Regal Rexnord Q2 2026: Sales +4.2%, Adjusted EPS $2.99, Guidance Narrowed; Tariff Refund Boosts Results
RRX sits 58% above its 52-week low of $127.96.
Summary
Regal Rexnord reported Q2 2026 earnings with sales up 4.2% to $1.56B and adjusted EPS of $2.99, including a $0.39 tariff refund benefit. Full-year adjusted EPS guidance was narrowed to $10.35-$10.85, midpoint unchanged.
Key Events · Earnings and Guidance · RRX
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Q2 Sales +4.2%, Adjusted EPS $2.99
Net sales of $1,558.4M, up 4.2% YoY (3.3% organic). Adjusted diluted EPS of $2.99, up 20.6% YoY, including a $0.39 IEEPA tariff refund benefit.
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Daily Orders Surge 8.8%
Enterprise daily orders increased 8.8% YoY, with AMC up 17.1%, reflecting broad-based demand strength in data center, discrete automation, and aerospace & defense.
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2026 Guidance Narrowed, Midpoint Held
Adjusted EPS guidance narrowed to $10.35-$10.85 (midpoint $10.60), including $0.57 in tariff refund benefits. GAAP EPS guidance narrowed to $5.42-$5.92.
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Tariff Refund Boosts Margins
A $32.0M IEEPA tariff refund benefit lifted adjusted EBITDA margins by ~200 bps; excluding refunds, AMC margin was 19.9%, IPS 25.9%, PES 16.2%.
Analysis · RRX · Technology
Regal Rexnord delivered solid Q2 results with organic sales growth of 3.3% and adjusted EPS of $2.99, beating the prior year by 20.6%. The quarter included a $32 million IEEPA tariff refund benefit, which added $0.39 to EPS. Daily orders jumped 8.8%, led by 17.1% growth in Automation & Motion Control, signaling strengthening demand. Management narrowed full-year adjusted EPS guidance to $10.35-$10.85, maintaining the $10.60 midpoint, and expects net leverage to fall below 3.0x in the second half. The new CEO highlighted growth opportunities in eVTOL, robotics, and data centers. While the tariff refund flatters margins, underlying performance was in line with expectations, and the company flagged headwinds from slower productivity gains and unfavorable mix. The results reinforce a recovery narrative but also reveal pockets of pressure in residential HVAC and pool markets.
At the time of this filing, RRX was trading at $201.79 on NYSE in the Technology sector, with a market capitalization of approximately $14.6B. The 52-week trading range was $127.96 to $247.80. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.