Regal Rexnord explores selling its robot unit after a $119 million write-down, with data-center sales up 307%
Regal Rexnord's Q3 shows a $119 million write-down on its warehouse-robot bet going up for sale, while data-center sales up 307% and commercial HVAC orders up 47% point the capital the other way.
Vincent Jiang · 2 min read
Regal Rexnord+11.33% — Regal Rexnord, up 11.33 percent today, the Milwaukee motors and power-transmission maker, told investors two opposite stories on the morning of November 3, 2026 1. Sales of $1,588 million rose 6% and data-center sales more than quadrupled, up 307% year over year, or 169% excluding E-Pods, the electrical pod hardware it sells into AI buildings 1. Yet the company reported a GAAP net loss of $12 million against $80 million of profit a year earlier 1.
The quarter's books were balanced by a robot write-down
The loss came from a $119.3 million non-cash goodwill impairment, $1.78 per diluted share, taken primarily on the autonomous mobile solutions business, the warehouse-robotics unit in the Automation & Motion Control segment 1. That same unit is now for sale. Four months into the job, chief executive Aamir Paul announced Regal Rexnord is exploring the sale of the business and has begun a portfolio review with outside advisors and the board, promising to move "with urgency" 1.
The money is moving from robots to the AI buildout
The keep side of the portfolio is the data-center and cooling trade. The AMC segment grew sales 24.5% to $500.6 million, including $25 million of E-Pod sales, and commercial HVAC orders jumped 47% on new air-moving products, the blower side of the same AI-buildout bet 1. Discrete automation orders rose 26% 1.
Adjusted diluted EPS of $2.90 beat the $2.67 consensus, and full-year adjusted EPS guidance rose to $10.60 to $10.90 12. GAAP EPS guidance fell to $3.76 to $4.06 because of the charge 1. Leverage sits at 2.9x net debt to adjusted EBITDA including synergies, still carrying debt from the 2023 Altra acquisition 1.
Revenue broke an eight-quarter flat stretch in the data-center quarter
Data
| Quarterly revenue | |
|---|---|
| Q1 '24 | 1.55B |
| Q2 '24 | 1.55B |
| Q3 '24 | 1.48B |
| Q4 '24 | 1.46B |
| Q1 '25 | 1.42B |
| Q2 '25 | 1.5B |
| Q3 '25 | 1.5B |
| Q4 '25 | 1.52B |
| Q1 '26 | 1.48B |
| Q2 '26 | 1.56B |
| Q3 '26 | 1.59B |
Revenue had been flat near $1.5 billion for eight straight quarters before this one; the data-center line is the first visible inflection 13.
What the market must decide
The question is durability: whether triple-digit data-center growth outlasts project-timing effects and rerates an industrial with 26% EBITDA margins in its powertrain segment, and what price the robot unit fetches 1. The guidance raise and the sale exploration point the same direction; watch the divestiture terms 1.
Learn more in our prior coverage of the credit-spread test ahead of these orders.
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