 34.7% on an adjusted basis.
• Diluted EPS was $1.82, a 30.9% increase over last year; Adjusted Diluted EPS was $2.34, a 26.5% increase over last year.
• Free cash flow conversion of 127% vs 152% last year.

Three Month Financial Highlights

Nine Month Financial Highlights

Preferred Stock Conversion in Fiscal 2025

The Company’s 5.0% Series A preferred stock mandatorily converted to common stock on October 15, 2024, at which point the Company paid the final quarterly dividend on the preferred stock, which was approximately $5.7 million. Not paying preferred stock dividends in the future will lead to $23.0 million of annual cash savings in future periods.

The 4.6 million preferred shares issued converted to 2.0 million common shares.

Regarding the conversion’s impact on EPS, the conversion resulted in the numerator being reduced by approximately $1.0 million and the denominator being reduced by approximately 1.8 million shares for the calculation of diluted and adjusted diluted EPS for the third quarter of fiscal 2025.