Overview

* Regal Rexnord ( RRX ) Q3 sales beat analyst expectations, adjusted EPS missed estimates

* Company reports net income of $80 mln, up from $73 mln last year

* Company secured $135 mln in data center orders, investing in new Texas facility

Outlook

* Regal Rexnord ( RRX ) narrows and lowers annual GAAP EPS guidance to $4.26-$4.56

* Company expects mid-single digit organic growth in 4Q 2025

* Regal Rexnord ( RRX ) anticipates low- to mid-single digit growth in 2026

Result Drivers

* DATA CENTER ORDERS - Co secured $135 mln in data center orders in Q3, with an additional $60 mln in October, driving sales growth

* MARKET DIVERSIFICATION - Growth in discrete automation, food & beverage, and semiconductor clean rooms helped offset weakness in other markets

* INVESTMENTS IN TEXAS FACILITY - Co investing in a new 100K sq ft assembly facility in Texas to support data center demand growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Meet $1.49 $1.49

bln bln (10

Analysts

)

Q3 Miss $2.51 $2.57

Adjusted (11

EPS Analysts

)

Q3 EPS $1.20

Q3 Net $80 mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "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 ( RRX ) is $175.00, about 17.3% above its October 28 closing price of $144.71

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)