Regal Rexnord 8-K
PositiveEarningsGuidance
Automation & Motion Control led order growth as end markets improved; FY2026 adjusted EPS guidance narrowed to $10.35–$10.85.
Filed 2026-08-05 07:06 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with narrowed FY2026 EPS guidance. Daily orders rose 8.8% Y/Y, with growth led by Automation & Motion Control (AMC); management cited improving end markets and continued traction on growth initiatives. The company narrowed both EPS outlook ranges, while keeping the adjusted EPS midpoint and top-line outlook unchanged.
Key Figures
| Metric | Q2 2026 | H1 2026 |
|---|---|---|
| Revenue | $1.56B, +4.2% Y/Y; organic +3.3% | $3.04B, +4.2% Y/Y; organic +2.5% |
| Gross margin | 39.2%, vs 37.7% | 38.2%, vs 37.5% |
| Operating income | $215M, +18.0% Y/Y | $368M, +7.5% Y/Y |
| Adjusted EBITDA (non-GAAP) | $367M, +11.2% Y/Y | $671M, +5.0% Y/Y |
| Net income attributable to Regal Rexnord Corporation | $117M, +47.2% Y/Y | $181M, +32.6% Y/Y |
| Diluted EPS | $1.74, +46.2% Y/Y | $2.71, +32.2% Y/Y |
| Adjusted diluted EPS (non-GAAP) | $2.99, +20.6% Y/Y | $5.15, +11.2% Y/Y |
| Operating cash flow | $177M, -66.2% Y/Y | $192M, -69.4% Y/Y |
| Free cash flow | $154M, -68.7% Y/Y | $152M, -73.8% Y/Y |
- Adjusted EBITDA included a $32.0M IEEPA tariff refund benefit; adjusted diluted EPS included $0.39 per share of benefits.
- Segment sales: AMC $478M, +16.2% Y/Y, led by data center, discrete automation, and aerospace and defense; Industrial Powertrain Solutions $669M, +3.0%, led by energy; Power Efficiency Solutions $411M, -5.5%, reflecting residential HVAC and pool weakness.
- Cash was $442M, gross debt $4.61B, and net debt $4.17B at quarter-end. Net debt/adjusted EBITDA including synergies was 3.06x.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| GAAP diluted EPS | FY2026 | $5.42-$5.92 | — | Narrowed |
| Adjusted diluted EPS (non-GAAP) | FY2026 | $10.35-$10.85 | — | Narrowed |
| Net debt/adjusted EBITDA (including synergies) | H2 2026 | Below 3.0x | — | — |
Investor Takeaways
- Watch whether the company brings net debt/adjusted EBITDA including synergies below 3.0x in H2 2026.
- Continued order momentum will need to convert into results as planned productivity gains take longer, price realization lags inflation, and segment mix is modestly unfavorable.
The summary is written by an AI model reading the filing.
Model 005 · prompt 5998ea898f · 2026-10-16 20:30:41Z