Regal Rexnord (RRX) Q3 2026 Earnings Report
MX:RRX Q3 2026 EPS Results
- Actual EPS
- MXN 53.81
- Consensus EPS
- MXN 49.14
- Beat/Miss
- Beat by +MXN 4.68
- One Year Ago EPS
- MXN 46.58
MX:RRX Q3 2026 Revenue Results
- Actual Revenue
- MXN 29.47B
- Expected Revenue
- MXN 28.98B
- Beat/Miss
- Beat by +MXN 491.34M
- YoY Revenue Growth
- +6.08%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/03/2026
- Time
- Before Open
- Conference Call
- Tuesday, November 3, 2026
Regal Rexnord's next earnings date is estimated for February 10, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was broadly positive, supported by accelerating organic sales, strong orders in several markets, higher full-year sales and EPS guidance, improved deleveraging, and significant data center and ePOD opportunities. However, plant execution, material planning, IPS shipment shortfalls, margin pressure, inflation, and portfolio complexity remain meaningful challenges that management expects will require several quarters to address.
For 2026, Regal Rexnord now expects approximately $6.22 billion of sales, or approximately 4.8% growth, adjusted EBITDA margin of approximately 22%, or 21.2% excluding refunds, depreciation of approximately $152 million, an adjusted effective tax rate of approximately 20.8%, adjusted EPS of $10.60-$10.90 with an adjusted guidance midpoint of $10.75, and free cash flow of $600 million; the outlook assumes no further impact from refunds in the fourth quarter. AMC full-year growth is expected at mid-teens, with $40 million of fourth-quarter ePOD sales and $65 million in total for 2026; IPS growth is expected at flat to low single digits, with its 2026 margin expectation coming down about 40 basis points; and PES sales growth is unchanged, while its 2026 margin expectation is rising about 70 basis points, with fourth-quarter margin just over 100 basis points above the level implied in the prior segment margin outlook. ePOD revenue is expected to be about $550 million or so next year, roughly split between the first and second half of the year, with the remainder extending into early 2028.
- Broad-Based Order Growth and Improving DemandThird-quarter orders increased 5.7% versus the prior year on a daily basis, or 13.3% excluding data center. October daily enterprise orders were up 24%, or 15% excluding data center, with strong demand across all three segments.
- Organic Sales and Adjusted EPS GrowthThird-quarter organic sales growth accelerated to 6.1% versus the prior year. Adjusted EPS excluding IEEPA tariff refunds was $2.72, $0.15 ahead of the expected midpoint and up 8.4% versus the prior year; adjusted EPS including the net refund benefit was $2.90.
- Free Cash Flow and Deleveraging ProgressThird-quarter free cash flow was $194 million. The company directed post-dividend cash flow to debt reduction and reached a net debt-to-adjusted EBITDA ratio of 2.9 times.
- Strong AMC Revenue and Data Center PerformanceAMC organic sales increased 25.2% in the third quarter, including 11.2% growth excluding data center. ePOD sales contributed $25 million, ahead of expectations. Switchgear sales were up 158% year-to-date and are expected to reach roughly $200 million in 2026, exceeding the prior expectation of $180 million.
- AMC Order Momentum Excluding Data CenterAMC daily orders increased 21.4% excluding data center in the third quarter, reflecting broad-based strength, particularly in aerospace and defense and discrete automation. October daily AMC orders were up 38%, or 16% excluding data center.
- Strong IPS Orders and BacklogIPS daily orders increased 9.6% in the third quarter, with energy orders up over 30%, discrete automation orders up nearly 30%, and metals and mining orders showing high single-digit growth. The segment achieved record orders, book-to-bill was 1.09, and 2027 shippable backlog was up 20% year over year.
- PES Commercial HVAC and Air-Moving MomentumPES daily orders increased 12% in the third quarter. Commercial HVAC order growth accelerated to over 60%, commercial markets increased over 30%, and October daily PES orders were up 40%. New axial fan and expanded plug fan offerings for data center ventilation and cooling received encouraging customer feedback.
- Raised Full-Year Sales and EPS GuidanceThe company raised its 2026 sales outlook to approximately $6.22 billion, representing approximately 4.8% growth, compared with approximately $6.2 billion and 4.5% growth previously. Adjusted EPS guidance increased to a midpoint of $10.75 from $10.60, with the range raised and narrowed to $10.60-$10.90.
- Improved Tax Outlook and Maintained Cash Flow GuidanceThe adjusted effective tax rate outlook was reduced to approximately 20.8% from 21.5% because of tax planning strategies that will provide one-time benefits in the quarter and should structurally lower the effective tax rate going forward. Full-year free cash flow guidance remained $600 million.
- Segment Outlook ImprovementsThe company raised AMC's full-year growth expectation to mid-teens from low double digits, increased expected 2026 ePOD revenue to $65 million, and raised PES's 2026 margin expectation by about 70 basis points. Stronger AMC growth and PES profitability are expected to offset weaker IPS performance.
- ePOD Revenue and Scaling OpportunityThe company expects ePOD revenue of $65 million in 2026 and approximately $550 million in 2027, with shipments expected to begin in the first quarter and ramp throughout the year; the remainder is expected to extend into early 2028. Three additional accounts are in design validation, and the Texas facility has capacity that comfortably extends into 2028, with additional shift capacity available.
- Strategic Portfolio Review and Growth PrioritiesManagement identified three priorities: driving operational improvement, focusing resources on fewer higher-potential growth opportunities, and building a stronger growth mindset. The company is reviewing every business using organic sales growth plus EBITDA margin, cash generation, return on invested capital, capital intensity, customer value, and structural growth potential.
- Commercial Coverage, Innovation, and Operational InitiativesThe company is expanding commercial coverage, including sellers, inside sales, and distribution partnerships, while planning to increase R&D intensity after narrowing the portfolio. It is also aligning data and operating systems, simplifying processes, consolidating secondary ERPs where appropriate, and using targeted third-party support to accelerate scaling actions.
- AMS Review with No Expected Material Earnings ImpactThe company is exploring a sale of its Autonomous Mobile Solutions business, which represents a low single-digit percentage of AMC sales. Management stated that it believes AMS has significant potential under the right ownership and does not expect a material impact on earnings from the action.
MX:RRX Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 10, 2027 | 2026 (Q4) | 50.86- | 46.58 | ― | ― |
| Nov 03, 2026 | 2026 (Q3) | 49.1453.81 | 46.58 | 15.54% (+7.24) | |
| Aug 05, 2026 | 2026 (Q2) | 47.9755.48 | 46.02 | 20.56% (+9.46) | |
| May 06, 2026 | 2026 (Q1) | 39.2340.27 | 39.9 | 0.93% (+0.37) | |
| Feb 04, 2026 | 2025 (Q4) | 45.8946.58 | 43.42 | 7.26% (+3.15) | |
| Oct 29, 2025 | 2025 (Q3) | 47.0446.58 | 46.2 | 0.80% (+0.37) | |
| Aug 05, 2025 | 2025 (Q2) | 45.4146.02 | 42.49 | 8.30% (+3.53) | |
| May 05, 2025 | 2025 (Q1) | 33.8639.90 | 37.11 | 7.50% (+2.78) | |
| Feb 05, 2025 | 2024 (Q4) | 45.8043.42 | 42.31 | 2.63% (+1.11) | |
| Nov 04, 2024 | 2024 (Q3) | 45.9446.20 | 38.97 | 18.57% (+7.24) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
