Regal Rexnord Corporation (NYSE:RRX) released its third-quarter 2026 earnings on November 3, 2026, reporting net sales of $1,588 million, a GAAP net loss of $12 million, and announcing a portfolio review that includes exploring the sale of its autonomous mobile solutions business.

Key Highlights

  • Net sales of $1,588 million, up 6% versus the prior year, according to the filing.
  • GAAP net loss of $12 million versus prior-year GAAP net income of $80 million, reflecting a non-cash goodwill impairment charge of $119 million (a $1.78 impact to Diluted EPS) primarily related to the autonomous mobile solutions business.
  • Adjusted EBITDA of $351 million, up $12 million, or 4%, versus the prior year; $337 million excluding IEEPA tariff refunds, which the company disclosed was ahead of expectations.
  • Data center sales up 307% versus the prior year, or up 169% excluding E-Pods.
  • Net debt to Adjusted EBITDA (including synergies) of 2.9x at the end of the third quarter.
  • 2026 Adjusted Diluted EPS guidance raised to a range of $10.60 to $10.90; 2026 GAAP EPS guidance lowered and narrowed to a range of $3.76 to $4.06.
  • Portfolio review underway, including exploring the sale of the autonomous mobile solutions business in the AMC segment.

Regal Rexnord Q3 2026 Segment Results and Strategic Developments

According to the filing, Regal Rexnord reported third-quarter 2026 net sales of $1,588 million, a 6% increase versus the prior year, with daily orders also up 6%. The GAAP net loss of $12 million compares to prior-year GAAP net income of $80 million. The company disclosed that the loss reflects a non-cash goodwill impairment charge of $119 million, or $1.78 per Diluted EPS, recorded primarily in connection with the autonomous mobile solutions business within the Automation and Motion Control segment. Adjusted EBITDA reached $351 million, versus $339 million in the prior year.

The filing summarizes segment performance for the quarter ended September 30, 2026. Automation and Motion Control net sales were $500.6 million, an increase of 24.5% (25.2% on an organic basis), with the filing citing particular strength in data center sales, including $25 million related to E-Pods, and in discrete automation. Adjusted EBITDA margin for the segment was 19.2% of net sales. Industrial Powertrain Solutions net sales were $649.5 million, a decrease of 1.9% (1.8% on an organic basis), with the filing attributing weakness in metals and mining partially offset by strength in discrete automation and energy markets; Adjusted EBITDA margin was 26.0% of net sales. Power Efficiency Solutions net sales were $437.9 million, an increase of 1.2% (0.4% on an organic basis), with growth in commercial HVAC partially offset by weakness in residential HVAC and pool markets; Adjusted EBITDA margin was 19.7% of net sales.

On strategy, CEO Aamir Paul stated in the filing that the company "has begun a comprehensive review of our portfolio, working closely with our Board and with the support of outside advisors," adding that "today's announcement that we are exploring the sale of our autonomous mobile solutions business in the AMC segment reflects this approach." The filing notes forward-looking statements are the company's own and subject to its cautionary language. For full-year 2026, the company raised its Adjusted Diluted EPS guidance midpoint to $10.75 while lowering its GAAP EPS guidance range to $3.76 to $4.06.

What Was Disclosed

Regal Rexnord disclosed third-quarter 2026 financial results including net sales of $1,588 million, a GAAP net loss driven by a goodwill impairment charge, updated full-year 2026 guidance, and the initiation of a portfolio review including a potential sale of its autonomous mobile solutions business.