Regal Rexnord 8-K
EarningsGuidanceImpairment / charge
Commercial HVAC and data centers lead broader order demand; FY2026 adjusted EPS guidance raised to $10.60–$10.90.
Filed 2026-11-03 08:14 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with revised FY2026 EPS guidance.
Order demand broadened across the portfolio, led by commercial HVAC, discrete automation and data centers. The company is reviewing its portfolio to focus capital on its most attractive opportunities and is exploring a sale of its autonomous mobile solutions business.
FY2026 GAAP diluted EPS guidance was lowered and narrowed to $3.76–$4.06, while adjusted diluted EPS guidance was raised and narrowed to $10.60–$10.90.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $1.59B, +6% Y/Y | $4.63B, +5% Y/Y |
| Gross margin | 37.2%, vs 37.0% | 37.9%, vs 37.3% |
| Operating income | $81.4M, -53% Y/Y | $449M, -13% Y/Y |
| Net (loss) income attributable to Regal Rexnord Corporation | $(12.5)M, vs $79.6M | $168M, -22% Y/Y |
| Diluted EPS | $(0.19), vs $1.20 | $2.52, -22% Y/Y |
| Adjusted diluted EPS (non-GAAP) | $2.90, +16% Y/Y | $8.05, +13% Y/Y |
| Operating cash flow | $220M, +11% Y/Y | $411M, -50% Y/Y |
| Free cash flow | $194M, +11% Y/Y | $345M, -54% Y/Y |
- Adjusted EBITDA (non-GAAP) was $351M, +4% Y/Y, including $14.7M of net tariff-refund benefits; excluding those benefits, it was $337M.
- Automation & Motion Control sales rose 24.5% to $501M, with $25M of sales from E-Pods and data-center sales up 307% (169% excluding E-Pods). Commercial HVAC orders increased 47% and discrete automation orders rose 26%. Industrial Powertrain Solutions sales fell 1.9%, driven by metals and mining weakness; Power Efficiency Solutions sales rose 1.2%, as commercial HVAC growth was partly offset by residential HVAC and pool weakness.
- A $119M noncash goodwill impairment, primarily related to the autonomous mobile solutions business, reduced diluted EPS by $1.78. At quarter-end, net debt was $4.00B and net debt to adjusted EBITDA including synergies was 2.92x.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| GAAP diluted EPS | FY2026 | $3.76–$4.06 | — | Lowered and narrowed |
| Adjusted diluted EPS (non-GAAP) | FY2026 | $10.60–$10.90 | — | Raised and narrowed |
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| GAAP diluted EPS | FY2026 | $5.42-$5.92 | $3.76–$4.06 | lowered |
| Adjusted diluted EPS (non-GAAP) | FY2026 | $10.35-$10.85 | $10.60–$10.90 | raised |
Investor Takeaways
- Watch for a definitive update on the possible sale of the autonomous mobile solutions business and the broader portfolio review; the outcome will show how the company’s capital-allocation priorities translate into action.
- Track data-center sales growth and commercial HVAC and discrete automation orders to see whether the markets driving current momentum continue to expand.
- Compare adjusted EBITDA excluding tariff-refund benefits with future results to assess whether operating performance sustains the improvement without those benefits.
The summary is written by an AI model reading the filing.
Model 005 · prompt v173 · 2026-11-03 15:38:19Z