The industrial manufacturer reported higher-than-expected Q1 2026 sales but warned of margin pressure from rising tariffs.
Regal Rexnord posted Q1 2026 revenue above analyst estimates, driven by stronger demand in its motion control segment. The beat was offset by margin contraction, attributed to increased tariffs on imported components.
Consensus had called for a 4.2% year-over-year revenue gain; the company delivered 5.1%. Operating margins, however, fell 80 basis points to 12.3%, below the 13.1% forecast. Comparable margins in Q1 2025 stood at 13.9%.
Shares were little changed in after-hours trading as investors weighed the revenue outperformance against margin headwinds.