Regal Rexnord narrowed 2026 GAAP EPS guidance to $5.42-$5.92.
The company narrowed 2026 adjusted EPS guidance to $10.35-$10.85, including $0.57 per share in tariff refunds.
Regal Rexnord said underlying demand remains strong despite inflation and delayed productivity gains.
Drivers of the quarter
Order momentum: Daily orders rose 8.8% year over year, led by 17.1% growth in Automation & Motion Control, reflecting improving end markets and growth initiatives, according to CFO Rob Rehard.
Segment performance: Automation & Motion Control sales grew 16.2%, driven by strength in data center, discrete automation, and aerospace & defense markets. Power Efficiency Solutions sales fell 5.5% due to weakness in residential HVAC and pool markets, partially offset by commercial HVAC.
Tariff refund benefit: Adjusted EPS and EBITDA included a $32 million IEEPA tariff refund, contributing $0.39 per share to adjusted EPS.
Regal Rexnord said second-quarter sales rose 4% year over year but missed analyst expectations, while adjusted EPS increased 21% and beat analyst expectations.
The company narrowed its 2026 guidance range, with the midpoint unchanged, and said the outlook includes a tariff refund benefit.
Key reported figures and analyst backdrop
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$1.56 billion
$1.58 billion (11 analysts)
Q2 Adjusted EPS
Beat
$2.99
$2.58 (11 analysts)
Q2 EPS
$1.74
Q2 Net Income
$116.80 million
The current average analyst rating on the shares is buy, with 11 strong buy or buy ratings, 1 hold rating, and no sell or strong sell ratings. The average consensus recommendation for the electrical components and equipment peer group is buy.
Wall Street's median 12-month price target for Regal Rexnord Corporation is $260.00, about 18.2% above its August 4 closing price of $220.04. The stock recently traded at 18 times the next 12-month earnings versus a P/E of 19 three months ago.
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