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Regal Rexnord Q3 sales beat estimates on data center demand

By Reuters News


Overview

  • U.S. industrial components supplier's Q3 sales rose 6%, beating analyst expectations

  • Adjusted diluted EPS for Q3 rose to $2.90 from $2.51 a year ago

  • Company posted net loss on $119 mln goodwill impairment; exploring sale of AMS business


Outlook

  • Regal Rexnord lowers and narrows 2026 GAAP EPS guidance to $3.76-$4.06

  • Company raises and narrows 2026 adjusted diluted EPS guidance to $10.60-$10.90

  • Regal Rexnord is conducting a comprehensive portfolio review and exploring sale of AMS business


Result Drivers

  • DATA CENTER DEMAND - Co said data center sales surged 307% in Q3, with strength in E-Pods and discrete automation

  • COMMERCIAL HVAC ORDERS - Co reported 47% growth in commercial HVAC orders, aided by new air moving solutions

  • METALS & MINING WEAKNESS - IPS segment sales fell 1.9% due to weakness in metals and mining, partially offset by strength in discrete automation and energy markets


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$1.59 bln

$1.56 bln (11 Analysts)

Q3 Net Loss

$12.30 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Regal Rexnord Corporation is $231.00, about 43.5% above its November 2 closing price of $160.93

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 17 three months ago


Reuters Recommended Reads

  • Nov 3 - Eaton Q3 sales, EPS beat estimates on strong demand

  • Nov 3 - Zebra Technologies Q3 revenue beats on strong demand across segments

  • Nov 3 - DuPont Q3 sales beat estimates, lifts 2026 profit outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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