Regal Rexnord has strong price momentum and exceptional free cash flow conversion well above reported earnings, but a perfect Piotroski score is undermined by weak profitability margins, below-average peer ranking, and zero remaining upside to the analyst consensus target.
Thesis pillars
- Earnings Beat Streak Consistency↑Improving
- Supplier Concentration And Low Margins↓Deteriorating
- Exceptional Free Cash Flow Conversion→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 20, 2026
Regal Rexnord Corporation (RRX) Stock Analysis
Industrials · Specialty Industrial Machinery
Wait for pullback to $157.78. Recent C-suite change — blocks BUY_NOW at $163.62. Engine's entry $157.78 (Ma50 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Supplier: single or limited number of suppliers; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.3).
Regal Rexnord designs and manufactures electric motors, power transmission components, and automation products across three segments — Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions — with 29,200 employees and manufacturing in the... Read more
Wait for pullback to $157.78. Recent C-suite change — blocks BUY_NOW at $163.62. Engine's entry $157.78 (Ma50 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Supplier: single or limited number of suppliers; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.3). Chart setup: No clear chart pattern; technical signals are mixed. Earnings in 3 days. Wait until post-earnings. Score 5.7/10, moderate confidence.
Passes 6/8 gates (positive momentum, favorable risk/reward ratio, clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on earnings proximity 3d<=7d. Suitability: moderate.
About Regal Rexnord Corporation
About Regal Rexnord Corporation
Regal Rexnord's order backlog grew to $2,536.0 million at December 31, 2025, up from $1,707.0 million one year earlier, reflecting demand across three segments — Automation & Motion Control (AMC), Industrial Powertrain Solutions (IPS), and Power Efficiency Solutions (PES). The company employs approximately 29,200 associates worldwide, including 8,700 in the U.S., 8,100 in Mexico, 3,600 in China, and 3,500 in India, and sells through direct OEM relationships, a distributor channel accounting for nearly 40% of sales, and direct end-user accounts.
Regal Rexnord generates revenue across three distinct segments. AMC targets discrete factory automation, aerospace, food and beverage, data center, and medical markets with conveyor systems, precision motors, drives, controllers, and customized modular E-Pod power management solutions. IPS — described as the company's largest segment — serves general industrial, metals and mining, energy, and commercial HVAC markets with bearings, gearboxes, couplings, clutches, and integrated industrial powertrain sub-systems that pair Regal Rexnord motors with matched power transmission components. PES produces fractional to 5 horsepower motors and variable speed controls for residential and commercial HVAC, with seasonally higher demand in spring and summer. Base materials consist primarily of steel, copper, and aluminum, supplemented by bearings, electronic assemblies, permanent magnets, and ferrous castings — all subject to tariff and trade policy risk. The April 2024 divestiture of industrial motors and generators businesses for $444.0 million, representing the substantial majority of the Industrial Systems segment, sharpened the portfolio focus.
Show full overview
Following U.S. tariff escalation and China's retaliatory export controls on certain rare earth magnets in 2025, Regal Rexnord's 10-K disclosed that these restrictions create supply chain risk and may limit production of products requiring rare earth magnets to the extent mitigation falls short. Separately, the company acknowledges dependence on a single or limited number of suppliers for some specialty materials and components — an exposure that could disrupt production if a key supplier experiences quality or delivery failures and no qualified alternative can be sourced quickly enough to prevent customer delivery impacts.
See also: Industrials · Specialty Industrial Machinery
From Regal Rexnord Corporation's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-10-30Recent Developments — Regal Rexnord Corporation
Latest news
- NEWS Regal Rexnord (RRX) Earnings Expected to Grow: Should You Buy? - Yahoo Finance — Yahoo Finance positive
- NEWS Regal Rexnord (RRX) Earnings Expected to Grow: Should You Buy? - finance.yahoo.com — finance.yahoo.com positive
- NEWS Regal Rexnord (RRX) Expected to Announce Earnings on Wednesday - MarketBeat — MarketBeat neutral
- NEWS 5 Must-Read Analyst Questions From Regal Rexnord’s Q2 Earnings Call - StockStory — StockStory neutral
- NEWS Regal Rexnord Corp (RRX) Insider Sell: SVP, Corp. Controller and CAO Alexander Scarpelli Sells 170 Shares - GuruFocus — GuruFocus negative
Generated 2026-10-30T11:22:46Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHSuppliersingle or limited number of suppliers10-K Item 1A: 'We are dependent on a single or limited number of suppliers for some materials or components required to manufacture certain of our products'
Material Events(8-K, last 90d)
- 2026-06-01Item 5.02MEDIUMJerry Morton, EVP & President of Industrial Powertrain Solutions, to retire Dec 31, 2026; Mark Klossner succeeds him effective June 1, 2026. Klossner joined via Altra acquisition (March 2023).SEC filing →
- 2026-04-22Item 5.02MEDIUMCEO succession: Aamir Paul (President North America, Schneider Electric SE) named to succeed Louis Pinkham as CEO effective no later than July 1, 2026. Pinkham transition first announced Oct 2025.SEC filing →
- 2026-03-16Item 5.02LOWCEO transition timeline extended: Louis Pinkham remains CEO through June 30, 2026 per mutual agreement. No successor named as of this filing. Monthly retention payment of $770,833 during extension.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $157.78. Recent C-suite change — blocks BUY_NOW at $163.62. Engine's entry $157.78 (Ma50 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Supplier: single or limited number of suppliers; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.3). Chart setup: No clear chart pattern; technical signals are mixed. Earnings in 3 days. Wait until post-earnings. Target $201.06 (+22.9%), stop $146.74 (−11.5%), A.R:R 2.0:1. Score 5.7/10, moderate confidence.
Take-profit target: $201.06 (+22.9% upside). Target $201.06 (+22.9%), stop $146.74 (−11.5%), A.R:R 2.0:1. Stop-loss: $146.74.
Concentration risk — Supplier: single or limited number of suppliers; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.3); Sector modifier (Industrials): -0.7.
Regal Rexnord Corporation trades at a P/E of 33.7 (forward 12.7). TrendMatrix value score: 6.8/10. Verdict: Buy (Wait for Entry).
16 analysts cover RRX with a consensus score of 4.2/5. Average price target: $231.
What does Regal Rexnord Corporation do?Regal Rexnord designs and manufactures electric motors, power transmission components, and automation products across...
Regal Rexnord designs and manufactures electric motors, power transmission components, and automation products across three segments — Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions — with 29,200 employees and manufacturing in the U.S., Mexico, China, India, and Europe. Backlog stood at $2,536.0 million at December 31, 2025, up from $1,707.0 million a year prior, with no single customer exceeding 10% of net sales.