Regal Rexnord (RRX) AI Stock Analysis

Regal Rexnord

(BMV:RRX)

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Action:N/A

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Positive Factors

Strong automation demand and backlogStrong AMC growth and a materially larger IPS backlog indicate durable demand for Regal Rexnord’s automation and motion-control offerings. These trends improve forward revenue visibility and support the company’s position in long-cycle industrial applications.

Negative Factors

PES end-market weaknessWeak residential HVAC and pool demand is pressuring the Power Efficiency Solutions segment and has led to a full-year sales outlook of flat to low-single-digit decline. Continued softness could weigh on growth, mix, and segment profitability over the next several quarters.

Regal Rexnord (RRX) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 10.47B
Dividend Yield: 0.90%
Average Volume (3M): 81
Price to Earnings (P/E): 32.2
Beta (1Y): 0.14
Revenue Growth: -5.74%
EPS Growth: 17.62%
Country: Mexico
Employees: 28,950
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Regal Rexnord Business Overview & Revenue Model

Company Description

Regal Rexnord Corporation, formerly known as Regal Beloit Corporation, is a global enterprise that designs, manufactures, and distributes a comprehensive range of industrial products. Its offerings include industrial powertrain solutions, mechanical...

Regal Rexnord Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|% Change Since:-1.11%|Next Earnings Date:Nov 02, 2026

Earnings Call SentimentNeutral

The call presents a mixed but constructive picture: strong order momentum (notably in AMC and IPS), solid near-term revenue growth and earnings aided by tariff refunds, continued deleveraging and on‑schedule strategic initiatives such as ePOD. Offsetting these positives are meaningful near-term margin pressures excluding refund benefits, weakened PES end markets (residential HVAC and pool), delayed productivity realization to protect service levels, inflationary cost pressure, and working capital headwinds that reduced cash flow guidance. Several positives improve visibility into 2027 (backlog and long-cycle wins), while execution and market mix create short-term challenges.

Positive Updates

Enterprise Order Momentum

Orders rose 8.8% on a daily basis versus prior year (8.1% excluding data center). Orders excluding consumer-leaning businesses (residential HVAC and pool) were up low double digits. Enterprise orders in July were up 7% on a daily basis.

Negative Updates

PES Revenue Decline and Channel Weakness

Power Efficiency Solutions (PES) organic sales declined 6.6% year-over-year driven by weakness in residential HVAC and pool channels. PES orders growth (3.5%) was offset by residential and pool softness, and management lowered PES full-year sales guidance to a flat to low single-digit decline.

Company Guidance

Regal Rexnord left full‑year sales guidance unchanged at $6.2 billion (≈4.5% growth) and now forecasts adjusted EBITDA margin of 22.1% (21.3% excluding IEEPA tariff refunds), reflecting an expected $48 million EBITDA refund benefit ($0.57 per share) split as $32M recorded in Q2 and $8M in each back‑half quarter; adjusted EPS guidance midpoint remains $10.60 with a narrowed range of $10.35–$10.85; adjusted free cash flow guidance is $600 million (down $50M); management expects net debt leverage below 3.0x in the back half; segment changes include AMC sales raised to low‑double‑digit growth (from high‑single digits) and $15M of ePOD revenue now expected in Q4 (AMC margins to be higher in H2 than H1), IPS sales lowered to low‑single‑digit growth (from mid‑single digits) with ~80 bps margin headwind vs prior, and PES now guided to flat to low‑single‑digit sales decline with ~1 point lower EBITDA margin vs prior assumptions.

Regal Rexnord Risk Analysis

Regal Rexnord disclosed 36 risk factors in its most recent earnings report. Regal Rexnord reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

Regal Rexnord Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

MX:RRX against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IR	85Outperform	$31.06B	22.42	13.53%	0.10%	7.96%	161.68%
DOV	77Outperform	$27.63B	24.07	15.43%	1.00%	8.24%	-47.25%
ITT	75Outperform	$17.75B	38.77	10.35%	0.76%	28.07%	-19.95%
PH	72Outperform	$113.48B	31.14	25.11%	0.84%	8.31%	4.96%
ROK	68Neutral	$48.44B	40.80	33.32%	1.27%	11.27%	25.32%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

MX:RRX and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:RRX	Regal Rexnord Corporation	2815.00	138.39	5.17%
DOV	Dover Corporation	207.74	31.39	17.80%
ITT	ITT Corporation	198.50	14.41	7.83%
PH	Parker-Hannifin Corp	899.82	134.31	17.55%
ROK	Rockwell Automation	436.20	76.47	21.26%
IR	Ingersoll Rand Inc.	80.05	4.13	5.43%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Regal Rexnord AI Stock Analysis