Regal Rexnord (NYSE:RRX) Releases Earnings Results, Beats Estimates By $0.25 EPS

Regal Rexnord (NYSE:RRX) issued its quarterly earnings data on Tuesday. The company reported $2.90 earnings per share for the quarter, topping the consensus estimate of $2.65 by $0.25, reports. The company had revenue of $1.59 billion for the quarter, compared to analysts’ expectations of $1.56 billion. Regal Rexnord had a net margin of 5.35% and a return on equity of 9.93%. Regal Rexnord’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.51 earnings per share.

Here are the key takeaways from Regal Rexnord’s conference call:

• Third-quarter results exceeded expectations: organic sales rose 6.1%, adjusted EPS excluding tariff refunds increased 8.4% to $2.72, and free cash flow reached $194 million. Net leverage improved to 2.9x adjusted EBITDA.
• Demand strengthened broadly, with third-quarter daily orders up 5.7% and October orders up 24% enterprise-wide. Commercial HVAC, data center-related products, discrete automation, aerospace and defense, and energy markets were notable areas of strength.
• Operational execution is limiting revenue conversion and margins, particularly in IPS, where plant throughput, material planning, and manufacturing inefficiencies increased past-due backlog. Management expects recovery to take several quarters and has paused most plant consolidations while prioritizing output.
• Regal Rexnord raised its 2026 sales outlook to approximately $6.22 billion and adjusted EPS midpoint to $10.75, while maintaining $600 million of free cash flow guidance. The outlook reflects stronger AMC and PES performance offsetting weaker IPS results.
• Management launched a broad portfolio review using growth, margin, cash generation, returns, and strategic fit criteria, and is exploring a sale of Autonomous Mobile Solutions, which represents a low-single-digit percentage of AMC sales. The company also expects approximately $550 million of E-Pod revenue in 2027, with shipments beginning in the first quarter.

Regal Rexnord Stock Down 7.0%

NYSE:RRX traded down $12.57 on Wednesday, hitting $167.36. The stock had a trading volume of 635,198 shares, compared to its average volume of 1,148,313. The company has a quick ratio of 1.16, a current ratio of 2.28 and a debt-to-equity ratio of 0.66. Regal Rexnord has a 52 week low of $127.96 and a 52 week high of $247.80. The business’s fifty day moving average is $158.05 and its 200 day moving average is $189.41. The company has a market cap of $11.14 billion, a PE ratio of 34.50, a P/E/G ratio of 1.28 and a beta of 1.09.

Regal Rexnord Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 14th. Shareholders of record on Thursday, December 31st will be issued a $0.35 dividend. The ex-dividend date is Thursday, December 31st. This represents a $1.40 annualized dividend and a yield of 0.8%. Regal Rexnord’s dividend payout ratio is presently 28.87%.

Key Regal Rexnord News

Here are the key news stories impacting Regal Rexnord this week:

• Positive Sentiment: Q3 adjusted earnings beat estimates: EPS was $2.90, versus analyst expectations of about $2.65, while revenue rose 6% year over year to $1.588 billion. Daily orders also increased 6%. Regal Rexnord Q3 2026 results
• Positive Sentiment: Data-center sales surged 307% (up 169% excluding E-Pods), highlighting a fast-growing demand driver. Adjusted EBITDA was $351 million, and management said it was ahead of expectations excluding IEEPA tariff refunds. Regal Rexnord Q3: Data Center Surge Powers Earnings Beat
• Positive Sentiment: Regal Rexnord raised its 2026 adjusted EPS guidance to $10.60–$10.90, signaling improved expectations for the full year. Regal Rexnord raises 2026 adjusted EPS guidance
• Neutral Sentiment: The company is exploring a sale of its AMS business. A divestiture could sharpen its portfolio, but the outcome and terms remain uncertain. Regal Rexnord raises guidance while exploring AMS sale
• Negative Sentiment: Despite the adjusted earnings beat, the company posted a $12 million GAAP net loss, compared with $80 million of net income a year earlier; a goodwill impairment was reported for the quarter. This headline loss may temper the positive operating news. Regal Rexnord reports goodwill impairment
• Negative Sentiment: The earnings call also highlighted execution risks, which could make investors cautious about delivering the outlook and converting strong demand into results. Earnings call signals growth amid execution risks

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on RRX shares. The Goldman Sachs Group set a $216.00 price objective on Regal Rexnord in a research report on Wednesday, September 30th. Citigroup decreased their price target on Regal Rexnord from $220.00 to $200.00 and set a “buy” rating for the company in a report on Monday, October 12th. JPMorgan Chase & Co. dropped their price objective on Regal Rexnord from $240.00 to $196.00 and set an “overweight” rating on the stock in a research note on Friday, October 9th. Oppenheimer lowered their target price on Regal Rexnord from $245.00 to $200.00 and set an “outperform” rating for the company in a report on Thursday, October 8th. Finally, Wall Street Zen upgraded Regal Rexnord from a “hold” rating to a “buy” rating in a report on Saturday, October 24th. Eight investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $230.50.

About Regal Rexnord

Regal Rexnord Corporation is an industrial manufacturing company that develops and produces electric motors, power transmission components, motion-control systems and other equipment used in industrial and commercial applications. Its products include motors, gearboxes, bearings, couplings, belts, chains, drives, clutches, brakes and related controls, as well as air-moving and power-management solutions.

The company serves customers across industries such as automation, material handling, food and beverage, renewable energy, heating and ventilation, agriculture, and general industrial production.