Regal Rexnord Corporation (RRX)
NYSE:RRX
Want to see RRX full AI Analyst Report?
Top Page
Regal Rexnord
(NYSE:RRX)
Select Model
Select Model
Rating:64Neutral
Price Target:
$216.00
▲(5.16% Upside)
Action:Reiterated
Date:06/02/26
The score is driven primarily by solid fundamentals and cash generation, supported by a constructive guidance update and strong order momentum. Offsetting these positives are a moderately levered balance sheet with low ROE, cooling technical momentum, and a demanding valuation (high P/E with a low yield).
Positive Factors
Strong cash generation
Sustained high free cash flow provides durable internal funding for debt paydown, capacity investments, and targeted growth (NPD, data center builds). High FCF-to-income (~0.89) supports capital allocation flexibility and reduces reliance on external financing over the next several quarters.
Negative Factors
Meaningful leverage and low ROE
Moderate leverage limits strategic flexibility: interest and covenant risk can constrain M&A, buybacks, or aggressive capex. Low ROE indicates capital is not yet generating strong shareholder returns, making the company sensitive to profit or cash setbacks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained high free cash flow provides durable internal funding for debt paydown, capacity investments, and targeted growth (NPD, data center builds). High FCF-to-income (~0.89) supports capital allocation flexibility and reduces reliance on external financing over the next several quarters.
Read all positive factors
Regal Rexnord (RRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.24B
Dividend Yield0.97%
Average Volume (3M)1.10M
Price to Earnings (P/E)47.4
Beta (1Y)1.27
Revenue Growth1.54%
EPS Growth22.59%
CountryUS
Employees30,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)4.32
Shares Outstanding66,569,570
10 Day Avg. Volume801,865
30 Day Avg. Volume1,103,494
Financial Highlights & Ratios
PEG Ratio0.77
Price to Book (P/B)1.36
Price to Sales (P/S)1.57
P/FCF Ratio10.42
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue2.98
Enterprise Value/Gross Profit7.96
Enterprise Value/Ebitda15.05
Forecast
1Y Price Target
$252.50Price Target Upside22.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)10.62
Revenue Forecast (FY)$6.23B
Regal Rexnord Business Overview & Revenue Model
Company Description
Regal Rexnord Corporation, together with its subsidiaries, designs, manufactures, and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical comp...
How the Company Makes Money
Regal Rexnord makes money primarily by selling engineered, branded industrial components and systems that transmit power, control motion, and improve equipment efficiency and reliability. Revenue is generated through (1) original equipment manufac...
Regal Rexnord Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive growth story: order momentum (notably a 34% surge in AMC orders), raised top-line growth assumptions across segments, maintained earnings and cash-flow guidance, and a sizable multi-year data center opportunity. However, Q1 margins were pressured (adjusted EBITDA down ~120 bps), AMC margins have faced sustained YoY declines, PES residential HVAC remains weak (sales down >20%), and tariff/rare earth uncertainties and OEM-heavy mix create measured conservatism in margin guidance. On balance the positives (strong orders, improved demand visibility, upgraded sales guidance, and strategic wins/cross-sell) outweigh the near-term margin and end-market challenges.Positive Updates
Enterprise Orders and Backlog Growth
Orders in the quarter were up 8.5% on a daily basis versus prior year, and backlog rose 6.7% sequentially versus Q4, with enterprise orders in April up 4.6% on a daily basis.
Negative Updates
Adjusted EBITDA Margin Compression
Company adjusted EBITDA margin was 20.6% in Q1, down ~120 basis points year-over-year; management cited mix, tariff/price-cost effects, rare earth magnet constraints and higher growth investments as drivers of margin pressure.
Read all updates
Q1-2026 Updates
Positive
Negative
Enterprise Orders and Backlog Growth
Orders in the quarter were up 8.5% on a daily basis versus prior year, and backlog rose 6.7% sequentially versus Q4, with enterprise orders in April up 4.6% on a daily basis.
Read all positive updates
Company Guidance
Regal Rexnord updates 2026 guidance assuming enterprise sales growth of roughly 4.5% (up 150 bps vs. prior), an adjusted EBITDA margin of 22.2%, adjusted EPS of $10.20–$11.00 (midpoint ≈10% EPS growth) and cash flow of $650 million, while excluding remaining cost synergies; unmitigated tariff exposure is revised to $127 million (from $155M) and the company expects to be dollar-cost neutral by mid‑2026 and margin‑neutral by year‑end. Q1 results that inform the guide included daily orders +8.5% YoY, backlog +6.7% sequentially, April orders +4.6% daily, sales +4.3% (+1.6% organic), adjusted gross margin 37.7%, company adjusted EBITDA margin 20.6% (down 120 bps YoY), adjusted EPS $2.17 (+~1% YoY) and adjusted free cash flow roughly flat. By segment, AMC Q1 sales +12.1% organic, orders +34% and book‑to‑bill 1.24 (AMC full‑year sales guide raised to high‑single‑digits; midpoint EBITDA margin ~20.5%); IPS Q1 sales +2.8% organic, orders down 1.4% (book‑to‑bill 1.09) with IPS full‑year sales guide to mid‑single‑digits and margin midpoint down ~50 bps; PES Q1 sales −10.3% organic, orders down ~60 bps (book‑to‑bill 1.13) with full‑year sales now guided to flat to low‑single‑digit and Q1 PES EBITDA 15.8% (above prior range). Management notes upside potential from mix improvements, ePOD volume, possible IEEPA refunds and synergy realization, but is remaining measured given geopolitical and macro uncertainties.Regal Rexnord Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.00B | 5.93B | 6.03B | 6.25B | 5.22B | 3.81B |
| Gross Profit | 2.25B | 2.22B | 2.20B | 2.11B | 1.70B | 1.07B |
| EBITDA | 1.19B | 1.20B | 1.17B | 971.00M | 1.04B | 573.00M |
| Net Income | 286.60M | 279.50M | 196.20M | -57.40M | 488.90M | 229.60M |
Balance Sheet | ||||||
| Total Assets | 13.78B | 13.92B | 14.03B | 15.43B | 10.27B | 10.37B |
| Cash, Cash Equivalents and Short-Term Investments | 401.00M | 521.70M | 393.50M | 574.00M | 688.50M | 672.80M |
| Total Debt | 4.86B | 5.06B | 5.61B | 6.55B | 2.14B | 2.04B |
| Total Liabilities | 6.97B | 7.07B | 7.77B | 9.07B | 3.85B | 3.96B |
| Stockholders Equity | 6.81B | 6.84B | 6.26B | 6.34B | 6.39B | 6.37B |
Cash Flow | ||||||
| Free Cash Flow | 805.10M | 893.10M | 499.90M | 596.20M | 352.40M | 303.20M |
| Operating Cash Flow | 903.40M | 990.80M | 609.40M | 715.30M | 436.20M | 357.70M |
| Investing Cash Flow | -84.90M | -71.00M | 275.40M | -4.98B | -113.30M | -175.70M |
| Financing Cash Flow | -737.00M | -814.10M | -1.10B | 4.20B | -274.20M | -117.60M |
Regal Rexnord Technical Analysis
Positive
205.40
Price Trends
203.41
Positive
196.48
Positive
169.75
Positive
Market Momentum
1.44
Negative
56.58
Neutral
90.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RRX, the sentiment is Positive. The current price of 205.4 is above the 20-day moving average (MA) of 204.24, above the 50-day MA of 203.41, and above the 200-day MA of 169.75, indicating a bullish trend. The MACD of 1.44 indicates Negative momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 90.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RRX.
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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Regal Rexnord Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $10.52B | 28.73 | 18.38% | 0.70% | 14.22% | 25.22% | |
72 Outperform | $7.86B | 15.09 | 28.42% | 2.04% | 0.23% | 4.76% | |
72 Outperform | $11.72B | 45.38 | 12.67% | ― | 17.39% | 20.78% | |
71 Outperform | $9.88B | 22.20 | 25.19% | 1.28% | 4.44% | 25.08% | |
70 Outperform | $10.88B | 33.37 | 16.30% | 0.49% | 7.18% | 5.22% | |
64 Neutral | $14.24B | 47.43 | 4.23% | 0.97% | 1.54% | 22.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
RRX
Regal Rexnord
204.40
65.85
47.53%
DCI
Donaldson Company
83.65
14.28
20.59%
AOS
A. O. Smith Corporation
57.20
-5.81
-9.23%
SPXC
SPX
227.80
70.10
44.45%
WTS
Watts Water Technologies
314.21
71.35
29.38%
CR
Crane Company
188.86
12.09
6.84%
Regal Rexnord Corporate Events
Business Operations and StrategyExecutive/Board Changes
Regal Rexnord Names New Industrial Powertrain Solutions Leader
Positive
Jun 1, 2026
On June 1, 2026, Milwaukee-based Regal Rexnord announced that Mark Klossner has been appointed Executive Vice President President of its Industrial Powertrain Solutions segment, effective immediately. He succeeds Jerry Morton, who has led IPS sin...
Executive/Board ChangesShareholder Meetings
Regal Rexnord Shareholders Back Board, Pay, and Auditor
Positive
Apr 30, 2026
Regal Rexnord Corporation held its 2026 annual meeting of shareholders on April 28, 2026, where investors voted on board elections, executive pay, and the company’s external auditor. Shareholders cast votes representing 63,726,776 shares out...
Executive/Board Changes
Regal Rexnord Announces CEO Transition to Aamir Paul
Positive
Apr 22, 2026
On April 22, 2026, Regal Rexnord announced that Aamir Paul will succeed Louis V. Pinkham as Chief Executive Officer no later than July 1, 2026, following the conclusion of Paul’s responsibilities at Schneider Electric. Paul will also join th...
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.