Regal Rexnord Jumps 9% On Higher Profit Guidance And Plan To Shop Robotics Business
The industrial maker is weighing a sale of its robotics unit and lifted its adjusted outlook despite a $119 million goodwill writedown.
Regal Rexnord, the Milwaukee maker of electric motors and industrial powertrain components, climbed 9.25% to $175.82 in Tuesday trading, as of 10:20 a.m. ET, adding $992 million in market value. The shares rose after the company said in its third-quarter results that it is exploring a sale of its autonomous mobile solutions unit and raised its adjusted 2026 profit outlook.
A robotics sale and a higher outlook
CEO Aamir Paul said the company is exploring a sale of the autonomous mobile solutions business and reviewing its whole portfolio. Regal Rexnord said it will share updates on the sale when it has something definitive to report.
The company raised its adjusted 2026 earnings outlook to $10.60 to $10.90 per share. Adjusted EBITDA, a measure of operating earnings, rose to $351 million as revenue gained 6%.
Data center sales rose 307% from a year earlier in the third quarter, or 169% excluding E-Pods, the company said.
Goodwill charge drives a loss
A $119 million non-cash goodwill writedown, mostly tied to the robotics unit, left the company with a $12 million net loss for the quarter. It also cut the 2026 forecast on a standard-accounting basis to $3.76 to $4.06 per share.
Rebound leaves most of the slide
Regal Rexnord makes electric motors, air moving subsystems, power transmission components and automation products.
The stock was on pace for its biggest one-day gain since April 8, when it rose 10.1%. Shares were up about 15% year to date at Monday's close, against about 10% for the S&P 500. Even so, the stock closed Monday 32% below its highest close of the past year, set on June 30.
In its second-quarter filing, the company reported net income of $116.6 million.
Regal Rexnord's market value stood at $11.7 billion in Tuesday's morning session.
Sources
- Regal Rexnord (RRX) Q3 Earnings and Revenues Beat Estimates — Yahoo Finance
- Regal Rexnord: Q3 Earnings Snapshot – WTOP News — wtop.com
- Regal Rexnord Non-GAAP EPS of $2.90 beats by $0.23, revenue of $1.59B beats by $30M, low | Seeking Alpha — seekingalpha.com
- Regal Rexnord (RRX) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates — Yahoo Finance
- REGAL REXNORD REPORTS THIRD QUARTER 2026 FINANCIAL RESULTS — prnewswire.com
- The company's filing (Regal Rexnord) — SEC filing
- Regal Rexnord — Form 10-Q for the quarter ended 2026-06-30 (quarterly results) — SEC EDGAR
