RBC reported that aerospace and defense end markets continued to underpin revenue growth in the third quarter, with aftermarket sales rising by 14% year-over-year. Strength in landing gear and engine components contributed to a 12% increase in organic sales, while the integration of the VACCO acquisition delivered $28 million in incremental revenue. Management highlighted that the company’s backlog reached a record $750 million, supporting visibility into fiscal 2025. Despite these gains, raw-material inflation added nearly 200 basis points to cost of goods sold, and softness in industrial end markets trimmed margin expansion by approximately 50 basis points.

Eight sell-side firms currently cover RBC, issuing a consensus recommendation of Moderate Buy. Six analysts have maintained Buy ratings, citing robust defense spending and acquisition synergies, while two have stayed on Hold, pointing to margin pressures from rising input costs. In recent weeks, Weiss Ratings reiterated its Buy outlook; Truist Financial affirmed its Buy stance and increased its revenue forecast for 2025; Deutsche Bank upheld its Buy assessment; Bank of America upgraded the stock from Neutral to Buy; and Zacks Research adjusted its view to Hold following mixed margin performance in Q3.