Regal Rexnord’s Backlog Build: Why Data Centers And Automation Matter Now!

Regal Rexnord reported first quarter 2026 results showing solid operational execution amid a complex macro environment. The company experienced a notable increase in enterprise orders—8.5% higher on a daily basis year-over-year—resulting in a backlog growth of 6.7% from the prior quarter. Sales rose 4.3%, with 1.6% organic growth, primarily driven by broad markets beyond residential HVAC, including data center, discrete automation, and general industrial sectors. The Automation & Motion Control (AMC) segment was a standout, delivering 12.1% organic sales growth and 34% order growth, supported by secular tailwinds and growth investments. Industrial Powertrain Solutions (IPS) reported moderate corporate sales growth driven by short-cycle OEM demand and slowly recovering industrial markets, while Power Efficiency Solutions (PES) sales declined 10.3% organically due primarily to residential HVAC weakness but showed encouraging signs in commercial HVAC. Margins displayed mixed dynamics. Adjusted gross margin remained steady at 37.