Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on RRX

Breaking News: Regal Rexnord Corporation recently reported no significant earnings release. However, Citigroup Inc. reduced its holdings in the company by 32.8% during the third quarter, selling 8,955 shares. The fund now owns 18,381 shares. No recent recommendations were found. Analysts at various firms have not released recent comments on the stock. The company's major shareholders and their recent activity are being closely watched. Citigroup Inc. disclosed the change in holdings with the Securities and Exchange Commission.

1.c. Company Highlights

2. Regal Rexnord's Q4 2025 Earnings: A Strong Close to 2025

Regal Rexnord reported a robust fourth quarter, with adjusted earnings per share (EPS) of $2.51, surpassing analyst estimates of $2.47. The company's orders grew 15.5% for the year on a daily basis, driven by a 53% increase in Automation and Motion Control (AMC). Sales for the year were up 80 basis points on an organic basis, with adjusted EBITDA margins remaining relatively flat at 22%. The company's strong performance was largely driven by its e-Pod solution, which booked orders worth approximately $735 million in the fourth quarter.

Publication Date: Feb -10

📋 Highlights
  • Q4 Adjusted EPS Growth:: Increased to $2.51, a 7.3% rise year-over-year, with daily orders surging 53.8% ($735M e-Pod orders).
  • 2026 Guidance:: Targets 3% revenue growth, 22.5% adjusted EBITDA margin (50 bps improvement), and $10.20–$11 EPS (10% growth midpoint).
  • e-Pod Order Impact:: $735M e-Pod order in Q4 with ~20% starting EBITDA margin, expected to ship over 15–18 months starting in 2026.
  • Tariff Mitigation:: $155M unmitigated tariff impact in 2026, but aims to be dollar and margin-neutral by mid-2026 and year-end, respectively.
  • CapEx and Debt Reduction:: $120M in 2026 CapEx for supply chain realignments, targeting 2.7x net leverage by year-end through debt paydowns.

Segment Performance

The company's operating performance by segment highlights AMC sales growth of 15.2% in the fourth quarter, driven by strength in data center, aerospace, and defense. Industrial Power Systems (IPS) sales were up 3.7% in the fourth quarter, with broad-based growth and strength in metals and mining and energy markets. The Power Efficiency and Sustainability (PES) segment faced destocking pressure in the fourth quarter, which is expected to continue into 2026.

Guidance and Outlook

Regal Rexnord's guidance for 2026 assumes growth of roughly 3%, driven by the large data center project and price increases. Adjusted EBITDA margin is forecast to rise 50 basis points to 22.5%. The company expects $40 million of cost synergies in 2026, which will be treated as a contingency against unforeseen P&L pressures. The guidance embeds all current tariffs and the recently announced update to India tariffs, with an unmitigated impact of $155 million.

Valuation

With a P/E Ratio of 51.44 and an EV/EBITDA of 15.73, Regal Rexnord's valuation appears to be relatively high. However, the company's strong growth prospects, driven by its e-Pod solution and robotics actuation business, may justify the premium. The company's Return on Invested Capital (ROIC) of 4.29% and Return on Equity (ROE) of 4.18% are relatively low, indicating room for improvement in capital allocation and profitability.

Key Highlights

The company's e-Pod order is expected to be shipped over a 15- to 18-month period, with a possibility of shipping starting in 2026. The company is on track to mitigate the majority of its rare earth exposure by the end of 2026 through alternate sourcing and a shift to HRE-free alternatives. The company's robotics actuation business has a $200 million-plus pipeline, with low double-digit growth expectations.

3. NewsRoom

Card image cap

Citigroup Inc. Reduces Holdings in Regal Rexnord Corporation $RRX

Mar -07

Card image cap

Regal Rexnord Corporation (RRX) Presents at 47th Annual Raymond James Institutional Investor Conference Transcript

Mar -03

Card image cap

CROWN HOLDINGS, INC. ELECTS MICHAEL DOSS TO ITS BOARD OF DIRECTORS

Feb -26

Card image cap

REGAL REXNORD ANNOUNCES PARTICIPATION AT UPCOMING CONFERENCE

Feb -25

Card image cap

Channing Capital Management LLC Sells 29,468 Shares of Regal Rexnord Corporation $RRX

Feb -22

Card image cap

Regal Rexnord Soars As JPMorgan Flags $200 Million Humanoid Robot Opportunity

Feb -20

Card image cap

Regal Rexnord Corporation (RRX) Presents at Citi's Global Industrial Tech & Mobility Conference 2026 Transcript

Feb -19

Card image cap

Regal Rexnord Corporation (RRX) Presents at Barclays 43rd Annual Industrial Select Conference Transcript

Feb -18

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.82%)

6. Segments

Industrial Powertrain Solutions

Expected Growth: 3%

Regal Rexnord's Industrial Powertrain Solutions segment growth is driven by increasing demand for energy-efficient and sustainable solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the trend towards electrification and automation in industries such as material handling, HVAC, and power generation also contributes to the segment's growth.

Power Efficiency Solutions

Expected Growth: 5%

Regal Rexnord's Power Efficiency Solutions segment growth is driven by increasing demand for energy-efficient solutions, rising adoption of Industry 4.0 technologies, and growing need for reliable power transmission in industrial automation. Additionally, the company's strategic acquisitions and investments in digitalization and electrification are expected to fuel growth.

Automation & Motion Control

Expected Growth: 4%

Regal Rexnord's Automation & Motion Control segment growth is driven by increasing demand for industrial automation, rising adoption of IoT and Industry 4.0 technologies, and growing need for energy efficiency and cost savings. Additionally, the segment benefits from the company's strong brand portfolio, innovative product offerings, and strategic acquisitions.

Industrial Systems

Expected Growth: 3%

Regal Rexnord's Industrial Systems segment growth is driven by increasing demand for energy-efficient solutions, rising adoption of Industry 4.0 technologies, and growing need for predictive maintenance. Additionally, the company's strategic acquisitions and expansion into emerging markets contribute to its growth momentum.

7. Detailed Products

Motors

Regal Rexnord's motors are designed for industrial applications, providing reliable and efficient power transmission solutions.

Gearboxes

Regal Rexnord's gearboxes are designed to provide speed reduction, increase torque, and change the direction of rotation for industrial applications.

Bearings

Regal Rexnord's bearings are designed to reduce friction and wear on moving parts, providing smooth and efficient operation.

Couplings

Regal Rexnord's couplings are designed to connect and disconnect rotating shafts, providing flexible and reliable power transmission.

Conveyors

Regal Rexnord's conveyors are designed to transport materials and products in various industries.

Pumps

Regal Rexnord's pumps are designed to transfer fluids and gases in various industrial applications.

Filtration Systems

Regal Rexnord's filtration systems are designed to remove contaminants and impurities from fluids and gases.

8. Regal Rexnord Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Regal Rexnord Corporation operates in a industry with moderate threat of substitutes. The company's products are specialized and have a high switching cost, which reduces the likelihood of customers switching to substitutes.

Bargaining Power Of Customers

Regal Rexnord Corporation has a diverse customer base, which reduces the bargaining power of individual customers. The company's products are also customized to meet specific customer needs, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Regal Rexnord Corporation has a moderate bargaining power of suppliers. The company relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's large scale of operations and diversified supply chain mitigate this risk.

Threat Of New Entrants

Regal Rexnord Corporation operates in an industry with high barriers to entry, including significant capital requirements and regulatory hurdles. This reduces the threat of new entrants and allows the company to maintain its market position.

Intensity Of Rivalry

Regal Rexnord Corporation operates in a highly competitive industry with several established players. The company faces intense competition from rivals, which puts pressure on prices and margins.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.04%
Debt Cost 3.95%
Equity Weight 49.96%
Equity Cost 9.68%
WACC 6.81%
Leverage 100.17%

11. Quality Control: Regal Rexnord Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SPX Technologies

A-Score: 4.8/10

Value: 1.7

Growth: 6.0

Quality: 7.0

Yield: 0.0

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
EnPro

A-Score: 4.7/10

Value: 2.6

Growth: 4.6

Quality: 6.1

Yield: 2.0

Momentum: 7.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
John Bean Technologies

A-Score: 4.2/10

Value: 4.2

Growth: 5.0

Quality: 3.5

Yield: 0.0

Momentum: 6.5

Volatility: 6.0

1-Year Total Return ->

Stock-Card
Mirion Technologies

A-Score: 4.1/10

Value: 1.6

Growth: 5.4

Quality: 5.1

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

Stock-Card
Generac

A-Score: 4.0/10

Value: 3.8

Growth: 6.7

Quality: 6.0

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

Stock-Card
Regal Rexnord

A-Score: 4.0/10

Value: 5.2

Growth: 4.0

Quality: 5.0

Yield: 2.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

203.62$

Current Price

203.62$

Potential

-0.00%

Expected Cash-Flows