RRX earnings analysis
What we found in RRX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Regal Rexnord reported better-than-expected Q1 2026 earnings with revenues of $1.479 billion and EPS of $2.17, surpassing estimates. The Automation & Motion Control segment showed significant growth, driving overall revenue increase, while the Power Efficiency Solutions segment faced declines. Despite a drop in cash flow due to working capital changes, the company reaffirmed its adjusted EPS guidance for 2026 between $10.20 and $11.00.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Exceeds Expectations
- Reported revenue of $1.479B, beating estimates by $61M or 4.3%.
- Stronger EPS Performance
- Actual EPS of $2.17 surpassed estimates of $2.11, a surprise of 2.84%.
- Strong Growth in AMC Segment
- AMC segment revenue rose to $457.1M, up 15.3% YoY.
- Reduced Interest Expenses
- Interest expense decreased to $80.5M from $90.2M YoY.
- Reaffirmed EPS Guidance
- Management maintains adjusted EPS guidance for 2026 at $10.20 to $11.00.
- Increase in Operating Expenses
- Total operating expenses rose by $29.3M to $397.2M, largely due to IPS costs.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Decline in PES Segment Sales
- PES segment revenue fell to $373.8M, down 8.6% YoY driven by weaker HVAC market.
- Negative Operating Cash Flow Trend
- Operating cash flow decreased to $14.9M, down $87.4M YoY due to receivables.
- Increasing Working Capital Needs
- Working capital increased to $1.485B, reflecting higher receivables and inventories.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.17
- Gross margin
- 37.2%
- Operating margin
- 10.3%
- Segment
- Automation & Motion Control: $457.1M
- Segment
- Industrial Powertrain Solutions: $648.2M
- Segment
- Power Efficiency Solutions: $373.8M
What they said about what is next.
Guidance reaffirmed for 2026 adjusted EPS at $10.20 to $11.00.
The filing reads better than the one before it.
What came before.
- 10-K · February 20, 2026
- Regal Rexnord reported FY2025 net sales of $5,934.5 million (down 1.6% vs. 2024) with expanding gross margin to 37.4% and operating margin to 11.5%, driving GAAP diluted EPS of $4.22 and operating cash flow of $990.8…
- 10-Q · October 30, 2025
- Regal Rexnord reported Q3 net sales of $1,497.0 million, up $19.6 million (+1.3%) versus Q3 2024, with gross profit of $554.2 million (37.0% gross margin) and income from operations of $174.4 million (≈11.7% operating…
- 10-K · February 21, 2025
- Regal Rexnord positions itself around three operating segments (IPS, PES, AMC) and pursues profitable growth via 80/20 initiatives, the Regal Rexnord Business System (RBS), product innovation (aiming to double new…
- 10-K · February 26, 2024
- Regal Rexnord emphasizes profitable growth via operational programs (80/20 and the Regal Rexnord Business System), product innovation (plans to "double our new product vitality"), and M&A (Altra, Rexnord PMC, Arrowhead)…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing RRX makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever