Revenue growth remains inconsistent, fluctuating between a 12.5% contraction in 2024Q2 and a 4.3% expansion in 2026Q1, while operating margins have struggled to scale beyond a 12.7% peak.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Mar'06 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 6B | 5.93B | 6.03B | 6.25B | 5.22B | 3.81B | 2.91B | 3.24B | 3.65B | 3.36B | 3.22B | 3.51B | 3.26B | 3.1B | 3.17B | 2.81B | 2.24B | 1.83B | 2.25B | 1.8B | 1.62B | 1.43B | 756.56M | 619.1M | 605.29M | 663.57M | 598.2M | 544.6M | 543.5M | 487M | 281.5M |
| Revenue Growth % | 1.54% | -1.65% | -3.47% | 19.8% | 36.95% | 31.06% | -10.21% | -11.18% | 8.51% | 4.19% | -8.13% | 7.75% | 5.18% | -2.27% | 12.83% | 25.49% | 22.54% | -18.7% | 24.62% | 11.3% | 13.36% | 88.84% | 22.2% | 2.28% | -8.78% | 10.93% | 9.84% | 0.2% | 11.6% | 73% | -4.87% |
| Cost of Goods Sold | 3.75B | 3.72B | 3.84B | 4.15B | 3.52B | 2.74B | 2.08B | 2.36B | 2.69B | 2.45B | 2.31B | 2.52B | 2.45B | 2.31B | 2.38B | 2.14B | 1.69B | 1.4B | 1.75B | 1.39B | 1.23B | 1.12B | 589.5M | 472.34M | 462.15M | 497.69M | 415.23M | 370.1M | 363.7M | 327.1M | 188M |
| COGS % of Revenue | - | 62.63% | 63.61% | 66.32% | 67.43% | 71.82% | 71.5% | 72.99% | 73.66% | 73.05% | 71.69% | 71.74% | 75.1% | 74.54% | 75.21% | 76.28% | 75.45% | 76.77% | 77.71% | 77.07% | 75.96% | 78.25% | 77.92% | 76.3% | 76.35% | 75% | 69.41% | 67.96% | 66.92% | 67.17% | 66.79% |
| Gross Profit | 2.25B | 2.22B | 2.2B | 2.11B | 1.7B | 1.07B | 828.4M | 874.4M | 960.2M | 905.2M | 912.8M | 991.8M | 811M | 788.3M | 785.6M | 666.09M | 549.35M | 424.22M | 500.68M | 413.35M | 389.37M | 310.76M | 167.06M | 146.75M | 143.14M | 165.88M | 182.98M | 174.5M | 179.8M | 159.9M | 93.5M |
| Gross Margin % | 37.47% | 37.37% | 36.39% | 33.68% | 32.57% | 28.18% | 28.5% | 27.01% | 26.34% | 26.95% | 28.31% | 28.26% | 24.9% | 25.46% | 24.79% | 23.72% | 24.55% | 23.23% | 22.29% | 22.93% | 24.04% | 21.75% | 22.08% | 23.7% | 23.65% | 25% | 30.59% | 32.04% | 33.08% | 32.83% | 33.21% |
| Gross Profit Growth % | - | 1.02% | 4.29% | 23.87% | 58.27% | 29.62% | -5.26% | -8.94% | 6.08% | -0.83% | -7.97% | 22.29% | 2.88% | 0.34% | 17.94% | 21.25% | 29.5% | -15.27% | 21.13% | 6.16% | 25.29% | 86.02% | 13.84% | 2.52% | -13.71% | -9.35% | 4.86% | -2.95% | 12.45% | 71.02% | -3.31% |
| Operating Expenses | 1.57B | 1.53B | 1.51B | 1.5B | 980.7M | 722.3M | 487.6M | 534.7M | 592.7M | 564.3M | 548.9M | 581.4M | 508.3M | 489.5M | 456.8M | 410.28M | 311.62M | 264.7M | 270.25M | 207.29M | 195.35M | 176.19M | 111.9M | 99.53M | 96.36M | 109.82M | 111.37M | 102.1M | 98.7M | 85.5M | 42.4M |
| OpEx % of Revenue | - | 25.82% | 25.04% | 24.05% | 18.8% | 18.96% | 16.77% | 16.51% | 16.26% | 16.8% | 17.02% | 16.57% | 15.61% | 15.81% | 14.42% | 14.61% | 13.92% | 14.49% | 12.03% | 11.5% | 12.06% | 12.33% | 14.79% | 16.08% | 15.92% | 16.55% | 18.62% | 18.75% | 18.16% | 17.56% | 15.06% |
| Selling, General & Admin | 389.8M | 0 | 1.33B | 1.33B | 874.1M | 647.8M | 452.9M | 512.2M | 563.4M | 534.4M | 519.4M | 551.3M | 475.4M | 461.2M | 428.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 99.53M | 96.36M | 109.82M | 85.82M | 79M | 76.7M | 66.6M | 31.8M |
| SG&A % of Revenue | - | - | 22.12% | 21.32% | 16.75% | 17% | 15.58% | 15.82% | 15.46% | 15.91% | 16.11% | 15.71% | 14.6% | 14.89% | 13.52% | - | - | - | - | - | - | - | - | 16.08% | 15.92% | 16.55% | 14.35% | 14.51% | 14.11% | 13.68% | 11.3% |
| Research & Development | 0 | 0 | 176.4M | 171M | 106.6M | 74.5M | 34.7M | 22.5M | 29.3M | 29.9M | 29.5M | 30.1M | 32.9M | 28.3M | 28.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 2.92% | 2.74% | 2.04% | 1.96% | 1.19% | 0.69% | 0.8% | 0.89% | 0.91% | 0.86% | 1.01% | 0.91% | 0.9% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 1.53B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 410.28M | 311.62M | 264.7M | 270.25M | 207.29M | 195.35M | 176.19M | 111.9M | 0 | 0 | 0 | 25.55M | 23.1M | 22M | 18.9M | 10.6M |
| Operating Income | 677.4M | 685.3M | 684.5M | 601.7M | 718.8M | 351.5M | 340.8M | 339.7M | 367.5M | 340.9M | 363.9M | 410.4M | 302.7M | 298.8M | 328.8M | 255.81M | 237.74M | 159.52M | 230.43M | 206.06M | 194.02M | 134.57M | 55.16M | 47.23M | 46.78M | 56.06M | 71.61M | 72.4M | 81.1M | 74.4M | 51.1M |
| Operating Margin % | 11.3% | 11.55% | 11.34% | 9.63% | 13.78% | 9.23% | 11.72% | 10.49% | 10.08% | 10.15% | 11.29% | 11.69% | 9.29% | 9.65% | 10.38% | 9.11% | 10.62% | 8.73% | 10.26% | 11.43% | 11.98% | 9.42% | 7.29% | 7.63% | 7.73% | 8.45% | 11.97% | 13.29% | 14.92% | 15.28% | 18.15% |
| Operating Income Growth % | - | 0.12% | 13.76% | -16.29% | 104.5% | 3.14% | 0.32% | -7.56% | 7.8% | -6.32% | -11.33% | 35.58% | 1.31% | -9.12% | 28.53% | 7.6% | 49.03% | -30.77% | 11.83% | 6.21% | 44.17% | 143.96% | 16.8% | 0.95% | -16.55% | -21.71% | -1.09% | -10.73% | 9.01% | 45.6% | -4.66% |
| EBITDA | 1.18B | 1.19B | 1.2B | 1.14B | 1.06B | 554M | 496.7M | 504.8M | 509.9M | 478.1M | 519.3M | 569.8M | 441.4M | 427.3M | 454.8M | 354.05M | 310.65M | 228.66M | 292.03M | 252.68M | 231.7M | 172.2M | 76.78M | 69.3M | 69.95M | 87.86M | 97.16M | 95.5M | 103.1M | 93.3M | 61.7M |
| EBITDA Margin % | 19.62% | 19.98% | 19.83% | 18.2% | 20.28% | 14.54% | 17.09% | 15.59% | 13.99% | 14.23% | 16.11% | 16.24% | 13.55% | 13.8% | 14.35% | 12.61% | 13.88% | 12.52% | 13% | 14.02% | 14.31% | 12.05% | 10.15% | 11.19% | 11.56% | 13.24% | 16.24% | 17.54% | 18.97% | 19.16% | 21.92% |
| EBITDA Growth % | -1.53% | -0.87% | 5.18% | 7.49% | 90.99% | 11.54% | -1.6% | -1% | 6.65% | -7.93% | -8.86% | 29.09% | 3.3% | -6.05% | 28.46% | 13.97% | 35.86% | -21.7% | 15.57% | 9.05% | 34.55% | 124.29% | 10.79% | -0.94% | -20.38% | -9.57% | 1.74% | -7.37% | 10.5% | 51.22% | -3.29% |
| D&A (Non-Cash Add-back) | 499M | 500.6M | 511.8M | 535.7M | 339.3M | 202.5M | 155.9M | 165.1M | 142.4M | 137.2M | 155.4M | 159.4M | 138.7M | 128.5M | 126M | 98.24M | 72.92M | 69.14M | 61.6M | 46.62M | 37.68M | 37.63M | 21.61M | 22.07M | 23.17M | 31.8M | 25.55M | 23.1M | 22M | 18.9M | 10.6M |
| EBIT | 690.1M | 701.7M | 653.3M | 435.3M | 702.3M | 370.5M | 291.3M | 359.2M | 349M | 330.5M | 320.3M | 251.9M | 119.1M | 200.1M | 302M | 257.45M | 240.31M | 161.24M | 231.91M | 206.99M | 194.73M | 135.01M | 55.34M | 47.23M | 46.78M | 56.06M | 71.61M | 72.44M | 81.14M | 74.4M | 51.1M |
| Net Interest Income | -314.2M | -325.5M | -386.5M | -393.3M | -83.3M | -52.6M | -34.8M | -49.8M | -54.9M | -50.1M | -49.4M | -50.7M | -20.9M | -24.7M | -30.5M | -29.38M | -17.01M | -21.57M | -26.23M | -21.12M | -19.18M | -21.65M | -6.6M | -7.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 24.1M | 23.7M | 18.8M | 43.6M | 5.2M | 7.4M | 5.9M | 5.6M | 1.9M | 3.2M | 4.5M | 4.3M | 7.9M | 4.9M | 1.6M | 1.74M | 2.57M | 1.72M | 1.48M | 0 | 0 | 0 | 183K | 79K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 338.3M | 349.2M | 405.3M | 436.9M | 88.5M | 60M | 40.7M | 55.4M | 56.8M | 53.3M | 53.9M | 55M | 28.8M | 29.6M | 32.1M | 31.12M | 19.58M | 23.28M | 27.71M | 22.06M | 19.89M | 22.09M | 6.79M | 7.23M | 9.25M | 22.02M | 15.06M | 9.1M | 11.1M | 10M | 0 |
| Other Income/Expense | -321.3M | -332.8M | -436.5M | -603.3M | -105M | -41M | -90.2M | -35.9M | -75.3M | -63.7M | -97.5M | -213.5M | -212.4M | -128.3M | -58.9M | -29.48M | -17.01M | -21.57M | -26.23M | -21.12M | -19.18M | -21.65M | -6.6M | -6.38M | -9.25M | -22.02M | -15.06M | -9.19M | -11.21M | -10M | 700K |
| Pretax Income | 356.1M | 352.5M | 248M | -1.6M | 613.8M | 310.5M | 250.6M | 303.8M | 292.2M | 277.2M | 266.4M | 196.9M | 90.3M | 170.5M | 269.9M | 226.34M | 220.73M | 137.96M | 204.2M | 184.94M | 174.84M | 112.92M | 48.56M | 40.84M | 37.53M | 34.04M | 56.55M | 63.3M | 70M | 64.4M | 51.8M |
| Pretax Margin % | 5.94% | 5.94% | 4.11% | -0.03% | 11.76% | 8.15% | 8.62% | 9.38% | 8.02% | 8.25% | 8.26% | 5.61% | 2.77% | 5.51% | 8.52% | 8.06% | 9.86% | 7.55% | 9.09% | 10.26% | 10.8% | 7.9% | 6.42% | 6.6% | 6.2% | 5.13% | 9.45% | 11.62% | 12.88% | 13.22% | 18.4% |
| Income Tax | 68.4M | 71.7M | 49.6M | 52.7M | 118.9M | 74.7M | 56.8M | 61.2M | 56.4M | 59.1M | 57.1M | 48.4M | 54.2M | 44.5M | 69.6M | 68.32M | 66.05M | 39.28M | 72.22M | 63.68M | 62.05M | 39.83M | 15.73M | 14.79M | 13.01M | 14.45M | 22.78M | 25.2M | 27M | 25.5M | 19.5M |
| Effective Tax Rate % | 19.21% | 20.34% | 20% | -3293.75% | 19.37% | 24.06% | 22.67% | 20.14% | 19.3% | 21.32% | 21.43% | 24.58% | 60.02% | 26.1% | 25.79% | 30.18% | 29.92% | 28.47% | 35.37% | 34.43% | 35.49% | 35.27% | 32.39% | 36.22% | 34.67% | 42.45% | 40.28% | 39.81% | 38.57% | 39.6% | 37.64% |
| Net Income | 286.6M | 279.5M | 196.2M | -57.4M | 488.9M | 229.6M | 189.3M | 238.9M | 231.2M | 213M | 203.4M | 143.3M | 31M | 120M | 195.6M | 152.29M | 149.38M | 95.05M | 128.59M | 118.35M | 109.81M | 69.56M | 30.43M | 25.21M | 24.52M | 19.59M | 33.77M | 38.1M | 43M | 38.9M | 32.3M |
| Net Margin % | 4.78% | 4.71% | 3.25% | -0.92% | 9.37% | 6.03% | 6.51% | 7.38% | 6.34% | 6.34% | 6.31% | 4.08% | 0.95% | 3.88% | 6.17% | 5.42% | 6.67% | 5.2% | 5.72% | 6.57% | 6.78% | 4.87% | 4.02% | 4.07% | 4.05% | 2.95% | 5.65% | 7% | 7.91% | 7.99% | 11.47% |
| Net Income Growth % | 22.64% | 42.46% | 441.81% | -111.74% | 112.94% | 21.29% | -20.76% | 3.33% | 8.54% | 4.72% | 41.94% | 362.26% | -74.17% | -38.65% | 28.44% | 1.95% | 57.16% | -26.08% | 8.65% | 7.78% | 57.86% | 128.54% | 20.75% | 2.81% | 25.16% | -41.99% | -11.36% | -11.4% | 10.54% | 20.43% | -1.52% |
| Net Income (Continuing) | 287.7M | 280.8M | 198.4M | -54.3M | 494.9M | 235.8M | 193.8M | 242.6M | 235.8M | 218.1M | 209.3M | 148.5M | 36.1M | 126M | 200.3M | 158.02M | 154.68M | 98.68M | 131.98M | 121.25M | 112.79M | 73.09M | 32.83M | 25.21M | 24.52M | 19.59M | 33.77M | 38.07M | 42.96M | 38.9M | 32.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 9.3M | 9.2M | 7.4M | 20.8M | 34.4M | 38.2M | 32.6M | 29.3M | 28M | 29.2M | 39.4M | 45.5M | 44.9M | 46.2M | 43.1M | 40.47M | 35.2M | 12.24M | 11.65M | 10.54M | 9.63M | 11.05M | 5.29M | 4.89M | 2.05M | 2M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.29 | 4.22 | 2.94 | -0.87 | 7.29 | 4.81 | 4.64 | 5.66 | 5.27 | 4.74 | 4.52 | 3.18 | 0.69 | 2.64 | 4.64 | 3.79 | 3.84 | 2.63 | 3.78 | 3.49 | 3.28 | 2.25 | 1.22 | 1.00 | 1.01 | 0.93 | 1.61 | 1.80 | 2.02 | 1.83 | 1.57 |
| EPS Growth % | 22.51% | 43.54% | 437.93% | -111.93% | 51.56% | 3.66% | -18.02% | 7.4% | 11.18% | 4.87% | 42.14% | 360.87% | -73.86% | -43.1% | 22.43% | -1.3% | 46.01% | -30.42% | 8.31% | 6.4% | 45.78% | 84.43% | 22% | -0.99% | 8.6% | -42.24% | -10.56% | -10.89% | 10.38% | 16.56% | -1.88% |
| EPS (Basic) | - | 4.22 | 2.95 | -0.87 | 7.33 | 4.85 | 4.66 | 5.69 | 5.30 | 4.78 | 4.55 | 3.21 | 0.69 | 2.66 | 4.68 | 3.84 | 3.91 | 2.76 | 4.00 | 3.79 | 3.56 | 2.34 | 1.24 | 1.01 | 1.01 | 0.94 | 1.61 | 1.82 | 2.06 | 1.87 | 1.57 |
| Diluted Shares Outstanding | 66.8M | 66.6M | 66.7M | 66.3M | 67.1M | 47.7M | 40.8M | 42.2M | 43.9M | 44.9M | 45M | 45.1M | 45.3M | 45.4M | 42.1M | 40.1M | 38.9M | 36.13M | 33.25M | 33.92M | 33.5M | 30.88M | 24.9M | 25.25M | 24.31M | 21.12M | 21M | 21.17M | 21.28M | 21.26M | 21.1M |
| Basic Shares Outstanding | 66.5M | 66.3M | 66.4M | 66.3M | 66.7M | 47.3M | 40.6M | 42M | 43.6M | 44.6M | 44.7M | 44.7M | 45M | 45M | 41.8M | 39.7M | 38.2M | 34.5M | 31.34M | 31.25M | 30.85M | 29.68M | 24.6M | 25.03M | 24.19M | 20.87M | 20.98M | 20.96M | 20.89M | 20.8M | 20.62M |
| Dividend Payout Ratio | - | 33.27% | 47.4% | - | 18.59% | 146.17% | 25.73% | 20.47% | 20.42% | 20.89% | 20.7% | 28.05% | 121.94% | 29.25% | 15.75% | 18.1% | 16.8% | 22.73% | 15.11% | 15.29% | 15.14% | 21.18% | 39.03% | 47.66% | 44.93% | 51.16% | 29.83% | 26.4% | 23.26% | 25.71% | 29.41% |
Integration and cyclical volatility
According to the provided quarterly income statements, Regal Rexnord's revenue growth has fluctuated significantly, oscillating between a 12.5% contraction in 2024Q2 and a 4.3% expansion in 2026Q1, suggesting that the company is struggling to maintain a stable organic growth trajectory amidst shifting industrial demand cycles.
The inconsistent revenue performance appears to reflect the company's sensitivity to short-cycle industrial production and residential HVAC demand. Investors should monitor whether the recent return to positive growth in early 2026 represents a sustainable recovery or merely a temporary rebound from prior-year destocking phases.
Based on reported financial figures, Regal Rexnord has maintained gross margins within a tight 35.2% to 38.2% range over the last ten quarters, indicating that the company has successfully managed raw material price volatility despite the significant structural changes introduced by recent large-scale industrial acquisitions.
While the gross margin profile appears resilient, the lack of significant expansion suggests that the company has yet to fully realize the pricing power or cost efficiencies expected from its integrated powertrain strategy. The stability here warrants further investigation into whether competitive pressures in the motor segment are offsetting gains from higher-margin motion control products.
As reported in the income statement data, operating margins have struggled to scale, peaking at only 12.7% in 2023Q4 and dipping as low as 9.4% in 2024Q1, which suggests that the company's overhead structure remains heavy relative to its current revenue base and integration-related expenses.
The failure of operating income to consistently outpace gross profit growth implies that the company is currently burdened by significant integration costs or persistent administrative overhead. This lack of operating leverage may indicate that the 'one company' operating model is still in the early, high-cost stages of implementation.
Financial statements reveal a persistent gap between operating margins and net margins, with the latter frequently falling below 5%, which suggests that non-operating items, including interest expenses and amortization from recent M&A activity, are significantly suppressing the company's bottom-line profitability for shareholders.
The discrepancy between operating income and net income highlights the potential impact of the company's debt-funded acquisition strategy on earnings quality. Investors should be cautious of the recurring restructuring charges that appear to be masking the true underlying earnings power of the combined business entities.
As indicated by the provided data, the company's net margin of 4.3% in 2026Q1 remains significantly lower than industry peers like Parker-Hannifin or ITT, suggesting that the market's skepticism regarding the company's ability to successfully integrate diverse industrial assets may be fundamentally justified by current performance.
Short-sellers may focus on the company's inability to translate its complex powertrain strategy into superior net profitability compared to more focused industrial peers. The persistent reliance on restructuring to manage the income statement may indicate that the company is still far from achieving the operational excellence required to justify a premium valuation.
Quick answers to the most common questions about buying RRX stock.
For fiscal year 2025, Regal Rexnord Corporation (RRX) reported total revenue of $5.93B. This represents a 2008.2% increase compared to $281.5M in 1996.
Regal Rexnord Corporation (RRX) is profitable, generating $279.5M in net income for the fiscal year ending 2025 with a net profit margin of 4.7%.
Regal Rexnord Corporation (RRX) reported an operating income of $685.3M, resulting in an operating profit margin of 11.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Regal Rexnord Corporation (RRX) generated $2.22B in gross profit for the year, representing a gross profit margin of 37.4%. This demonstrates the company's core pricing power and production efficiency.