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

RBC Bearings Incorporated RBC 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 PeersAmong its major peers, Howmet Aerospace Inc. HWM 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 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 EstimatesShares of RBC Bearings have surged 35% in the past year compared with the industry’s growth of 12%.Image Source: Zacks Investment ResearchFrom 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.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for RBC’s fiscal 2026 (ending March 2026) earnings has been on the rise over the past 60 days.Image Source: Zacks Investment ResearchRBC Bearings currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Parker-Hannifin Corporation (PH): Free Stock Analysis Report RBC Bearings Incorporated (RBC): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks