Regal Rexnord (NYSE:RRX – Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $2.99 earnings per share for the quarter, topping 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 return on equity of 9.93% and a net margin of 5.35%.Regal Rexnord’s revenue for the quarter was up 4.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.48 earnings per share. 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 $0.04 on Friday, hitting $178.97. 495,733 shares of the stock were exchanged, compared to its average volume of 1,123,157. The company has a market capitalization of $11.91 billion, a PE ratio of 36.93, a P/E/G ratio of 1.22 and a beta of 1.09. The company has a debt-to-equity ratio of 0.66, a current ratio of 2.28 and a quick ratio of 1.08. The business’s fifty day moving average is $212.69 and its 200 day moving average is $202.95. Regal Rexnord has a 52 week low of $127.96 and a 52 week high of $247.80.
Regal Rexnord Dividend Announcement
Wall Street Analysts Forecast Growth
A number of equities analysts have weighed in on RRX shares. Wall Street Zen downgraded Regal Rexnord from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 18th. Weiss Ratings reissued a “hold (c)” rating on shares of Regal Rexnord in a research report on Friday, July 17th. DA Davidson assumed coverage on shares of Regal Rexnord in a report on Tuesday, June 16th. They set a “buy” rating and a $260.00 target price for the company. JPMorgan Chase & Co. lifted their price target on shares of Regal Rexnord from $230.00 to $240.00 and gave the company an “overweight” rating in a research note on Tuesday, May 26th. Finally, Oppenheimer reissued an “outperform” rating on shares of Regal Rexnord in a research report on Friday, July 10th. Eight equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $244.92.
Insider Transactions at Regal Rexnord
In other news, Director Robin A. Walker-Lee sold 1,297 shares of the business’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $213.85, for a total transaction of $277,363.45. Following the transaction, the director directly owned 5,503 shares in the company, valued at $1,176,816.55. The trade was a 19.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Louis V. Pinkham sold 22,509 shares of the company’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $211.68, for a total transaction of $4,764,705.12. Following the completion of the sale, the chief executive officer directly owned 56,749 shares in the company, valued at approximately $12,012,628.32. The trade was a 28.40% decrease in their ownership of the stock. 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 ninety days. Insiders own 0.63% of the company’s stock.
Institutional Trading of Regal Rexnord
Hedge funds have recently made changes to their positions in the business. Invesco Ltd. increased its holdings 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 acquiring an additional 405,828 shares during the last quarter. First Citizens Bank & Trust Co. lifted its holdings in Regal Rexnord by 1.5% during the 4th quarter. First Citizens Bank & Trust Co. now owns 5,490 shares of the company’s stock valued at $770,000 after purchasing an additional 83 shares during the last quarter. EP Wealth Advisors LLC bought a new position in Regal Rexnord during the fourth quarter worth $353,000. Empowered Funds LLC boosted 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 purchasing an additional 1,596 shares during the period. Finally, XTX Topco Ltd acquired a new position in shares of Regal Rexnord in the fourth quarter valued at $777,000. 99.72% of the stock is owned by institutional investors and hedge funds.
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.
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