REGAL REXNORD REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS
Rhea-AI Summary
Regal Rexnord (NYSE: RRX) reported second-quarter 2026 net sales of $1,558.4 million, up 4.2% year over year and 3.3% organically. GAAP net income rose to $116.8 million from $79.6 million, and diluted EPS increased to $1.74. Adjusted EBITDA was $366.6 million, up 11.2%, including a $32.0 million IEEPA tariff refund benefit; adjusted diluted EPS was $2.99, up 20.6%, including a $0.39 refund benefit.
Cash from operating activities was $176.6 million and free cash flow $154.1 million. Net debt to adjusted EBITDA (including synergies) was 3.06x, with an expectation to be below 3.0x in the second half of 2026. The company narrowed 2026 GAAP EPS guidance to $5.42–$5.92 and adjusted EPS guidance to $10.35–$10.85, including $0.57 per share of IEEPA refund benefits, while maintaining the adjusted EPS midpoint at $10.60. AMC and IPS segments grew, while PES declined due to residential HVAC and pool market weakness.
Positive
- Net sales $1,558.4M, up 4.2% YoY and 3.3% organically
- GAAP net income $116.8M, up 46.7% versus prior year
- Adjusted EBITDA $366.6M, up 11.2% including $32M IEEPA refund
- Adjusted diluted EPS $2.99, up 20.6% including $0.39 IEEPA benefit
- Enterprise daily orders +8.8% YoY; AMC daily orders +17.1%
- AMC sales $477.7M, up 16.2% (15.6% organic) with higher margins
- IPS sales $669.4M, up 3.0% (2.0% organic), strongest in energy
- Free cash flow $154.1M in Q2 2026
- Net debt / adjusted EBITDA 3.06x, expected below 3.0x in 2H26
- 2026 adjusted EPS guidance narrowed to $10.35–$10.85, midpoint $10.60
Negative
- PES sales $411.3M, down 5.5% (6.6% organic) on Resi-HVAC and pool weakness
- Q2 2026 operating cash flow $176.6M versus $523.2M in Q2 2025
- Six-month operating cash flow $191.6M versus $625.5M in prior-year period
- Company cites longer timeline for productivity gains in 2026 outlook
- Company reports lag in price realization versus faster pace of inflation
- Company notes modestly unfavorable segment mix impacts in outlook
News Explained
The release reports quarter-end cash and long-term debt alongside a higher share count, without tying that difference to a new issuance.
Regal Rexnord reported its second-quarter 2026 financial results for the quarter ended
Under the supplied definition of dilution, an increase caused by issuing additional shares would reduce an existing holder’s percentage ownership absent offsetting changes; the release does not establish that this share-count difference resulted from an issuance.
Market reaction after 2Q26 earnings report: RRX -9.10%
Following this news, RRX has declined 9.10%, reflecting a notable negative market reaction. Our momentum scanner has triggered 10 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $200.01.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | Q1 earnings report | Positive | -10.8% | Strong results and reaffirmed guidance preceded a 10.85% negative 24-hour reaction. |
| Feb 04 | Q4 earnings report | Positive | +12.2% | Order growth, data-center demand, and earnings strength preceded a 12.17% positive reaction. |
| Oct 29 | Q3 earnings report | Negative | -3.7% | Lowered guidance and tariff-related pressures preceded a 3.69% negative reaction. |
| Aug 05 | Q2 earnings report | Positive | +0.2% | Adjusted EPS growth and guidance narrowing preceded a 0.22% positive reaction. |
| May 05 | Q1 earnings report | Positive | +13.6% | EPS growth, positive cash flow, and reaffirmed guidance preceded a 13.57% positive reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings announcements were generally aligned with subsequent 24-hour price reactions, except for the strongly negative reaction to the positive Q1 2026 report.
Key Terms
adjusted ebitda financial
organic sales growth financial
net debt to adjusted ebitda financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
2Q Highlights
- Daily Orders Up
8.8% Versus PY - Sales Of
, Up$1,558.4 Million 4.2% Versus PY, Up3.3% On An Organic Basis - GAAP Net Income Of
Versus PY Of$116.8 Million , Up$79.6 Million Or$37.2 Million 46.7% Versus PY - Adjusted EBITDA Of
Versus PY Of$366.6 Million , Up$329.7 Million Or$36.9 Million 11.2% Versus PY - 2Q 2026 Adjusted EBITDA Includes IEEPA Tariff Refund Benefit Of
$32.0 Million - Diluted EPS Of
, Up$1.74 46.2% Versus PY; Adjusted Diluted EPS Of , Up$2.99 20.6% Versus PY - 2Q 2026 Adjusted Diluted EPS Includes IEEPA Tariff Refund Benefit Of
$0.39 - Cash From Operating Activities of
; Free Cash Flow Of$176.6 Million $154.1 Million - Net Debt To Adjusted EBITDA (Including Synergies) Ended 2Q At 3.06x; Expect To Be Below 3.0x In The Second Half Of 2026
- 2026 GAAP EPS Guidance Range Narrowed To
To$5.42 $5.92 - 2026 Adjusted EPS Guidance Range Narrowed To
To$10.35 , Inclusive Of IEEPA Tariff Refund Benefits Worth$10.85 Per Share; Midpoint Remains$0.57 $10.60
CEO Aamir Paul commented, "I am honored to serve as Regal Rexnord's sixth CEO and excited about the opportunities in front of us. I joined the Company because I believe Regal Rexnord is uniquely positioned to leverage its technology leadership, manufacturing scale, and deep customer relationships to address relevant needs across many attractive end markets. In particular, the development of solutions in eVTOL, robotics and data center are exciting frontiers where Regal Rexnord can play a meaningful role. To start, I am spending my time learning the business. Ultimately, the goal is to create a sustainable platform for growth, while also delivering predictable results along the way."
CFO Rob Rehard commented: "Regal Rexnord delivered solid second-quarter performance. Our mid-term sales growth outlook strengthened further, with enterprise daily orders increasing
Rehard concluded, "Looking forward, our top line outlook remains unchanged. We are holding our adjusted EPS outlook range mid-point, including refunds. Our outlook also now reflects a longer timeline to realize planned productivity gains, in some cases to prioritize service levels. Additionally, we are experiencing a lag in price realization relative to a faster pace of inflation, and modestly unfavorable segment mix impacts. Importantly, these factors do not change our view of a strong and broad-based underlying demand environment. We continue to see positive order momentum across the business."
Guidance Update
We are narrowing our 2026 GAAP EPS guidance to a range of
Segment Performance
Segment results for the second quarter of 2026 versus the same period of the prior year are summarized below:
- Automation & Motion Control (AMC) net sales were
, an increase of$477.7 million 16.2% , or an increase of15.6% on an organic basis. Growth was broad-based, but with particular strength in the data center, discrete automation, and aerospace & defense markets. Adjusted EBITDA margin was21.1% of net sales or19.9% excluding refunds.
- Industrial Powertrain Solutions (IPS) net sales were
, an increase of$669.4 million 3.0% , or an increase of2.0% on an organic basis. Growth was strongest in the energy market. Adjusted EBITDA margin was27.1% of net sales or25.9% excluding refunds.
- Power Efficiency Solutions (PES) net sales were
, a decrease of$411.3 million 5.5% , or a decrease of6.6% on an organic basis due to weakness in the residential HVAC and pool markets, which was partially offset by strength in the commercial HVAC market. Adjusted EBITDA margin was20.5% of net sales or16.2% excluding refunds.
Conference Call
Regal Rexnord will hold a conference call to discuss this earnings release at 9:00 AM CT (10:00 AM ET) on Wednesday, August 5, 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 (
A webcast replay will be available at the link above, and a telephone replay will be available at 1-855-669-9658 (
Supplemental Materials
Supplemental materials and additional information for the quarter ended June 30, 2026 will be accessible before the conference call on August 5, 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
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. ("Altra"); the Company's substantial indebtedness as a result of the Altra Transaction and the effects of such indebtedness on the Company's financial flexibility; the Company's ability to achieve its objectives on reducing its indebtedness on the desired timeline; dependence on key suppliers and the potential effects of supply disruptions; fluctuations in commodity prices and raw material costs; any unforeseen changes to or the effects on liabilities, future capital expenditures, revenue, expenses, synergies, indebtedness, financial condition, losses and future prospects; unanticipated operating costs, customer loss and business disruption or the Company's inability to forecast customer needs; the Company's ability to retain key executives and employees and risks associated with the transition of our new CEO; uncertainties regarding our ability to execute restructuring plans within expected costs and timing or at all; challenges to the tax treatment that was elected with respect to the merger with the Rexnord PMC business and related transactions; actions taken by competitors and our ability to effectively compete in the increasingly competitive global industries and markets; our ability to develop new products based on technological innovation and marketplace acceptance of new and existing products; our ability to keep pace with rapidly evolving technological developments related to advances in artificial intelligence; dependence on significant customers and distributors; risks that customers may make changes and adjustments to their orders which could result in actual revenue recognized being lower or higher than disclosed order values; risks associated with climate change, including unexpected weather events in markets in which we do business, and uncertainty regarding our ability to deliver on our sustainability commitments and/or to meet related investor, customer and other third party expectations relating to our sustainability efforts and rapidly evolving sustainability regulations; changes to and uncertainty in trade policy, including tariffs on imports into the US from
Non-GAAP Measures
(Unaudited)
(Dollars in Millions, Except per Share Data)
We prepare our financial statements in accordance with accounting principles generally accepted in
In this release, we disclose the following non-GAAP financial measures, and we reconcile these measures in the tables below to the most directly comparable GAAP financial measures: adjusted diluted earnings per share, adjusted income from operations, adjusted operating margin, adjusted net sales, adjusted gross margin, net debt, EBITDA, adjusted EBITDA, adjusted EBITDA (including synergies), interest coverage ratio, interest coverage ratio (including synergies), adjusted EBITDA margin, gross debt/adjusted EBITDA, net debt/adjusted EBITDA, net debt/adjusted EBITDA (including synergies), free cash flow, adjusted income before taxes, adjusted provision for income taxes, and adjusted effective tax rate. We believe that these non-GAAP financial measures are useful measures for providing investors with additional information regarding our results of operations and for helping investors understand and compare our operating results across accounting periods and compared to our peers. Our management primarily uses adjusted income from operations and adjusted operating margin to help us manage and evaluate our business and make operating decisions, while the other non-GAAP measures disclosed are primarily used to help us evaluate our business and forecast our future results. Accordingly, we believe disclosing and reconciling each of these measures helps investors evaluate our business in the same manner as management. This release also includes non-GAAP forward-looking information. The Company believes that a quantitative reconciliation of this forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of this non-GAAP financial measure would require the Company to predict the timing and likelihood of future restructurings and other charges. Neither these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measure is not provided.
In addition to these non-GAAP measures, we use the term "organic sales growth" to refer to the increase in our sales between periods that is attributable to organic sales. "Organic sales" refers to GAAP sales from existing operations excluding any sales from acquired businesses recorded prior to the first anniversary of the acquisition and excluding any sales from business divested/to be exited recorded prior to the first anniversary of the exit and excluding the impact of foreign currency translation. The impact of foreign currency translation is determined by translating the respective period's organic sales using the currency exchange rates that were in effect during the prior year periods.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
Unaudited | ||||||||
(Dollars in Millions, Except per Share Data) | ||||||||
Three Months Ended | Six Months Ended | |||||||
Jun 30, | Jun 30, | Jun 30, | Jun 30, | |||||
Net Sales | $ 1,558.4 | $ 1,496.1 | $ 3,037.5 | $ 2,914.2 | ||||
Cost of Sales | 946.8 | 931.4 | 1,876.0 | 1,821.9 | ||||
Gross Profit | 611.6 | 564.7 | 1,161.5 | 1,092.3 | ||||
Operating Expenses | 396.4 | 382.4 | 793.7 | 750.3 | ||||
Income from Operations | 215.2 | 182.3 | 367.8 | 342.0 | ||||
Interest Expense | 77.4 | 85.3 | 158.0 | 175.5 | ||||
Interest Income | (6.2) | (5.1) | (10.9) | (9.3) | ||||
Other Expense, Net | 0.3 | 0.9 | 0.5 | 1.6 | ||||
Income before Taxes | 143.7 | 101.2 | 220.2 | 174.2 | ||||
Provision for Income Taxes | 26.9 | 21.6 | 39.0 | 37.1 | ||||
Net Income | 116.8 | 79.6 | 181.2 | 137.1 | ||||
Less: Net Income Attributable to Noncontrolling Interests | 0.2 | 0.4 | 0.2 | 0.6 | ||||
Net Income Attributable to Regal Rexnord Corporation | $ 116.6 | $ 79.2 | $ 181.0 | $ 136.5 | ||||
Earnings Per Share Attributable to Regal Rexnord Corporation: | ||||||||
Basic | $ 1.75 | $ 1.19 | $ 2.72 | $ 2.06 | ||||
Assuming Dilution | $ 1.74 | $ 1.19 | $ 2.71 | $ 2.05 | ||||
Cash Dividends Declared Per Share | $ 0.35 | $ 0.35 | $ 0.70 | $ 0.70 | ||||
Weighted Average Number of Shares Outstanding: | ||||||||
Basic | 66.6 | 66.3 | 66.5 | 66.3 | ||||
Assuming Dilution | 66.9 | 66.5 | 66.8 | 66.5 | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
Unaudited | ||||
(Dollars in Millions) | ||||
Jun 30, 2026 | Dec 31, 2025 | |||
ASSETS | ||||
Current Assets: | ||||
Cash and Cash Equivalents | $ 441.6 | $ 521.7 | ||
Trade Receivables, Less Allowances of | 580.0 | 524.2 | ||
Inventories | 1,377.9 | 1,321.7 | ||
Prepaid Expenses and Other Current Assets | 422.4 | 344.7 | ||
Total Current Assets | 2,821.9 | 2,712.3 | ||
Net Property, Plant and Equipment | 868.7 | 911.8 | ||
Operating Lease Assets | 146.0 | 145.2 | ||
Goodwill | 6,575.8 | 6,611.3 | ||
Intangible Assets, Net of Amortization | 3,230.7 | 3,418.4 | ||
Deferred Income Tax Benefits | 37.2 | 36.2 | ||
Other Noncurrent Assets | 71.5 | 85.8 | ||
Total Assets | $ 13,751.8 | $ 13,921.0 | ||
LIABILITIES AND EQUITY | ||||
Current Liabilities: | ||||
Accounts Payable | $ 642.4 | $ 607.3 | ||
Dividends Payable | 23.3 | 23.2 | ||
Accrued Compensation and Benefits | 204.0 | 205.5 | ||
Accrued Interest | 60.1 | 84.0 | ||
Other Accrued Expenses | 245.1 | 281.7 | ||
Current Operating Lease Liabilities | 40.7 | 38.5 | ||
Current Maturities of Long-Term Debt | 24.2 | 24.1 | ||
Total Current Liabilities | 1,239.8 | 1,264.3 | ||
Long-Term Debt | 4,587.6 | 4,764.6 | ||
Deferred Income Taxes | 718.2 | 752.6 | ||
Pension and Other Post Retirement Benefits | 99.6 | 106.0 | ||
Noncurrent Operating Lease Liabilities | 113.9 | 114.0 | ||
Other Noncurrent Liabilities | 69.1 | 66.2 | ||
Equity: | ||||
Regal Rexnord Corporation Shareholders' Equity: | ||||
Common Stock, | 0.7 | 0.7 | ||
Additional Paid-In Capital | 4,687.8 | 4,688.5 | ||
Retained Earnings | 2,364.7 | 2,230.3 | ||
Accumulated Other Comprehensive Loss | (137.7) | (75.4) | ||
Total Regal Rexnord Corporation Shareholders' Equity | 6,915.5 | 6,844.1 | ||
Noncontrolling Interests | 8.1 | 9.2 | ||
Total Equity | 6,923.6 | 6,853.3 | ||
Total Liabilities and Equity | $ 13,751.8 | $ 13,921.0 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW | |||||||
Unaudited | |||||||
(Dollars in Millions) | |||||||
Three Months Ended | Six Months Ended | ||||||
Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ 116.8 | $ 79.6 | $ 181.2 | $ 137.1 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating | |||||||
Depreciation | 38.5 | 35.5 | 75.8 | 75.6 | |||
Amortization | 86.4 | 86.8 | 173.0 | 172.2 | |||
Noncash Lease Expense | 11.8 | 10.9 | 23.5 | 21.8 | |||
Share-Based Compensation Expense | 2.3 | 10.3 | 10.4 | 19.8 | |||
Financing Fee Expense | 2.0 | 4.0 | 4.4 | 7.3 | |||
Loss (Gain) on Sale of Assets | 2.4 | (2.3) | 2.9 | (8.3) | |||
Benefit from Deferred Income Taxes | (16.6) | (24.6) | (30.8) | (43.1) | |||
Other Non-Cash Changes | (1.3) | 1.6 | (0.6) | 2.3 | |||
Change in Operating Assets and Liabilities, Net of Acquisitions and Divestitures | |||||||
Receivables | (2.1) | 319.2 | (60.5) | 318.6 | |||
Inventories | 1.9 | (48.0) | (61.5) | (89.8) | |||
Accounts Payable | 11.6 | 15.4 | 34.6 | 57.0 | |||
Other Assets and Liabilities | (77.1) | 34.8 | (160.8) | (45.0) | |||
Net Cash Provided by Operating Activities | 176.6 | 523.2 | 191.6 | 625.5 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Additions to Property, Plant and Equipment | (22.5) | (30.2) | (39.9) | (47.0) | |||
Proceeds Received from Sales of Property, Plant and Equipment | 2.8 | 4.5 | 2.8 | 14.8 | |||
Proceeds Received from Sale of Businesses, Net of Cash Transferred | — | — | — | 3.0 | |||
Net Cash Used in Investing Activities | (19.7) | (25.7) | (37.1) | (29.2) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Borrowings Under Revolving Credit Facility | 625.6 | 448.3 | 1,184.0 | 859.8 | |||
Repayments Under Revolving Credit Facility | (720.9) | (487.1) | (1,111.5) | (876.8) | |||
Proceeds from Long-Term Borrowings | — | — | 850.0 | — | |||
Repayments of Long-Term Borrowings | (1.3) | (431.0) | (1,102.6) | (616.9) | |||
Dividends Paid to Shareholders | (23.2) | (23.4) | (46.6) | (46.6) | |||
Shares Surrendered for Taxes | (0.5) | (1.5) | (15.4) | (7.1) | |||
Proceeds from the Exercise of Stock Options | 0.3 | 1.0 | 6.7 | 1.4 | |||
Net Cash Used in Financing Activities | (120.0) | (493.7) | (235.4) | (686.2) | |||
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 3.6 | 11.0 | 0.8 | 16.5 | |||
Net Decrease in Cash and Cash Equivalents | 40.5 | 14.8 | (80.1) | (73.4) | |||
Cash and Cash Equivalents at Beginning of Period | 401.1 | 305.3 | 521.7 | 393.5 | |||
Cash and Cash Equivalents at End of Period | $ 441.6 | $ 320.1 | $ 441.6 | $ 320.1 | |||
ADJUSTED DILUTED EARNINGS PER SHARE | ||||||||
Unaudited | ||||||||
Three Months Ended | Six Months Ended | |||||||
Jun 30, | Jun 30, | Jun 30, | Jun 30, | |||||
GAAP Diluted Earnings Per Share(a) | $ 1.74 | $ 1.19 | $ 2.71 | $ 2.05 | ||||
Intangible Amortization | 0.98 | 0.99 | 1.95 | 1.96 | ||||
Restructuring and Related Costs(b) | 0.11 | 0.12 | 0.23 | 0.30 | ||||
Transaction and Integration Related Costs(c) | 0.06 | 0.07 | 0.12 | 0.15 | ||||
Share-Based Compensation Expense | 0.04 | 0.13 | 0.08 | 0.26 | ||||
Loss (Gain) on Sale of Assets | 0.03 | (0.02) | 0.03 | (0.09) | ||||
CEO Transition Costs | 0.02 | — | 0.02 | — | ||||
Accounts Receivable Securitization Transaction Costs | 0.01 | 0.01 | 0.01 | 0.01 | ||||
Discrete Tax Items | — | (0.01) | — | (0.01) | ||||
Adjusted Diluted Earnings Per Share(a) | $ 2.99 | $ 2.48 | $ 5.15 | $ 4.63 | ||||
(a) | Includes |
(b) | Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. |
(c) | For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with the sale of the industrial motors and generators businesses. |
2026 ADJUSTED ANNUAL GUIDANCE | ||||
Unaudited | ||||
Minimum | Maximum | |||
GAAP Diluted Earnings Per Share(a) | $ 5.42 | $ 5.92 | ||
Intangible Amortization | 3.92 | 3.92 | ||
Restructuring and Related Costs(b) | 0.40 | 0.40 | ||
Share-Based Compensation Expense | 0.32 | 0.32 | ||
Transaction and Integration Related Costs(c) | 0.21 | 0.21 | ||
Loss on Sale of Assets | 0.03 | 0.03 | ||
CEO Transition Costs | 0.03 | 0.03 | ||
Accounts Receivable Securitization Transaction Costs | 0.01 | 0.01 | ||
Operating Lease Asset Step Up | 0.01 | 0.01 | ||
Adjusted Diluted Earnings Per Share(a) | $ 10.35 | $ 10.85 |
(a) | Includes |
(b) | Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. |
(c) | Primarily relates to integration costs associated with the Altra Transaction. |
ORGANIC SALES GROWTH | ||||||||
Unaudited | ||||||||
(Dollars in Millions) | ||||||||
Three Months Ended | ||||||||
June 30, 2026 | ||||||||
Automation & | Industrial | Power | Total Regal | |||||
Net Sales Three Months Ended Jun 30, 2026 | $ 477.7 | $ 669.4 | $ 411.3 | $ 1,558.4 | ||||
Impact from Foreign Currency Exchange Rates | (2.4) | (7.5) | (4.8) | (14.7) | ||||
Organic Sales Three Months Ended Jun 30, 2026 | $ 475.3 | $ 661.9 | $ 406.5 | $ 1,543.7 | ||||
Net Sales Three Months Ended Jun 30, 2025 | $ 411.1 | $ 649.8 | $ 435.2 | $ 1,496.1 | ||||
Net Sales from Businesses Divested | — | (0.9) | — | (0.9) | ||||
Adjusted Net Sales Three Months Ended Jun 30, 2025 | $ 411.1 | $ 648.9 | $ 435.2 | $ 1,495.2 | ||||
Three Months Ended Jun 30, 2026 Net Sales Growth % | 16.2 % | 3.0 % | (5.5) % | 4.2 % | ||||
Three Months Ended Jun 30, 2026 Foreign Currency Impact % | 0.6 % | 1.1 % | 1.1 % | 1.0 % | ||||
Three Months Ended Jun 30, 2026 Divestitures % | — % | (0.1) % | — % | (0.1) % | ||||
Three Months Ended Jun 30, 2026 Organic Sales Growth % | 15.6 % | 2.0 % | (6.6) % | 3.3 % | ||||
ORGANIC SALES GROWTH | ||||||||
Unaudited | ||||||||
(Dollars in Millions) | ||||||||
Six Months Ended | ||||||||
June 30, 2026 | ||||||||
Automation & | Industrial | Power | Total Regal | |||||
Net Sales Six Months Ended Jun 30, 2026 | $ 934.8 | $ 1,317.7 | $ 785.0 | $ 3,037.5 | ||||
Impact from Foreign Currency Exchange Rates | (15.2) | (26.7) | (11.7) | (53.6) | ||||
Organic Sales Six Months Ended Jun 30, 2026 | $ 919.6 | $ 1,291.0 | $ 773.3 | $ 2,983.9 | ||||
Net Sales Six Months Ended Jun 30, 2025 | $ 807.4 | $ 1,262.5 | $ 844.3 | $ 2,914.2 | ||||
Net Sales from Businesses Divested | — | (1.5) | — | (1.5) | ||||
Adjusted Net Sales Six Months Ended Jun 30, 2025 | $ 807.4 | $ 1,261.0 | $ 844.3 | $ 2,912.7 | ||||
Six Months Ended Jun 30, 2026 Net Sales Growth % | 15.8 % | 4.4 % | (7.0) % | 4.2 % | ||||
Six Months Ended Jun 30, 2026 Foreign Currency Impact % | 1.9 % | 2.1 % | 1.4 % | 1.8 % | ||||
Six Months Ended Jun 30, 2026 Divestitures % | — % | (0.1) % | — % | (0.1) % | ||||
Six Months Ended Jun 30, 2026 Organic Sales Growth % | 13.9 % | 2.4 % | (8.4) % | 2.5 % | ||||
ADJUSTED EBITDA | ||||||||||||||||
Unaudited | ||||||||||||||||
(Dollars in Millions) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Automation & | Industrial Powertrain | Power | Total Regal | |||||||||||||
Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | |||||||||
GAAP Income from Operations(a) | $ 48.5 | $ 30.4 | $ 97.6 | $ 92.4 | $ 69.1 | $ 59.5 | $ 215.2 | $ 182.3 | ||||||||
Restructuring and Related Costs(b) | 0.7 | 1.8 | 6.2 | 7.8 | 2.5 | 1.0 | 9.4 | 10.6 | ||||||||
Transaction and Integration Related Costs(c) | 1.1 | 1.3 | 3.4 | 4.0 | 0.9 | 1.0 | 5.4 | 6.3 | ||||||||
CEO Transition Costs | 0.7 | — | 1.0 | — | 0.5 | — | 2.2 | — | ||||||||
Loss on Sale of Accounts Receivable(d) | 1.2 | — | 1.8 | — | 0.9 | — | 3.9 | — | ||||||||
Accounts Receivable Securitization Transaction Costs | 0.2 | 0.3 | 0.3 | 0.4 | 0.2 | 0.3 | 0.7 | 1.0 | ||||||||
Operating Lease Asset Step Up | — | — | 0.2 | 0.2 | — | — | 0.2 | 0.2 | ||||||||
(Gain) Loss on Sale of Assets | — | (2.3) | 2.4 | — | — | — | 2.4 | (2.3) | ||||||||
Adjusted Income from Operations | $ 52.4 | $ 31.5 | $ 112.9 | $ 104.8 | $ 74.1 | $ 61.8 | $ 239.4 | $ 198.1 | ||||||||
Amortization | $ 34.6 | $ 34.5 | $ 51.2 | $ 50.6 | $ 0.6 | $ 1.7 | $ 86.4 | $ 86.8 | ||||||||
Depreciation | 13.1 | 10.9 | 16.3 | 15.7 | 9.1 | 8.8 | 38.5 | 35.4 | ||||||||
Amortization of Internal Use Software | 0.1 | — | 0.1 | — | 0.1 | — | 0.3 | — | ||||||||
Share-Based Compensation Expense | 0.7 | 3.3 | 0.7 | 4.5 | 0.9 | 2.5 | 2.3 | 10.3 | ||||||||
Other (Expense) Income, Net | (0.1) | — | 0.2 | (0.5) | (0.4) | (0.4) | (0.3) | (0.9) | ||||||||
Adjusted EBITDA(a) | $ 100.8 | $ 80.2 | $ 181.4 | $ 175.1 | $ 84.4 | $ 74.4 | $ 366.6 | $ 329.7 | ||||||||
GAAP Operating Margin % | 10.1 % | 7.4 % | 14.6 % | 14.2 % | 16.8 % | 13.7 % | 13.8 % | 12.2 % | ||||||||
Adjusted Operating Margin % | 11.0 % | 7.7 % | 16.9 % | 16.1 % | 18.0 % | 14.2 % | 15.4 % | 13.2 % | ||||||||
Adjusted EBITDA Margin % | 21.1 % | 19.5 % | 27.1 % | 26.9 % | 20.5 % | 17.1 % | 23.5 % | 22.0 % | ||||||||
(a) | Includes benefits of |
(b) | Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. |
(c) | Primarily relates to integration costs associated with the Altra Transaction. |
(d) | Represents charges associated with the Securitization Facility. |
ADJUSTED EBITDA | ||||||||||||||||
Unaudited | ||||||||||||||||
(Dollars in Millions) | ||||||||||||||||
Six Months Ended | ||||||||||||||||
Automation & | Industrial | Power | Total Regal | |||||||||||||
Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | |||||||||
GAAP Income from Operations(a) | $ 65.5 | |||||||||||||||
Restructuring and Related Costs(b) | 1.9 | 3.0 | 12.0 | 20.7 | 5.9 | 2.3 | 19.8 | 26.0 | ||||||||
Transaction and Integration Related Costs(c) | 2.2 | 2.7 | 6.7 | 8.1 | 1.5 | 2.4 | 10.4 | 13.2 | ||||||||
CEO Transition Costs | 0.7 | — | 1.0 | — | 0.5 | — | 2.2 | — | ||||||||
Loss on Sale of Accounts Receivable(d) | 2.1 | — | 3.2 | — | 2.3 | — | 7.6 | — | ||||||||
Accounts Receivable Securitization Transaction Costs | 0.2 | 0.3 | 0.4 | 0.4 | 0.2 | 0.3 | 0.8 | 1.0 | ||||||||
Operating Lease Asset Step Up | — | — | 0.4 | 0.4 | — | — | 0.4 | 0.4 | ||||||||
(Gain) Loss on Sale of Assets | — | (2.3) | 2.4 | (6.0) | 0.5 | — | 2.9 | (8.3) | ||||||||
Adjusted Income from Operations | $ 69.2 | |||||||||||||||
Amortization | $ 68.4 | $ 1.3 | $ 3.3 | |||||||||||||
Depreciation | 24.5 | 22.5 | 33.3 | 34.3 | 18.0 | 17.7 | 75.8 | 74.5 | ||||||||
Amortization of Internal Use Software | 0.1 | — | 0.2 | — | — | — | 0.3 | — | ||||||||
Share-Based Compensation Expense | 3.2 | 6.7 | 4.5 | 8.3 | 2.7 | 4.8 | 10.4 | 19.8 | ||||||||
Other (Expense) Income, Net | (0.2) | (0.1) | 0.2 | (0.8) | (0.5) | (0.7) | (0.5) | (1.6) | ||||||||
Adjusted EBITDA(a) | ||||||||||||||||
GAAP Operating Margin % | 8.6 % | 8.1 % | 13.4 % | 13.8 % | 14.1 % | 12.1 % | 12.1 % | 11.7 % | ||||||||
Adjusted Operating Margin % | 9.3 % | 8.6 % | 15.4 % | 15.7 % | 15.5 % | 12.7 % | 13.6 % | 12.8 % | ||||||||
Adjusted EBITDA Margin % | 19.7 % | 20.6 % | 26.1 % | 26.9 % | 18.3 % | 15.7 % | 22.1 % | 21.9 % | ||||||||
(a) | Includes benefits of |
(b) | Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. |
(c) | For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with the sale of the industrial motors and generators businesses. |
(d) | Represents charges associated with the Securitization Facility. |
ADJUSTED GROSS MARGIN | ||||||||||||||||
Unaudited | ||||||||||||||||
(Dollars in Millions) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Automation & | Industrial | Power | Total Regal Rexnord | |||||||||||||
Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | |||||||||
Gross Margin(a) | ||||||||||||||||
Restructuring and Related Costs(b) | 0.6 | 1.6 | 4.3 | 4.0 | 1.7 | 0.9 | 6.6 | 6.5 | ||||||||
Operating Lease Asset Step Up | — | — | 0.2 | 0.2 | — | — | 0.2 | 0.2 | ||||||||
Loss on Sale of Assets | — | — | 2.4 | — | — | — | 2.4 | — | ||||||||
Adjusted Gross Margin(a) | ||||||||||||||||
Gross Margin % | 38.4 % | 37.6 % | 42.9 % | 43.2 % | 34.4 % | 29.8 % | 39.2 % | 37.7 % | ||||||||
Adjusted Gross Margin % | 38.5 % | 38.0 % | 43.9 % | 43.8 % | 34.8 % | 30.0 % | 39.8 % | 38.2 % | ||||||||
(a) | Includes benefits of |
(b) | Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. |
ADJUSTED GROSS MARGIN | ||||||||||||||||
Unaudited | ||||||||||||||||
(Dollars in Millions) | ||||||||||||||||
Six Months Ended | ||||||||||||||||
Automation & | Industrial Powertrain | Power Efficiency Solutions | Total Regal | |||||||||||||
Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | |||||||||
Gross Margin(a) | $ 1,161.5 | $ 1,092.3 | ||||||||||||||
Restructuring and Related Costs(b) | 0.8 | 2.2 | 8.5 | 12.8 | 4.9 | 1.5 | 14.2 | 16.5 | ||||||||
Operating Lease Asset Step Up | — | — | 0.4 | 0.4 | — | — | 0.4 | 0.4 | ||||||||
Loss on Sale of Assets | — | — | 2.4 | — | — | — | 2.4 | — | ||||||||
Adjusted Gross Margin(a) | $ 1,178.5 | $ 1,109.2 | ||||||||||||||
Gross Margin % | 36.9 % | 38.7 % | 42.6 % | 42.6 % | 32.5 % | 28.6 % | 38.2 % | 37.5 % | ||||||||
Adjusted Gross Margin % | 37.0 % | 39.0 % | 43.5 % | 43.7 % | 33.1 % | 28.8 % | 38.8 % | 38.1 % | ||||||||
(a) | Includes benefits of |
(b) | Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. |
NET INCOME TO ADJUSTED EBITDA | ||||||||
Unaudited | ||||||||
(Dollars in Millions) | ||||||||
Three Months Ended | Six Months Ended | |||||||
Jun 30, | Jun 30, | Jun 30, | Jun 30, | |||||
Net Income | $ 116.8 | $ 79.6 | $ 181.2 | $ 137.1 | ||||
Plus: Income Taxes | 26.9 | 21.6 | 39.0 | 37.1 | ||||
Plus: Interest Expense | 77.4 | 85.3 | 158.0 | 175.5 | ||||
Less: Interest Income | (6.2) | (5.1) | (10.9) | (9.3) | ||||
Plus: Depreciation | 38.5 | 35.4 | 75.8 | 74.5 | ||||
Plus: Amortization | 86.4 | 86.8 | 173.0 | 172.2 | ||||
EBITDA(a) | $ 339.8 | $ 303.6 | $ 616.1 | $ 587.1 | ||||
Plus: Restructuring and Related Costs(b) | 9.4 | 10.6 | 19.8 | 26.0 | ||||
Plus: Share-Based Compensation Expense | 2.3 | 10.3 | 10.4 | 19.8 | ||||
Plus: Transaction and Integration Related Costs(c) | 5.4 | 6.3 | 10.4 | 13.2 | ||||
Plus: CEO Transition Costs | 2.2 | — | 2.2 | — | ||||
Plus: Loss on Sale of Accounts Receivable(d) | 3.9 | — | 7.6 | — | ||||
Plus: Accounts Receivable Securitization Transaction Costs | 0.7 | 1.0 | 0.8 | 1.0 | ||||
Plus: Operating Lease Asset Step Up | 0.2 | 0.2 | 0.4 | 0.4 | ||||
Plus: Amortization of Internal Use Software | 0.3 | — | 0.3 | — | ||||
Plus: Loss (Gain) on Sale of Assets | 2.4 | (2.3) | 2.9 | (8.3) | ||||
Adjusted EBITDA(a) | $ 366.6 | $ 329.7 | $ 670.9 | $ 639.2 | ||||
(a) | Includes a benefit of |
(b) | Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. |
(c) | For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with the sale of the industrial motors and generators businesses. |
(d) | Represents charges associated with the Securitization Facility. |
DEBT TO EBITDA | ||
Unaudited | ||
(Dollars in Millions) | ||
Last Twelve Months | ||
Jun 30, 2026 | ||
Net Income | $ 324.9 | |
Plus: Income Taxes | 73.7 | |
Plus: Interest Expense | 331.6 | |
Less: Interest Income | (25.2) | |
Plus: Depreciation | 154.7 | |
Plus: Amortization | 346.9 | |
EBITDA(a) | $ 1,206.6 | |
Plus: Restructuring and Related Costs(b) | 40.6 | |
Plus: Share-Based Compensation Expense | 27.9 | |
Plus: Transaction and Integration Related Costs(c) | 22.1 | |
Plus: Loss on Sale of Accounts Receivable(d) | 17.2 | |
Plus: Accounts Receivable Securitization Transaction Costs | 0.9 | |
Plus: CEO Transition Costs | 9.2 | |
Plus: Operating Lease Asset Step Up | 0.8 | |
Plus: Amortization of Internal Use Software | 0.5 | |
Plus: Loss on Sale of Businesses | 4.5 | |
Plus: Loss on Sale of Assets | 8.6 | |
Adjusted EBITDA(a)(e) | $ 1,338.9 | |
Current Maturities of Long-Term Debt | 24.2 | |
Long-Term Debt | 4,587.6 | |
Total Gross Debt | $ 4,611.8 | |
Cash and Cash Equivalents | (441.6) | |
Net Debt | $ 4,170.2 | |
Gross Debt/Adjusted EBITDA | 3.44 | |
Net Debt/Adjusted EBITDA(e) | 3.11 | |
Interest Coverage Ratio(e)(f) | 4.37 | |
(a) | Includes a benefit of | |
(b) | Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. | |
(c) | Primarily relates to integration costs associated with the Altra Transaction. | |
(d) | Represents charges associated with the Securitization Facility. | |
(e) | Synergies expected to be realized in the future are included in the calculation of EBITDA that serves as the basis for financial covenant compliance for certain of the Company's debt. The impact of the synergies the Company expects to realize within 18 months is as follows: | |
Adjusted EBITDA | $ 1,338.9 | |
Synergies to be Realized Within 18 Months | 25.0 | |
Adjusted EBITDA (including synergies) | $ 1,363.9 | |
Net Debt/Adjusted EBITDA (including synergies) | 3.06 | |
Interest Expense | $ 331.6 | |
Interest Income | (25.2) | |
Net Interest Expense | $ 306.4 | |
Interest Coverage Ratio (including synergies)(1) | 4.45 | |
(1) Computed as Adjusted EBITDA (including synergies)/Net Interest Expense | ||
(f) | Computed as Adjusted EBITDA/Net Interest Expense |
FREE CASH FLOW | ||||||||
Unaudited | ||||||||
(Dollars in Millions) | ||||||||
Three Months Ended | Six Months Ended | |||||||
Jun 30, | Jun 30, | Jun 30, | Jun 30, | |||||
Net Cash Provided by Operating Activities | $ 176.6 | $ 523.2 | $ 191.6 | $ 625.5 | ||||
Additions to Property, Plant and Equipment | (22.5) | (30.2) | (39.9) | (47.0) | ||||
Free Cash Flow | $ 154.1 | $ 493.0 | $ 151.7 | $ 578.5 | ||||
ADJUSTED EFFECTIVE TAX RATE | ||||||||
Unaudited | ||||||||
(Dollars in Millions) | ||||||||
Three Months Ended | Six Months Ended | |||||||
Jun 30, | Jun 30, | Jun 30, | Jun 30, | |||||
Income before Taxes | $ 143.7 | $ 101.2 | $ 220.2 | $ 174.2 | ||||
Provision for Income Taxes | 26.9 | 21.6 | 39.0 | 37.1 | ||||
Effective Tax Rate | 18.7 % | 21.3 % | 17.7 % | 21.3 % | ||||
Income before Taxes | $ 143.7 | $ 101.2 | $ 220.2 | $ 174.2 | ||||
Intangible Amortization | 86.4 | 86.8 | 173.0 | 172.2 | ||||
Restructuring and Related Costs(a) | 9.4 | 10.6 | 19.8 | 26.0 | ||||
Share-Based Compensation Expense | 2.3 | 10.3 | 10.4 | 19.8 | ||||
Transaction and Integration Related Costs(b) | 5.4 | 6.3 | 10.4 | 13.2 | ||||
CEO Transition Costs | 2.2 | — | 2.2 | — | ||||
Accounts Receivable Securitization Transaction Costs | 0.7 | 1.0 | 0.8 | 1.0 | ||||
Operating Lease Asset Step Up | 0.2 | 0.2 | 0.4 | 0.4 | ||||
Loss (Gain) on Sale of Assets | 2.4 | (2.3) | 2.9 | (8.3) | ||||
Adjusted Income before Taxes | $ 252.7 | $ 214.1 | $ 440.1 | $ 398.5 | ||||
Provision for Income Taxes | $ 26.9 | $ 21.6 | $ 39.0 | $ 37.1 | ||||
Tax Effect of Intangible Amortization | 21.1 | 21.2 | 42.3 | 42.1 | ||||
Tax Effect of Restructuring and Related Costs | 2.2 | 2.3 | 4.8 | 5.9 | ||||
Tax Effect of Share-Based Compensation Expense | — | 1.6 | 5.3 | 2.7 | ||||
Tax Effect of Transaction and Integration Related Costs | 1.3 | 1.7 | 2.5 | 3.3 | ||||
Tax Effect of CEO Transition Costs | 0.5 | — | 0.5 | — | ||||
Tax Effect of Accounts Receivable Securitization Transaction Costs | 0.2 | 0.2 | 0.2 | 0.2 | ||||
Tax Effect of Operating Lease Asset Step Up | — | 0.1 | 0.1 | 0.1 | ||||
Tax Effect of Loss (Gain) on Sale of Assets | 0.6 | (0.7) | 0.7 | (2.1) | ||||
Discrete Tax Items | (0.1) | 0.4 | (0.2) | 0.5 | ||||
Adjusted Provision for Income Taxes | $ 52.7 | $ 48.4 | $ 95.2 | $ 89.8 | ||||
Adjusted Effective Tax Rate | 20.8 % | 22.6 % | 21.7 % | 22.5 % | ||||
(a) | Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. |
(b) | For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with the sale of the industrial motors and generators businesses. |
View original content:https://www.prnewswire.com/news-releases/regal-rexnord-reports-second-quarter-2026-financial-results-302843136.html
SOURCE Regal Rexnord Corporation