RBC Bearings: The Moat Is Real, but the Price Already Assumes the Aerospace-Defense Story Is Finished
RBC Bearings is a niche U.S. manufacturer of qualification-protected precision bearings, engineered components, and fluid-control systems for aerospace, defense, and industrial platforms, shaped over three decades by founder-CEO Michael Hartnett's 29-deal acquisition program. Fiscal 2026 revenue reached $1.87 billion as Aerospace & Defense sales grew 32.9% against 3.8% Industrial growth, backlog surged to $2.3 billion, and the stock re-rated toward premium defense-compounder multiples (about 48x adjusted EPS) even as owner-earnings yield fell near 1.8%, below the 4.27% 10-year Treasury yield. Rating Watch: an excellent, moat-protected compounder, but today's price already discounts years of successful mix conversion, leaving the ideal buy zone at $290-340.