REGAL REXNORD CORP (RRX) has a current P/E ratio of 50.7, compared to its historical median P/E of 23.6. The stock is currently considered Expensive based on its historical valuation range.
REGAL REXNORD CORP (RRX) has a 5-year average return on invested capital (ROIC) of 6.2%. This is below average and may indicate limited pricing power.
REGAL REXNORD CORP (RRX) has a market capitalization of $14.2B. It is classified as a large-cap stock.
Yes, REGAL REXNORD CORP (RRX) pays a dividend with a trailing twelve-month yield of 0.66%.
Based on historical P/E analysis, REGAL REXNORD CORP (RRX) appears expensive. The current P/E of 50.7 is 114% above its historical median of 23.6. The estimated fair value CAGR (P/E method) is -11.7%.
REGAL REXNORD CORP (RRX) operates in the General Industrial Machinery & Equipment, Nec industry, within the Industrials sector.
REGAL REXNORD CORP (RRX) reported annual revenue of $5.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
Regal Rexnord Corporation is a global manufacturer of motion control and power transmission solutions organized into three operating segments: Automation & Motion Control (AMC), which designs and produces conveyor systems, aerospace components, precision motion control solutions, servo motors, controls, drives, linear actuators, and power management products including automatic transfer switches and modular electric pod solutions for factory automation, food and beverage, aerospace, medical, and data center applications; Industrial Powertrain Solutions (IPS), which manufactures highly-engineered transmission products including bearings, couplings, gearboxes, gear motors, clutches, brakes, and integrated industrial powertrain subsystems combining motors with power transmission components for general industrial, metals and mining, energy, and commercial HVAC markets; and Power Efficiency Solutions (PES), which produces fractional to approximately 5 horsepower AC and DC motors, variable speed controls, drives, fans, blowers, and integrated air moving subsystems for residential and commercial HVAC and general commercial applications. The company operates a capital-light, engineered-product business model leveraging 80/20 initiatives and the Regal Rexnord Business System to drive profitable growth and operational efficiency, with a portfolio of highly-engineered, technology-leading products sold through direct and distribution channels to industrial OEMs and aftermarket customers globally. The company maintains competitive advantages through deep application expertise, trusted long-standing brands, and a focus on secular growth markets including discrete automation, aerospace, data center, and medical applications, with manufacturing, sales, and service facilities worldwide and headquarters in Milwaukee, Wisconsin.
【Strong order momentum accelerating】 Management expects continued improvement in end markets and order strength to drive accelerating top-line growth in 2026, with particular momentum in data center, discrete automation, and aerospace markets. The company is investing in new product development, sales force expansion, and e-commerce technologies to capture secular growth opportunities, with early results evident in recent quarterly order rates and expected to accelerate further. Tariff mitigation actions are progressing toward dollar cost neutrality by mid-2026 and margin neutrality by year-end, while the company expects to realize additional cost synergies and benefit from improving mix as higher-margin OEM and aftermarket dynamics normalize. Management remains measured in its outlook given geopolitical and macroeconomic uncertainties but sees significant upside potential if industrial end markets continue to recover and ISM readings sustain above 50.
| Metric | Target | Period |
|---|---|---|
| Revenue growth | ~4.5% | FY2026 |
| Adjusted EBITDA margin | 22.2% | FY2026 |
| Adjusted earnings per share | $10.20–$11.00 | FY2026 |
| Free cash flow | $650 million | FY2026 |
| AMC segment sales growth | high single digits | FY2026 |
| IPS segment sales growth | mid-single digits | FY2026 |
Revenue growth (FY2026): “our guidance now assumes growth of roughly 4.5%, up 150 basis points versus our prior assumption”
Adjusted EBITDA margin (FY2026): “our adjusted EBITDA margin is now forecast at 22.2% for this year, up 20 basis points over the prior year”
Adjusted earnings per share (FY2026): “adjusted earnings per share guidance range of $10.20-$11, which is unchanged, and the midpoint equates to approximately 10% adjusted earnings per share growth”
Free cash flow (FY2026): “For 2026, our cash flow guidance also remains unchanged at $650 million”
AMC segment sales growth (FY2026): “For AMC, we are raising our annual sales growth guidance to high single digits from mid single digits”
IPS segment sales growth (FY2026): “For IPS, we are raising our annual sales growth guidance to mid-single digits from low-single digits”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Operating Segments, Excluding Intersegment Elimination | — | $2.24B | $2.42B | $2.61B | $2.61B | 23% |
Operating Segments | $883M | $2.38B | $2.42B | $2.60B | $2.59B | 23% |
Industrial Powertrain Solutions | — | $1.67B | $2.40B | $2.60B | $2.59B | 23% |
Automation & Motion Control | — | $772M | $1.52B | $1.63B | $1.69B | 15% |
Power Efficiency Solutions | — | $2.23B | $1.81B | $1.64B | $1.65B | 15% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 6.0B | 5.9B | 6.0B | 6.3B | 5.2B | 2.9B |
| Net Income | 287M | 280M | 196M | -57M | 489M | 188M |
| EPS | $4.31 | $4.20 | $2.94 | $-0.87 | $7.29 | $4.60 |
| Free Cash Flow | 805M | 893M | 500M | 596M | 352M | 388M |
| ROIC | 4.9% | 5.0% | 4.6% | 3.8% | 10.5% | 7.2% |
| Gross Margin | 37.4% | 37.4% | 36.3% | 33.1% | 32.0% | 27.7% |
| Debt/Equity | 0.69 | 0.70 | 0.87 | 1.04 | 0.34 | 0.42 |
| Dividends/Share | $1.40 | $1.40 | $1.40 | $1.38 | $1.38 | $1.20 |
| Operating Income | 674M | 681M | 630M | 377M | 690M | 278M |
| Operating Margin | 11.2% | 11.5% | 10.4% | 6.0% | 13.2% | 9.6% |
| ROE | 4.2% | 4.3% | 3.1% | -0.9% | 10.9% | 7.4% |
| Shares Outstanding | 67M | 67M | 67M | 66M | 67M | 41M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 3.2B | 3.1B | 3.3B | 3.5B | 3.4B | 3.6B | 3.2B | 2.9B | 5.2B | 6.3B | 6.0B | 5.9B | 6.0B |
| Gross Margin | 24.3% | 25.3% | 24.5% | 26.6% | 26.3% | 26.5% | 26.6% | 27.7% | 32.0% | 33.1% | 36.3% | 37.4% | 37.4% |
| R&D | 29M | 28M | 33M | 30M | 30M | 29M | 65M | 67M | 107M | 171M | 176M | 199M | 199M |
| SG&A | 458M | 575M | 676M | 680M | 553M | 618M | 510M | 529M | 979M | 1.7B | 1.6B | 1.5B | 1.5B |
| EBIT | 313M | 208M | 122M | 253M | 331M | 347M | 351M | 278M | 690M | 377M | 630M | 681M | 674M |
| Op. Margin | 9.9% | 6.7% | 3.7% | 7.2% | 9.9% | 9.5% | 10.8% | 9.6% | 13.2% | 6.0% | 10.4% | 11.5% | 11.2% |
| Net Income | 196M | 120M | 31M | 143M | 213M | 231M | 239M | 188M | 489M | -57M | 196M | 280M | 287M |
| Net Margin | 6.2% | 3.9% | 1.0% | 4.1% | 6.3% | 6.3% | 7.4% | 6.5% | 9.4% | -0.9% | 3.3% | 4.7% | 4.8% |
| Non-Recurring | 12M | 81M | 145M | 86M | 16M | 16M | 22M | 34M | 44M | 31M | 36M | 22M | 25M |
| Returns on Capital | |||||||||||||
| ROIC | 7.2% | 4.8% | 2.7% | 6.4% | 6.1% | 6.2% | 8.4% | 7.2% | 10.5% | 3.8% | 4.6% | 5.0% | 4.9% |
| ROE | 11.2% | 6.0% | 1.6% | 7.0% | 9.8% | 10.0% | 10.2% | 7.4% | 10.9% | -0.9% | 3.1% | 4.3% | 4.2% |
| ROA | 5.7% | 3.3% | 0.9% | 3.3% | 4.9% | 5.1% | 5.3% | 4.1% | 6.6% | -0.4% | 1.4% | 2.0% | 2.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 352M | 305M | 298M | 384M | 292M | 363M | 409M | 435M | 436M | 715M | 609M | 991M | 903M |
| Free Cash Flow | 261M | 214M | 210M | 292M | 227M | 285M | 316M | 388M | 352M | 596M | 500M | 893M | 805M |
| Owner Earnings | 217M | 165M | 148M | 275M | 141M | 203M | 261M | 295M | 106M | 164M | 409M | 799M | -272M |
| CapEx | 91M | 91M | 88M | 92M | 65M | 78M | 92M | 48M | 84M | 119M | 110M | 98M | 98M |
| Maint. CapEx | 126M | 129M | 139M | 96M | 137M | 142M | 135M | 131M | 307M | 493M | 165M | 155M | 1.1B |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 126M | 129M | 139M | 96M | 137M | 142M | 135M | 131M | 307M | 493M | 165M | 155M | 1.1B |
| CapEx/OCF | 25.9% | 29.8% | 29.6% | 24.0% | 22.3% | 21.4% | 22.6% | 10.9% | 15.2% | 16.7% | 18.0% | 9.9% | 10.9% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 31M | 35M | 38M | 40M | 45M | 47M | 49M | 49M | 91M | 93M | 93M | 93M | 93M |
| Dividend Yield | 1.4% | 1.3% | 1.4% | 1.7% | 1.5% | 1.6% | 1.7% | 0.9% | 1.0% | 1.0% | 0.9% | 1.0% | 0.7% |
| Share Buybacks | 0 | 0 | 35M | 12M | 45M | 128M | 165M | 25M | 239M | 0 | 50M | 0 | 0 |
| Buyback Yield | N/A | N/A | 1.6% | 0.4% | 1.5% | 4.7% | 5.1% | 0.4% | 0.5% | N/A | 0.5% | N/A | 0.0% |
| Stock-Based Comp | 9.0M | 11M | 12M | 14M | 14M | 17M | 13M | 9.2M | 23M | 58M | 35M | 37M | 36M |
| Debt Repayment | 90M | 56M | 150M | 132M | 277M | 811M | 90M | 50M | 451M | 61M | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 930M | 769M | 798M | 943M | 1.0B | 1.1B | 906M | 460M | 1.5B | 6.0B | 4.7B | 3.8B | 4.3B |
| Cash & Equiv. | 375M | 466M | 334M | 285M | 140M | 249M | 331M | 611M | 689M | 574M | 394M | 522M | 401M |
| Long-Term Debt | 755M | 609M | 625M | 1.3B | 1.0B | 1.3B | 1.1B | 840M | 2.0B | 6.4B | 5.5B | 4.8B | 4.7B |
| Debt/Equity | 0.67 | 0.62 | 0.59 | 0.74 | 0.50 | 0.57 | 0.53 | 0.42 | 0.34 | 1.04 | 0.87 | 0.70 | 0.69 |
| Interest Coverage | 7.0 | 4.9 | 3.1 | 4.2 | 5.9 | 6.3 | 6.6 | 7.0 | 7.9 | 0.9 | 1.6 | 1.9 | 1.9 |
| Equity | 2.0B | 2.1B | 1.9B | 2.0B | 2.3B | 2.3B | 2.4B | 2.5B | 6.4B | 6.3B | 6.3B | 6.8B | 6.8B |
| Total Assets | 3.6B | 3.6B | 3.4B | 4.4B | 4.4B | 4.6B | 4.4B | 4.6B | 10.3B | 15.4B | 14.0B | 13.9B | 13.8B |
| Total Liabilities | 1.6B | 1.5B | 1.4B | 2.3B | 2.0B | 2.3B | 2.1B | 2.0B | 3.8B | 9.1B | 7.8B | 7.1B | 732M |
| Intangibles | 293M | 244M | 445M | 712M | 1.1B | 626M | 567M | 530M | 2.2B | 4.1B | 3.7B | 3.4B | 3.3B |
| Retained Earnings | 1.1B | 1.2B | 1.2B | 1.5B | 1.6B | 1.8B | 1.9B | 2.0B | 2.1B | 2.0B | 2.0B | 2.2B | 2.3B |
| Working Capital | 1.0B | 1.0B | 1.0B | 830M | 862M | 1.1B | 1.0B | 1.0B | 2.0B | 2.1B | 1.5B | 1.4B | 1.5B |
| Current Assets | 1.5B | 1.7B | 1.6B | 1.5B | 1.6B | 1.8B | 1.6B | 1.9B | 3.0B | 3.4B | 2.8B | 2.7B | 2.7B |
| Current Liabilities | 534M | 701M | 561M | 702M | 712M | 684M | 561M | 822M | 1.0B | 1.3B | 1.2B | 1.3B | 1.3B |
| Per Share Data | |||||||||||||
| EPS | 4.64 | 2.64 | 0.69 | 3.18 | 4.74 | 5.26 | 5.66 | 4.60 | 7.29 | -0.87 | 2.94 | 4.20 | 4.31 |
| Owner EPS | 5.14 | 3.63 | 3.29 | 6.10 | 3.14 | 4.63 | 6.18 | 7.22 | 1.59 | 2.49 | 6.13 | 12.01 | -4.09 |
| Book Value | 46.34 | 45.24 | 43.06 | 45.24 | 51.75 | 52.57 | 55.70 | 62.36 | 95.25 | 96.16 | 93.80 | 102.85 | 102.19 |
| Cash Flow/Share | 8.34 | 6.71 | 6.64 | 8.53 | 6.50 | 8.25 | 9.68 | 10.67 | 6.50 | 10.84 | 9.13 | 14.89 | 21.41 |
| Dividends/Share | 0.75 | 0.79 | 0.86 | 0.95 | 1.02 | 1.10 | 1.18 | 1.20 | 1.38 | 1.38 | 1.40 | 1.40 | 1.40 |
| Shares Out. | 42.2M | 45.5M | 44.9M | 45.1M | 44.9M | 44.0M | 42.2M | 40.8M | 67.1M | 66.0M | 66.7M | 66.5M | 66.6M |
| Valuation | |||||||||||||
| P/E Ratio | 12.1 | 23.0 | 71.0 | 18.7 | 14.2 | 11.8 | 13.5 | 35.2 | 23.6 | N/A | 52.6 | 34.5 | 49.3 |
| P/FCF | 9.1 | 12.9 | 10.5 | 9.2 | 13.4 | 9.5 | 10.2 | 17.2 | 21.6 | 16.2 | 20.6 | 10.8 | 17.6 |
| EV/EBIT | 8.0 | 13.2 | 17.9 | 14.3 | 12.0 | 10.2 | 10.6 | 24.1 | 17.0 | 39.5 | 23.8 | 19.7 | 27.4 |
| Price/Book | 1.2 | 1.3 | 1.1 | 1.3 | 1.3 | 1.2 | 1.4 | 2.6 | 0.8 | 1.5 | 1.6 | 1.4 | 2.1 |
| Price/Sales | 0.7 | 0.9 | 0.8 | 0.7 | 0.9 | 0.8 | 0.9 | 1.9 | 1.7 | 1.4 | 1.7 | 1.5 | 2.4 |
| FCF Yield | 11.0% | 7.8% | 9.5% | 10.9% | 7.5% | 10.5% | 9.8% | 5.8% | 6.5% | 6.2% | 4.8% | 9.3% | 5.7% |
| Market Cap | 2.4B | 2.8B | 2.2B | 2.7B | 3.0B | 2.7B | 3.2B | 6.7B | 5.4B | 9.7B | 10.3B | 9.6B | 14.2B |
| Avg. Price | 52.77 | 58.46 | 58.79 | 51.51 | 66.91 | 68.14 | 69.63 | 133.46 | 133.94 | 136.49 | 156.26 | 137.84 | 212.74 |
| Year-End Price | 55.99 | 60.65 | 49.01 | 59.56 | 67.35 | 61.85 | 76.55 | 163.19 | 113.66 | 146.67 | 154.55 | 144.88 | 212.74 |
REGAL REXNORD CORP passes 1 of 9 quality checks, indicating weak fundamentals.
REGAL REXNORD CORP trades at 50.7x trailing earnings, compared to its 15-year median P/E of 23.6x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 15.8x vs a median of 12.1x. The company's 5-year average ROIC is 6.2% with a gross margin of 33.3%. Total shareholder yield (dividends) is 0.7%. At current prices, the estimated annualized return to fair value is +5.1%.
REGAL REXNORD CORP (RRX) has a net profit margin of 4.7%. This is a modest margin.
REGAL REXNORD CORP (RRX) generated $893 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
REGAL REXNORD CORP (RRX) has a debt-to-equity ratio of 0.70. This indicates moderate leverage.
REGAL REXNORD CORP (RRX) reported earnings per share (EPS) of $4.20 in its most recent fiscal year.
REGAL REXNORD CORP (RRX) has a return on equity (ROE) of 4.3%. This indicates moderate shareholder returns.
REGAL REXNORD CORP (RRX) has a 5-year average gross margin of 33.3%. This indicates decent pricing power.
The Ledger Terminal provides 15 years of financial data for REGAL REXNORD CORP (RRX), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
REGAL REXNORD CORP (RRX) has a book value per share of $102.85, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued improvement in end markets and order strength to drive accelerating top-line growth in 2026, with particular momentum in data center, discrete automation, and aerospace markets. The company is investing in new product development, sales force expansion, and e-commerce technologies to capture secular growth opportunities, with early results evident in recent quarterly order rates and expected to accelerate further. Tariff mitigation actions are progressing toward dollar cost neutrality by mid-2026 and margin neutrality by year-end, while the company expects to realize additional cost synergies and benefit from improving mix as higher-margin OEM and aftermarket dynamics normalize. Management remains measured in its outlook given geopolitical and macroeconomic uncertainties but sees significant upside potential if industrial end markets continue to recover and ISM readings sustain above 50.
Based on recent SEC filings and earnings calls, REGAL REXNORD CORP (RRX) has provided the following forward guidance: Revenue growth: ~4.5% (FY2026); Adjusted EBITDA margin: 22.2% (FY2026); Adjusted earnings per share: $10.20–$11.00 (FY2026); Free cash flow: $650 million (FY2026); AMC segment sales growth: high single digits (FY2026), plus 1 additional metric.
No recent press releases.