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

Regal Rexnord (NYSE:RRX) released its quarterly earnings results on Tuesday. The company reported $2.90 earnings per share for the quarter, topping analysts’ consensus estimates of $2.65 by $0.25, reports. The company had revenue of $1.59 billion during the quarter, compared to analysts’ expectations of $1.56 billion. Regal Rexnord had a return on equity of 9.93% and a net margin of 5.35%. The business’s revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period 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 Performance

Regal Rexnord stock traded up $17.70 during mid-day trading on Tuesday, hitting $178.63. 1,480,038 shares of the company’s stock traded hands, compared to its average volume of 1,142,428. Regal Rexnord has a one year low of $127.96 and a one year high of $247.80. The firm has a 50 day moving average price of $157.73 and a 200 day moving average price of $189.29. The company has a quick ratio of 1.16, a current ratio of 2.28 and a debt-to-equity ratio of 0.66. The company has a market cap of $11.90 billion, a PE ratio of 36.79, a price-to-earnings-growth ratio of 1.28 and a beta of 1.09.

Regal Rexnord Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 14th. Investors of record on Thursday, December 31st will be given a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 0.8%. The ex-dividend date is Thursday, December 31st. Regal Rexnord’s dividend payout ratio (DPR) is currently 28.87%.

Analyst Ratings Changes

Several research firms recently commented on RRX. Weiss Ratings restated a “hold (c)” rating on shares of Regal Rexnord in a report on Thursday, October 15th. Oppenheimer dropped their price objective on Regal Rexnord from $245.00 to $200.00 and set an “outperform” rating on the stock in a report on Thursday, October 8th. The Goldman Sachs Group set a $216.00 target price on Regal Rexnord in a research report on Wednesday, September 30th. Wall Street Zen raised shares of Regal Rexnord from a “hold” rating to a “buy” rating in a research report on Saturday, October 24th. Finally, KeyCorp cut their price target on shares of Regal Rexnord from $265.00 to $240.00 and set an “overweight” rating on the stock in a report on Thursday, August 6th. 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 data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus 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.