Regal Rexnord Q3 sales beat estimates on data center demand

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

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

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(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.)