Regal Rexnord (NYSE:RRX) Posts Earnings Results

Regal Rexnord (NYSE:RRX) announced its quarterly earnings data on Wednesday. The company reported $2.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.58 by $0.41, FiscalAI reports. The company had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.58 billion. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. The business’s quarterly revenue was up 4.2% compared to the same quarter last year. During the same period in the previous year, the company earned $2.48 EPS. Regal Rexnord updated its FY 2026 guidance to 10.350-10.850 EPS.

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

• Order momentum remained strong, with enterprise daily orders up 8.8% year over year in Q2 and 7% in July; AMC orders rose 17.1%, led by aerospace and defense, discrete automation, and data centers.
• AMC sales increased 15.6% organically, prompting the company to raise its full-year AMC growth outlook to low double digits. The ePOD facility remains on schedule, with approximately $15 million of revenue now expected in Q4 and additional orders potentially arriving late this year or early 2027.
• Despite strong orders, management lowered its underlying 2026 adjusted EBITDA margin outlook to 21.3% excluding tariff refunds, citing slower productivity gains, inflation outpacing price realization, and unfavorable mix; second-half price-cost pressure is expected to persist.
• Segment outlooks diverged, with IPS growth reduced to low single digits due to large-project timing and prior-year metals and mining comparisons, while PES now expects flat to low-single-digit sales decline amid weak residential HVAC and pool markets, channel destocking, and softer consumer demand.
• Adjusted EPS guidance was maintained at a $10.60 midpoint, including $48 million of expected tariff-refund benefits, while free-cash-flow guidance fell $50 million to $600 million as stronger AMC growth requires more working capital; net leverage is still expected to fall below 3x in the second half.

Regal Rexnord Price Performance

Shares of Regal Rexnord stock traded down $34.23 during trading on Wednesday, hitting $185.81. The stock had a trading volume of 3,071,179 shares, compared to its average volume of 1,113,500. Regal Rexnord has a fifty-two week low of $127.96 and a fifty-two week high of $247.80. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.17 and a quick ratio of 1.08. The firm has a market cap of $12.37 billion, a P/E ratio of 43.35, a PEG ratio of 1.40 and a beta of 1.09. The business has a fifty day moving average of $213.60 and a two-hundred day moving average of $202.63.

Regal Rexnord Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 30th will be paid a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Wednesday, September 30th. Regal Rexnord’s dividend payout ratio (DPR) is currently 32.56%.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Regal Rexnord in a research note on Friday, July 17th. Wolfe Research set a $250.00 price objective on Regal Rexnord in a research note on Thursday, July 9th. Citigroup upped their target price on Regal Rexnord from $240.00 to $260.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. DA Davidson started coverage on shares of Regal Rexnord in a research report on Tuesday, June 16th. They set a “buy” rating and a $260.00 price target for the company. Finally, KeyCorp lifted their price target on shares of Regal Rexnord from $255.00 to $265.00 and gave the stock an “overweight” rating in a research note on Thursday, May 7th. Eight research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $247.00.

Trending Headlines about Regal Rexnord

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

• Positive Sentiment: Regal Rexnord reported second-quarter adjusted EPS of $2.99, up from $2.48 a year earlier and above the roughly $2.58–$2.60 analyst consensus. Adjusted EBITDA increased 11.2% year over year to $366.6 million. Regal Rexnord Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Operating indicators were constructive: daily orders rose 8.8%, sales increased 4.2% year over year to $1.56 billion, with organic growth of 3.3%, while operating cash flow reached $176.6 million and free cash flow was $154.1 million. The company also expects net leverage to fall below 3.0 times adjusted EBITDA during the second half of 2026. Quarterly Financial Results
• Neutral Sentiment: Management narrowed its full-year 2026 adjusted EPS guidance to $10.35–$10.85, maintaining a midpoint of $10.60. However, the range includes approximately $0.57 per share from IEEPA tariff refunds, which may make the underlying earnings outlook less compelling. Regal Rexnord Tops Q2 Earnings Estimates
• Negative Sentiment: Revenue fell short of analyst expectations, and investors focused on margin pressure and the quality of the earnings beat. Second-quarter adjusted EBITDA and adjusted EPS benefited from a $32 million tariff refund, or $0.39 per share, while the full-year guidance midpoint is below consensus expectations of approximately $10.69 per share. These factors outweighed the earnings and order growth, contributing to the stock’s decline. Regal Rexnord’s Shares Fall as Margin Outlook Weighs

Insider Activity at Regal Rexnord

In other Regal Rexnord news, CFO Robert Rehard sold 6,499 shares of the company’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $200.00, for a total value of $1,299,800.00. Following the transaction, the chief financial officer owned 27,965 shares of the company’s stock, valued at approximately $5,593,000. This represents a 18.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Louis V. Pinkham sold 22,509 shares of the company’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $211.68, for a total value of $4,764,705.12. Following the sale, the chief executive officer directly owned 56,749 shares of the company’s stock, valued at approximately $12,012,628.32. This represents a 28.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 30,305 shares of company stock valued at $6,341,869 over the last ninety days. Insiders own 0.63% of the company’s stock.

Institutional Investors Weigh In On Regal Rexnord

Hedge funds and other institutional investors have recently made changes to their positions in the company. Parallel Advisors LLC raised its position in Regal Rexnord by 6.5% during the fourth quarter. Parallel Advisors LLC now owns 888 shares of the company’s stock valued at $125,000 after acquiring an additional 54 shares in the last quarter. UMB Bank n.a. grew its position in Regal Rexnord by 6.2% in the fourth quarter. UMB Bank n.a. now owns 1,023 shares of the company’s stock worth $144,000 after acquiring an additional 60 shares in the last quarter. Geneos Wealth Management Inc. grew its position in Regal Rexnord by 35.3% in the second quarter. Geneos Wealth Management Inc. now owns 299 shares of the company’s stock worth $43,000 after acquiring an additional 78 shares in the last quarter. First Citizens Bank & Trust Co. increased its stake in shares of Regal Rexnord by 1.5% during the 4th quarter. First Citizens Bank & Trust Co. now owns 5,490 shares of the company’s stock worth $770,000 after purchasing an additional 83 shares during the last quarter. Finally, Smartleaf Asset Management LLC raised its holdings in shares of Regal Rexnord by 19.3% during the 4th quarter. Smartleaf Asset Management LLC now owns 637 shares of the company’s stock valued at $91,000 after purchasing an additional 103 shares in the last quarter. 99.72% of the stock is owned by hedge funds and other institutional investors.

About Regal Rexnord

Regal Rexnord Corporation (NYSE: RRX) is a global industrial manufacturer specializing in electric motors, power generation equipment and automated motion control systems. The company designs, engineers and produces a broad portfolio of products that includes energy-efficient electric motors, variable frequency drives, gearboxes, couplings, bearings and power transmission components. These offerings support critical applications in industries such as heating, ventilation and air conditioning (HVAC), refrigeration, data centers, water treatment, food and beverage processing, mining, oil and gas, and material handling.

The company’s operations are organized into multiple business segments that address distinct customer needs.