A spindle assembly for a machine tool comprising a housing having at least one bearing seat, a bearing having inner and outer races mounted in the bearing seat, a sleeve disposed between a race of the bearing and the housing, adhesively bonded to the housing, and a spindle mounted on the other race of the bearing wherein the spindle is axially aligned relative to the bearing and the spindle and bearing are displaceable axially relative to the sleeve rigidly secured to the housing.