RBC (RBC) Q4 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 15, 2026 astatine 11:14 AM CDT 25 min read

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DATE

Friday, May 15, 2026 astatine 11 a.m. ET

CALL PARTICIPANTS

• Chairman, President, and Chief Executive Officer — Michael J. Hartnett

• Vice President and Chief Financial Officer — Robert Sullivan

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Full Conference Call Transcript

Michael J. Hartnett: Thank you, Joshua. Good morning, and convey you each for joining america this morning. As usual, I volition statesman today's telephone with a little reappraisal of our fiscal results and item respective cardinal trends we spot crossed the sectors. Then I volition crook the telephone implicit to Robert Sullivan, who volition supply further details connected our fiscal show for the 4th quarter. Fourth 4th nett income accrued 18.3% twelvemonth implicit twelvemonth to $518 cardinal driven by continued momentum successful our A and D conception and dependable maturation successful our concern businesses. Consolidated gross borderline was 44.4% for the 4th oregon 45.3% connected an adjusted basis.

Adjusted diluted EPS accrued twelvemonth implicit twelvemonth to $33.62 compared to $2.83 successful the anterior twelvemonth period. Adjusted EBITDA roseate 21% to $168.9 cardinal up from $139.8 cardinal past year. Free currency travel remained a beardown 67.5 cardinal and we paid down an further $116 cardinal of indebtedness during the quarter. Now turning to our 2 concern segments, astir 57% of our gross during the 4th came from and 43% came from our Industrial segment. Our A and D concern has continued to present exceptional show with conception gross expanding 41.2% compared to the anterior twelvemonth period.

This beardown momentum successful aerospace and defence is further reflected successful our backlog, which has continued to grow and presently stands astatine astir $2.3 cardinal This maturation continues to beryllium driven by robust request crossed the defence and abstraction markets. Along with unprecedented commercialized craft physique rates astatine the large builders. For the afloat year, income were up 32%, of which 19.1% was organic. With respect to our concern segments, Commercial Aircraft was up 17.8%, 17.3% of which was organic. Defense was up 65.4%, of which 22.1% was organic.

Our cardinal gross drivers first, arsenic galore of you know, marine has been a important contributor to our backlog maturation driven by accelerating physique retired of the submarine fleet Given the strategical value of submarines wrong today's defence strategies, we expect this to stay a meaningful tailwind arsenic accumulation rates proceed to ramp crossed each subcontracts. For some the Virginia and Columbia people programs arsenic good arsenic fleet spares. We are adding machinery and level abstraction to accommodate accrued accumulation rates arsenic we speak. Next is missiles. Missile related gross was up importantly this twelvemonth with gross for this assemblage exceeding $45 cardinal successful the fiscal year. Some of this summation did travel from our caller VACCO acquisition.