The 8.8% daily order growth and maintained guidance midpoint support a constructive view. Watch for the pace of PES segment recovery and whether the IEEPA refund benefit ($0.57/share in full-year guidance) is sustainable. The stock may see modest upside on the operational beat and order momentum, but the one-time tariff refund clouds the underlying earnings quality.
Price Chart
Executive Summary
Regal Rexnord reported Q2 2026 adjusted diluted EPS of $2.99, up 20.6% YoY, on sales of $1,558.4M (+4.2% YoY, +3.3% organic). The headline beat vs consensus is unclear as the provided consensus estimate of $2.58 appears to be for Q1 2026, not Q2. Guidance was narrowed but the midpoint was maintained at $10.60, with daily orders accelerating 8.8% YoY, signaling improving end-market demand. The stock should trade modestly higher on the solid operational beat, strong order momentum, and maintained guidance, though the $0.39/share IEEPA tariff refund benefit is a one-time tailwind that inflates adjusted EPS.
Key Financial Metrics
Key Facts
- Q2 2026 adjusted diluted EPS of $2.99, up 20.6% YoY
- Net sales of $1,558.4M, up 4.2% YoY (+3.3% organic)
- Daily orders up 8.8% YoY, led by AMC segment at +17.1%
- Adjusted EBITDA of $366.6M, up 11.2% YoY; margin 23.5%
- 2026 adjusted EPS guidance narrowed to $10.35-$10.85, midpoint unchanged at $10.60
- Net debt to adjusted EBITDA (incl. synergies) at 3.06x, expected below 3.0x in H2 2026
- Operating cash flow of $176.6M; free cash flow of $154.1M
- AMC segment sales +16.2% YoY; PES segment sales -5.5% YoY on Resi-HVAC/pool weakness
Financial Impact
Q2 adjusted EPS $2.99 vs $2.48 YoY (+20.6%); sales $1,558.4M vs $1,496.1M YoY (+4.2%)
Risk Factors
- IEEPA tariff refund benefit of $0.39/share in Q2 is a one-time tailwind that may not recur
- PES segment sales declined 5.5% YoY due to Resi-HVAC and pool market weakness
- Management noted lag in price realization vs inflation and longer timeline for productivity gains
- Net debt/EBITDA at 3.06x remains elevated, though expected to decline below 3.0x
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302843136 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | Press Release | $148.71 | awaiting T+60 | — | $158.21 (+6.39%) |
Oct 5, 2026 22d ago | Press Release | $166.36 | awaiting T+60 | — | $158.21 (−4.90%) |
Sep 18, 2026 5w ago | Court Ruling | $150.73 | awaiting T+60 | — | $158.21 (+4.96%) |
Aug 5, 2026 11w ago | 8-K | $183.24 | awaiting T+60 | — | $158.21 (−13.66%) |
Aug 5, 2026 11w ago | Press Release | $183.24 | awaiting T+60 | — | $158.21 (−13.66%) |
Jul 28, 2026 13w ago | Institutional Cluster | $202.93 $158.78 | ▼ −21.76% | ▼ −26.11% | $158.21 (−22.04%) |
Jul 23, 2026 13w ago | Court Ruling | $214.03 $156.13 | ▼ −27.05% | ▼ −31.61% | $158.21 (−26.08%) |
Jul 21, 2026 14w ago | Press Release | $214.79 $156.13 | ▼ −27.31% | ▼ −30.57% | $158.21 (−26.34%) |
Jul 10, 2026 15w ago | Press Release | $214.90 $161.26 | ▼ −24.96% | ▼ −27.59% | $158.21 (−26.38%) |
Jun 20, 2026 18w ago | Institutional Cluster | $231.28 $152.45 | ▼ −34.08% | ▼ −35.83% | $158.21 (−31.59%) |
US Market Status
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