Regal Rexnord (RRX) AI Stock Analysis

• Market Cap: $9.88B
• Dividend Yield: 0.92%
• Average Volume (3M): 897.17K
• Price to Earnings (P/E): 38.5
• Beta (1Y): 1.46
• Revenue Growth: -4.99%
• EPS Growth: 22.16%
• Country: US
• Employees: 30,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.51
• Shares Outstanding: 66,389,670
• 10 Day Avg. Volume: 726,706
• 30 Day Avg. Volume: 897,170
• PEG Ratio: -0.12
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 20.61
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 6.48
• Enterprise Value/Ebitda: 11.99
• 1Y Price Target: $178.38
• Price Target Upside: 16.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 9.63
• Revenue Forecast (FY): $5.95B

• Rating: 69 Neutral
• Price Target: $154.00 ▲(0.88% Upside)

Regal Rexnord's strong financial performance and positive earnings call outlook are significant strengths, indicating potential for future growth. However, technical indicators suggest bearish trends, and valuation metrics imply the stock may be overvalued, which could limit upside potential.

Positive Factors

Strong Order Growth

The increase in orders and backlog indicates a robust demand for Regal Rexnord's products, suggesting sustained revenue growth and market strength in the coming months.

Data Center Market Expansion

Expansion in the data center market positions Regal Rexnord to capitalize on growing demand for digital infrastructure, supporting long-term growth and diversification.

Favorable Cash Flow and Debt Management

Strong cash flow generation and proactive debt reduction enhance financial stability, providing flexibility for future investments and growth initiatives.

Negative Factors

Tariff and Rare Earth Magnet Challenges

Ongoing tariff and supply chain issues may pressure margins and operational efficiency, potentially hindering profitability and growth.

Lowered 2025 Guidance

The lowered earnings guidance indicates potential challenges in meeting profitability targets, which could affect investor confidence and strategic planning.

Weakness in Medical End Market

Challenges in the medical segment due to supply chain issues may limit growth opportunities and affect segment performance in the near term.

Regal Rexnord Business Overview & Revenue Model

Company Description

Regal Rexnord Corporation (RRX) is a global leader in the engineering and manufacturing of power transmission and motion control products. The company operates in diverse sectors including industrial, commercial, and aerospace markets, providing a wide range of solutions such as bearings, gears, motors, and drive systems. Regal Rexnord's core products are designed to enhance operational efficiency and reliability across various applications, enabling customers to optimize their machinery and processes.

How the Company Makes Money

Regal Rexnord generates revenue primarily through the sale of its extensive portfolio of power transmission and motion control products. The company employs a multi-channel distribution strategy that includes direct sales, distributors, and online platforms, allowing it to reach a broad customer base across different industries. Key revenue streams include the sale of components like bearings, motors, and gear drives, as well as aftermarket services and support, which provide recurring income. Additionally, Regal Rexnord benefits from strategic partnerships and collaborations with OEMs (Original Equipment Manufacturers) and system integrators, enhancing its market presence and enabling the company to leverage new technologies and innovations. The company's investment in research and development also plays a crucial role in maintaining a competitive edge, helping to drive sales of advanced, energy-efficient products that meet evolving customer demands.

Regal Rexnord Financial Statement Overview

Summary

Regal Rexnord demonstrates strong revenue growth and efficient cash flow management, positioning it well in the industrial machinery sector. While profitability margins and return on equity are areas for improvement, the company's reduced leverage and robust cash generation provide a solid foundation for future growth.

Income Statement

Regal Rexnord shows a strong revenue growth rate of 33.5% in the TTM, indicating robust sales performance. The gross profit margin of 37% is healthy, reflecting efficient cost management. However, the net profit margin is relatively low at 4.38%, suggesting potential areas for improving profitability. EBIT and EBITDA margins are moderate, indicating stable operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.73 in the TTM, showing a reduction in leverage compared to previous years. Return on equity is modest at 3.94%, indicating room for enhancing shareholder returns. The equity ratio is stable, reflecting a balanced capital structure.

Cash Flow

Free cash flow growth is strong at 5.46% in the TTM, highlighting effective cash generation. The operating cash flow to net income ratio of 0.82 indicates solid cash flow management. Free cash flow to net income ratio is high at 0.90, suggesting efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.87B	6.03B	6.25B	5.22B	3.81B	2.91B
Gross Profit	2.17B	2.20B	2.11B	1.70B	1.07B	828.40M
EBITDA	1.18B	1.17B	971.00M	1.04B	573.00M	447.20M
Net Income	257.30M	196.20M	-57.40M	488.90M	229.60M	189.30M
Balance Sheet
Total Assets	13.87B	14.03B	15.43B	10.27B	10.37B	4.59B
Cash, Cash Equivalents and Short-Term Investments	400.00M	393.50M	574.00M	688.50M	672.80M	611.30M
Total Debt	4.93B	5.61B	6.55B	2.14B	2.04B	1.15B
Total Liabilities	7.10B	7.77B	9.07B	3.85B	3.96B	2.01B
Stockholders Equity	6.76B	6.26B	6.34B	6.39B	6.37B	2.54B
Cash Flow
Free Cash Flow	936.40M	499.90M	596.20M	352.40M	303.20M	387.90M
Operating Cash Flow	1.04B	609.40M	715.30M	436.20M	357.70M	435.40M
Investing Cash Flow	-72.60M	275.40M	-4.98B	-113.30M	-175.70M	-37.00M
Financing Cash Flow	-1.02B	-1.10B	4.20B	-274.20M	-117.60M	-147.60M

Regal Rexnord Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 152.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 152.66 is above the 20-day moving average (MA) of 141.38, above the 50-day MA of 141.89, and above the 200-day MA of 135.77, indicating a bullish trend. The MACD of 2.83 indicates Negative momentum. The RSI at 63.09 is Neutral, neither overbought nor oversold. The STOCH value of 84.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RRX.

Regal Rexnord Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCI	79 Outperform	$10.63B	28.75	24.96%	1.26%	2.37%	-6.93%
AOS	77 Outperform	$9.46B	18.34	28.21%	2.01%	-1.64%	-2.50%
SPXC	77 Outperform	$10.85B	47.95	12.76%	―	12.60%	24.02%
WTS	77 Outperform	$8.92B	27.59	17.81%	0.72%	4.18%	16.05%
CR	71 Outperform	$10.96B	34.38	18.09%	0.48%	-0.37%	21.77%
RRX	69 Neutral	$9.88B	38.50	3.89%	0.92%	-4.99%	22.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Regal Rexnord Corporate Events

Regal Rexnord Secures New Credit Agreement with JPMorgan

On November 21, 2025, Regal Rexnord Corporation entered into a Third Amended and Restated Credit Agreement with a group of financial institutions, facilitated by JPMorgan Chase Bank. This agreement replaces the previous credit arrangement from March 2022 and includes an $850 million unsecured Delayed Draw Term Loan and a $1.5 billion revolving line of credit. The new credit facilities are intended to refinance existing debt, cover fees and expenses, and support the company’s working capital and general corporate purposes. The agreement imposes financial covenants and restrictions on the company and its subsidiaries, aiming to maintain financial stability and operational flexibility.

Regal Rexnord Announces CEO Louis Pinkham’s Departure

On October 29, 2025, Regal Rexnord Corporation announced the planned departure of CEO Louis Pinkham as part of a CEO succession process. Pinkham, who has led the company since April 2019, will remain in his role until March 31, 2026, or until a successor is appointed, ensuring a smooth transition. Under his leadership, the company has seen significant growth, with its enterprise value increasing to $15 billion. The Board of Directors has initiated a search for a new CEO, assisted by an executive search firm, and has expressed gratitude for Pinkham’s contributions, positioning the company for its next growth phase.