Regal Rexnord Corp (NYSE:RRX) Q3 2025 Earnings: Profit Miss Sparks 7% After-Hours Selloff Despite Data Center Strength

Regal Rexnord Corp (NYSE:RRX) reported its third quarter 2025 financial results, delivering a performance that presented a mixed picture for investors. The company demonstrated notable strength in its data center business but fell short of analyst expectations on key profitability metrics, triggering a significant negative reaction in after-hours trading.

Earnings and Revenue Performance

The company's third quarter results revealed a slight miss on revenue and a more pronounced shortfall on earnings per share compared to Wall Street forecasts. While the industrial manufacturer posted respectable growth in several operational areas, it failed to meet the precise financial targets set by analysts.

• Q3 2025 Revenue: $1.50 billion versus analyst estimates of $1.50 billion
• Q3 2025 Adjusted EPS: $2.51 compared to estimated $2.57

The modest revenue miss of approximately $6 million suggests the company's sales engine is largely in line with expectations. However, the earnings per share figure, which came in roughly 2.3% below estimates, indicates potential pressure on profit margins or higher-than-anticipated costs during the quarter. The adjusted diluted EPS showed a minimal year-over-year increase of 0.8%, while the GAAP diluted EPS of $1.20 represented a more robust 10.1% increase compared to the prior year.

Market Reaction and Recent Performance

The market's immediate response to the earnings release was decisively negative. Following the announcement, Regal Rexnord shares fell sharply in after-market trading, declining over 7%. This sharp drop contrasts with the stock's relatively stable performance in the lead-up to the earnings report.

• After-market performance: -7.06%
• Last week performance: -0.02%
• Last month performance: +0.89%

The dramatic after-hours selloff suggests investors were particularly disappointed with the earnings miss and are likely concerned about the company's ability to maintain profitability in the current economic environment. The reaction is notably severe given that the revenue figure was essentially in line with expectations, indicating that profitability metrics weighed more heavily on investor sentiment.

Operational Highlights and Business Segments

According to the company's press release, Regal Rexnord's data center business emerged as a significant bright spot in the quarter. The company reported $135 million in data center orders during the third quarter, followed by an additional $60 million in October alone. This strong performance in the data center segment highlights the company's successful positioning within a growing market and may provide a foundation for future revenue growth.

The company operates through three main segments: Industrial Powertrain Solutions, Power Efficiency Solutions, and Automation & Motion Control. The data center momentum likely falls within the Power Efficiency Solutions segment, which designs and produces motors, electronic controls, fans, and blowers—critical components for data center cooling and power infrastructure.

Forward Outlook and Analyst Expectations

Looking ahead, analysts have established expectations for the company's fourth quarter and full-year 2025 performance. For the upcoming quarter, the consensus estimates point toward continued growth, with projected revenue of $2.73 billion and sales of $1.52 billion. The full-year 2025 outlook calls for estimated revenue of $9.98 billion and sales of $5.96 billion.

The company's own commentary in the press release described "strong third quarter 2025 financial results," but did not provide specific quantitative guidance for the coming periods. The absence of detailed forward-looking statements from management makes it challenging to assess how the company's internal projections align with analyst expectations for the remainder of the fiscal year.

For more detailed earnings information and analyst estimates, visit the RRX earnings and estimates page.

Disclaimer: This article presents factual information about Regal Rexnord's financial results and market performance for informational purposes only. It does not constitute investment advice or a recommendation to buy or sell securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.