The earnings miss and weak cash flow are negative signals, but strong order momentum and reaffirmed guidance may limit downside. Watch the conference call for color on tariff impacts, order conversion timing, and the CEO transition. Short-term bearish bias, but the stock could recover if management convinces the market the miss is transitory.
Price Chart
Executive Summary
Regal Rexnord reported Q1 2026 adjusted diluted EPS of $2.17, missing consensus estimates of $2.67 by 18.7%, while revenue of $1.479B also fell short of the $1.55B consensus. Despite positive order growth (up 8.5% YoY) and reaffirmed full-year adjusted EPS guidance of $10.20-$11.00, the earnings miss and sharp decline in operating cash flow ($14.9M vs $102.3M YoY) are likely to weigh on the stock.
Key Financial Metrics
Key Facts
- Q1 2026 adjusted diluted EPS of $2.17 missed consensus of $2.67 by 18.7%
- Revenue of $1,479.1M grew 4.3% YoY but missed consensus of $1.55B
- Operating cash flow plunged to $14.9M from $102.3M in the prior-year quarter; free cash flow was -$2.5M
- Order growth remained strong: daily orders up 8.5% YoY, AMC orders up over 34%
- 2026 adjusted EPS guidance reaffirmed at $10.20-$11.00
- Announced Aamir Paul as next CEO, succeeding Louis Pinkham
Financial Impact
Adjusted EPS miss of $0.50 per share vs consensus; revenue miss of ~$71M
Risk Factors
- Tariff headwinds pressuring margins
- Continued weakness in residential HVAC markets
- Elevated debt leverage (3.3x net debt/EBITDA)
- Potential negative sentiment from the CEO transition
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000082811-26-000141 |
| Document: 0000082811-26-000141-index-headers.html | 0000082811-26-000141 |
| Document: 0000082811-26-000141-index.html | 0000082811-26-000141 |
| Document: 0000082811-26-000141.txt | 0000082811-26-000141 |
| 8-K Data (Synthetic) | 0000082811-26-000141 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | Press Release | $148.71 | awaiting T+60 | — | $158.32 (+6.46%) |
Oct 5, 2026 21d ago | Press Release | $166.36 | awaiting T+60 | — | $158.32 (−4.83%) |
Sep 18, 2026 5w ago | Court Ruling | $150.73 | awaiting T+60 | — | $158.32 (+5.04%) |
Aug 5, 2026 11w ago | 8-K | $183.24 | awaiting T+60 | — | $158.32 (−13.60%) |
Aug 5, 2026 11w ago | Press Release | $183.24 | awaiting T+60 | — | $158.32 (−13.60%) |
Jul 28, 2026 13w ago | Institutional Cluster | $202.93 $158.78 | ▼ −21.76% | ▼ −26.11% | $158.32 (−21.98%) |
Jul 23, 2026 13w ago | Court Ruling | $214.03 $156.13 | ▼ −27.05% | ▼ −31.61% | $158.32 (−26.03%) |
Jul 21, 2026 14w ago | Press Release | $214.79 $156.13 | ▼ −27.31% | ▼ −30.57% | $158.32 (−26.29%) |
Jul 10, 2026 15w ago | Press Release | $214.90 $161.26 | ▼ −24.96% | ▼ −27.59% | $158.32 (−26.33%) |
Jun 20, 2026 18w ago | Institutional Cluster | $231.28 $152.45 | ▼ −34.08% | ▼ −35.83% | $158.32 (−31.55%) |
US Market Status
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