Regal Rexnord Reports Strong Q3 2026 Results Driven by Data Center Demand
Regal Rexnord (RRX) reported third-quarter results for fiscal year 2026 that exceeded guidance, highlighted by a significant surge in data center-related sales. Net sales reached $1.59 billion, representing a 6.1% organic increase, while adjusted EPS rose 8.4% to $2.72. The company's performance was heavily bolstered by its AMC segment, which saw massive growth due to demand for power and cooling infrastructure in data centers. Despite the strong top-line growth, the company faced operational headwinds. Adjusted gross margins declined by 80 basis points due to price-cost pressures and manufacturing inefficiencies within the IPS segment. Management noted that certain plants struggled to convert backlog into shipments, leading to a sales shortfall in that specific division. However, robust order trends and high demand for E-Pods and switchgear led management to raise full-year revenue and EPS guidance.
Topics: data center growth earnings report EPS beat revenue increase
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