RBC Bearings Incorporated (NYSE:RBC) Q2 2025 Earnings Call November 1, 2024 11:00 AM ET
Company Participants
Rob Moffatt - Director, Corporate Development and Investor Relations
Michael Hartnett - Chairman, President and Chief Executive Officer
Daniel Bergeron - Director, Vice President and Chief Operating Officer
Rob Sullivan - Vice President and Chief Financial Officer
Conference Call Participants
Michael Ciarmoli - Truist Securities
Peter Skibitski - Alembic Global
Tim Thein - Raymond James
Ross Sparenblek - William Blair
Ron Epstein - Bank of America
Vivek Srivastava - Goldman Sachs
Steve Barger - KeyBanc Capital Markets
Operator
Good morning and thank you for joining us for RBC Bearings’ Fiscal Second Quarter 2025 Earnings Call. I am Rob Moffatt, Director of Corporate Development and Investor Relations. And with me on today’s call are 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.
As a reminder, some of the statements made today maybe 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 a more detailed discussion of the risks that could impact the company’s future operating results and financial condition. These factors are also listed in the press release, along with a reconciliation between GAAP and non-GAAP financial information.
With that, I’ll now turn the call over to Dr. Hartnett. Thanks.
Michael Hartnett
Good morning, everyone and thank you for joining us. I am going to start today’s call with a quick review of our financial results and I’ll finish with some high level thoughts on the industry and our outlook for the remainder of 2025. I’ll then hand it over to Rob Sullivan for more detailed color on the numbers.
Second quarter net sales came in at $398 million, a 3.2% increase over last year, driven by continued strong performance in our A&D segment and what we believe was continued outperformance versus peers on the industrial side. Total A&D sales were up 12.5% year-over-year, with 17.3% growth on the defense side and 10.3% growth on the commercial aerospace. On the industrial side, the segment came down 1.4% year-over-year, with OEM down 2.5% and aftermarket sales down 0.9%.
Before I go too deep into the quarterly results, I wanted to spend a minute or two on the strength you are seeing currently seeing on the defense side of the business. Year-to-date sales stand at an impressive 26.7% organic growth versus last year. We are seeing exceptionally strong demand in our marine business where there is multiyear backlog that can drive additional growth. We are also seeing continued strong and urgent demand for our fixed wing and missile guided munitions category.