RBC Bearings Bolsters Aerospace and Defense Segment with VACCO Industries Acquisition
RBC Bearings Incorporated (NYSE:RBC) has set its sights on emerging opportunities in the secularly growing space and submarine channels. On May 20, the company confirmed the inking of an agreement to acquire VACCO Industries from ESCO Technologies for $310 million.
With the acquisition, it gained access to a prominent manufacturer of valves, manifolds, regulators, and other precision components and systems for naval defense channels.
The hand of a successful entrepreneur signing a contract, symbolizing a productive acquisition.
Once the deal closes, VACCO will be integrated into RBC Bearings’ Aerospace and Defense segment. The acquisition comes on RBC Bearings, delivering impressive fourth-quarter and full-year results for fiscal 2025. Revenues in the quarter were up 5.8% year-over-year at $437.7 million. On the other hand, adjusted earnings came in at $2.83 a share, beating consensus estimates of $2.68 and up 14.6% year over year.
Amid focus on organic growth, RBC Bearings expects net sales to be approximately $424 million and $434 million in Q1 FY26, representing year-over-year growth of between 4.4% and 6.8%. Truist Securities has reiterated a Buy rating on the stock and hiked the stock’s price target to $405 from $375, buoyed by the company’s track record in outperforming the market.
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