Regal Rexnord (RRX) AI Stock Analysis

• Market Cap: $14.50B
• Dividend Yield: 0.97%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 52.0
• Beta (1Y): 1.32
• 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: 943,302
• 30 Day Avg. Volume: 1,068,635
• PEG Ratio: 0.77
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 1.57
• P/FCF Ratio: 10.42
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 8.52
• Enterprise Value/Ebitda: 15.74
• 1Y Price Target: $227.50
• Price Target Upside: 5.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 10.68
• Revenue Forecast (FY): $6.12B

• Rating: 61 Neutral
• Price Target: $211.00 ▼(-2.02% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven mainly by solid financial performance led by strong free cash flow and improving profitability, plus a constructive earnings outlook with strong order/backlog visibility. These positives are tempered by stretched technical conditions (overbought readings) and a demanding valuation (high P/E, low yield), which increase downside risk if execution or macro/tariff pressures disrupt guidance.

Positive Factors

Strong cash generation

High trailing‑twelve‑month operating cash flow (~$991M) and free cash flow (~$893M) provide durable internal funding for capex, working capital, debt reduction and strategic investments, supporting resilience through cycles and enabling targeted deleveraging and secular growth programs.

Large backlog and data‑center wins

A ~$735M e‑Pod win and ~50% backlog increase give multi‑year revenue visibility and execution runway, supporting predictable future volumes and margin realization as projects ship, underpinning strategic expansion into higher‑value data‑center power management.

Margin resilience and profitability recovery

Sustained gross and EBITDA margins (gross ~37.6%, EBITDA ~18–22%) alongside recovery from a prior net loss show structural cost discipline and pricing power, enabling the company to absorb headwinds while pursuing higher‑margin, secular end markets that should help sustain margins longer term.

Negative Factors

Elevated absolute debt load

Material absolute debt (~$4.94B) leaves the company sensitive to interest costs and limits optionality; though leverage improved from 2023, maintaining the debt reduction path is critical to free up cash for growth and to hit management's targeted net leverage, constraining flexibility if cash falls short.

Tariff and input‑supply headwinds

Significant tariff exposure (~$155M annualized) and rare‑earth magnet constraints are structural supply‑chain and cost risks that can compress margins until alternative sourcing, pricing pass‑through, or validation efforts complete, requiring ongoing mitigation and potentially higher product costs.

End‑market and channel fragility in PES

Weakness and channel destocking in Power Efficiency Solutions (PES) — double‑digit sales and order declines with book‑to‑bill <1 — indicate structural demand softness in residential HVAC channels that could cap near‑term growth absent sustained recovery or channel restocking.

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 components and systems worldwide. It operates through four segments: Commercial Systems, Industrial Systems, Climate Solutions, and Motion Control Solutions. The Commercial Systems segment provides AC and DC motors, electronic variable speed controls, fans, blowers, and precision stator and rotor kits. The Industrial Systems segment offers AC motors for industrial applications; electric alternators for prime and standby power applications to data centers, distributed energy, microgrid, rental marine, agriculture, healthcare, mobile, and defense markets; and switchgear for healthcare, government, and waste water applications, as well as residential, commercial, and industrial applications. The Climate Solutions segment provides fractional motors, electronic variable speed controls, and blowers for use in a residential and light commercial air moving applications; and fractional horsepower motors and blowers for white goods, water heating equipment, small pumps, compressors, and fans. The Motion Control Solutions segment offers bearings; conveyors; disc, gear, grid, elastomeric, and torsionally soft couplings; mechanical power transmission drives and components; worm gearing, shaft configuration, helical, bevel, helical bevel, worm, hypoid, and spur gearing products; and aerospace components. This segment serves beverage, bulk handling, metal, special machinery, energy, and aerospace and general industrial markets. The company sells its products directly to original equipment manufacturers and end-users through a network of direct and independent sales representatives, and distributors. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is headquartered in Beloit, Wisconsin.

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

Strong cash generation (TTM operating cash flow ~$991M; free cash flow ~$893M) supports the business, and profitability has recovered from a 2023 net loss to positive net income. Offsetting this, revenue growth is muted (TTM ~+1.1%), net margin is modest (~4.7% TTM), ROE is low (~3.9% TTM), and debt remains material even with improving leverage trends.

Income Statement

RRX shows solid scale and generally healthy operating profitability, with TTM (Trailing-Twelve-Months) gross margin ~37.6% and EBITDA margin ~18.1%. Profitability has improved versus 2023 (net loss) to positive net income in 2024 and TTM, but net margin remains modest (~4.7% TTM) and below the stronger 2022 level (~9.4%). Revenue growth has cooled—TTM is slightly up (~1.1%) after a small decline in 2024—suggesting a steadier, less growth-driven earnings profile.

Balance Sheet

Leverage is manageable but elevated for comfort: total debt remains high (TTM ~$4.94B) with debt-to-equity ~0.72, an improvement from 2023 (~1.03) and 2024 (~0.90). Equity is sizable (TTM ~$6.84B), supporting the capital structure, but returns on equity are currently low (~3.9% TTM) following weak 2023 performance, indicating the balance sheet is not yet translating into strong shareholder returns.

Cash Flow

Cash generation is a key strength. TTM (Trailing-Twelve-Months) operating cash flow is strong (~$991M) with robust free cash flow (~$893M), both well above 2024 levels. Free cash flow remains high relative to earnings (free cash flow to net income ~0.90 TTM), indicating good cash conversion. The main caution is that TTM free cash flow growth is negative (a step down versus the prior period), even though absolute free cash flow remains solid.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.93B	6.03B	6.25B	5.22B	3.81B
Gross Profit	2.22B	2.20B	2.11B	1.70B	1.07B
EBITDA	1.20B	1.17B	971.00M	1.04B	573.00M
Net Income	279.50M	196.20M	-57.40M	488.90M	229.60M
Balance Sheet
Total Assets	13.92B	14.03B	15.43B	10.27B	10.37B
Cash, Cash Equivalents and Short-Term Investments	521.70M	393.50M	574.00M	688.50M	672.80M
Total Debt	5.06B	5.61B	6.55B	2.14B	2.04B
Total Liabilities	7.07B	7.77B	9.07B	3.85B	3.96B
Stockholders Equity	6.84B	6.26B	6.34B	6.39B	6.37B
Cash Flow
Free Cash Flow	893.10M	499.90M	596.20M	352.40M	303.20M
Operating Cash Flow	990.80M	609.40M	715.30M	436.20M	357.70M
Investing Cash Flow	-71.00M	275.40M	-4.98B	-113.30M	-175.70M
Financing Cash Flow	-814.10M	-1.10B	4.20B	-274.20M	-117.60M

Regal Rexnord Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 215.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 215.36 is above the 20-day moving average (MA) of 191.94, above the 50-day MA of 166.44, and above the 200-day MA of 148.89, indicating a bullish trend. The MACD of 16.98 indicates Negative momentum. The RSI at 70.96 is Negative, neither overbought nor oversold. The STOCH value of 52.85 is Neutral, 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
WTS	80 Outperform	$10.99B	32.43	18.25%	0.70%	4.18%	16.05%
DCI	77 Outperform	$12.45B	33.67	24.96%	1.28%	2.37%	-6.93%
AOS	77 Outperform	$10.92B	20.52	29.20%	2.04%	-1.64%	-2.50%
SPXC	77 Outperform	$12.04B	51.41	12.76%	―	12.60%	24.02%
CR	65 Neutral	$11.54B	32.01	17.92%	0.49%	-0.37%	21.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RRX	61 Neutral	$14.50B	52.01	4.27%	0.97%	-4.99%	22.16%

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.

The most recent analyst rating on (RRX) stock is a Buy with a $165.00 price target. To see the full list of analyst forecasts on Regal Rexnord stock, see the RRX Stock Forecast page.