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Regal Rexnord (RRX)
NYSE:RRX
Earnings Data
Report Date
May 11, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
2.12Last Year’s EPS
2.15Same Quarter Last Year
Strong Buy
Based on 8 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong positive momentum driven by exceptional order intake (notably a $735M e‑Pod win), a 50% year‑over‑year backlog increase, improving organic sales and double-digit EPS growth guidance. The company demonstrated margin resilience, meaningful free cash flow generation in 2025, substantial debt paydown and clear secular-market growth plans (data center, robotics, eVTOL, Kollmorgen Essentials). Significant near‑term risks remain — primarily PES channel destocking, rare earth magnet supply constraints, tariff impacts (~$155M annualized) and a reduced 2026 free cash flow guide due to working capital investments to support data center expansion. On balance the highlights (large, high‑visibility orders and backlog, revenue and EPS growth, strategic progress) outweigh the lowlights (segment weakness and near‑term supply/tariff pressures), supporting a positive outlook while acknowledging execution and macro risks that management is actively managing.Company Guidance
Exceptionally Strong Order Intake and Backlog Growth
Q4 orders on a daily basis were up 53.8% year-over-year and book-to-bill was 1.48. Backlog exiting 2025 was up ~50% versus prior year, providing significant revenue visibility into 2026 and beyond.
Large Data Center e-Pod Win
Booked approximately $735 million of e‑Pod orders in Q4 (base value). Management expects these turnkey power management orders to ship primarily in 2027 (15–18 month cadence possible) and anticipates adjusted EBITDA margins on e‑Pods in the '20%+' range with upside as productivity improves.
Segment Strength — AMC and IPS Outperformance
Automation & Motion Control (AMC) sales were up ~15.2% organic in Q4 with AMC orders up 190% (driven by e‑Pods) and ex‑e‑Pods AMC orders up ~19.2% on a daily basis. Industrial Powertrain Solutions (IPS) sales were up ~3.7% organic in Q4, IPS orders up ~3.3% daily and IPS backlog up ~6% year-over-year.
Revenue and Earnings Growth
Q4 organic sales were up 2.9% year-over-year. Adjusted EPS in Q4 was $2.51, up 7.3% year-over-year. Full-year 2025 adjusted EPS was $9.65, up ~6% versus prior year.
Margin Resilience
Q4 adjusted gross margin was 37.6%, up 50 basis points year-over-year. Enterprise adjusted EBITDA margin for Q4 was 21.6% (roughly flat YoY) and full-year 2025 adjusted EBITDA margin was ~22%, roughly flat to prior year despite tariff, magnet and mix headwinds.
Strong Cash Flow and Balance Sheet Improvement in 2025
Generated $141 million of free cash flow in Q4 and $893 million of adjusted free cash flow for full-year 2025 (including the ARS program). Paid down over $700 million of debt in 2025 and net leverage improved to ~3.1x exiting the year.
Guidance and Financial Targets for 2026
2026 guidance: sales growth of roughly 3% (including ~1–1.5 pts from data center and ~1.5 pts from price/tariff passthrough), adjusted EBITDA margin to rise ~50 bps to 22.5%, adjusted EPS guidance $10.20–$11.00 (midpoint $10.60, ~10% EPS growth), cash flow guidance of ~ $650 million. Management expects tariff dollar cost neutrality by mid‑2026 and margin neutrality by year-end.
Progress on Strategic Secular Market Initiatives
Management reiterated secular market focus and targets: path for power management business from $120M to roughly $1B in ~2 years (data center/ e‑Pods), Kollmorgen Essentials target of $50M by 2028, robotics actuation opportunity funnel in excess of $200M, eVTOL chipset opportunity noted (> $200k potential per plane).
Synergy Realization
Executed $54 million of synergies in 2025 and expects to realize $40 million of additional cost synergies in 2026 (being treated conservatively as contingency).
RRX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
RRX Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 04, 2026 | $178.30 | $200.00 | +12.17% |
Oct 29, 2025 | $150.63 | $145.07 | -3.69% |
Aug 05, 2025 | $144.97 | $145.29 | +0.22% |
May 05, 2025 | $109.75 | $124.64 | +13.57% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Regal Rexnord (RRX) report earnings?
Regal Rexnord (RRX) is schdueled to report earning on May 11, 2026, After Close (Confirmed).
What is Regal Rexnord (RRX) earnings time?
Regal Rexnord (RRX) earnings time is at May 11, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is RRX EPS forecast?
RRX EPS forecast for the fiscal quarter 2026 (Q1) is 2.12.