Regal Rexnord RRX

Regal Rexnord reports $12.5 million net loss in Q3 2026

Form
10-Q
Filed
Importance
Notable
  1. Revenue of $1.59 billion for the three months ended Sep 30, 2026
  2. Net loss of $12.5 million for the three months ended Sep 30, 2026
  3. Diluted EPS of -$0.19 for the three months ended Sep 30, 2026
  4. Cash and equivalents of $449.6 million as of Sep 30, 2026

Written from the 10-Q on EDGAR. Check the filing before you rely on it.

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The reading, claim by claim

From the filing's financial data, not stated in its text

From this 10-Q's financial data (XBRL) for the quarter ended September 30, 2026

  • For the quarter ended September 30, 2026, REGAL REXNORD CORP reported: Revenue $1.6 billion.
  • Net income -$12.5 million.
  • Gross margin 37.2%.
  • Operating margin 5.1%.
  • Net margin -0.8%.
  • Revenue change from a year earlier +6.1%.

From the filing

Item 6 — Exhibits

Item 6 — Exhibits

Signatures

50

2

CAUTIONARY STATEMENT

All statements in this report, other than those relating to historical facts, are "forward-looking statements" within the meaning of federal securities laws. Forward-looking statements can generally be identified by their use of terms such as "anticipate," "believe," "confident," "estimate," "expect," "intend," "aim," "seek," "target," "plan," "may," "will," "would," "project," "forecast," "predict," "could," "should," and similar expressions including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Forward-looking statements include, but are not limited to, statements about future financial and operating results, future strategic plans and objectives, and expected market or macroeconomic trends. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements in this report include, without limitation:

• the possibility that Regal Rexnord Corporation (the "Company") may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the sale of the Industrial Motors and Generators businesses in 2024 and the acquisition of Altra Industrial Motion Corp. in 2023 (the "Altra Transaction") within the expected time-frames or at all and to successfully integrate Altra Industrial Motion Corp. ("Altra");

• the Company's substantial indebtedness as a result of the Altra Transaction and the effects of such indebtedness on the Company's financial flexibility;

• the Company's ability to achieve its objectives on reducing its indebtedness on the desired timeline or at all;

• dependence on key suppliers and the potential effects of supply disruptions;

• fluctuations in commodity prices and raw material costs as a result of, among other things, changes to trade policies, imposition of tariffs or trade restrictions, and other governmental regulations affecting trade;

• any unforeseen changes to or the effects on liabilities, future capital expenditures, revenue, expenses, synergies, indebtedness, financial condition, losses and future prospects;

• unanticipated operating costs, customer loss and business disruption or the Company's inability to forecast customer needs;

• the Company's ability to attract, transition or retain key executives and employees and risks associated with the transition of our new CEO;

• uncertainties regarding the Company's ability to execute its restructuring/strategic plans within expected costs and timing or at all;

• challenges to the tax treatment that was elected with respect to the merger with the Rexnord PMC business and related transactions;

• actions taken by competitors and their ability to effectively compete in the increasingly competitive global industries and markets;

• the Company's ability to develop new products based on technological innovation and marketplace acceptance of new and existing products;

• our ability to keep pace with rapidly evolving technological developments related to advances in artificial intelligence;

• dependence on significant customers and distributors;

• risks that customers may make changes and adjustments to their orders which could result in actual revenue recognized being lower or higher than disclosed order values;

• risks associated with climate change, including unexpected weather events in markets in which we do business, and uncertainty regarding the Company's ability to deliver on its sustainability commitments or to meet related investor, customer and other third party expectations relating to the Company's sustainability efforts and rapidly evolving sustainability regulations;

• changes to and uncertainty in trade policy, including tariffs on imports into the US from Canada, Mexico, China, India and other countries, and retaliatory tariffs and import/export restrictions, including Chinese export restrictions on certain rare earth minerals, or other trade restrictions imposed by the US or other governments;

• risks associated with global manufacturing, including risks associated with public health crises and political, societal or economic instability, including instability caused by ongoing geopolitical conflicts;

• issues and costs arising from the integration of acquired companies and businesses;

3

• prolonged declines or disruptions in one or more markets, including disruptions caused by labor disputes or other labor activities, natural disasters, terrorism, acts of war, international conflicts, pandemics and political and government actions;

• risks associated with excess or obsolete inventory charges, including related write-offs or write-downs;

• economic changes in global markets, such as reduced demand for products, currency exchange rates, inflation rates, interest rates, recession, government policies, including policy changes affecting taxation, trade, tariffs, import/export regulations, immigration, customs, border actions and the like, and other external factors that the Company cannot control;

• product liability, asbestos and other litigation, or claims by end users, government agencies or others that products or customers' applications failed to perform as anticipated;

• unanticipated liabilities of acquired businesses;

• the Company's ability to identify and execute on future mergers and acquisitions ("M&A") opportunities or other strategic transactions;

• the impact of such M&A or other transactions on the Company's results, operations and financial condition, including the impact from costs to execute and finance any such transactions;

• unanticipated costs or expenses that may be incurred related to product warranty issues, recalls or reworks;

• infringement of intellectual property by third parties, challenges to intellec

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS REGAL REXNORD CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited)

(Amounts in Millions, Except Per Share Data)

Three Months Ended Nine Months Ended

September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 Net Sales $ 1,588.0 $ 1,497.0 $ 4,625.5 $ 4,411.2 Cost of Sales 997.8 942.8 2,873.8 2,764.7 Gross Profit 590.2 554.2 1,751.7 1,646.5 Operating Expenses 389.5 379.8 1,183.1 1,130.2 Goodwill Impairment 119.3 — 119.3 — Total Operating Expenses 508.8 379.8 1,302.4 1,130.2 Income from Operations 81.4 174.4 449.3 516.3 Interest Expense 77.0 87.0 234.9 262.5 Interest Income ( 6.5 ) ( 5.3 ) ( 17.3 ) ( 14.6 ) Other Expense, Net 0.3 0.8 0.9 2.4 Income before Taxes 10.6 91.9 230.8 266.0 Provision for Income Taxes 22.9 11.9 62.0 49.0 Net (Loss) Income ( 12.3 ) 80.0 168.8 217.0 Less: Net Income Attributable to Noncontrolling Interests 0.2 0.4 0.4 1.1 Net (Loss) Income Attributable to Regal Rexnord Corporation $ ( 12.5 ) $ 79.6 $ 168.4 $ 215.9 (Loss) Earnings Per Share Attributable to Regal Rexnord Corporation: Basic $ ( 0.19 ) $ 1.20 $ 2.53 $ 3.26 Assuming Dilution $ ( 0.19 ) $ 1.20 $ 2.52 $ 3.25 Weighted Average Number of Shares Outstanding: Basic 66.6 66.4 66.5 66.3 Assuming Dilution 66.6 66.6 66.9 66.5

See Accompanying Notes to Condensed Consolidated Financial Statements

5

REGAL REXNORD CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(Dollars in Millions)

Three Months Ended Nine Months Ended

September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 Net (Loss) Income $ ( 12.3 ) $ 80.0 $ 168.8 $ 217.0 Other Comprehensive (Loss) Income Net of Tax: Foreign Currency Translation Adjustments ( 17.6 ) ( 3.5 ) ( 82.3 ) 326.1 Hedging Activities: Increase in Fair Value of Hedging Activities 3.1 1.7 13.1 10.5 Reclassification of (Gains) Losses Included in Net (Loss) Income ( 5.7 ) 1.2 ( 12.2 ) 0.5

Pension and Post Retirement Plans:

Increase in Prior Service Cost and Unrecognized Loss — — — ( 1.0 )

Amortization of Prior Service Cost and Unrecognized Gain Included in Net Periodic Pension Cost ( 0.1 ) ( 0.2 ) ( 1.0 ) ( 0.5 ) Other Comprehensive (Loss) Income ( 20.3 ) ( 0.8 ) ( 82.4 ) 335.6 Comprehensive (Loss) Income ( 32.6 ) 79.2 86.4 552.6 Less: Comprehensive Income Attributable to Noncontrolling Interests 0.3 0.5 0.7 1.4 Comprehensive (Loss) Income Attributable to Regal Rexnord Corporation $ ( 32.9 ) $ 78.7 $ 85.7 $ 551.2

See Accompanying Notes to Condensed Consolidated Financial Statements

6

REGAL REXNORD CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in Millions, Except Per Share Data)

September 30, 2026 December 31, 2025

ASSETS

Current Assets:

Cash and Cash Equivalents $ 449.6 $ 521.7 Trade Receivables, Less Allowances of $ 10.4 Million and $ 10.5 Million as of September 30, 2026 and December 31, 2025, Respectively 584.7 524.2 Inventories 1,392.7 1,321.7

Prepaid Expenses and Other Current Assets 466.6 344.7

Total Current Assets 2,893.6 2,712.3

Net Property, Plant and Equipment 853.2 911.8

Operating Lease Assets 140.4 145.2 Goodwill 6,447.8 6,611.3

Intangible Assets, Net of Amortization 3,093.0 3,418.4

Deferred Income Tax Benefits 36.3 36.2 Other Noncurrent Assets 124.5 85.8 Total Assets $ 13,588.8 $ 13,921.0

LIABILITIES AND EQUITY

Current Liabilities:

Accounts Payable $ 653.4 $ 607.3 Dividends Payable 23.3 23.2 Accrued Compensation and Benefits 200.2 205.5 Accrued Interest 82.0 84.0 Other Accrued Expenses 283.8 281.7 Current Operating Lease Liabilities 39.1 38.5

Current Maturities of Long-Term Debt 24.7 24.1

Total Current Liabilities 1,306.5 1,264.3 Long-Term Debt 4,427.5 4,764.6 Deferred Income Taxes 685.4 752.6

Pension and Other Post Retirement Benefits 93.7 106.0

Noncurrent Operating Lease Liabilities 111.5 114.0 Other Noncurrent Liabilities 87.7 66.2 Equity: Regal Rexnord Corporation Shareholders' Equity: Common Stock, $ 0.01 Par Value, 150.0 Million Shares Authorized, 66.6 Million and 66.4 Million Shares Issued and Outstanding as of September 30, 2026 and December 31, 2025, Respectively 0.7 0.7 Additional Paid-In Capital 4,696.7 4,688.5 Retained Earnings 2,328.8 2,230.3 Accumulated Other Comprehensive Loss ( 158.1 ) ( 75.4 )

Total Regal Rexnord Corporation Shareholders' Equity 6,868.1 6,844.1

Noncontrolling Interests 8.4 9.2 Total Equity 6,876.5 6,853.3 Total Liabilities and Equity $ 13,588.8 $ 13,921.0

See Accompanying Notes to Condensed Consolidated Financial Statements

7

REGAL REXNORD CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(Dollars in Millions, Except Per Share Data)

Three Months Ended

Common Stock $ 0.01 Par Value

Additional

Paid-In

Capital Retained

Earnings Accumulated

Other

Comprehensive

Income (Loss) Noncontrolling

Interests Total Equity

June 30, 2026 $ 0.7 $ 4,687.8 $ 2,364.7 $ ( 137.7 ) $ 8.1 $ 6,923.6 Net (Loss) Income — — ( 12.5 ) — 0.2 ( 12.3 ) Other Comprehensive (Loss) Income — — — ( 20.4 ) 0.1 ( 20.3 )

Dividends Declared ($ 0.35 Per Share)

— — ( 23.4 ) — — ( 23.4 )

Common Stock Issued for the Exercise of Share-Based Compensation Awards — ( 0.4 ) — — — ( 0.4 )

Share-Based Compensation — 9.3 — — — 9.3 September 30, 2026 $ 0.7 $ 4,696.7 $ 2,328.8 $ ( 158.1 ) $ 8.4 $ 6,876.5 June 30, 2025 $ 0.7 $ 4,671.7 $ 2,133.7 $ ( 106.5 ) $ 8.3 $ 6,707.9 Net Income — — 79.6 — 0.4 80.0 Other Comprehensive (Loss) Income — — — ( 0.9 ) 0.1 ( 0.8 )

Dividends Declared ($ 0.35 Per Share)

— — ( 23.3 ) — — ( 23.3 )

Common Stock Issued for the Exercise of Share-Based Compensation Awards — ( 0.9 ) — — — ( 0.9 )

Share-Based Compensation — 9.4 — — — 9.4 September 30, 2025 $ 0.7 $ 4,680.2 $ 2,190.0 $ ( 107.4 ) $ 8.8 $ 6,772.3

See Accompanying Notes to Condensed Consolidated Financial Statements

8

REGAL REXNORD CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(Dollars in Millions, Except Per Share Data)

Nine Months Ended

Common Stock $ 0.01 Par Value

Additional Paid-In Capital Retained Earnings A

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