Regal Rexnord Q2 adjusted EPS beats on tariff refund benefit

Regal Rexnord

05/08/2026 12:19

Overview
Industrial motion products maker's Q2 sales rose 4% yr/yr but missed analyst expectations
Adjusted EPS for Q2 increased 21% and beat analyst expectations
Company narrowed 2026 adjusted EPS guidance range, midpoint unchanged, includes tariff refund benefit

Outlook
Regal Rexnord narrows 2026 GAAP EPS guidance to $5.42-$5.92
Company narrows 2026 adjusted EPS guidance to $10.35-$10.85, including $0.57 per share in tariff refunds
Regal Rexnord says underlying demand remains strong despite inflation and delayed productivity gains

Result Drivers
ORDER MOMENTUM - Daily orders rose 8.8% yr/yr, led by 17.1% growth in Automation & Motion Control, reflecting improving end markets and growth initiatives, per CFO Rob Rehard
SEGMENT PERFORMANCE - Automation & Motion Control sales grew 16.2%, driven by strength in data center, discrete automation, and aerospace & defense markets; Power Efficiency Solutions sales fell 5.5% due to weakness in residential HVAC and pool markets, partially offset by commercial HVAC
TARIFF REFUND BENEFIT - Adjusted EPS and EBITDA included a $32 mln IEEPA tariff refund, contributing $0.39 per share to adjusted EPS

Company press release: ID:nPn98D5VMa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$1.56 bln
$1.58 bln (11 Analysts)
Q2 Adjusted EPS
Beat
$2.99
$2.58 (11 Analysts)
Q2 EPS
 
$1.74
 
Q2 Net Income
 
$116.80 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 $260.00, about 18.2% above its August 4 closing price of $220.04
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads
Aug 4 - Rockwell Automation raises 2026 profit forecast on strong industrial demand
Aug 4 - Emerson Electric beats quarterly estimates on robust automation demand
Aug 4 - Timken Q2 sales beat on higher volumes and pricing

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.)