Regal Rexnord (NYSE:RRX) Issues Earnings Results, Beats Estimates By $0.41 EPS

Regal Rexnord (NYSE:RRX) posted its quarterly earnings results on Wednesday. The company reported $2.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.58 by $0.41, FiscalAI reports. Regal Rexnord had a net margin of 4.78% and a return on equity of 9.49%. The firm had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.58 billion. During the same period in the prior year, the firm posted $2.48 earnings per share. The company’s quarterly revenue was up 4.2% compared to the same quarter last year. 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 Stock Performance

NYSE:RRX traded down $34.40 during mid-day trading on Wednesday, reaching $185.65. 2,945,878 shares of the company’s stock were exchanged, compared to its average volume of 1,112,973. Regal Rexnord has a one year low of $127.96 and a one year high of $247.80. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.08 and a current ratio of 2.17. The business’s fifty day simple moving average is $213.60 and its two-hundred day simple moving average is $202.63. The firm has a market capitalization of $12.36 billion, a PE ratio of 43.48, a price-to-earnings-growth ratio of 1.40 and a beta of 1.09.

Regal Rexnord Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 30th will be paid a $0.35 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $1.40 annualized dividend and a dividend yield of 0.8%. Regal Rexnord’s dividend payout ratio is 32.56%.

Insiders Place Their Bets

In other Regal Rexnord news, CEO Louis V. Pinkham sold 22,509 shares of Regal Rexnord stock in a transaction on Monday, May 11th. The stock was sold at an average price of $211.68, for a total value of $4,764,705.12. Following the completion of the transaction, the chief executive officer directly owned 56,749 shares of the company’s stock, valued at $12,012,628.32. The trade was a 28.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Robin A. Walker-Lee sold 1,297 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $213.85, for a total value of $277,363.45. Following the sale, the director directly owned 5,503 shares in the company, valued at approximately $1,176,816.55. This trade represents a 19.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 30,305 shares of company stock worth $6,341,869 in the last quarter. Corporate insiders own 0.63% of the company’s stock.

Institutional Investors Weigh In On Regal Rexnord

A number of large investors have recently bought and sold shares of the company. Geneos Wealth Management Inc. raised its position in shares of Regal Rexnord by 135.1% in the 1st quarter. Geneos Wealth Management Inc. now owns 221 shares of the company’s stock valued at $25,000 after buying an additional 127 shares in the last quarter. Advisory Services Network LLC bought a new position in Regal Rexnord in the third quarter valued at approximately $35,000. Los Angeles Capital Management LLC acquired a new position in Regal Rexnord during the fourth quarter valued at approximately $43,000. Capital Analysts LLC lifted its stake in Regal Rexnord by 67.8% during the fourth quarter. Capital Analysts LLC now owns 334 shares of the company’s stock worth $47,000 after purchasing an additional 135 shares during the last quarter. Finally, Johnson Financial Group Inc. bought a new position in shares of Regal Rexnord in the 3rd quarter valued at $60,000. 99.72% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

RRX has been the topic of several research analyst reports. Deutsche Bank Aktiengesellschaft assumed coverage on Regal Rexnord in a research note on Monday, July 20th. They issued a “buy” rating and a $286.00 price objective on the stock. DA Davidson assumed coverage on Regal Rexnord in a report on Tuesday, June 16th. They set a “buy” rating and a $260.00 target price on the stock. Citigroup increased their price target on Regal Rexnord from $240.00 to $260.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. JPMorgan Chase & Co. lifted their price objective on shares of Regal Rexnord from $230.00 to $240.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 26th. Finally, Oppenheimer reiterated an “outperform” rating on shares of Regal Rexnord in a report on Friday, July 10th. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $247.00.

Key Headlines Impacting 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

Regal Rexnord Company Profile

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.