Financial Analysis

10. Debt Domestic Credit Facility In fiscal 2022, RBC Bearings Incorporated, our top holding company, and our Roller Bearing Company of America, Inc. subsidiary (RBCA) entered into a Credit Agreement (the Credit Agreement) with Wells Fargo Bank, National Association (Wells Fargo), and the other lenders party thereto. The Credit Agreement provides the Company with (a) a $1,300.0 term loan (the Term Loan), which was used to fund a portion of the cash purchase price for the acquisition of Dodge Industrial and to pay related fees and expenses, and (b) a $500.0 revolving credit facility (the Revolving Credit Facility and together with the Term Loan, the Facilities). Amounts outstanding under the Facilities generally bear interest, at the Companys option, at either (a) a base rate determined by reference to the higher of (i) Wells Fargos prime lending rate, (ii) the federal funds effective rate plus 0.50% and (iii) Term SOFR (as defined in the Credit Agreement based on SOFR, the secured overnight financing rate administered by the Federal Reserve Bank of New York) plus 1.00% or (b) Term SOFR plus a credit spread adjustment of 0.10% plus a margin ranging from 0.75% to a cap of 1.75% in the case of loans under the Revolving Credit Facility and 2.00% in the case of the Term Loan depending on the Companys consolidated ratio of total net debt to consolidated EBITDA (as defined in the Credit Agreement) from time to time. The Facilities are subject to a SOFR floor of 0.00%. As of June 27, …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates total revenue by geographic origin: Three Months Ended June 27, 2026 June 28, 2025 United States $ 467.0 $ 388.5 International 52.5 47.5 Total $ 519.5 $ 436.0

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6. Fair Value Fair value is defined as the price that would be expected to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs for the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As a result of the occurrence of triggering events such as purchase accounting for acquisitions, the Company measures certain assets and liabilities based on Level 3 inputs. Financial Instruments The Companys financial instruments consist primarily of cash, accounts receivable, trade accounts payable, accrued expenses, short-term borrowings, long-term debt, and derivatives in the form of a cross currency swap. Due to their short-term nature, the carrying value of cash, accounts receivable, trade accounts payable, accrued expenses and short-term borrowings are a reasonable esti …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

8. Goodwill and Intangible Assets Goodwill Goodwill balances, by segment, consist of the following: Aerospace & Defense Industrial Total March 28, 2026 $ 327.1 $ 1,676.3 $ 2,003.4 Currency translation adjustments (0.9 ) (0.9 ) June 27, 2026 $ 327.1 $ 1,675.4 $ 2,002.5 Intangible Assets Weighted June 27, 2026 March 28, 2026 Average Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Product approvals 24 $ 50.7 $ 24.5 $ 50.7 $ 24.1 Customer relationships and lists 24 1,378.7 287.3 1,378.9 272.8 Trade names 24 224.7 52.1 224.7 50.0 Patents and trademarks 15 10.3 7.0 10.3 6.9 Domain names 10 0.4 0.4 0.4 0.4 Internal-use software 3 29.0 16.4 25.3 12.8 Other 4 38.4 10.1 38.3 7.7 1,732.2 397.8 1,728.6 374.7 Non-amortizable repair station certifications n/a 24.3 24.3 Total 23 $ 1,756.5 $ 397.8 $ 1,752.9 $ 374.7 Amortization expense for definite-lived intangible assets during the three-month periods ended June 27, 2026 and June 28, 2025 was $21.0 and $17.9, respectively. These amounts are included in other, net on the Companys consolidated statements of operations. Estimated amortization expense for the remainder of fiscal 2027 and for the five succeeding fiscal years and thereafter is as follows: Remainder of Fiscal 2027 $ 62.6 Fiscal 2028 81.3 Fiscal 2029 78.8 Fiscal 2030 73.0 Fiscal 2031 69.3 Fiscal 2032 69.3 Fiscal 2033 and thereafter 900.1 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

11. Income Taxes The Company files income tax returns in numerous U.S. and foreign jurisdictions, with returns subject to examination for varying periods, but generally back to and including the year ending April 1, 2023, although certain tax credits generated in earlier years are open under statute from March 29, 2008. The Company is no longer subject to U.S. federal tax examination by the Internal Revenue Service for years ending before April 1, 2023. The effective income tax rates for the three-month periods ended June 27, 2026 and June 28, 2025, were 22.1% and 21.9% respectively. In addition to discrete items, the effective income tax rates for both these periods were different from the U.S. statutory rates due to the foreign-derived intangible income provision and U.S. credit for increasing research activities, which decreased the rate, and state income taxes, foreign income taxes, and nondeductible compensation, which increased the rate. The effective income tax rate for the three-month period ended June 27, 2026 of 22.1% included $1.4 of discrete tax benefits associated with stock-based compensation and $0.1 of other items. The effective income tax rate without discrete items for the three-month period ended June 27, 2026 would have been 23.2%. The effective income tax rate for the three-month period ended June 28, 2025 of 21.9% included $2.3 of discrete tax benefits associated with stock-based compensation partially offset by $1.3 of other items. The effective income …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Standards Adopted The Company did not adopt any new accounting pronouncements during the three-month ended June 27, 2026.

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3. Revenue from Contracts with Customers Disaggregation of Revenue The following table disaggregates total revenue by end market which is how we view our reportable segments (see Note 12): Three Months Ended June 27, 2026 June 28, 2025 Aerospace & Defense $ 225.4 $ 164.6 Industrial 294.1 271.4 Total $ 519.5 $ 436.0 The following table disaggregates total revenue by geographic origin: Three Months Ended June 27, 2026 June 28, 2025 United States $ 467.0 $ 388.5 International 52.5 47.5 Total $ 519.5 $ 436.0 The following table illustrates the approximate percentage of revenue recognized for performance obligations satisfied over time versus the amount of revenue recognized for performance obligations satisfied at a point in time: Three Months Ended June 27, 2026 June 28, 2025 Point-in-time 95 % 98 % Over time 5 % 2 % Total 100 % 100 % Remaining Performance Obligations Remaining performance obligations represent the transaction price of orders meeting the definition of a contract in Accounting Standards Codification (ASC) Topic 606 Revenue from Contracts with Customers , for which work has not been performed or has been partially performed and excludes unexercised contract options. The duration of the majority of our contracts, as defined by ASC Topic 606, is less than one year. The Company has elected to apply the practical expedient, which allows the Company to exclude remaining performance obligations with an original expected duration of one year or less. The aggregate am …

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12. Reportable Segments The Company operates through two operating segments and reports its financial results based on how its chief operating decision maker makes operating decisions, assesses the performance of the business, and allocates resources. Our operating segments are our reportable segments. These reportable segments are Aerospace & Defense and Industrial and are described below. Aerospace & Defense. This segment represents the end markets for the Companys highly engineered bearings and precision components used in commercial aerospace, defense aerospace, defense marine, defense ground vehicles, missiles and guided munitions, and space and satellite applications. We supply precision products for many of the commercial aircraft currently operating worldwide and are the primary bearing supplier for many of the aircraft OEMs product lines. Commercial and defense aerospace customers generally require precision products, often constructed of special materials and made to unique designs and specifications. Many of our aerospace bearings and engineered component products are designed and certified during the original development of the aircraft being served, which often makes us the primary bearing supplier for the life of that aircraft. Industrial. This segment represents the end markets for the Companys highly engineered bearings and precision components used in various industrial applications including: construction, mining, forestry, energy, agricultural and o …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. Significant Accounting Policies The Companys significant accounting policies are detailed in Note 2 - Summary of Significant Accounting Policies of our Annual Report. Significant changes to our accounting policies as a result of adopting new accounting standards are discussed below. Recent Accounting Standards Adopted The Company did not adopt any new accounting pronouncements during the three-month ended June 27, 2026. Recent Accounting Standards Yet to Be Adopted In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE). The new standard requires disclosure of specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. As of June 27, 2026, the Company is evaluating the impact the standard will have on its consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal Use Software. The new standard amends the existing standard that refers to various stages of a software development project to align better with current software development methods, such as agile programming. ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reportin …

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14. Subsequent Events Since June 27, 2026, the Company paid down $50.0 on the Term Loan, reducing the outstanding balance to $46.0.

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