Regal Rexnord Posts 6% Sales Growth, Raises Adjusted EPS Guidance

What happened

Regal Rexnord reported third-quarter 2026 sales of $1.588 billion, up 6% from a year earlier, and adjusted diluted EPS of $2.90. The company raised its 2026 adjusted diluted EPS guidance to a range of $10.60 to $10.90.

Confirmed

Global impact / market context

The raised adjusted profit guidance signals management expects stronger underlying earnings ahead. Adjusted figures exclude a $119.3 million goodwill impairment charge, a write-down of past acquisition value, so reported net loss of $12.5 million contrasts with healthier adjusted earnings.

Analyst inference

Orders rising 6%, with data center sales up 307%, suggest demand is shifting toward faster-growing areas. Commercial HVAC orders up 47% and discrete automation orders up 26% indicate broad industrial demand, while the portfolio review and potential sale of the mobile solutions unit may reshape the business mix.

Analyst inference

What to watch

1. Watch whether the raised 2026 adjusted diluted EPS guidance of $10.60 to $10.90 holds, given lowered GAAP diluted EPS guidance of $3.76 to $4.06. Confirmed
2. Monitor progress of the comprehensive portfolio review and any decision on a possible sale of the autonomous mobile solutions business, which could change revenue mix. Proposed
3. Track whether data center and HVAC order growth converts into sales, since orders rising ahead of revenue can signal future demand or execution risk. Analyst inference

Evidence

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