Regal Rexnord Q3 sales beat estimates on data center demand
RRX•Regal Rexnord’s third-quarter sales rose 6% to $1.59 billion, beating the $1.56 billion estimate, while adjusted diluted EPS increased to $2.90 from $2.51 a year earlier. The company reported a $12.3 million net loss and raised its 2026 adjusted EPS outlook to $10.60-$10.90.
1. Quarterly results
Regal Rexnord reported third-quarter sales of $1.59 billion, up 6% and above analyst expectations of $1.56 billion. Adjusted diluted EPS rose to $2.90 from $2.51 a year earlier, while the company posted a $12.3 million net loss that included a $119 million goodwill impairment.
2. Demand and outlook
Data center sales surged 307%, and commercial HVAC orders grew 47%. Industrial Powertrain Solutions sales fell 1.9% amid weakness in metals and mining. Regal Rexnord lowered and narrowed its 2026 GAAP EPS guidance to $3.76-$4.06, raised and narrowed its adjusted diluted EPS guidance to $10.60-$10.90, and said it is conducting a portfolio review that includes exploring a sale of its AMS business.
