Regal Rexnord shares rise 11.47% before the open after beating third-quarter estimates
Key Facts
Regal Rexnord shares rose 11.47% to $179.39 in premarket trading on November 3, 2026, after closing the previous session at $160.93, according to Investing.com. The move followed the industrial equipment maker’s third-quarter results, which beat analyst estimates, along with an increase to its 2026 adjusted earnings outlook range. Adjusted EPS was $2.90, versus an estimate of $2.65. Revenue was $1.59 billion, ahead of expectations of $1.56 billion. The results also showed divergence across the company’s segments, while a non-cash goodwill impairment affected net income and its GAAP earnings outlook.
Third-quarter sales were $1.588 billion, up 6% from the same period a year earlier, according to investor relations data. Daily orders rose 6% year over year, while order growth reached 13% excluding data centers. The company’s data center-related sales stood out, rising 307%, or 169% excluding E-Pods products. Commercial HVAC orders also rose 47%, supported by new air-movement solutions, while discrete automation orders increased 26%. Order growth accompanied an increase in adjusted EBITDA to $351 million from $339 million a year earlier, a rise of 4%; adjusted EBITDA was $337 million excluding tariff refunds.
Performance varied across business units in the third quarter, with Automation & Motion Control sales rising 24.5%, Industrial Powertrain Solutions sales declining 1.9% and Power Efficiency Solutions sales increasing 1.2%. The company attributed weakness in Industrial Powertrain Solutions to declines in metals and mining markets, partly offset by activity in discrete automation and energy markets. This presents a more mixed picture than overall sales growth, with strong demand in some markets offset by weakness in others. Free cash flow was $193.7 million, up from $174.0 million in the third quarter of the previous year. These indicators point to strong demand in data centers and some automation and HVAC markets alongside challenges in other industrial segments.
The company reported a GAAP net loss of $12 million in the third quarter, compared with net income of $80 million in the corresponding period of 2025. It said the result included a non-cash goodwill impairment of $119 million, which reduced diluted EPS by $1.78 and was primarily related to its autonomous mobile solutions business. In light of this impact, the company raised its 2026 adjusted diluted EPS outlook range to $10.60–$10.90, with the midpoint at $10.75. It lowered its GAAP EPS outlook range, however, to $3.76–$4.06, including the impact of the goodwill impairment. It also raised its annual sales outlook to about $6.22 billion from about $6.20 billion previously, and said it expects growth of about 4.8%.
Alongside the outlook update, Regal Rexnord said it had begun a comprehensive review of its portfolio and was exploring a sale of its autonomous mobile solutions business within the Automation & Motion Control segment. The business is also linked to the goodwill impairment the company announced, making the portfolio review part of the developments accompanying the third-quarter results. The company is scheduled to hold a call to discuss the results on November 3, 2026, at 10:00 a.m. Eastern Time. The call provides a scheduled opportunity to present investors with details of the results and outlook. The share price movements cited here reflect trading before the market opened that day.