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↓Deteriorating
- Supplier Concentration And Low Margins↑Improving
- Exceptional Free Cash Flow Conversion→Stable
- +1 more pillar — see the Why tab for full reasoning
Regal Rexnord Corporation (RRX) Stock Analysis
Industrials · Specialty Industrial Machinery
Hold if already holding. Not a fresh buy at $176.04, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: single or limited number of suppliers; Negative momentum.
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
Hold if already holding. Not a fresh buy at $176.04, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: single or limited number of suppliers; Negative momentum. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Score 5.7/10, moderate confidence.
Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 75d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. 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 2026-08-15Recent 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 2026-08-15T10:44:21Z.
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.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
2 floor-breakers
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $176.04, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: single or limited number of suppliers; Negative momentum. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Target $216.63 (+23.1%), stop $163.91 (−7.4%), A.R:R 1.8:1. Score 5.7/10, moderate confidence.
Take-profit target: $216.63 (+23.4% upside). Target $216.63 (+23.1%), stop $163.91 (−7.4%), A.R:R 1.8:1. Stop-loss: $163.91.
Concentration risk — Supplier: single or limited number of suppliers; Negative momentum.
Regal Rexnord Corporation trades at a P/E of 35.1 (forward 13.0). TrendMatrix value score: 6.5/10. Verdict: Hold.
16 analysts cover RRX with a consensus score of 4.2/5. Average price target: $249.
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.