Overview
Regal Rexnord Q3 sales beat analyst expectations, adjusted EPS missed estimates
Company reports net income of $80 mln, up from $73 mln last year
Company secured $135 mln in data center orders, investing in new Texas facility
Outlook
Regal Rexnord narrows and lowers annual GAAP EPS guidance to $4.26-$4.56
Company expects mid-single digit organic growth in 4Q 2025
Regal Rexnord anticipates low- to mid-single digit growth in 2026
Result Drivers
DATA CENTER ORDERS - Co secured $135 mln in data center orders in Q3, with an additional $60 mln in October, driving sales growth
MARKET DIVERSIFICATION - Growth in discrete automation, food & beverage, and semiconductor clean rooms helped offset weakness in other markets
INVESTMENTS IN TEXAS FACILITY - Co investing in a new 100K sq ft assembly facility in Texas to support data center demand growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Meet | $1.49 bln | $1.49 bln (10 Analysts) |
Q3 Adjusted EPS | Miss | $2.51 | $2.57 (11 Analysts) |
Q3 EPS | $1.20 | ||
Q3 Net Income | $80 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Regal Rexnord Corp is $175.00, about 17.3% above its October 28 closing price of $144.71
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nPn7vXQr5a
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)