MarketBeat·2 days ago
This Under-the-Radar Industrial Is Quietly Powering AIIt still does. But it also makes automation and motion-control components for data centers.
Regal Rexnord Corporation(RRX)Earnings, Financials & Key Ratios
RRX•NYSE
$211.63
50.1× P/E·Price updated Jul 7, 2026
AboutRegal 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 more
- Revenue$5.93B-1.6%
- EBITDA$1.19B-0.9%
- Net Income$280M+42.5%
- EPS (Diluted)4.22+43.5%
- Gross Margin37.37%+2.7%
- EBITDA Margin19.98%+0.8%
- Operating Margin11.55%+1.8%
- Net Margin4.71%+44.8%
- ROE4.26%+37.2%
RRX Price & Volume
Regal Rexnord Corporation (RRX) stock price & volume — 10-year historical chart
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Deleveraging Efforts Offset Persistent Margin Compression Risks
Investment Thesis • Updated 2026Q1
VerdictNeutral: While the company has successfully reduced total debt by $1.7 billion since 2023Q4
Growth:Mixed
Profitability:Strained
Financial:Mixed
Cash Flow:Mixed
Primary Risk:Integration and cyclical volatility
Key Thesis Takeaways
- Regal Rexnord is currently navigating a complex transition period characterized by aggressive debt reduction, with total debt falling from $6.6 billion in 2023Q4 to $4.9 billion by 2026Q1.
- While the company has successfully maintained gross margins within a stable 35.2% to 38.2% range, bottom-line profitability remains constrained by high interest expenses and integration costs, resulting in net margins that frequently dip below 5%.
- Investors should monitor the company's ability to convert its $1.5 billion quarterly revenue base into consistent free cash flow, as the current volatility in working capital and earnings quality suggests ongoing operational integration challenges.
Verdict Logic
the current P/E ratio of 52.07 and inconsistent net margins below 5% suggest that the market may be overvaluing the firm's near-term earnings potential.
RRX Growth Metrics
Regal Rexnord Corporation (RRX) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years5.39%
5 Years15.34%
3 Years4.38%
TTM1.54%
Profit CAGR
10 Years6.91%
5 Years8.11%
3 Years-17%
TTM22.64%
EPS CAGR
10 Years2.87%
5 Years-1.88%
3 Years-16.66%
TTM22.51%
Return on Capital
10 Years7.49%
5 Years5.75%
3 Years5.2%
Last Year5.38%
RRX Recent Earnings
Regal Rexnord Corporation (RRX) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 9/12 qtrs (75%)●Beat Revenue 4/12 qtrs (33%)
Q2 2026Latest
May 6, 2026Metric
Actual
Est
EPS
$2.17+2.8%
$2.11
Rev
$1.5B+3.2%
$1.4B
Q1 2026
Feb 4, 2026Metric
Actual
Est
EPS
$2.51+1.6%
$2.47
Rev
$1.5B-1.0%
$1.5B
Q4 2025
Oct 29, 2025Metric
Actual
Est
EPS
$2.51-2.0%
$2.56
Rev
$1.5B+0.5%
$1.5B
Q3 2025
Aug 5, 2025Metric
Actual
Est
EPS
$2.48+2.5%
$2.42
Rev
$1.5B+0.6%
$1.5B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 6, 2026 | $2.17vs $2.11+2.8% | $1.5Bvs $1.4B+3.2% |
| Q1 2026 | Feb 4, 2026 | $2.51vs $2.47+1.6% | $1.5Bvs $1.5B-1.0% |
| Q4 2025 | Oct 29, 2025 | $2.51vs $2.56-2.0% | $1.5Bvs $1.5B+0.5% |
| Q3 2025 | Aug 5, 2025 | $2.48vs $2.42+2.5% | $1.5Bvs $1.5B+0.6% |
Based on last 12 quarters of dataView full earnings history →
Latest RRX News
Recent stock market news and headlines for Regal Rexnord Corporation (RRX)
GuruFocus·5 days ago
Regal Rexnord Corp (RRX) Shares Fall 4.8% -- GF Value Says Still OvervaluedOn July 02, 2026, Regal Rexnord Corp (RRX) shares fell 4.8% today, closing at $218.45. The stock has shown significant volatility over the past year, trading in
Seeking Alpha·6 days ago
Regal Rexnord: The Emerging Robotics And AI PlayRegal Rexnord has transformed into a diversified industrial powerhouse, now positioned for secular growth in data centers, automation, aerospace, and robotics. RRX's data center business is set to grow from ~$130M in 2025 to over $900M in 2027, driving a powerful financial inflection and re-rating potential. Consensus underestimates RRX's growth and margin expansion; I see at least 100% upside as the company trades at a steep discount to peers despite superior secular exposure.
Zacks Investment Research·6 days ago
Regal Rexnord (RRX) Soars 8.3%: Is Further Upside Left in the Stock?Regal Rexnord (RRX) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more strength down the road.
Benzinga·Jun 30, 2026
Forget Nvidia: Kerrisdale Says This Under-The-Radar AI Stock Could Rally 100% Or MoreWhen investors think about artificial intelligence winners, names like Nvidia Corp. (NASDAQ:NVDA), Broadcom Inc. (NASDAQ:AVGO) and Micron Technology Inc. (NASDAQ:MU) typically dominate the conversation.
Peers Comparison
Key metrics vs top competitors for Regal Rexnord Corporation (RRX)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $211.63 | $14.09B | 50.15 | -1.65% | 4.71% | 4.26% | 0.66% | |
| $231.70 | $53.07B | 36.20 | 6.63% | 20.11% | 14.39% | — | |
| $468.90 | $52.68B | 61.13 | 0.97% | 12.36% | 29.58% | — | |
| $957.51 | $120.85B | 35.31 | -0.4% | 16.58% | 24.26% | — | |
| $184.62 | $16.51B | 30.22 | 8.48% | 10.8% | 13.01% | — | |
| $235.80 | $13.84B | 87.66 | -2.02% | 4.37% | 7.18% | — |
Compare RRX vs Peers
Regal Rexnord Corporation (RRX) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
RRX SEC Filings & Documents
Regal Rexnord Corporation (RRX) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 7, 2026·SEC
Material company update
Apr 30, 2026·SEC
Material company update
Apr 22, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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RRX Frequently Asked Questions
Regal Rexnord Corporation (RRX) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Regal Rexnord Corporation's revenue?
Regal Rexnord Corporation (RRX) reported $6.00B in revenue for fiscal year 2025. This represents a 2030% increase from $281.5M in 1996.
How fast is Regal Rexnord Corporation growing?
Regal Rexnord Corporation (RRX) saw revenue decline by 1.6% over the past year.
Is RRX profitable?
Yes, Regal Rexnord Corporation (RRX) is profitable, generating $286.6M in net income for fiscal year 2025 (4.7% net margin).
Dividend & Returns
Does RRX pay dividends?
Yes, Regal Rexnord Corporation (RRX) pays a dividend with a yield of 0.66%. This makes it attractive for income-focused investors.
What is RRX's return on equity?
Regal Rexnord Corporation (RRX) has a return on equity (ROE) of 4.3%. This is below average, suggesting room for improvement.
What is Regal Rexnord Corporation's free cash flow?
Regal Rexnord Corporation (RRX) generated $805.1M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.