Regal Rexnord reported second quarter sales of $1.56 billion, a 4.2% increase year-over-year but a slight miss against the $1.58 billion estimate. Adjusted EPS rose 20.6% to $2.99, beating expectations of $2.60; however, the beat was driven entirely by a one-time $0.39 tariff refund benefit.
Key Highlights
- Total sales grew 4.2% YoY to $1.56 billion, supported by 3.3% organic growth, though this was slightly below analyst consensus.
- The key Automation & Motion Control (AMC) segment posted strong 15.6% organic sales growth, with daily orders up 17.1%, showing continued momentum in data center and automation markets.
- The Power Efficiency Solutions (PES) segment saw organic sales decline 6.6% due to weakness in residential HVAC and pool markets.
- Full-year 2026 adjusted EPS guidance was reaffirmed at a midpoint of $10.60, with the range narrowed to $10.35 to $10.85, which now includes an expected $0.57 benefit from tariff refunds.