MILWAUKEE – November 03, 2026 -- Regal Rexnord Corporation (NYSE: RRX) reported third-quarter sales of $1,588 million, up 6% year on year, and said it is exploring the sale of its autonomous mobile solutions business within the Automation & Motion Control (AMC) segment.

Data center sales surge 307% while GAAP result turns to a loss

Data center sales rose 307%, or 169% excluding E-Pods. Daily orders climbed 6%, and orders excluding data centers grew 13%.

The company posted a GAAP net loss of $12 million, against net income of $80 million a year earlier. Adjusted EBITDA reached $351 million, up $12 million, or 4%, from $339 million. Excluding IEEPA tariff refunds, adjusted EBITDA was $337 million, which the company said was ahead of expectations.

Net debt to adjusted EBITDA, including synergies, ended the quarter at 2.9x.

Guidance: adjusted EPS midpoint rises to $10.75, GAAP outlook falls

Regal Rexnord raised and narrowed its 2026 adjusted diluted EPS guidance to $10.60-$10.90, lifting the midpoint to $10.75. It lowered and narrowed 2026 GAAP EPS guidance to $3.76-$4.06.

CEO Paul opens portfolio review and tests AMC unit sale

CEO Aamir Paul, four months into the role, said the company has begun a comprehensive portfolio review with its Board and outside advisors. The goal is to direct capital to the most attractive opportunities. The company plans to share updates once something is definitive.

Paul said "there is significant work ahead" but that the company has a strong foundation to build on.

AMC sales grow 24.5% on data center and discrete automation

AMC net sales were $500.6 million, up 24.5%, or 25.2% organically. Data center was a particular strength, including $25 million of E-Pod sales, as was discrete automation. Adjusted EBITDA margin was 19.2%, or 18.7% excluding net IEEPA refund benefits. Discrete automation orders rose 26%.

IPS sales slip 1.9% as metals and mining weaken

Industrial Powertrain Solutions net sales fell 1.9% to $649.5 million, down 1.8% organically. Weakness in metals and mining was partly offset by discrete automation and energy markets. Adjusted EBITDA margin was 26.0%, or 25.2% excluding net IEEPA refund benefits.

PES sales edge up 1.2% as commercial HVAC orders jump 47%

Power Efficiency Solutions net sales were $437.9 million, up 1.2%, or 0.4% organically. Commercial HVAC growth was partly offset by weakness in residential HVAC and pool markets. Commercial HVAC orders rose 47%, aided by new air moving solutions. Adjusted EBITDA margin was 19.7%, or 18.1% excluding net IEEPA refund benefits.

Paul said data center order growth continues to scale, with some project-specific order timing effects in the quarter.