Regal Rexnord (NYSE:RRX) Announces Quarterly Earnings Results

Regal Rexnord (NYSE:RRX) released its quarterly earnings data on Wednesday. The company reported $2.99 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.58 by $0.41, FiscalAI reports. Regal Rexnord had a return on equity of 9.49% and a net margin of 4.78%.The company had revenue of $1.56 billion during the quarter, compared to analysts’ expectations of $1.57 billion. During the same period last year, the firm posted $2.48 earnings per share. The business’s revenue was up 4.2% on a year-over-year basis. 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

RRX opened at $184.16 on Thursday. 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 business has a fifty day simple moving average of $213.16 and a 200 day simple moving average of $202.81. Regal Rexnord has a 1 year low of $127.96 and a 1 year high of $247.80. The company has a market capitalization of $12.26 billion, a PE ratio of 42.83, a price-to-earnings-growth ratio of 1.46 and a beta of 1.09.

Regal Rexnord Dividend Announcement

The company 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 yield of 0.8%. Regal Rexnord’s payout ratio is 32.56%.

Insiders Place Their Bets

In other Regal Rexnord news, CFO Robert Rehard sold 6,499 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $200.00, for a total transaction of $1,299,800.00. Following the transaction, the chief financial officer owned 27,965 shares in the company, valued at $5,593,000. This trade represents a 18.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Robin A. Walker-Lee sold 1,297 shares of Regal Rexnord 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 of the company’s stock, valued at $1,176,816.55. This represents a 19.07% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 30,305 shares of company stock worth $6,341,869 in the last 90 days. Company insiders own 0.63% of the company’s stock.

Institutional Trading of Regal Rexnord

Several hedge funds and other institutional investors have recently bought and sold shares of RRX. Invesco Ltd. grew its position in shares of Regal Rexnord by 27.1% during the 4th quarter. Invesco Ltd. now owns 1,905,828 shares of the company’s stock worth $267,426,000 after purchasing an additional 405,828 shares in the last quarter. First Citizens Bank & Trust Co. boosted its stake in shares of Regal Rexnord by 1.5% in the fourth quarter. First Citizens Bank & Trust Co. now owns 5,490 shares of the company’s stock valued at $770,000 after buying an additional 83 shares during the period. EP Wealth Advisors LLC bought a new stake in shares of Regal Rexnord in the fourth quarter valued at approximately $353,000. Empowered Funds LLC grew its position in Regal Rexnord by 15.2% during the fourth quarter. Empowered Funds LLC now owns 12,100 shares of the company’s stock worth $1,698,000 after buying an additional 1,596 shares in the last quarter. Finally, XTX Topco Ltd acquired a new stake in Regal Rexnord during the fourth quarter worth approximately $777,000. Institutional investors and hedge funds own 99.72% of the company’s stock.

Key Headlines Impacting Regal Rexnord

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

• Positive Sentiment: Adjusted earnings were $2.99 per share, well above the $2.58–$2.60 analyst consensus and up from $2.48 a year earlier. Adjusted EBITDA increased 11.2% to $366.6 million, while daily orders rose 8.8%, suggesting solid demand momentum. Regal Rexnord Tops Q2 Earnings Estimates
• Positive Sentiment: Sales rose 4.2% year over year to $1.558 billion, including 3.3% organic growth. GAAP net income climbed 46.7% to $116.8 million, and the company generated $154.1 million in free cash flow. Management also expects net leverage to fall below 3.0 times adjusted EBITDA in the second half of 2026. Regal Rexnord Reports Second Quarter 2026 Financial Results
• Neutral Sentiment: Regal Rexnord narrowed its 2026 adjusted EPS outlook to $10.35–$10.85, with a $10.60 midpoint. The guidance includes approximately $0.57 per share of IEEPA tariff refunds, meaning part of the expected earnings benefit is nonrecurring. Why Regal Rexnord Stock Is Trading Lower Today
• Negative Sentiment: Quarterly revenue came in below the approximately $1.57 billion analyst estimate. Investors also focused on margin concerns, particularly because second-quarter adjusted EBITDA and EPS benefited from a $32 million tariff refund, raising questions about underlying profitability and the durability of earnings growth. Regal Rexnord Shares Fall as Margin Outlook Weighs
• Negative Sentiment: The adjusted EPS guidance midpoint is modestly below the roughly $10.69 consensus estimate. Thus, despite the earnings beat and stronger orders, investors appear to be pricing in limited near-term upside and greater uncertainty around margins and organic growth. Regal Rexnord Reports Sales Below Analyst Estimates

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on RRX shares. Wall Street Zen cut Regal Rexnord from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Regal Rexnord in a research report on Friday, July 17th. Deutsche Bank Aktiengesellschaft began coverage on shares of Regal Rexnord in a report on Monday, July 20th. They issued a “buy” rating and a $286.00 price objective on the stock. DA Davidson began coverage on shares of Regal Rexnord in a research report on Tuesday, June 16th. They issued a “buy” rating and a $260.00 price objective on the stock. Finally, UBS Group set a $260.00 target price on shares of Regal Rexnord in a research note on Monday, June 15th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $247.00.

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.