REGAL REXNORD CORP (RRX): Results of Operations and Financial Condition
REGAL REXNORD CORP (RRX) filed an SEC Form 8-K — Results of Operations and Financial Condition. FOR RELEASE ON: August 5, 2026 CONTACT: Robert Barry VP - Investor Relations 608-361-7530 robert.barry@regalrexnord.com REGAL REXNORD REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS MILWAUKEE, WI - Regal Rexnord Corporation (NYSE: RRX) 2Q Highlights • Daily Orders Up 8.8% Versus PY
How this was made
The 30-second read
Why it matters
Traders can update models using the narrowed EPS ranges, the quantified refund contribution, and segment-level sales and margin commentary, then reassess whether order momentum translates into sustained profitability.
Market read
Fresh earnings and guidance ranges with explicit refund assumptions make this a direct catalyst for consensus revisions and near-term positioning.
What to watch
Management cites lag in price realization versus inflation and modestly unfavorable segment mix, which could cap upside even with stronger orders and margin support from synergies.
REGAL REXNORD REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS
Daily orders, sales, GAAP net income, adjusted EBITDA and both GAAP and adjusted diluted EPS increased versus the prior year. Growth was led by AMC, while PES sales declined amid residential HVAC and pool weakness. Results and guidance include IEEPA tariff refund benefits, and management cited inflation, price realization, mix and productivity timing as offsets.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Daily Ordersother | Up 8.8% Versus PY | – | Up 8.8% Versus PY |
| SalesGAAP | $1,558.4 Million | – | Up 4.2% Versus PY |
| Organic salesother | Up 3.3% On An Organic Basis | – | Up 3.3% On An Organic Basis |
| Net incomeGAAP | $116.8 Million | – | Up $37.2 Million Or 46.7% Versus PY |
| Adjusted EBITDAnon-GAAP | $366.6 Million | – | Up $36.9 Million Or 11.2% Versus PY |
| IEEPA tariff refund benefit in Adjusted EBITDAnon-GAAP | $32.0 Million | – | – |
| Diluted EPSGAAP | $1.74 | – | Up 46.2% Versus PY |
| Adjusted Diluted EPSnon-GAAP | $2.99 | – | Up 20.6% Versus PY |
| IEEPA tariff refund benefit in Adjusted Diluted EPSnon-GAAP | $0.39 | – | – |
| Cash From Operating ActivitiesGAAP | $176.6 Million | – | – |
| Free Cash Flownon-GAAP | $154.1 Million | – | – |
| Net Debt To Adjusted EBITDA (Including Synergies)other | 3.06x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Automation & Motion Control (AMC)Growth was broad-based, but with particular strength in the data center, discrete automation, and aerospace & defense markets. Adjusted EBITDA margin was 21.1% of net sales or 19.9% excluding refunds. | $477.7 million | – | an increase of 16.2%, or an increase of 15.6% on an organic basis |
| Industrial Powertrain Solutions (IPS)Growth was strongest in the energy market. Adjusted EBITDA margin was 27.1% of net sales or 25.9% excluding refunds. | $669.4 million | – | an increase of 3.0%, or an increase of 2.0% on an organic basis |
| Power Efficiency Solutions (PES)Weakness in the residential HVAC and pool markets, which was partially offset by strength in the commercial HVAC market. Adjusted EBITDA margin was 20.5% of net sales or 16.2% excluding refunds. | $411.3 million | – | a decrease of 5.5%, or a decrease of 6.6% on an organic basis |
2026 outlook
- NoteGAAP EPS guidance range narrowed to $5.42 to $5.92.
- NoteAdjusted Diluted EPS guidance range narrowed to $10.35 to $10.85.
- NoteAdjusted Diluted EPS guidance range includes expected IEEPA tariff refund benefits worth $0.57 per share.
- NoteAdjusted Diluted EPS guidance range mid-point remains $10.60.
- NoteExpect To Be Below 3.0x In The Second Half Of 2026.
What drove it
- Enterprise daily orders increased 8.8% year over year, led by 17.1% daily orders growth in AMC.
- Organic sales growth accelerated to 3.3%.
- AMC growth was broad-based, with particular strength in data center, discrete automation, and aerospace & defense.
- IPS growth was strongest in energy.
- Commercial HVAC strength partially offset weakness in residential HVAC and pool markets.
- Incremental synergies aided adjusted EBITDA margins.
- Management described a strong and broad-based underlying demand environment and positive order momentum across the business.
Concerns
- Greater-than-expected headwinds in Resi-HVAC, pool, mining and agriculture markets.
- PES sales decreased due to weakness in the residential HVAC and pool markets.
- Management cited a longer timeline to realize planned productivity gains, in some cases to prioritize service levels.
- Management cited a lag in price realization relative to a faster pace of inflation.
- Management cited modestly unfavorable segment mix impacts.
- Second-quarter adjusted EBITDA and adjusted diluted EPS included IEEPA tariff refund benefits.
What to watch
- Whether enterprise daily-order momentum and AMC growth continue.
- The pace of price realization relative to inflation.
- Timing of planned productivity gains and the effect of prioritizing service levels.
- PES exposure to residential HVAC and pool-market weakness.
- Progress toward net debt to adjusted EBITDA below 3.0x in the second half of 2026.
- Realization of expected IEEPA tariff refund benefits worth $0.57 per share in 2026 adjusted diluted EPS guidance.
Balance sheet and cash flow
- Cash From Operating Activities of $176.6 Million.
- Free Cash Flow Of $154.1 Million.
- Net Debt To Adjusted EBITDA (Including Synergies) Ended 2Q At 3.06x.
- Expect To Be Below 3.0x In The Second Half Of 2026.
Analysis
Regal Rexnord reported a solid second quarter, with daily orders up 8.8% versus the prior year and sales of $1,558.4 Million, up 4.2% versus the prior year. Organic sales growth was 3.3%, which management said had accelerated despite greater-than-expected headwinds in Resi-HVAC, pool, mining and agriculture markets. The company described the demand backdrop as strong and broad-based, with positive order momentum across the business.
AMC was the principal growth engine. Its net sales increased 16.2%, or 15.6% on an organic basis, supported by data center, discrete automation, and aerospace & defense. IPS posted more moderate growth, with net sales up 3.0% and organic sales up 2.0%, led by energy. PES was the weak point, as net sales declined 5.5% and organic sales declined 6.6% due to residential HVAC and pool weakness, partly offset by commercial HVAC strength.
Profit and cash generation improved year over year. GAAP net income was $116.8 Million versus $79.6 Million, while adjusted EBITDA was $366.6 Million versus $329.7 Million. Diluted EPS was $1.74 and adjusted diluted EPS was $2.99. However, the quarter's adjusted EBITDA included a $32.0 Million IEEPA tariff refund benefit and adjusted diluted EPS included a $0.39 benefit. Management said margins excluding refunds were in line with expectations despite inflation, aided partly by incremental synergies, and noted sequential and year-over-year AMC margin improvement.
Cash From Operating Activities was $176.6 Million and Free Cash Flow was $154.1 Million. Net Debt To Adjusted EBITDA, including synergies, ended the second quarter at 3.06x, and the company expects to be below 3.0x in the second half of 2026. This deleveraging objective remains relevant given the company's stated substantial indebtedness and its objective of reducing indebtedness.
The company narrowed 2026 GAAP EPS guidance to $5.42 to $5.92 and narrowed adjusted diluted EPS guidance to $10.35 to $10.85. The adjusted range includes expected IEEPA tariff refund benefits worth $0.57 per share, while the midpoint remains $10.60. Management said its top-line outlook remains unchanged, but the outlook now reflects a longer timeline for productivity gains, a lag in price realization against faster inflation, and modestly unfavorable segment mix impacts.
Management, verbatim
I am honored to serve as Regal Rexnord’s sixth CEO and excited about the opportunities in front of us. I joined the Company because I believe Regal Rexnord is uniquely positioned to leverage its technology leadership, manufacturing scale, and deep customer relationships to address relevant needs across many attractive end markets. In particular, the development of solutions in eVTOL, robotics and data center are exciting frontiers where Regal Rexnord can play a meaningful role. To start, I am spending my time learning the business. Ultimately, the goal is to create a sustainable platform for growth, while also delivering predictable results along the way.
Aamir Paul, CEO
Regal Rexnord delivered solid second-quarter performance. Our mid-term sales growth outlook strengthened further, with enterprise daily orders increasing 8.8% year over year, led by 17.1% daily orders growth in AMC. This momentum reflects improving end markets and continued traction on our growth initiatives. Organic sales growth also accelerated, to 3.3%, despite greater-than-expected headwinds in Resi-HVAC, pool, mining and agriculture markets. Excluding IEEPA refunds, enterprise adjusted EBITDA margins were in line with expectations, despite incremental inflationary pressures, aided in part by incremental synergies; AMC margins improved sequentially and year over year; and adjusted diluted EPS increased versus the prior year.
Rob Rehard, CFO
Looking forward, our top line outlook remains unchanged. We are holding our adjusted EPS outlook range mid-point, including refunds. Our outlook also now reflects a longer timeline to realize planned productivity gains, in some cases to prioritize service levels. Additionally, we are experiencing a lag in price realization relative to a faster pace of inflation, and modestly unfavorable segment mix impacts. Importantly, these factors do not change our view of a strong and broad-based underlying demand environment. We continue to see positive order momentum across the business.
Rob Rehard, CFO
Not in the filing
stated, not guessed- Prior-quarter comparison for total sales.
- Prior-year sales amount.
- GAAP gross profit, gross margin, operating income, operating margin, and tax rate.
- GAAP and non-GAAP operating-expense figures.
- Prior-year and prior-quarter amounts for diluted EPS and adjusted diluted EPS.
- Prior-quarter amounts for net income, adjusted EBITDA, operating cash flow, and free cash flow.
- Absolute cash balance, debt balance, and net debt balance.
- Share repurchases, dividends, and other capital-return figures.
- Numerical 2026 revenue, gross-margin, operating-expense, and tax-rate guidance.
- Prior-period guidance was not provided, so actual results cannot be compared with prior guidance.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K with the company’s 2Q 2026 results and updated 2026 EPS guidance, including quantified IEEPA tariff refund benefits.
Ticker impact
Regal Rexnord reported 2Q 2026 results and narrowed 2026 GAAP EPS to $5.42-$5.92 and adjusted EPS to $10.35-$10.85.
Likely positive bias for the next session as traders reprice 2026 EPS ranges and the durability of order momentum, while watching for refund normalization.
The filing contains fresh, specific quarterly performance metrics (orders, sales, GAAP net income, adjusted EBITDA) and explicit guidance ranges with a quantified $0.57 per-share IEEPA benefit, which are direct inputs to valuation and consensus models.
Market effects
Signals improving demand/order momentum in automation and motion control and data center-related end markets, relevant to industrial automation supply chains.
Primarily US-listed industrials sentiment, with Milwaukee-based issuer guidance potentially influencing broader industrial machinery/automation tape.
IEEPA tariff refund benefit highlights cross-border trade policy effects on industrial earnings, relevant for global peers with similar exposure.
Counterpoint
The guidance includes IEEPA tariff refund benefits; if refunds prove less repeatable or timing shifts, the underlying earnings power could be overstated.
Key entities
- companyRegal Rexnord Corporation
NYSE-listed industrial technology and manufacturing company reporting 2Q 2026 results and narrowing 2026 EPS guidance.
- executiveAamir Paul
CEO referenced in the filing, discussing growth opportunities and execution focus.
- executiveRob Rehard
EVP and CFO referenced in the filing, discussing orders, margins, and guidance outlook.
- policy/benefitIEEPA tariff refund
Quantified as $32.0 million in 2Q adjusted EBITDA and $0.57 per share in 2026 adjusted EPS guidance.
