Regal Rexnord (NYSE:RRX) Announces Earnings Results

Key Points

• Regal Rexnord reported Q1 adjusted EPS of $2.17 versus consensus $2.11, revenue rose 4.3% year-over-year, and management set FY2026 adjusted EPS guidance at $10.20–$11.00.
• Operational momentum improved with enterprise daily orders up 8.5% YoY, backlog +6.7% sequentially and AMC orders >34%, and the company announced a planned CEO succession to Aamir Paul to be managed over time.
• Shares jumped to $230.58 on heavy volume after the results, analysts lifted price targets (consensus rating "Moderate Buy" with a target ~$229.75), while the stock trades at a relatively high P/E of ~54.9.

Regal Rexnord (NYSE:RRX - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $2.17 earnings per share for the quarter, beating analysts' consensus estimates of $2.11 by $0.06, Zacks reports. Regal Rexnord had a return on equity of 9.60% and a net margin of 4.71%.During the same period in the previous year, the firm earned $2.15 EPS. The business's revenue was up 4.3% compared to the same quarter last year. Regal Rexnord updated its FY 2026 guidance to 10.200-11.000 EPS.

Regal Rexnord Stock Performance

NYSE RRX traded up $8.56 on Wednesday, hitting $230.58. 2,205,844 shares of the company's stock were exchanged, compared to its average volume of 1,078,112. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.15 and a quick ratio of 1.10. The firm's 50-day moving average price is $200.72 and its two-hundred day moving average price is $172.14. Regal Rexnord has a fifty-two week low of $124.73 and a fifty-two week high of $236.35. The firm has a market cap of $15.35 billion, a price-to-earnings ratio of 54.90, a P/E/G ratio of 2.07 and a beta of 1.15.

Regal Rexnord Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th will be given a dividend of $0.35 per share. The ex-dividend date is Tuesday, June 30th. This represents a $1.40 annualized dividend and a yield of 0.6%. Regal Rexnord's payout ratio is presently 33.33%.

Key Stories Impacting Regal Rexnord

Here are the key news stories impacting Regal Rexnord this week:

• Positive Sentiment: Q1 beat on the top and bottom lines — GAAP sales of $1,479.1M (up 4.3% YoY) and adjusted EPS of $2.17 vs. the consensus $2.11; GAAP net income also rose year-over-year. Read More.
• Positive Sentiment: Order momentum: enterprise daily orders +8.5% YoY, backlog up 6.7% sequentially, and AMC orders up >34% (broad-based growth across aerospace, data center, medical). These operational signals support forward revenue visibility. Read More.
• Neutral Sentiment: Management reaffirmed FY2026 adjusted EPS guidance at a range of 10.200–11.000, which overlaps but slightly skews around the Street consensus (~10.69); the range gives scope for upside or downside depending on execution. Read More.
• Neutral Sentiment: Leadership note — the company announced Aamir Paul as the next CEO (planned succession). A managed transition reduces uncertainty but will be watched for strategic shifts. Read More.
• Negative Sentiment: Profitability/efficiency mixed — adjusted EBITDA slipped versus the prior year (304.4M vs 309.5M), adjusted EPS rose only modestly YoY, and net margins remain thin; these factors temper the quality of the headline beat. Read More.

Insiders Place Their Bets

In other Regal Rexnord news, CFO Robert Rehard sold 7,704 shares of the business's stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $216.72, for a total transaction of $1,669,610.88. Following the transaction, the chief financial officer owned 34,154 shares in the company, valued at approximately $7,401,854.88. The trade was a 18.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Cheryl Lewis sold 2,262 shares of the business's stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $215.73, for a total value of $487,981.26. Following the transaction, the executive vice president owned 13,219 shares in the company, valued at $2,851,734.87. The trade was a 14.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 48,951 shares of company stock worth $10,576,689. Company insiders own 0.63% of the company's stock.

Institutional Investors Weigh In On Regal Rexnord

Several institutional investors have recently modified their holdings of RRX. Viking Global Investors LP boosted its stake in shares of Regal Rexnord by 25.7% during the 2nd quarter. Viking Global Investors LP now owns 3,430,128 shares of the company's stock worth $497,231,000 after acquiring an additional 701,145 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Regal Rexnord by 27.1% during the 4th quarter. Invesco Ltd. now owns 1,905,828 shares of the company's stock worth $267,426,000 after acquiring an additional 405,828 shares in the last quarter. Morgan Stanley boosted its stake in shares of Regal Rexnord by 46.8% during the 4th quarter. Morgan Stanley now owns 1,010,252 shares of the company's stock worth $141,759,000 after acquiring an additional 322,191 shares in the last quarter. Wellington Management Group LLP boosted its stake in shares of Regal Rexnord by 215.8% during the 3rd quarter. Wellington Management Group LLP now owns 385,717 shares of the company's stock worth $55,327,000 after acquiring an additional 263,592 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in shares of Regal Rexnord during the 4th quarter worth approximately $36,861,000. Hedge funds and other institutional investors own 99.72% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently weighed in on RRX. Barclays boosted their target price on Regal Rexnord from $237.00 to $245.00 and gave the company an "overweight" rating in a report on Monday, March 23rd. Citigroup boosted their price target on Regal Rexnord from $230.00 to $240.00 and gave the company a "buy" rating in a research report on Monday, April 13th. Oppenheimer boosted their price target on Regal Rexnord from $180.00 to $225.00 and gave the company an "outperform" rating in a research report on Friday, February 6th. KeyCorp boosted their price target on Regal Rexnord from $200.00 to $255.00 and gave the company an "overweight" rating in a research report on Tuesday, February 10th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Regal Rexnord in a research report on Tuesday, April 21st. Seven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $229.75.

About Regal Rexnord

Regal Rexnord Corporation NYSE: RRX is a global industrial manufacturer specializing in electric motors, power generation equipment and automated motion control systems. The company designs, engineers and produces a broad portfolio of products that includes energy-efficient electric motors, variable frequency drives, gearboxes, couplings, bearings and power transmission components. These offerings support critical applications in industries such as heating, ventilation and air conditioning (HVAC), refrigeration, data centers, water treatment, food and beverage processing, mining, oil and gas, and material handling.

The company's operations are organized into multiple business segments that address distinct customer needs.

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