Regal Rexnord Corporation (RRX) Stock Price & How to Invest

Regal Rexnord sells the hardware that creates, transmits and controls mechanical motion, and it does so through three segments that behave very differently. Industrial Powertrain Solutions is the largest at $1,317.7 million of first-half 2026 sales, about 43% of the company, and it makes bearings, couplings, gearing, clutches and brakes for energy, metals and mining, food and beverage and general industrial customers. Automation & Motion Control produced $934.8 million in the same period, roughly 31%, selling controllers, drives, precision motors, linear actuators and conveying systems into discrete automation, data centers, aerospace and defense and medical applications. Power Efficiency Solutions contributed $785.0 million, about 26%, and covers electric motors and air moving subsystems for residential and commercial HVAC, pool equipment and general purpose applications. The current shape reflects two deliberate portfolio moves: the acquisition of Altra Industrial Motion in March 2023, which brought the coupling, gearing and Kollmorgen precision motion businesses, and the 2024 sale of the industrial motors and generators businesses for roughly $375 million of proceeds. North America accounted for $2,102.2 million of first-half sales, Europe $527.6 million and Asia $246.0 million.

What drives the numbers is the interaction of three things: segment mix, tariff economics and the debt stack. Automation & Motion Control is growing fastest, up 15.6% organically in the second quarter with daily orders up 17.1%, yet it carries the lowest margin of the three at 19.9% adjusted EBITDA excluding tariff refunds, against 25.9% for Industrial Powertrain Solutions. Power Efficiency Solutions fell 6.6% organically on residential HVAC and pool weakness. Second-quarter results included a $32.0 million benefit from IEEPA tariff refunds, worth $0.39 of the $2.99 adjusted diluted EPS, and the full-year guidance midpoint of $10.60 now embeds $0.57 of such refunds. Strip those out and the underlying outlook was reduced by roughly that amount, which is why the shares fell 16.7% on the print. Below the operating line, interest expense of about $332 million over the trailing twelve months and intangible amortization of about $346 million a year absorb most of the reported operating profit, so the market is paying roughly 2.5x enterprise value to sales for a business whose GAAP earnings understate its cash generation. Gross debt has come down from $7.28 billion in March 2023 to $4.61 billion, and each further turn of leverage retired shows up in reported earnings.

The most immediate risk is the quality of the 2026 guidance. Management held its adjusted EPS midpoint at $10.60, but it now contains $0.57 per share of IEEPA tariff refunds that did not exist in the prior guide, so the operating assumption underneath was cut by roughly 5%. Three reasons were given: a longer timeline on planned productivity gains, price realization lagging a faster pace of inflation, and unfavorable segment mix. Refunds of this kind are non-recurring by nature and can be revisited if similar duties are reimposed under other statutory authority. Second, the balance sheet leaves little room. Gross debt of $4,611.8 million against $441.6 million of cash means roughly $4.17 billion of net debt, funded at 6.05% on the $1,250 million due 2028, 6.30% on the $1,100 million due 2030 and 6.40% on the $1,250 million due 2033. Trailing interest of about $332 million consumes close to half of GAAP operating profit. Third, the asset base is intangible. Goodwill of $6,575.8 million plus $3,230.7 million of net intangibles equals $9.81 billion against total assets of $13.75 billion and equity of $6.92 billion, so tangible book value is roughly negative $2.9 billion and an impairment in any reporting unit would move equity sharply. The company already reported a net loss of $57.4 million in fiscal 2023. Fourth, working capital reporting is complicated by a receivables securitization facility opened on June 30, 2025 and renewed on June 29, 2026 at $430 million for eighteen months, with $373.6 million of receivables derecognized at quarter end, which makes year-over-year cash flow comparisons unreliable without adjustment. Finally, leadership changed twice in two months, with Aamir Paul arriving as chief executive on July 1, 2026 and a new Industrial Powertrain Solutions president named on June 1, so capital allocation and portfolio priorities are not yet settled.

10 analysts publish price targets on RRX, averaging $249.00 against a $166.15 price as of August 2026, or +49.9%. The published targets run from $220.00 to $275.00, a narrow spread, and the ratings split 10 buy, 1 hold, 0 sell. Over the last six months there have been 5 raises and 1 cut among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full RRX forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Regal Rexnord Corporation. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Automation & Motion Control is where the growth sits. AMC net sales rose 16.2% in the second quarter of 2026 to $477.7 million, and 15.6% on an organic basis, with management naming data center, discrete automation and aerospace and defense as the sources. The most optimistic published target, $275.00, assumes this works close to its best case.

The case against. The most immediate risk is the quality of the 2026 guidance. The most pessimistic target, $220.00, is roughly what RRX is worth if this bites instead.

Read the full bull and bear case on RRX, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Regal Rexnord Corporation's investor relations page or your broker.

• Revenue (TTM): ~$6.06 billion for the twelve months to June 30, 2026, up ~3.5%, versus ~$5.94 billion in fiscal 2025, ~$6.03 billion in fiscal 2024 and ~$6.25 billion in fiscal 2023. Second-quarter sales were $1,558.4 million, up 4.2% reported and 3.3% organic, after $1,479.1 million in the first quarter. Enterprise daily orders grew 8.8% in the quarter, ahead of shipments.
• Earnings and EPS: GAAP net income of ~$324 million and diluted EPS of $4.86 for the trailing twelve months, against $279.5 million and $4.20 in fiscal 2025, $196.2 million and $2.94 in fiscal 2024 and a $57.4 million loss in fiscal 2023. Second-quarter GAAP EPS was $1.74 and adjusted diluted EPS was $2.99, of which $0.39 came from IEEPA tariff refunds. Full-year 2026 guidance is $5.42 to $5.92 GAAP and $10.35 to $10.85 adjusted, midpoint $10.60 including $0.57 of refunds.
• Segment mix and margins: First-half 2026 sales split $1,317.7 million Industrial Powertrain Solutions, $934.8 million Automation & Motion Control and $785.0 million Power Efficiency Solutions. Second-quarter adjusted EBITDA margins excluding tariff refunds were 25.9% for IPS, 19.9% for AMC and 16.2% for PES. AMC grew 15.6% organically while PES fell 6.6% on residential HVAC and pool weakness, a mix shift that lowers the blended margin even as the top line accelerates.
• Cash flow and capital intensity: Free cash flow of $154.1 million in the second quarter of 2026 after negative $2.5 million in the seasonally weak first quarter, on first-half operating cash flow of $191.6 million and capital spending of $39.9 million. Fiscal 2025 operating cash flow was $990.8 million against $97.7 million of capex, though that figure was helped by the receivables securitization facility opened on June 30, 2025. Amortization of $173.0 million and depreciation of $75.8 million in the first half explain most of the distance between net income and cash generation. R&D was $198.7 million in fiscal 2025.
• Balance sheet and leverage: Gross debt of $4,611.8 million and cash of $441.6 million at June 30, 2026, for net debt near $4.17 billion, down from a peak of $7,284.8 million on March 31, 2023. Senior notes total $3.60 billion ($1,250 million at 6.05% due 2028, $1,100 million at 6.30% due 2030, $1,250 million at 6.40% due 2033), plus $850 million drawn on a 2025 term facility and $72.5 million on a revolver with $1,427.5 million still available. Net debt to adjusted EBITDA including synergies was 3.06x, guided below 3.0x in the second half. Goodwill was $6,575.8 million and net intangibles $3,230.7 million against equity of $6,915.5 million.
• What the market is paying: $166.15 per share on August 21, 2026, a market capitalization of ~$11.06 billion on ~66.6 million shares, inside a 52-week range of $127.96 to $247.80 and well below the 50-day average of $204.02. Enterprise value of ~$15.4 billion works out to ~2.54x sales and ~12.3x reported EBITDA, or roughly 11x the ~$1.36 billion adjusted EBITDA implied by the company's own leverage math. The trailing P/E is ~34x on GAAP earnings and ~15.7x on the 2026 adjusted guidance midpoint. The dividend is $0.35 per quarter, $1.40 annualized, for a yield of ~0.84%.

Two multiples describe this share price and they are almost seven times apart, because roughly $346 million of annual intangible amortization from the Altra purchase sits inside GAAP earnings and outside the adjusted figure. Enterprise value to sales of ~2.54x is the cleaner comparison to diversified motion peers, and it prices Regal Rexnord below where Rockwell Automation or Parker Hannifin have typically traded. The discount tracks the leverage: net debt is about 38% of enterprise value, so a given move in operating profit moves the equity considerably more than it would at an unlevered competitor.

If you want RRX exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.

Other names that sit close to RRX: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get RRX exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it (IJJ), which spreads the position across many companies. Or build it into a focused thematic portfolio, so RRX sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where RRX fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

As of August 2026, Regal Rexnord trades near $166 after falling 16.7% in a single session on August 5, leaving it roughly a third below its 52-week high of $247.80 even though enterprise daily orders grew 8.8% in the quarter. The stock is a leveraged, three-segment industrial where reported earnings are suppressed by Altra amortization and interest, and where the pace of debt paydown matters as much as the pace of sales.

Whether RRX is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is RRX a buy or a sell?, and where the stock could go from here in the RRX stock forecast.

For income investors, whether RRX pays a dividend and how the payout looks is covered in does RRX pay a dividend? And to weigh RRX against a peer, read the full side-by-side comparisons: RRX vs AMC and RRX vs ROK.