Regal Rexnord beats Q2 sales, adjusted EPS estimates

Regal Rexnord

05/08/2025 21:40

Overview

Regal Rexnord Q2 sales down 3.3% yr/yr, beat analyst expectations, per LSEG data

Adjusted EPS for Q2 rises 8.3% and beats consensus, per LSEG data

Co awarded $35 mln data center order in July, with sales to start by EOY

Outlook

Regal Rexnord narrows 2025 adjusted EPS guidance to $9.70-$10.30

Company expects 2025 adjusted free cash flow over $1 bln inclusive

Mitigation actions to neutralize tariff impacts on 2025 adjusted EPS

Company on track for $170 mln cross-sell synergies in 2025

Result Drivers

HVAC MARKET - Growth in residential and commercial HVAC markets boosted PES segment sales

PROJECT TIMING - IPS segment sales impacted by timing of large projects in metals & mining market

RARE EARTH MAGNETS - AMC segment faced margin pressure due to rare earth magnet availability, expected to improve later

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$1.50 bln
$1.49 bln (11 Analysts)
Q2 Adjusted EPS
Beat
$2.48
$2.44 (11 Analysts)
Q2 EPS
$1.19
Q2 Net Income
$79.60 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 2 "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 Corp is $175.00, about 15.7% above its August 4 closing price of $147.51

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn4pRvlna

(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.)