MILWAUKEE, Nov. 3, 2026 /PRNewswire/ -- Regal Rexnord Corporation (NYSE: RRX)

3Q Highlights

- Daily Orders Up 6% Versus PY

- Sales Of $1,588 Million, Up 6% Versus PY

- Data Center Sales Up 307%, Or Up 169% Excluding E-Pods  

- GAAP Net Loss Of $12 Million* Versus PY GAAP Net Income Of $80 Million

- Adjusted EBITDA Of $351 Million Versus PY Of $339 Million, Up $12 Million, Or 4%, Versus PY

- Adjusted EBITDA Of $337 Million Excluding IEEPA Tariff Refunds, Ahead Of Expectations

- Net Debt To Adjusted EBITDA (Including Synergies) Ended 3Q At 2.9x

CEO Aamir Paul commented on the third quarter performance, "Our third quarter execution showed steady progress. We delivered adjusted EBITDA excluding IEEPA refunds slightly ahead of our expectations. We had healthy order demand across the portfolio, with 13% orders growth excluding data centers. We were encouraged by the orders growth in commercial HVAC, up 47%, aided by new air moving solutions. Discrete automation orders were up 26%. Data center order growth continues to scale, with some specific project order timing effects in the quarter."

Providing a strategic update, Paul continued, "Four months into the role, I see opportunities to accelerate profitable growth. These encompass improving operational performance, sharpening the focus of our growth agenda, and building a stronger growth mindset in our team. To improve focus and maximize value creation at the enterprise level, we have begun a comprehensive review of our portfolio, working closely with our Board and with the support of outside advisors. Ultimately the goal is directing capital to our most attractive opportunities. While this work is ongoing, we are committed to moving with urgency when we see opportunity. Today's announcement that we are exploring the sale of our autonomous mobile solutions business in the AMC segment reflects this approach. We plan to share further updates when we have something definitive to share."

Paul concluded, "There is significant work ahead, but we have a strong foundation and clear opportunities to build upon. I am confident in our ability to deliver on that potential and excited about what lies ahead."

Guidance Update

We are lowering and narrowing our 2026 GAAP EPS guidance to a range of $3.76 to $4.06*. We are raising and narrowing our 2026 Adjusted Diluted EPS guidance range to $10.60 to $10.90. Our Adjusted Diluted EPS guidance range mid-point rises to $10.75.

Segment Performance

Segment results for the third quarter of 2026 versus the same period of the prior year are summarized below:

- Automation & Motion Control (AMC) net sales were $500.6 million, an increase of 24.5%, or an increase of 25.2% on an organic basis. Growth was broad-based, but with particular strength in data center, including $25 million of sales related to E-Pods, and in discrete automation. Adjusted EBITDA margin was 19.2% of net sales or 18.7% excluding net IEEPA refund benefits.

- Industrial Powertrain Solutions (IPS) net sales were $649.5 million, a decrease of 1.9%, or a decrease of 1.8% on an organic basis driven by weakness in metals and mining partially offset by strength in discrete automation and energy markets. Adjusted EBITDA margin was 26.0% of net sales or 25.2% excluding net IEEPA refund benefits.

- Power Efficiency Solutions (PES) net sales were $437.9 million, an increase of 1.2%, or an increase of 0.4% on an organic basis. Growth in the commercial HVAC market was partially offset by weakness in the residential HVAC and pool markets. Adjusted EBITDA margin was 19.7% of net sales, or 18.1% excluding net IEEPA refund benefits.

Conference Call

Regal Rexnord will hold a conference call to discuss this earnings release at 9:00 AM CT (10:00 AM ET) on Tuesday, November 3, 2026. To listen to the live audio and view the presentation during the call, please visit Regal Rexnord's Investor website: https://investors.regalrexnord.com. To listen by phone or to ask the presenters a question, dial 1-877-264-6786 (U.S. callers) or 1-412-317-5177 (international callers) and enter 7570153# when prompted. Participants on the call will include Aamir Paul, CEO, and Rob Rehard, EVP & CFO.

A webcast replay will be available at the link above, and a telephone replay will be available at 1-855-669-9658 (U.S. callers) or 1-412-317-0088 (international callers), using a replay access code of 9141496#. Both replays will be accessible for three months after the earnings call.

Supplemental Materials

Supplemental materials and additional information for the quarter ended September 30, 2026 will be accessible before the conference call on November 3, 2026 on Regal Rexnord's Investor website: https://investors.regalrexnord.com. The Company intends to disseminate important information about the Company to its investors on the Investors section of its website: https://investors.regalrexnord.com. Investors are advised to look at Regal Rexnord's website for future important information about the Company. The content of the Company's website is not incorporated by reference into this document or any other report or document Regal Rexnord files with the Securities and Exchange Commission.

About Regal Rexnord

Regal Rexnord's 30,000 associates around the world help create a better tomorrow by providing sustainable solutions that power, transmit and control motion. The Company's electric motors and air moving subsystems provide the power to create motion. A portfolio of highly engineered power transmission components and subsystems efficiently transmits motion to power industrial applications. The Company's automation offering, comprised of controllers, drives, precision motors, and actuators, controls motion in applications ranging from factory automation to precision tools used in surgical applications.

The Company's end markets benefit from meaningful secular demand tailwinds, and include discrete automation, food & beverage, aerospace & defense, medical, data center, energy, residential and commercial buildings, general industrial, and metals and mining.

Regal Rexnord is comprised of three operating segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions. Regal Rexnord is headquartered in Milwaukee, Wisconsin and has manufacturing, sales and service facilities worldwide. For more information, including a copy of our Sustainability Report, visit RegalRexnord.com.

Forward Looking Statements

All statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as "anticipate," "believe," "confident," "estimate," "expect," "intend," "plan," "may," "will," "project," "forecast," "would," "could," "should," and similar expressions, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Forward-looking statements include, but are not limited to, statements about expected market or macroeconomic trends, future strategic plans, and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements in this communication include, without limitation: the possibility that the Company may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the sale of the Industrial Motors and Generators businesses in 2024 and the acquisition of Altra Industrial Motion Corp. in 2023 ("Altra Transaction") within the expected time-frames or at all and to successfully integrate Altra Industrial Motion Corp.