Q1 2025 RBC Bearings Inc Earnings Call Transcript
Key Points
- First-quarter sales increased by 5% year-over-year, reaching $46.3 million.
- Aerospace and defense sector showed a robust 23.7% expansion, with defense leading at 38.1%.
- Adjusted gross margin improved to 45.3% of sales, up nearly 2 percentage points from last year.
- Adjusted net income was $2.54 per share, and adjusted EBITDA was 33% of revenues.
- Net cash provided by operating activities increased by 57.9% year-over-year, allowing for significant debt reduction.
- Industrial business contracted by 3.5%, with weakened performance in oil and gas, semiconductor machinery, and general industrial markets.
- SG&A expenses are expected to increase in Q2 and Q3 before normalizing in Q4.
- Interest expense for the quarter was $17.2 million, reflecting ongoing term loan repayments.
- Industrial revenue came up short of guidance due to weaker-than-expected consumption rates.
- Visibility into the recovery of industrial markets remains uncertain, with expectations of flat performance through Q3 and potential improvement in Q4.
Greetings. Welcome to RBC Bearings' Fiscal 2025 first-quarter earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Rob Moffat, Director, Investor Relations. Please go ahead.
Morning, and thank you for joining us for RBC Bearings' fiscal first-quarter 2025 earnings call. I'm now with Dr. Michael Hartnett, Chairman, President, and Chief Executive Officer; Daniel Bergeron, Director, Vice President, and Chief Operating Officer; and Rob Sullivan, Vice President and Chief Financial Officer.
Before beginning today's call, let me remind you that some statements made today will be forward-looking and are made under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected or implied due to a variety of factors. We refer you to RBC Bearings' recent filings with the SEC for more detailed discussion of the risks that could impact the company's future
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