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Regal Rexnord Corporation
$10.3B
Market Cap
33.4
P/E
1.34
PEG
4.9%
ROCE
4.3%
ROE
0.72
D/E
11.8%
OPM
-31.9%
% from 52W High
40
α RS
🔍 RRX is showing a notable setup because Sector RRG has Industrials in the Improving quadrant with the trail still strengthening and an ECS of 50.3 last quarter. The main caution: margin_expansion's Backtest win rate is only 45.4%. Net: Mixed signal stack, not a recommendation. ? RRG ECS Backtest
Sources
Industrials in Improving quadrant · ECS 50.3 · Backtest win rate 45.4%
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🌏 Global Investor Returns
Currency-adjusted total returns for RRX including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Regal Rexnord Corporation provides sustainable solutions for power, transmit, and control motion products in the North America, Asia, Europe, and internationally. The company operates through Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions. The Automation & Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, precision motion control solutions, miniature servo motors, controls, drives, and linear actuators, as well as power management products that include automatic transfer switches, paralleling switchgear, and customized modular electric pod solutions that comprise relevant power and thermal management content. The Industrial Powertrain Solutions segment offers mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes and gear motors, clutches, brakes, and industrial powertrain components and solutions, as well as industrial powertrain solutions. The Power Efficiency Solutions segment produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, electronic drives, fans and blowers, as well as integrated air moving subsystems. It serves factory automation, food and beverage, aerospace, general industrial, medical, data center, general industrial, metals and mining, energy, discrete automation, commercial HVAC, and general commercial applications. The company was formerly known as Regal Beloit Corporation. Regal Rexnord Corporation was founded in 1955 and is based in Milwaukee, Wisconsin.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding RRX
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Manager Shares Value % of Fund Period
Andreas Halvorsen Viking Global Investors 3.14M $588.5M 1.65% Mar 2026
Steve Cohen Point72 Asset Management 685.6K $128.4M 0.16% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Mixed ↓ Deteriorating 4 quarters Full tone analysis in Intelligence →
📊 MIXED Regal Rexnord Q1 2026: Sales up 4.3%, orders +8.5%, guides FY26 adjusted EPS $10.20-$11.
Revenue & Profitability
Q1 2026 revenue grew 4.3% (organic +1.6%); adjusted EBITDA margin was 20.6% (down 120 bps YoY); adjusted EPS was $2.17 (up ~1% YoY). FY26 guidance: sales growth ~4.5%, adjusted EBITDA margin 22.2%, adjusted EPS $10.20-$11, and adjusted free cash flow $650 million. AMC organic sales +12.1%, IPS +2.8%, PES -10.3%.
Outlook
Management sees improving end markets, with ISM tailwinds boosting IPS and AMC. AMC is accelerating in aerospace & defense, discrete automation, and medical. Residential HVAC is finding a floor (AHRI data) and PES orders exceeded expectations. Tariff uncertainty remains, but the company expects to be dollar-cost-neutral by mid-2026 and margin-neutral by year-end. Geopolitical risks are noted but considered manageable due to low Middle East exposure.
Growth Drivers
Key growth drivers include data center (switchgear and ePOD), discrete automation (robotic actuation, humanoid orders of $1M in Q1), and cross-sell synergies. AMC orders rose 34% (ex-data center +28%) with aerospace & defense +76%, medical +53%, discrete automation +18%. IPS short-cycle OEM orders were up high single digits. PES benefits from share gains via 232 tariff revisions. April enterprise orders were up 4.6% daily.
Balance Sheet & CapEx
Not discussed in this earnings call. (Only capacity expansions mentioned: Canada facility producing switchgear, Texas facility on track to produce by mid-2026.)
Margins
Q1 adjusted gross margin 37.7% (in line with prior year); adjusted EBITDA margin 20.6% (down 120 bps YoY) due to mix (stronger OEM vs aftermarket), tariff price-cost headwinds, rare earth magnet constraints, and higher growth investments. FY26 margin guidance midpoint 22.2%, down modestly from prior guide. Sequential margin improvement expected in each of the next three quarters as tariff price-cost normalizes and mix improves.
Key Risks
Risks flagged include: tariff volatility (IEEPA refunds uncertain, new Section 301 tariffs possible), rare earth magnet supply constraints, unfavorable mix from faster OEM vs aftermarket growth, geopolitical uncertainty (Middle East conflict but exposure <1%), and the potential for weaker short-cycle margin profile. Management also noted the risk of delayed ePOD orders if customer demand shifts.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-05
Q2 2026 saw robust order growth and margin performance, led by AMC and strong end-market demand in data centers, automation, and aerospace. Guidance for 2026 remains solid, with higher AMC growth offsetting softness in PES and IPS, and deleveraging on track.
Q1 2026 Q1 2026 2026-05-07
First quarter results exceeded guidance with strong order growth, backlog, and sales momentum across key segments. Guidance for 2026 sales growth was raised, while margin outlook remains measured due to mix and macro uncertainties. CEO transition to Aamir Paul is underway.
Q4 2025 Q4 2025 2026-02-05
Q4 and full-year 2025 saw strong order and backlog growth, led by a $735M E-Pod data center win and robust performance in automation and aerospace/defense. 2026 guidance calls for ~3% sales growth, 50 bps margin expansion, and 10% EPS growth, with continued focus on secular markets and prudent risk management.
Q3 2025 Q3 2025 2025-10-30
Third quarter results showed strong order growth and rising backlog, with data center momentum driving future prospects. Margin pressures from tariffs and rare earth supply are expected to ease by late 2026, supporting improved cash flow and deleveraging.
Q2 2025 Q2 2025 2025-08-06
Q2 results met or exceeded expectations, with adjusted EPS up 8.3% and strong free cash flow. Backlog and orders growth, especially in data centers and IPS, support a positive outlook for H2 2025 and 2026, despite rare earth and tariff headwinds.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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