Regal Rexnord Corporation (RRX) AI Stock Analysis

Regal Rexnord Corporation designs, manufactures, and distributes industrial powertrain solutions, power transmission components, electric motors, electronic controls, air moving products, and specialty electrical systems. The company operates through four segments: Commercial Systems, Industrial Systems, Climate Solutions, and Motion Control Solutions. Commercial Systems provides AC and DC motors, variable speed controls, fans, and stator and rotor kits. Industrial Systems manufactures AC motors, electric alternators used in data centers, energy, healthcare, and defense, as well as switchgear solutions. Climate Solutions delivers fractional motors, controls, and blowers for residential and light commercial air moving, heating, cooling, and water heating applications.

Regal Rexnord grew revenue at a 5-year CAGR of 15.3% from FY2020 to FY2025, driven by expansions in FY2021 ($3.81B) and FY2022 ($5.22B). Revenue peaked in FY2023 at $6.25B before declining 3.5% in FY2024 to $6.03B and 1.6% in FY2025 to $5.93B. Despite the top-line contraction, gross margin widened from 28.2% in FY2021 to 37.4% in FY2025. Net income stood at $279.5M in FY2025, rebounding from -$57.4M in FY2023. In the latest quarter ended June 30, 2026, quarterly revenue grew 4.2% year-over-year, while quarterly earnings expanded 47.1% year-over-year. Trailing twelve-month revenue reached $6.06B with net profit margin at 5.3%.

As of June 30, 2026, Regal Rexnord held $441.6M in cash and short-term investments alongside $4.77B in total debt, resulting in net debt of $4.32B. The company recorded a current ratio of 2.28 and a debt-to-equity ratio of 0.69 against $6.92B in shareholders' equity. In FY2025, operating cash flow reached $990.8M and free cash flow was $893.1M. Capital allocation in FY2025 included capital expenditures of $97.7M, dividends paid of $93.0M, and share issuance of $2.0M.

Trading at a trailing P/E of 31.7x, Regal Rexnord trades above the 24.8x median of its US-listed Industrials peers. However, its forward P/E of 11.4x is below the peer median of 17.2x, supported by a PEG ratio of 1.14. The enterprise value of $14.49B yields an EV/EBITDA multiple of 11.8x, compared to the peer median of 13.9x. Over the past year, the stock returned 8.0%, trailing the S&P 500 (SPY) return of 16.8%, and sits 18.5% below its 200-day average.

Regal Rexnord pays an annual forward dividend of $1.40 per share, representing a dividend yield of 0.91%. The company has paid consecutive dividends for 38 years, supported by a 5-year annualized dividend growth rate of 3.1%. With a payout ratio of 13.8%, the quarterly distribution accounted for $93.0M in total dividend payments in FY2025.

Wall Street coverage includes 9 Strong Buy, 1 Buy, and 1 Hold recommendations, with no Sell ratings. The mean price target is $231.10, which sits 50.1% above the last close of $154.01. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $10.61 on revenue of $6.20B. For the following fiscal year, 11 analysts project revenue of $7.07B and EPS of $12.92. Regal Rexnord beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of Regal Rexnord Corporation (RRX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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