Regal Rexnord beats Q4 adjusted EPS estimates

Overview

• Motion control firm's Q4 sales grew 4.3% yr/yr, slightly missing analyst expectations

• Adjusted EPS for Q4 beat analyst expectations, rising 7.3% yr/yr

• Company secured data center orders worth ~$735 mln, boosting E-Pod solution traction

Outlook

• Regal Rexnord projects 2026 GAAP EPS between $5.29 and $6.09

• Company expects 2026 adjusted EPS between $10.20 and $11.00

• Regal Rexnord optimistic about growth in 2026 despite geopolitical volatility

Result Drivers

• DATA CENTER ORDERS - Co secured ~$735 mln in orders for its E-Pod solution, boosting daily orders

• SEGMENT GROWTH - Automation & Motion Control net sales rose 17.2%, driven by data center, discrete automation, and aerospace & defense markets

• HVAC PERFORMANCE - Strong commercial HVAC demand offset by weaker residential HVAC performance

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "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 $180.00, about 1% above its February 4 closing price of $178.30

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPn7xsHD4a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.