Revenue: As of FY2026 Q1, the actual value is USD 1.479 B, beating the estimate of USD 1.434 B.EPS: As of FY2026 Q1, the actual value is USD 0.96, beating the estimate of USD 0.894.EBIT: As of FY2026 Q1, the actual value is USD 228.6 M.<h3>Segment Revenue</h3><h4>Three Months Ended March 31, 2026</h4><ul><li>Automation &amp; Motion Control (AMC): Net sales were $457.1 million, representing a 15.3% increase compared to the prior year, driven by a 12.1% organic sales increase and a 3.2% positive foreign currency translation impact. Organic sales growth was strong in data center and discrete automation markets, with signs of recovery in food &amp; beverage .</li><li>Industrial Powertrain Solutions (IPS): Net sales were $648.2 million, an increase of 5.8%, consisting of 2.8% organic sales growth and a 3.1% positive foreign currency translation impact. Organic sales growth was broad-based, particularly strong in the general industrial market .</li><li>Power Efficiency Solutions (PES): Net sales were $373.8 million, an 8.6% decrease, primarily due to a 10.3% organic sales decline, partially offset by a 1.7% positive foreign currency translation impact. The organic sales decrease reflected expected weakness in the residential HVAC market, partially offset by growth in commercial HVAC markets in North America and Asia Pacific .</li><li>Consolidated Net Sales: Total net sales reached $1,479.1 million, an increase of $61.0 million or 4.3% year-over-year, which included a 1.6% organic sales increase and a 2.7% positive foreign currency translation impact .</li></ul><h4>Three Months Ended March 31, 2025</h4><ul><li>Automation &amp; Motion Control (AMC): Net sales were $396.3 million .</li><li>Industrial Powertrain Solutions (IPS): Net sales were $612.7 million .</li><li>Power Efficiency Solutions (PES): Net sales were $409.1 million .</li><li>Consolidated Net Sales: Total net sales were $1,418.1 million .</li></ul><h3>Operational Metrics</h3><h4>Gross Profit</h4><ul><li>Three Months Ended March 31, 2026: AMC reported $161.8 million (35.4% of Net Sales), IPS reported $274.7 million (42.4% of Net Sales), PES reported $113.4 million (30.3% of Net Sales), and Consolidated gross profit was $549.9 million (37.2% of Net Sales) .</li><li>Three Months Ended March 31, 2025: AMC reported $158.1 million (39.9% of Net Sales), IPS reported $257.5 million (42.0% of Net Sales), PES reported $112.0 million (27.4% of Net Sales), and Consolidated gross profit was $527.6 million (37.2% of Net Sales) .</li><li>YoY Comparison: Consolidated gross profit increased by $22.3 million (4.2%). The IPS segment contributed an increase of $17.2 million, primarily due to higher sales volumes, synergy benefits, and lower restructuring and related costs, while AMC’s and PES’s gross profit remained relatively consistent .</li></ul><h4>Operating Expenses</h4><ul><li>Three Months Ended March 31, 2026: AMC reported $130.2 million (28.5% of Net Sales), IPS reported $195.5 million (30.2% of Net Sales), PES reported $71.5 million (19.1% of Net Sales), and Consolidated operating expenses were $397.2 million (26.9% of Net Sales) .</li><li>Three Months Ended March 31, 2025: AMC reported $123.0 million (31.0% of Net Sales), IPS reported $175.8 million (28.7% of Net Sales), PES reported $69.1 million (16.9% of Net Sales), and Consolidated operating expenses were $367.9 million (25.9% of Net Sales) .</li><li>YoY Comparison: Consolidated operating expenses increased by $29.3 million (8.0%). The IPS segment’s operating expenses increased by $19.7 million, driven by increased labor and benefit costs and a $6.0 million gain on the sale of assets in the prior year period, while AMC and PES operating expenses were relatively consistent .</li></ul><h4>Income from Operations</h4><ul><li>Three Months Ended March 31, 2026: AMC reported $31.6 million (6.9% of Net Sales), IPS reported $79.2 million (12.2% of Net Sales), PES reported $41.9 million (11.2% of Net Sales), and Consolidated income from operations was $152.7 million (10.3% of Net Sales) .</li><li>Three Months Ended March 31, 2025: AMC reported $35.1 million (8.9% of Net Sales), IPS reported $81.7 million (13.3% of Net Sales), PES reported $42.9 million (10.5% of Net Sales), and Consolidated income from operations was $159.7 million (11.3% of Net Sales) .</li><li>YoY Comparison: Consolidated income from operations decreased from $159.7 million to $152.7 million .</li></ul><h4>Net Income</h4><ul><li>Net Income for the three months ended March 31, 2026, was $64.3 million, up from $57.5 million for the same period in 2025 .</li></ul><h3>Cash Flow</h3><ul><li>Operating Cash Flow: Net cash provided by operating activities was $14.9 million for the three months ended March 31, 2026, a decrease of $87.4 million from $102.3 million in the same period of 2025, primarily due to changes in working capital, specifically accounts receivable .</li><li>Investing Cash Flow: Net cash used in investing activities was - $17.4 million for the three months ended March 31, 2026, compared to - $3.5 million used in the same period of 2025, primarily due to proceeds received from sales of property, plant, and equipment in 2025 .</li><li>Free Cash Flow: Free cash flow was - $2.5 million for the three months ended March 31, 2026, calculated as $14.9 million in operating cash flow minus $17.4 million in capital expenditures. This compares to $85.5 million for the same period in 2025, calculated as $102.3 million in operating cash flow minus $16.8 million in capital expenditures .</li></ul><h3>Other Key Financial Metrics</h3><ul><li>Working Capital: Working capital increased by $37.0 million to $1,485.0 million as of March 31, 2026, from $1,448.0 million as of December 31, 2025, driven by increases in accounts receivables, inventory, and prepaid expenses, offset by a decrease in cash and an increase in accounts payable .</li><li>Current Ratio: The current ratio was 2.2:1 as of March 31, 2026, compared to 2.1:1 as of December 31, 2025 .</li><li>Capital Expenditures: Capital spending for property, plant, and equipment was $17.4 million for the three months ended March 31, 2026, compared to $16.8 million for the same period in 2025 .</li><li>Restructuring Costs: Total restructuring costs for the three months ended March 31, 2026, were $8.3 million, down from $9.8 million in the prior year period. These costs were distributed across segments: AMC ($1.1 million), IPS ($3.9 million), and PES ($3.3 million) in 2026 .</li><li>Debt: As of March 31, 2026, Regal Rexnord Corporation had $3,718.4 million of fixed-rate debt and $1,017.8 million of variable-rate debt. Net debt repayments were $83.5 million for the three months ended March 31, 2026, compared to $164.1 million in the prior year period .</li></ul><h3>Future Outlook and Strategy</h3>Regal Rexnord Corporation anticipates capital spending for property, plant, and equipment to be approximately $120.0 million for the full year 2026, funded primarily by operating cash flows . The company plans to use cash generated from operations to fund interest obligations and reduce the principal balance of its debt over time . Additionally, the company expects to record aggregate future charges related to restructuring of $22.9 million in the remainder of 2026 and continues to evaluate operating efficiencies, while evaluating foreign cash repatriation for additional liquidity opportunities .

Regal Rexnord | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 1.479 B