$RRX · REGAL REXNORD CORP
Regal Rexnord reported Q3 FY2026 results: revenue of $1.588B (+6% YoY), adjusted EPS of $2.90, and a GAAP net loss of $12.5M ($0.19/share) driven by a $119.3M non-cash goodwill impairment in the AMC segment tied to the autonomous mobile solutions business. Adjusted EBITDA was $351M, up 4% YoY. The company raised and narrowed FY2026 adjusted diluted EPS guidance to $10.60–$10.90 and announced a comprehensive portfolio review, including exploring the sale of the AMS business.
- GAAP net loss of $12.5M ($0.19/share) driven by a $119.3M non-cash goodwill impairment tied to the autonomous mobile solutions (AMS) business.
- Adjusted EPS of $2.90 vs. prior-year $1.20 GAAP EPS; adjusted EBITDA of $351M, up 4% YoY.
- Revenue of $1.588B, up 6% YoY; data center sales surged 307% (169% ex-E-Pods).
- FY2026 adjusted diluted EPS guidance raised and narrowed to $10.60–$10.90 (midpoint $10.75), up from prior.
- Company announced a comprehensive portfolio review and is exploring the sale of its AMS business.
Extended-hours trading at $166.00, +3.15% vs. the regular close and +5.57% vs. the filing-time price, suggesting the market is rewarding the adjusted EPS beat, guidance raise, and portfolio-review catalyst despite the GAAP loss from the goodwill impairment.
A $119M impairment, adjusted EPS beat, guidance raise, and a strategic portfolio review with a potential divestiture all hit in one quarter — a high-signal mix for a $10.7B industrial.
Data center demand continues to be a secular growth driver for industrial motion-control companies; RRX's 307% data center sales growth (169% organic ex-E-Pods) mirrors the hyperscale capex tailwind seen across peers in automation and power management.
The $119.3M goodwill impairment in the AMC segment signals the AMS business is underperforming expectations; the portfolio review and potential AMS sale introduce execution risk. Heavy indebtedness (net debt/adjusted EBITDA at 2.9x) remains a constraint.