RBC - Earnings call transcript Q4 2024 | RBC Bearings Incorporated

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Operator

[Audio Gap] that was no exception. Adjusted gross margins for the quarter came in at $178.3 million or 43.1% of sales, an expansion of 90 basis points over fiscal 4Q '23. And for the full year, we came in at $670.5 million or 43.0% of sales an expansion of 180 basis points versus fiscal 2023 and a new all-time record for RBC.

Our success here is driven by multiple factors. With ongoing synergies from Dodge -- from the Dodge acquisition being the biggest contributor, coupled with improving utilization of our aerospace asset base and an ongoing pursuit of growth in higher-margin end markets.

gross for a 'XX. the adjusted for of our -- FY third comparison, margin percentage as sales For quarter of the Dodge XX.X% following first XX.X% In to compared acquisition exiting was XXXX. fiscal quarter,

closing basis XXX achieved time we $XX estimate X the million acquisition, line. of the the $XXX more between have to over that and X somewhere million And $XX can a to the was acquisition. $XX just of gross you since point That's of million were come. we years. have in already margin said that million we years repaid to term taken with we add, we At the $XXX make on targeting million over expansion synergies loan

and acquisitions we've and transformative what been absolutely Shubin with before RBC. has transaction Sargent for accomplished The that Dodge

Over roughly X is CAGR at more an from XX.X% grown which over sales $XXX billion CAGR compounded amazing have XX.X% has years. million impressive CAGR. the gone growing years, X flow, which $X.XX even free cash past And EBITDA, a over past at net is and the to XX.X%

with delivering I'd kind I am and initiatives. creating much for how success company-specific like of own opportunity with proud results use the of rolls team margin-focused performance, XXXX to express of strong year and for this to yet along operating fiscal another this in of our

as accomplished. the have will proud upcoming We been and aiming And always, be a a lot higher year. to be what's little in of

to more results. Rob details for on that, financial With turn it the over I'll

Robert Sullivan

in XX.X% growth quarter, full year free and X.X% and Aerospace, year sales XX.X% another in was the the a XXXX flow in by quarter full year, industrial and growth the cash the in growth growth by quarter EBITDA for of Dr. XX.X% year. of X.X% of the adjusted in surpassed continued organic the X.X% business. Thank Hartnett market you, Mike. fiscal strong Total was indicated, growth in over of

coming This with sales enabled XX gross margin year in margin expansion an percentage was progress in and roughly from points synergies, basis of Strength expansion full of roughly and line solid the Dodge of increased margin coming XX.X%, increase gross on quarter a points. fourth at our of part XX%, year-over-year. in XXX gross by our as the derived the of aerospace in higher utilization was pursuit at ongoing margin mix. an assets basis

positioning overall force We should healthy leverage environment in the for process able the and secure in sales to fiscal and company growth. includes additional our our to and of beyond. continued higher volumes headcount, office at including SG&A back 'XX personnel. make to our be and operating infrastructure investments This the investments That aimed business IT enable

investments, XX.X%, of SG&A quarter XX in of all-time the points a expansion base XX.X%, EBITDA record see basis of expansion. an adjusted year-over-year. nearly 'XX should is 'XX serve what fiscal for margins fiscal basis EBITDA in an for the the adjusted This with fourth expanded And Even at additional in coming with mark. coming fiscal and roughly an expansion XXX as on based time full crossed margin year the our we first XX% beyond points. at

to morning the of on tax this bit quarter. confusion terms a there be EPS, In of seems in

performance the is important in and this it's because call reconciliation was XX.X% GAAP effective for for of adjusted reflected our within our by income operating driven adjusted tax our the rate note press that Although net is was the in I EPS performance. QX primarily release. effective rate QX, our the This strength tax to XX.X%. out

free to and conversion reduce net on in internal billion $XXX.X for year-over-year of in the of to quarter, XX.X% cash the X.Xx Pace debt on that the to the free continue a term XX.X% end of cash $XX.X Free growth line loan cash to paying flow and growth year-over-year in total used at representing full the also flow with $X.X ] outgrew trailing for net flow target of generated top acquisition, million year. XXX%. delivering We million leverage high the basis. from $XXX debt the coming our year. [ down This brings million

as be the free will the take to be convertible to on you meaningfully assuming planned impact EPS, that preferred [ item will automatically at of will our net by convert One $XX expected QX this basis. flow models approximately into of want ] share It the is October to your XXXX. dividend million account for Using XXX stock accretive entry our payment, conversion to the on expected slightly an to results approximation, outlays remove conversion in XX, future an is reducing as conversion cash price. however, total accretive, annualized conversion the cash current Series cash

XXXX of cash This fiscal total flow. is roughly X.X%

margin term company growth, removal a healthy the solid the and pace are loan. and heading positioned debt capped can the reduction Importantly, well generation of of accelerate this we fiscal off combination cash XXXX beyond. fiscal the continued leaves and reducing further into at cash expansion, Altogether, strong which the 'XX

the I'll some to Mike for turn that, call closing back With thoughts. now

Mike Hartnett

Okay. Thank you, Rob.

sales environment by with reflects end in quarter, strong others and demand X.X%. to million fiscal industrial supported softer, Before I is an fiscal $XXX 'XX. and than are This representing sales year-over-year spend and we million, quarter our $XXX past growth markets start, stronger of over uneven, industrial the to where first OEM. Q&A, net how that's guiding to are to A&D call outlook we're we thinking some to turn time To and overall X.X% wanted markets to some similar outlook more the aftermarket on largely demand about

year, Passenger levels to outlook down. full miles commercial remains up traveled pre-pandemic back utilization for retirements levels the positive. of are above terms and grow, our aerospace In plane continue driving and

be supply chain demand plane continues shortages. to and robust by New remains throttled

but constraint supply. commercial As before, it's is I've said in the now not right only aerospace demand,

have following you been lately. at of many the headlines sure rates build I'm side, OEM the and On Boeing

the In the that facing short navigate emerge markets, successfully confident however, XXXX. by space, it's international stronger-than-expected and mitigated. long be We headwind, Boeing current other the end that aftermarket. will airframe term term, the by including believe can stronger and requirements from defense producers, challenges of Over the I'm

As to are is loaded. fiscal record we upon likely depending months fully A&D to XX on in base. requirements to Altogether, expected weeks our this digits 'XX's needed approximately rebound expect for our material for industry to Boeing will up double composition. low an Remembering are airplane is of ended mid-QX. points top fiscal 'XX back-end X it revenue back times be typically by products before RBC, and lead assembled XX products, be

that's I obvious. probably think

market. we should seen we've start of is the pockets here OEM to the over industrial target with -- and What's to believe our side, important believe continue some we initiatives, should Xx We for the FY of and On still our Dodge coupled aftermarket to of the as 'XX. target comps revenue tough grow the through is synergies growth GDP combination grow. ongoing year organic continue the our abate our progress sales in should business growth and

well 'XX progress margin, the tremendous synergies. fiscal on gross amount I of in of terms earlier, we of Dodge ahead schedule are mentioned and made In

synergies in to combination mind, to Dodge moderating aerospace Going expansion to margin new forward, continue mix the expect work of tailwinds, of absorption and integrate to basis effort of growth as XX in of gross With the we by points products expect 'XX sales fiscal higher XX drive product Dodge we driven higher-margin ongoing being capacity market. to from new introduced a our be that we revenue and derived development.

loan a paints of the for our this generated for million from term of Dodge free picture to setting Altogether, generation, cash $XXX fully strong debt the another of X-year acquisition. of leaving $XXX on million, reduction flow another the goal us stage year repaying track

on million current basis, on X.Xx net even a that's fiscal million forward further 'XX. of plan to reduction for and the a and Our debt lower leverage $XXX is before $XXX basis, trailing

This well has growing evaluate positioned seriously more active in that been the leaves opportunities, pipeline. M&A team us and to

end be by under FY our 'XX. current Xx rate well at expect to EBITDA We the of

and balanced the end and the term. mix bias of towards aerospace over here Our manage exposure is long principal industrial to a defense company market

To mitigated was of growth. RBC. margin cash conclude, are by free magnified record was solid We delivered fiscal further strong expansion It for conversion. flow margin a year and XXXX fully by expansion another year

schedule to acquisitive of return Dodge deleveraging synergies, We of forward ahead the growth. on are our we We and fiscal and our for 'XX are same. to track expect look more on we and

for With that, over I'll to the turn it operator questions.

Operator

Stanley. Morgan Today's question is Kristine coming of from Instructions] [Operator Liwag first

Kristine Liwag

in touched you And Mike, this has strategy team synergy do that revenue what more I'm X not Bearings. I sales But Dodge Can Dodge XXx as measuring something still your provide you when of the case results, the is from you on start going? synergies would have think, your prepared target How's think if progressing, recall integration salespeople what color you RBC extract implemented? been how on today. revenue the of how from the legacy can this? like sure you that's be you kind commentary.

Mike Hartnett

growth Xx Kristine? was simple, too just GDP guess my I

Kristine Liwag

Well, had legacy your Mike, Xx GDP historically been Bearings for growth RBC target.

was be revenue So that from our thinking would I incremental. synergy deal the

Mike Hartnett

And there's on here a part RBC we're synergy that on coattails. options I for 'XX for of right is particularly said, the and And and for that Europe revenue number more Yes. Canada, And those the right see in and of now good -- the market -- Dodge, of in Dodge are focused coattails. terms if there's RBC of I think Mexico lot areas opportunities ride a being obviously, through for on Dodge. in mix will all in there's and developed. Well, accessing opportunities revenue synergy Dodge's follow India as should world we and that mix

India we we If certain are to to have do access. and us have based foreign infrastructure what country we take things requires markets initiatives currently import pretty -- offer have between RBC, around and can jointly a to what can upon export, on market allows active there better India, that's we different in their as So of amount Dodge we how countries manufactured markets these these sophistication an that that markets that it. a to develop the to things and and we has infrastructure focused which in our India great some and move those these underway example,

India to economic year we aerospace moving the from a our allows somewhere the the aerospace But meaningful. to -- at customer $XX to grow in us access million it the see in base less expect few same very year next our customer and base, to and we better the reasons years. force Dodge for It's than today to sales per of certainly many that million $XX Indian customers through time,

aerospace example ongoing just and the infrastructure. one that's synergy maybe upon by So the of -- created based in and support Dodge industrial

Kristine Liwag

in on keeping maybe some you've past question When is second a low-cost lower completed a an you've in everything the that opportunity talked do take in terms but cost structure? you months, about in think could about of cost. I mostly if Can of XX U.S.-based, as XX you've the much to the footprint the give still any countries you move progress terms you while it's next initiative? more to can manufacturing, or value talked where of you Dodge And in how things when margin from higher are And Great. U.S. like there's the planned how get

Mike Hartnett

of some manufacturing product of in space building Dodge Dodge allows their supply the it's U.S. chain. square Mexico floor a ] for us constrained XXX,XXX completed [ based upon plant expansion based plants and space up to in just Dodge upon free we it of they for Well, plants are the about because and floor the Takata into some in move And And Dodge's some feet. Mexico basically. Yes.

in they our we in by. unable Interstate we're more to was product around. achieve plan allow to us and expect you're and So capitalized you -- if our actually, XX We've weekend, Dodge's have -- that's some But -- trucks watch terms we past. the And things can to on go plan were this it's to offering that of a now. is of it expand going than that moving volume

to going product also existing only that's into low-cost a growth, So move not fund but country.

overnight. sort And And build effort. that's so the a first obviously, you foot plant step XXX,XXX of the of don't square

round been for the has months. XX products we're the planning this Tecate of the last And be in July. we'll by first production So in with in

Kristine Liwag

for Trucks Great. out on Canam Well, eye RBC ] keep I'll XX. and Interstate an [

Operator

Global. question next The of Pete from coming is Alembic Skibitski

Peter Skibitski

in? aerospace, and the orders -- what that the that. longer-term start me backlog was commercial things Let really aerospace coming commercial nice one should sequentially of I out growth year-over-year and we to mostly thought is Was stood think see that

Mike Hartnett

Marine, probably and for thing. mean backlog Dodge's kind that's of some Marine. of Aerospace of very represented Obviously, is probably I is XX-XX and it's just If Well, little a -- there's usually that shipped heavily industrial, Aerospace there. product. days or is it's X or the same -- not ordered business upon X They model. customers It's what's the Dodge by within their day within depending

gets never a it chance So hit to backlog.

sales. of So our that's XX%

Peter Skibitski

Yes. Yes.

Okay.

That's your X to right? for be You're Okay. that quarter, guidance X% And helpful. range quarters. of then would the in a sales, reacceleration X% first the just last kind of that

you're kind Now can sales are that quarters about X%. you I lead hurt in quarter to to visibility this to going to there. to with doesn't talking what prior seeing X the backlog reaccelerate? you're versus imagine But believe us first talk you the close to of regard

Mike Hartnett

think it's good. Boeing A&D. in production their I in don't Well, The that build-out, down XXX we're reflected step quarter. the seeing in I particularly great rate the bookings. mean, -- There's very is

it's isn't in reflected the second first it the at reflected but all. going think to in quarter quarter be I

Peter Skibitski

the a it's Okay. lot for you. of to quarter little of going they a to to X Max. XX that month and Because master the at suppliers below on think about to are That so changes yes, rate, go a a in how then roughly And the schedule Is that you maybe it impacting it? Boeing's helpful. like a you think, was rise know sounds I guys up? back way and But to or I Yes, that's terms keep ask confusing. tried was going I

Mike Hartnett

I have they're XX, it about they ships And Well, is XX you ships maybe is course, sort the month the now if a magic per talking Boeing's rate and to production be, at look and XX. where of number, about right think of right? way now, month

to that April. So that, month. our be enough XX them by We're we means ships be expecting certainly for have to And healthy product, a Next, assembling to it. given produce

in to in making ship start it We And have October. October, have if we have July. to in to we ship it it

making they year shipping their in. relative to the step in rockets our is now think match So they their rate, Everything pull first I to all will rate it right? be probably no quarter, wheelhouse. April. know I it It's going not be basic qualified, reduced we're -- assembly upon beginning suspect has it every capable based suspect people, a to up in done. their rate to done. after Maybe I they'll September probably quarter, step -- have second great ending, invented. to in get There's will execution that But smart the I think but going and we're at the new which to a is not quarter be this up

Peter Skibitski

for said submarines the as well to that? if then incredible going commercial, me. Is got growth was sounds I it pretty -- Yes. double-digit like but driving you're that marine, the Yes. potentially And it. strength remember in appreciate continue. feel I one is the Defense mostly I as Last rewire you anything this else that expecting just growth can't year. maybe another defense or

Mike Hartnett

we're Yes. enough for Right Defense is continue. able now, to constrained by defense products produce going to overall. being certain,

we're working bring hard our so up And rates. to

so other And qualifications. availability, material dependent and that's chain upon labor, supply

some sometimes year-to-year, get of than a we're in demand. we -- continue to mid-teens that the So or the areas, balanced get years And the certain job X great rates that. with bringing to a the rate of sort kind more bit to X doing for of up to next a have little in

And everybody Fighter. foreign other our in very all So marine going It's the to want some of in what's particularly join obviously, areas now countries on like, that's wants with Ukraine. the Strike defense, strong. and area.

So important for that's platform us. an

is -- on So and we're in kinds going of program. demand and those Lockheed we're to middle of we're more bomber the programs. seeing from coming demanding, that's long-range the -- that active

programs. -- another us. shoulder we're ground MR U.S. munitions whether there's fortify system area or ground mounted yes, a Guided that So also good arsenals. Ukraine, of for really now, airframe all for to like and replacement there's and marine demand interceptor, are is a extremely those strong, it's or And that's really, lot on to right ballistic and it's demand it's

So solved thing the term. ending Ukraine the see I Maybe gets in don't soon. that intermediate anytime

feel recognizes these deep are arsenals the term, Everybody they're they their built including the way longer to why the Taiwan In U.S. with enough. arsenals. that, until not anything They're Chinese. were arsenals That's not up out their going comfortable. building do

going is is -- this So to a event. cycle this long-term

Operator

The Capital next Steve KeyBanc Barger from question of is Markets. coming

Steve Barger

Or geographic that accessing organic talked about world process? development? would accelerate is markets all for about that to more you Mike, as channel you think acquisitions Dodge,

Mike Hartnett

would think of We it's mean -- both. the but Yes. I organic.

I assets if have was it, it -- of there more would much but what and achievable. already very -- organic. process, building -- has teams. right it's effectively that now, an think it's the to done acquisition it's It's there consider the primarily pretty very a out we'd accelerate is that achievable, be sort the we using

And so spending well that sure foreign what's Dodge these with to in it's paying And a missions. the time Europe, attention with going integrated the RBC matter making on and more nationals they're various of and sites. at

sort side so attention to ABB They markets. of owner. pay access had to through And great didn't didn't Dodge, these their their world. really we a access the And acquired amount Dodge have of previous and before mechanical ABB of

active can the so have productive surprised that atrophied. we're we languished up. of world in these we and footprints and pleasantly spool And these areas And now that

them in of spooling we're process so the And up.

Steve Barger

you directed push that against think just make to it you Mexico, is India, sense in global Or is trying in direction. bearings focus a get when start said talk that for to -- market against other more opportunity share about what as Canada, you more you the are And I'm direction, Europe, as competing locals? manufacturers? And a I you do

Mike Hartnett

bearing it's global sort following Yes. It's cases, -- of and gearbox particularly the manufacturers Well, it's It's manufacturers and bearings. your aerospace. defense, the it's global of being in -- to these it's requirements the its for service a matter lot gearbox. sites effectively. able customer a aerospace if It's of to remote of

footprint if anybody you ahead and him have the so you're service to of well And follow else. him, to

Steve Barger

weak. aggregates Yes. And all unfolds of you? do telling big Or the interesting funding the that Got for the customers projects, are out visibility are how given what it. then think half there year? this it's from your cement you a And and government destock? back for Is the calendar that

Mike Hartnett

Well, you about know as cement correlated think The I pretty that almost do, much business starts. aggregate much as perfectly with housing I is and Steve.

So business up, housing are so when starts is And that starts housing strong. strong. are that very not up, when business is not

housing So about mortgage in rates, all it's right? starts,

the So correlated. when yes, square world It's Vulcan in you I that mean, people with mean I it's on their volumes, amazingly business or the read like one-on-one. of or are investment Martin it's something. or in analysts correlate housing research for Marietta this and the starts our it's -- demand

at starts. So we yes, housing so look

influence that don't mean it the infrastructure here think macro anything about it finger not but my there, I I bill had has put any that can this point. to on. talk the impacted has state at I people there's and really

Operator

The from is next Truist Michael question of Ciarmoli Securities. coming

Michael Ciarmoli

a the that It was quarter -- but obviously industrial maybe not few that bit anything just end waste. oil prior earlier aggregates, know came prepared flagged weaker. it I weak? light. grow a some the gave points. Did and it talked you of unexpectedly for as you market I just bit think a I view the know up about aggregate? and did little you being gas in think cement, gen Was for Question, I turn aggregates power fourth nit-pic. year-over-year, to with to commentary the Was

Mike Hartnett

backlog backlog of about chain we first and all, year, Dodge did what that -- think, the I -- of supply did one was last we driven. didn't talk had we Well, have -- things was

the of backlog supercharged And was it number so year's fourth last sort quarter, liberated. that sales as

Robert Sullivan

a That was about impact. $XX million

Mike Hartnett

Okay.

That by the So million. $XX was difference. about

They normalized. is chain of these kinds have supply don't backlogs year, this anymore. So

it's -- And so comp. a it's comp. It's a hard hard not

Michael Ciarmoli

That makes is to growth low and That make back Okay. on double-digit 'XX. for And sense. out Defense makes Aero parse that then combined? to Did it. you there And just air want say between view? an I heard sure expected defense commercial sense. in I

Mike Hartnett

figure all rate yes, to out, And parse no trying around of had a this build There's thing Boeing combined. and it's different just we're ships. but out our we plans the for

reevaluating bring we're we offset those determining of now to any terms losses. in so business the what additional and And plans should

And sort of ongoing, so yes. that's

in problem in like their got normal to not they of their per stuff. upper need they assuming where and year on going this I terms mean Boeing of a solve be the XXX XXs It's to a gets be in to XX-year gets backlog -- rates year. terms

So they got get y up. to

they to got this get them. So behind problem

kind assuming to a up they They get So teens kind of back have mode be behind choice. a have They think get again. And into into high they that. again. into We'll that to them. this that have get the of I don't

Michael Ciarmoli

Yes.

margin just little then commentary Aero. bit that into XX you points Boeing. you kind clarity expect mean expansion that 'XX maybe about margin get as that more with gross back-end And from of well. Should in XX I the there? expansion to taken being Okay. kind talked we of your in a of absorption loaded Is ongoing basis on

Mike Hartnett

Yes.

Michael Ciarmoli

Okay. fourth And strong would -- then that drop a quarter, of imply as $X.X maybe especially off. really preferred that million the

is modeling, how mean, think I year. kind a that from just about should of we the So

Mike Hartnett

on track there. You're right the

Michael Ciarmoli

and still Last good. big is -- value leverage it down. for like creation. appetite home I M&A seemingly is driving been there? has out to more a mean Very Okay. come Any Dodge going had. Any run one sounds I

appetite deal? the another what's for So

Mike Hartnett

is But picky. appetite appetite the the is good. Well,

Operator

Sachs. Joe Goldman question coming from next The is Ritchie of

Vivek Srivastava

than for where Joe. first on first quarter this seasonality your time, just My be better question like looks Vivek at ended. This is fourth revenue is on quarter would where Srivastava you

keep also EBIT on sequentially mind? something we sales? is better should you else higher there dollars. think in gross about and Or Should that be profit As

Robert Sullivan

margin, invest think kind spoke we regarding continue throughout we It's lumpy the 'XX. in of back-loaded. think in SG&A really Mike as I bit discussed to overall fiscal to a We'll year. is margin just expansion of that the

So performance. we're expecting continued strong

Vivek Srivastava

just And question. a Understood. high-level

at impressive. Your EBITDA very quarter XX.X%, margin this

think then aero in of what mind kind Just the further volume of synergies. and base improvement and long as anything about margin outside we in recovery some of have business expansion? margin impact term, would the long you target Is there like terms term, that broad

Mike Hartnett

improve where the it's costs Yes, performance. are technology Yes. in there's And on manufacturing I there's Pareto, think reduce performers. of to world still of It's I mean if provide that? no terms say reduce or the margin it's your accrue -- a scrap project would end. identifying -- does that really in -- or one of better technology how lower-margin I to labor kind what, can by one and anything, material terms

improve improvement operating could the of what benefit overall And we performance -- Pareto with options And of what options be for so the at that to look and we margin look have plants all review the done the line. active and generates at the month. and line we the item what every programs that overall we would manufacturing be the our might that of revenue particular

create one the one higher matter a by investment putting of of with to the it's to So of program divisions accrues improvement that a consolidated all margin. a time

we stopped -- we've started since haven't XX job what done And I that's And yet. at, we and the ago. is what RBC haven't good that's years really

over show do we mean, I how it's on one our how you come we'll to So plants, of yes, that. -- and

Vivek Srivastava

That sounds great, yes.

you cash the coming just XXXX for about maybe what working flow. a standpoint, year. we last about How should on Just and free from question flow talk free in in are capital improvements think baking cash

Robert Sullivan

Yes.

as healthy $XXX cash just $XXX another generate XXX% We're Mike million we're to XXX% over have do conversion this delever to -- to by net flow that. going free to So ultimately, targeting always looking we're on income, some year. so referenced, million to

the we that within long always looking as to we're look making So working customers which important is we'll inventory term, drive needed. capital to our deliver and we continue to prepared at to levels, as section, the sure our to strike are that. do, strategically

So that working bit investment way. especially the remainder in in We'll the side, along there's continue to capital manage little of of for potential the a aerospace.

Operator

Jordan The Lyonnais Bank coming next question from is of America. of

Jordan Lyonnais

Last X it cut. be April, still planning on to XXX, spirits to were produce Are X cutting the a you also we headcount important quarter, still in would producing you you shift. in at going an to guys just said a month like or step at up saw and month, Boeing

So for the wide-bodies? could more give you any color

Mike Hartnett

Yes. No, X we're a month. at staying

Jordan Lyonnais

if the side? the Okay. you all also, the Guide, for there's looking accelerating so at How guys for ARO And how of terms too, in commercial the do then up you can still how pricing up much, are or of uncertainty. production much of make guide much defense just make to

Mike Hartnett

we going while? for there in how to Boeing shortfall for mean, of a mitigate mitigating the are I terms Well,

Jordan Lyonnais

a Yes, derisking. yes. just

Mike Hartnett

Yes.

X have the or we quarter Boeing think I effect. of a

if million I think mean, mitigation, over X the do over did any we $XX no given million a impact it be quarter of or we didn't quarters. minimum maximum mitigation would the $XX I on revenues would X, if quarters. sort X be

sort bring to of mitigation. So our some the realign some the and we happening number. strong of how earlier now of that a of into what's markets an servicing, it's I look achievable it's much right is is at we when some schedules that quarters, production I can how we've And talked for which mean, defense been defense particularly, about

we years the few hand, other 'XX But into we started shipped in And space. on space a in working the ago, world.

and to see And year. see that $XX million this so million, our getting business on we that is space accelerating. $XX getting to We probably products

A&D a become to starting is space So component significant sales. our of

is So part mitigation. that's the of spares and sales increasing part mitigation. part of is of Defense our the the another mitigation

towards mitigation dozen And divisions production what the we various long from Boeing get on quarter significant are of see that we shortfall So I reduction. techniques, goal. way -- suspect have that the to products the maybe we they'll any second offset -- half a the have working the might for in -- a

Operator

this you. no Thank there turn to comments. I would further at over Dr. and call gentlemen, Hartnett like questions are for the closing Ladies to time.

Mike Hartnett

Well, everybody we our Obviously, participating today, talking Okay. cash thank conversion. you. great you growth listening to call presentation. in July. again completes for that flow and to we've look and to our and I another Well, year appreciate of And forward solid delivered

Operator

Ladies for participation. you thank today's your This concludes and event. gentlemen,

your off this day. disconnect the enjoy lines webcast of at the your time You may or and rest log

RBC Bearings (RBC) 17 May 242024 Q4 Earnings call transcript