RRX NYSE Russell 1000 Earnings call
Regal Rexnord (RRX) · Q2 2026 results and valuation
Share price: $182.71 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 5 Aug 2026 and 7 May 2026
Net income up 81.3% on the previous quarter, guidance cut. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+81.3%
Net income vs Q1 2026
Guidance cut
Net income 116.6M vs 64.3M
Revenue +5.4%
Against the same quarter last year (Q2 2025) it is +47.2%, so it is not just seasonal.
2 · How management spoke
Typical
Less upbeat than 64% of company calls
Answers to analysts: typical, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
Figure
AMC's daily orders increased by over 25% in the first half of the year.
Valuation
Is Regal Rexnord undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 4.4% growth a year (3-year revenue growth), the model's fair value is $147.46 a share — the stock trades 24% above it. Today's price assumes 6.5% growth a year.
Current price
$182.71
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+6.5% for 10 yrs
Fair value / share
$147.46
Buy below
$110.60
Price vs fair value
Overvalued 24%
Price vs buy-below price
Overvalued 65%
Read between the lines
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Key theme
The company is implementing price increases and adding surcharges during the back half of the year to manage costs associated with the war.
Source quote
“We have scheduled price increases as we move through the back half of this year, have been implementing price increases... But we are absolutely implementing price increases. even as much as adding surcharges in certain cases where when you've got the war going...”
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Guidance ↓
RRX lowered sales growth guidance for PES to a flat to low single-digit decline.
Source quote
“Finally, for PES, we are lowering our sales growth guidance to a flat to low single-digit decline.”
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Guidance
RRX expects the current top line growth to continue following the performance delivered during the period.
Source quote
“This performance is supporting the healthy top line growth AMC has been delivering and which we expect to continue.”
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Fading
AMC's strong performance supports healthy revenue growth expected to continue.
Source quote
“The majority of this pressure relates to stronger growth in OEM versus aftermarket and to a lesser extent, project timing... We were pleased the team over executed on the top line, but where we saw the strongest growth in the quarter also resulted in greater-than-anticipated mix pressure. When considering margin performance versus the prior year period, the business...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Couple this with high-quality manufacturing and a culture of continuous improvement, and you have a foundation for building a platform for sustainable and profitable growth.”
“We attribute the strength to improving underlying end market momentum in AMC's largely secular markets and traction in our growth investments.”
“Growth in the quarter was led by the energy market, which includes power gen, where we are benefiting from strong growth in the data center market.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.56B | 1.48B | +5.4% | 1.50B | +4.2% |
| Gross profit | 611.6M | 549.9M | +11.2% | 564.7M | +8.3% |
| Operating income | 215.2M | 152.7M | +40.9% | 182.3M | +18.0% |
| Net income | 116.6M | 64.3M | +81.3% | 79.2M | +47.2% |
| EPS | 1.74 | 0.96 | +81.3% | 1.19 | +46.2% |
| P/E today 33.2 | 49.0 | 43.5 | +5.5 | 38.6 | +10.4 |
Topics
Most discussed now
- Regal Rexnord is seeing evidence of both improving end markets and further returns on its growth investments.
- Regal Rexnord's team delivered solid second quarter performance, and I want to begin by thanking its 30,000 Regal Rexnord associates for...
- Regal Rexnord absolutely expect modest headwinds in the second half as it relates to price cost.
- Regal Rexnord does think that from a forward progression standpoint on rates, on margins, in particular, in AMC, as you mentioned,...
Faded since Q1 2026
- Fading Before continuing, I want to thank Regal Rexnord's 30,000 Regal Rexnord associates for their hard work and disciplined execution, in…
- Fading Regal Rexnord talked about a $600 million switchgear funnel coming out of last quarter.
- Fading Regal Rexnord had some nice orders growth in switchgear in first quarter.
- Fading The reason is because Regal Rexnord doesn't have the cost synergies embedded for the rest of the year.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K