Regal Rexnord (RRX) AI Stock Analysis

• Market Cap: $8.98B
• Dividend Yield: 0.99%
• Average Volume (3M): 769.59K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 1.26
• 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: 947,021
• 30 Day Avg. Volume: 769,590
• 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: 1.57
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 6.48
• Enterprise Value/Ebitda: 11.99
• 1Y Price Target: $180.29
• Price Target Upside: 33.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 9.68
• Revenue Forecast (FY): $5.95B

• Rating: 69 Neutral
• Price Target: $154.00 ▲(13.77% 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 design and manufacturing of innovative motion control and power transmission solutions. Operating primarily in the industrial and commercial sectors, Regal Rexnord provides a wide range of products, including bearings, gears, motors, and power transmission systems. The company serves various industries such as aerospace, automotive, food and beverage, and energy, leveraging advanced technology and extensive engineering expertise to deliver high-performance solutions that enhance efficiency and reliability.

How the Company Makes Money

Regal Rexnord generates revenue through multiple key streams, including the sale of its extensive range of products such as bearings, motors, and drive systems, which are essential for many industrial applications. The company also earns money through service agreements, providing maintenance, repair, and support for its products. Additionally, Regal Rexnord benefits from strategic partnerships with other industry leaders, enhancing its market reach and innovation capabilities. Factors contributing to its earnings include a focus on research and development, enabling the introduction of advanced products that meet evolving customer needs, as well as its ability to capitalize on trends in automation and energy efficiency.

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 2019	Dec 2018
Income Statement
Total Revenue	5.87B	6.03B	6.25B	5.22B	3.24B	3.65B
Gross Profit	2.17B	2.20B	2.11B	1.70B	874.40M	964.60M
EBITDA	1.18B	1.17B	971.00M	1.04B	524.30M	491.40M
Net Income	257.30M	196.20M	-57.40M	488.90M	238.90M	231.20M
Balance Sheet
Total Assets	13.87B	14.03B	15.43B	10.27B	4.43B	4.61B
Cash, Cash Equivalents and Short-Term Investments	400.00M	393.50M	574.00M	688.50M	331.40M	248.60M
Total Debt	4.93B	5.61B	6.55B	2.14B	1.21B	1.31B
Total Liabilities	7.10B	7.77B	9.07B	3.85B	2.05B	2.27B
Stockholders Equity	6.76B	6.26B	6.34B	6.39B	2.35B	2.31B
Cash Flow
Free Cash Flow	936.40M	499.90M	596.20M	352.40M	316.10M	285.10M
Operating Cash Flow	1.04B	609.40M	715.30M	436.20M	408.50M	362.70M
Investing Cash Flow	-72.60M	275.40M	-4.98B	-113.30M	74.30M	-227.90M
Financing Cash Flow	-1.02B	-1.10B	4.20B	-274.20M	-397.40M	-17.70M

Regal Rexnord Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RRX, the sentiment is Negative. The current price of 135.36 is below the 20-day moving average (MA) of 142.38, below the 50-day MA of 143.42, and below the 200-day MA of 136.35, indicating a bearish trend. The MACD of -1.71 indicates Positive momentum. The RSI at 41.39 is Neutral, neither overbought nor oversold. The STOCH value of 16.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RRX.

Regal Rexnord Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCI	78 Outperform	$10.02B	28.37	24.94%	1.33%	2.92%	-9.78%
SPXC	75 Outperform	$10.64B	47.59	12.76%	―	12.60%	24.02%
CR	75 Outperform	$11.00B	34.52	18.09%	0.47%	-0.37%	21.77%
WTS	73 Outperform	$9.16B	29.54	17.81%	0.70%	4.18%	16.05%
AOS	70 Outperform	$9.19B	17.83	28.21%	2.10%	-1.64%	-2.50%
RRX	69 Neutral	$8.98B	34.97	3.89%	0.99%	-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’s Earnings Call: Growth Amid Challenges

The recent earnings call for Regal Rexnord Corporation painted a picture of mixed sentiment. While the company experienced significant growth in orders and positive developments in the data center market, challenges such as tariffs and rare earth magnet sourcing posed notable obstacles. Adjustments in guidance further highlighted the headwinds faced by the company.

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.

The most recent analyst rating on (RRX) stock is a Buy with a $161.00 price target. To see the full list of analyst forecasts on Regal Rexnord stock, see the RRX Stock Forecast page.

Regal Rexnord Reports Strong Q3 2025 Results

Regal Rexnord Corporation is a global leader in the design and manufacturing of electric motors, power transmission components, and automation solutions, serving diverse industries including aerospace, data centers, and industrial applications.

Regal Rexnord Announces Leadership Transition in August

Regal Rexnord Corporation announced that Kevin Zaba, Executive Vice President & President of Automation & Motion Control, will retire on December 31, 2025. Kevin Long will succeed him starting August 14, 2025, ensuring a smooth transition period until the retirement date.

The most recent analyst rating on (RRX) stock is a Buy with a $210.00 price target. To see the full list of analyst forecasts on Regal Rexnord stock, see the RRX Stock Forecast page.

Regal Rexnord Reports Strong Q2 2025 Results

Regal Rexnord Corporation, headquartered in Milwaukee, Wisconsin, is a global leader in providing sustainable solutions for power, transmission, and motion control across various industries, including aerospace, medical, and industrial applications.

Regal Rexnord’s Earnings Call: Mixed Sentiments and Future Prospects

Regal Rexnord’s recent earnings call revealed a mixed sentiment, reflecting both achievements and challenges. The company showcased strong free cash flow generation and significant data center order wins, yet faced organic sales declines in key segments and difficulties related to rare earth magnet availability. Despite these hurdles, Regal Rexnord remains optimistic about future growth driven by its backlog and cross-sell synergies, though market headwinds and operational challenges persist.