Regal Rexnord Shares Fall with Lower Earnings Guidance From Tariff Impact

Dow Jones
10/30
 

By Emon Reiser

 

Shares for Regal Rexnord were on the decline after the manufacturer of electric motors and power transmission components moved its earnings guidance lower because of unfavorable impacts from China trade policies related to rare-earth magnets.

The stock declined 5.7% to $142.00 in after-hours trading, erasing Wednesday's gains. Ahead of the close, the stock was down almost 3% year to date.

Regal Rexnord lowered its outlook for annual adjusted earnings per share to a range of $9.50 to $9.80, from a previous outlook of between $9.70 and $10.30. Analysts polled by FactSet expect $9.86 a share.

"We now expect net tariff impacts to be slightly unfavorable in the year on a dollar cost basis and anticipate achieving dollar cost neutrality in the middle of next year, and margin neutrality as we exit 2026," the company said as it lowered its view for the second consecutive quarter.

Regal Rexnord for the third quarter reported a profit of $79.5 million, or $1.20 a share for the period ended Sept. 30, compared with $72.7 million, or $1.09 a share in the year-ago quarter.

Stripping out one-time items, Regal Rexnord reported adjusted earnings per share of $2.51, below the $2.53 a share analysts polled by FactSet expected for the third quarter.

Sales rose to $1.5 billion from $1.48 billion a year ago. Analysts polled by FactSet expected $1.49 billion.

Also on Wednesday, Regal Rexnord said it is searching for its next chief executive after more than six years with Louis Pinkham at the helm. He will remain CEO until a successor is named, after which he will resign.

 

Write to Emon Reiser at emon.reiser@wsj.com

 

(END) Dow Jones Newswires

October 29, 2025 18:09 ET (22:09 GMT)

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