RRX · Regal Rexnord Corporation

Regal Rexnord's first quarter 2026 results reflect solid execution amid mixed end-market conditions. Total sales of $1,479.1 million grew 4.3% year-over-year, with organic growth of 1.6%. The Automation & Motion Control (AMC) segment led with 15.3% sales growth, driven by strength in data center and discrete automation markets, while Industrial Powertrain Solutions (IPS) grew 5.8% on broad-based demand. Power Efficiency Solutions (PES) declined 8.6% due to expected weakness in residential HVAC, partially offset by commercial HVAC growth. GAAP net income rose 11.8% to $64.3 million, benefiting from higher sales and operational leverage. Adjusted EBITDA of $304.4 million was slightly below the prior year's $309.5 million, reflecting margin headwinds from mix and tariffs. Adjusted diluted EPS of $2.17 increased 0.9% year-over-year and exceeded the company's internal expectations. Management highlighted strong order momentum, with daily orders up 8.5% enterprise-wide and AMC orders surging over 34%. The company reaffirmed its full-year 2026 adjusted EPS guidance, signaling confidence in accelerating organic sales growth and margin improvement as the year progresses. Additionally, the company announced the appointment of Aamir Paul as the next CEO, succeeding Louis Pinkham, who expressed optimism about the company's future under new leadership.