Regal Rexnord reports 3Q results

In reporting its third quarter results, Milwaukee, Wis.-based Regal Rexnord Corp., said sales were up 6% to $1,588 million.

“Our third quarter execution showed steady progress,” said CEO Aamir Paul. “We delivered adjusted EBITDA excluding IEEPA refunds slightly ahead of our expectations. We had healthy order demand across the portfolio, with 13% orders growth excluding data centers. We were encouraged by the orders growth in commercial HVAC, up 47%, aided by new air moving solutions. Discrete automation orders were up 26%. Data center order growth continues to scale, with some specific project order timing effects in the quarter.”

Providing a strategic update, Paul said, “Four months into the role, I see opportunities to accelerate profitable growth. These encompass improving operational performance, sharpening the focus of our growth agenda, and building a stronger growth mindset in our team. To improve focus and maximize value creation at the enterprise level, we have begun a comprehensive review of our portfolio, working closely with our Board and with the support of outside advisors. Ultimately the goal is directing capital to our most attractive opportunities. While this work is ongoing, we are committed to moving with urgency when we see opportunity.”

As part of the announcement, Paul said the company was exploring the sale of its autonomous mobile solutions business in the Automation & Motion Control (AMC) segment.

“There is significant work ahead, but we have a strong foundation and clear opportunities to build upon. I am confident in our ability to deliver on that potential and excited about what lies ahead,” said Paul.

Segment results for the third quarter of 2026 versus the same period of the prior year are summarized below:

AMC net sales were $500.6 million, an increase of 24.5%, or an increase of 25.2% on an organic basis. Growth was broad-based, but with particular strength in data center, including $25 million of sales related to E-Pods, and in discrete automation. Adjusted EBITDA margin was 19.2% of net sales or 18.7% excluding net IEEPA refund benefits.

Industrial Powertrain Solutions (IPS) net sales were $649.5 million, a decrease of 1.9%, or a decrease of 1.8% on an organic basis driven by weakness in metals and mining partially offset by strength in discrete automation and energy markets. Adjusted EBITDA margin was 26.0% of net sales or 25.2% excluding net IEEPA refund benefits.

Power Efficiency Solutions (PES) net sales were $437.9 million, an increase of 1.2%, or an increase of 0.4% on an organic basis. Growth in the commercial HVAC market was partially offset by weakness in the residential HVAC and pool markets. Adjusted EBITDA margin was 19.7% of net sales, or 18.1% excluding net IEEPA refund benefits.