Regal Rexnord Corporation (RRX) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 30 2025
0mins
Should l Buy RRX?
Source: SeekingAlpha
Third Quarter Sales Up about 2% year-over-year. Reasons for change include improving top-line momentum and strong execution in PES, IPS, and AMC segments.
Orders Up 9.8% year-over-year on a daily basis. Reasons for change include strong order growth in discrete automation, air moving business in PES, and data center and semicon markets.
Backlog Up 6% year-over-year. Reasons for change include strong order growth and momentum in data center and semicon markets.
Organic Sales Up 70 basis points year-over-year. Reasons for change include strength in energy markets, discrete automation, and aerospace, offset by headwinds in medical and project timing in data center.
Adjusted Gross Margin 37.6%, down 80 basis points year-over-year. Reasons for change include mix impacts, rare earth magnet availability, and tariffs.
Adjusted EBITDA Margin 22.7%, roughly flat year-over-year. Reasons for change include $11 million synergy benefit offset by mix, tariffs, and rare earth magnet pressure.
Adjusted Earnings Per Share (EPS) $2.51, up year-over-year. Reasons for change not explicitly mentioned.
Free Cash Flow $174 million in the third quarter. Reasons for change include usage primarily to pay down debt.
AMC Segment Sales Down 1% year-over-year on an organic basis. Reasons for change include project timing in data center, weakness in medical end market, and rare earth magnet sourcing challenges.
AMC Adjusted EBITDA Margin 20.5%, down year-over-year. Reasons for change include rare earth magnet sourcing challenges.
AMC Orders Up 31.7% year-over-year on a daily basis. Reasons for change include large data center orders and strength in discrete automation.
IPS Segment Sales Up 1.6% year-over-year on an organic basis. Reasons for change include strength in energy and metals and mining markets.
IPS Adjusted EBITDA Margin 26.4%, down slightly year-over-year. Reasons for change include synergy gains offset by weaker-than-expected mix and tariffs.
IPS Orders Up 2.3% year-over-year on a daily basis. Reasons for change include strength in energy and metals and mining markets.
PES Segment Sales Up just under 1% year-over-year on an organic basis. Reasons for change include strong growth in pool and commercial HVAC, offset by flat residential HVAC.
PES Adjusted EBITDA Margin 19%, up 120 basis points year-over-year. Reasons for change include favorable mix and strong cost management.
PES Orders Up 1.7% year-over-year on a daily basis. Reasons for change include growth in semicon and data center markets.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy RRX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on RRX
Wall Street analysts forecast RRX stock price to fall
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 213.580
Low
160.00
Averages
179.57
High
212.00
Current: 213.580
Low
160.00
Averages
179.57
High
212.00
About RRX
Regal Rexnord Corporation provides sustainable solutions that power, transmit and control motion. Its electric motors and air moving subsystems provide the power to create motion. Its segments include Industrial Powertrain Solutions (IPS), Power Efficiency Solutions (PES) and Automation & Motion Control (AMC). IPS segment designs, produces and services a broad portfolio of highly-engineered transmission products, including mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes and gear motors, clutches, brakes, and industrial powertrain components and solutions. PES segment designs and produces fractional to approximately five horsepower AC and DC motors, electronic variable speed controls, electronic drives, fans and blowers, as well as integrated subsystems comprised of two or more of these components. AMC segment designs, produces and services conveyor products, conveying automation subsystems, aerospace components and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Regal Rexnord Corporation Announces Investor Meeting Schedule
- Investor Meeting Schedule: Regal Rexnord Corporation will participate in fireside chats and host investor meetings at various conferences, showcasing its leadership in sustainable solutions and likely attracting increased investor interest.
- Global Business Presence: With 30,000 associates, Regal Rexnord focuses on providing electric motors and air-moving subsystems as sustainable solutions, enhancing its competitive edge in global industrial applications for motion transmission and control.
- Strong Market Demand: The company's products span multiple sectors, including discrete automation, food and beverage, aerospace, and medical, benefiting from ongoing secular demand growth, which is expected to further drive performance improvements.
- Optimized Operational Structure: Regal Rexnord operates through three segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions, effectively optimizing resource allocation to support future business growth.
See More
Regal Rexnord to Participate in Investor Conferences
- Investor Conference Schedule: Regal Rexnord will participate in the Barclays 43rd Annual Industrial Select Conference on February 18 and Citi's 2026 Global Industrial Tech & Mobility Conference on February 19, showcasing its leadership in sustainable solutions, which is expected to attract investor interest and enhance the company's profile.
- Company Overview: Regal Rexnord employs 30,000 associates dedicated to providing sustainable solutions such as electric motors and air-moving subsystems that drive motion control in industrial applications, demonstrating strong market competitiveness and technological prowess.
- Market Demand Analysis: The company's products span multiple sectors including discrete automation, food & beverage, aerospace, and medical, benefiting from ongoing demand growth, which is anticipated to provide robust support for future revenue increases.
- Operational Structure Overview: Regal Rexnord operates through three segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions, with a global manufacturing and sales network that enhances its market responsiveness and service efficiency.
See More
Top Performing Large-Cap Stocks Last Week
- Lumentum Earnings Beat: Lumentum Holdings Inc. surged 36.02% this week after reporting second-quarter results that exceeded expectations and providing third-quarter guidance above analyst estimates, thereby boosting investor confidence and significantly driving up the stock price.
- Transportation Stocks Rally: Saia, Inc. jumped 23.07% this week, benefiting from declining oil prices, which led to a strong performance across the transportation sector, indicating optimistic market expectations for transportation demand that could enhance future earnings.
- Westlake Stock Increase: Westlake Corporation saw a 19.27% rise in its stock price this week, reflecting positive market sentiment regarding its business outlook, particularly in the context of declining raw material costs that may improve profitability.
- Market Recovery: The strong performance of these stocks indicates a growing investor confidence in economic recovery, especially amid falling oil prices, which could further drive growth in related industries.
See More
REGAL REXNORD CORP.: OPPENHEIMER INCREASES TARGET PRICE FROM $180 TO $225
- Company Announcement: Regal Rexnord Corporation has raised its price target for the stock of Oppenheimer.
- New Price Target: The new price target is set at $225, an increase from the previous target of $180.
See More
U.S. Markets End Thursday in Decline; Estee Lauder Experienced the Largest Drop
- Stock Market Decline: U.S. stock indexes experienced a drop on Thursday, with the overall market declining by 1.59%.
- Sector Performance: The S&P 500 index fell by 1.23%, while another index decreased by 1.20%.
See More
Regal Rexnord Reports Strong Q4 2025 Earnings with Record Order Growth
- Strong Order Growth: Regal Rexnord reported a 53.8% increase in daily orders for Q4 2025, resulting in a 50% year-over-year increase in backlog, which provides robust momentum as the company enters 2026, highlighting its competitive strength in the market.
- Data Center Business Breakthrough: The company secured approximately $735 million in e-Pod solution orders for its Data Center business, illustrating a significant growth trajectory from a $30 million business five years ago to a defined path toward $1 billion in sales, showcasing its market potential.
- Outstanding Financial Performance: Adjusted earnings per share for Q4 were $2.51, up 7.3% year-over-year, with an adjusted gross margin of 37.6%, reflecting a 50 basis point increase, indicating broad-based growth and enhanced profitability across various business segments.
- Optimistic Future Outlook: The company guided for approximately 3% sales growth in 2026, with 1 to 1.5 points from the large data center project, and adjusted earnings per share guidance of $10.20 to $11, demonstrating management's confidence in future performance and market opportunities.
See More
Regal Rexnord Corporation Announces Investor Meeting Schedule
- Investor Meeting Schedule: Regal Rexnord Corporation will participate in fireside chats and host investor meetings at various conferences, showcasing its leadership in sustainable solutions and likely attracting increased investor interest.
- Global Business Presence: With 30,000 associates, Regal Rexnord focuses on providing electric motors and air-moving subsystems as sustainable solutions, enhancing its competitive edge in global industrial applications for motion transmission and control.
- Strong Market Demand: The company's products span multiple sectors, including discrete automation, food and beverage, aerospace, and medical, benefiting from ongoing secular demand growth, which is expected to further drive performance improvements.
- Optimized Operational Structure: Regal Rexnord operates through three segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions, effectively optimizing resource allocation to support future business growth.
See More
Regal Rexnord to Participate in Investor Conferences
- Investor Conference Schedule: Regal Rexnord will participate in the Barclays 43rd Annual Industrial Select Conference on February 18 and Citi's 2026 Global Industrial Tech & Mobility Conference on February 19, showcasing its leadership in sustainable solutions, which is expected to attract investor interest and enhance the company's profile.
- Company Overview: Regal Rexnord employs 30,000 associates dedicated to providing sustainable solutions such as electric motors and air-moving subsystems that drive motion control in industrial applications, demonstrating strong market competitiveness and technological prowess.
- Market Demand Analysis: The company's products span multiple sectors including discrete automation, food & beverage, aerospace, and medical, benefiting from ongoing demand growth, which is anticipated to provide robust support for future revenue increases.
- Operational Structure Overview: Regal Rexnord operates through three segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions, with a global manufacturing and sales network that enhances its market responsiveness and service efficiency.
See More
Top Performing Large-Cap Stocks Last Week
- Lumentum Earnings Beat: Lumentum Holdings Inc. surged 36.02% this week after reporting second-quarter results that exceeded expectations and providing third-quarter guidance above analyst estimates, thereby boosting investor confidence and significantly driving up the stock price.
- Transportation Stocks Rally: Saia, Inc. jumped 23.07% this week, benefiting from declining oil prices, which led to a strong performance across the transportation sector, indicating optimistic market expectations for transportation demand that could enhance future earnings.
- Westlake Stock Increase: Westlake Corporation saw a 19.27% rise in its stock price this week, reflecting positive market sentiment regarding its business outlook, particularly in the context of declining raw material costs that may improve profitability.
- Market Recovery: The strong performance of these stocks indicates a growing investor confidence in economic recovery, especially amid falling oil prices, which could further drive growth in related industries.
See More
REGAL REXNORD CORP.: OPPENHEIMER INCREASES TARGET PRICE FROM $180 TO $225
- Company Announcement: Regal Rexnord Corporation has raised its price target for the stock of Oppenheimer.
- New Price Target: The new price target is set at $225, an increase from the previous target of $180.
See More
U.S. Markets End Thursday in Decline; Estee Lauder Experienced the Largest Drop
- Stock Market Decline: U.S. stock indexes experienced a drop on Thursday, with the overall market declining by 1.59%.
- Sector Performance: The S&P 500 index fell by 1.23%, while another index decreased by 1.20%.
See More
Regal Rexnord Reports Strong Q4 2025 Earnings with Record Order Growth
- Strong Order Growth: Regal Rexnord reported a 53.8% increase in daily orders for Q4 2025, resulting in a 50% year-over-year increase in backlog, which provides robust momentum as the company enters 2026, highlighting its competitive strength in the market.
- Data Center Business Breakthrough: The company secured approximately $735 million in e-Pod solution orders for its Data Center business, illustrating a significant growth trajectory from a $30 million business five years ago to a defined path toward $1 billion in sales, showcasing its market potential.
- Outstanding Financial Performance: Adjusted earnings per share for Q4 were $2.51, up 7.3% year-over-year, with an adjusted gross margin of 37.6%, reflecting a 50 basis point increase, indicating broad-based growth and enhanced profitability across various business segments.
- Optimistic Future Outlook: The company guided for approximately 3% sales growth in 2026, with 1 to 1.5 points from the large data center project, and adjusted earnings per share guidance of $10.20 to $11, demonstrating management's confidence in future performance and market opportunities.
See More
