Overview
U.S. industrial components supplier's Q1 sales rose 4.3%, beating analyst expectations
Adjusted EPS for Q1 increased slightly and beat analyst expectations
Company reaffirmed 2026 adjusted EPS guidance and named Aamir Paul as next CEO
Outlook
Regal Rexnord re-affirms 2026 adjusted diluted EPS guidance of $10.20-$11.00
Company expects accelerating organic sales growth and higher margins in coming quarters
Regal Rexnord sees continued strength in industrial and automation markets supporting outlook
Result Drivers
AMC SEGMENT GROWTH - Automation & Motion Control orders rose over 34%, led by broad-based demand and particular strength in data center, aerospace & defense, discrete automation and medical markets
IPS ORDER ACCELERATION - Industrial Powertrain Solutions saw order acceleration in distribution and high single digit growth in short cycle OEM business, reflecting improving industrial macro metrics
RESIDENTIAL HVAC WEAKNESS - Power Efficiency Solutions sales declined due to expected weakness in residential HVAC, partly offset by commercial HVAC growth
Company press release: ID:nPn5v3rNPa
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$1.48 bln
$1.43 bln (9 Analysts)
Q1 Adjusted EPS
Beat
$2.17
$2.12 (10 Analysts)
Q1 EPS
$0.96
Q1 Net Income
$64.30 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "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 Corp is $240.00, about 8.1% above its May 5 closing price of $222.02
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 15 three months ago
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.)