Regal Rexnord (NYSE:RRX) Shares Gap Up After Strong Earnings

Regal Rexnord Corporation (NYSE:RRX) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $178.30, but opened at $190.00. Regal Rexnord shares last traded at $195.8410, with a volume of 1,052,303 shares traded.

The company reported $2.51 earnings per share for the quarter, beating the consensus estimate of $2.47 by $0.04. The company had revenue of $1.52 billion during the quarter, compared to analysts’ expectations of $1.54 billion. Regal Rexnord had a return on equity of 9.64% and a net margin of 4.38%.Regal Rexnord’s quarterly revenue was up 4.3% compared to the same quarter last year. During the same period in the prior year, the business posted $2.34 EPS. Regal Rexnord has set its FY 2026 guidance at 10.200-11.000 EPS.

Regal Rexnord Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 14th. Shareholders of record on Tuesday, March 31st will be issued a $0.35 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $1.40 annualized dividend and a yield of 0.7%. Regal Rexnord’s dividend payout ratio (DPR) is 36.18%.

Key Regal Rexnord News

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

• Positive Sentiment: Large data‑center win and backlog expansion — management disclosed ~ $735M of data‑center E‑Pod orders, saying initial shipments begin in early 2027; backlog exiting 2025 rose ~50%, signaling multi‑year revenue visibility and upside from new product traction. PR Newswire: Regal Rexnord Reports Strong Fourth Quarter 2025 Financial Results
• Positive Sentiment: Q4 EPS beat and improving profitability — adjusted EPS of $2.51 topped estimates ($2.47) and rose vs. year‑ago; gross margin improved ~50 bps and adjusted EBITDA increased year‑over‑year, supporting longer‑term earnings power. Zacks: Regal Rexnord Q4 Earnings Surpass Estimates
• Neutral Sentiment: Analyst/peer comparisons available — recent write‑ups compare RRX to industrial peers (e.g., Atlas Copco) which may inform relative valuation and long‑term positioning but are not direct catalysts. American Banking News: Regal Rexnord & Atlas Copco Critical Comparison
• Negative Sentiment: Revenue slightly missed estimates — Q4 sales were ~$1.52B vs. analyst expectations of ~$1.54B, which may temper near‑term sentiment despite the EPS beat. MSN: Regal Rexnord Misses Q4 Revenue Estimates
• Negative Sentiment: FY‑2026 guidance mixed vs. consensus — RRX set EPS guidance of $10.20–$11.00 (consensus ~ $10.76), leaving room for upside but with a midpoint slightly below Street expectations, which could cap immediate multiple expansion. PR Newswire: Regal Rexnord Q4 Results & Guidance

Analysts Set New Price Targets

RRX has been the subject of several research analyst reports. Barclays reaffirmed an “overweight” rating and issued a $165.00 target price on shares of Regal Rexnord in a research report on Monday, November 3rd. Citigroup increased their target price on Regal Rexnord from $175.00 to $180.00 and gave the stock a “buy” rating in a research note on Thursday, December 11th. Robert W. Baird set a $212.00 price target on shares of Regal Rexnord in a research report on Friday, October 31st. Zacks Research upgraded Regal Rexnord from a “strong sell” rating to a “hold” rating in a report on Tuesday, December 30th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Regal Rexnord in a research report on Thursday, January 22nd. Seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, Regal Rexnord presently has a consensus rating of “Moderate Buy” and an average price target of $183.38.

Insider Buying and Selling at Regal Rexnord

In related news, CEO Louis V. Pinkham sold 35,935 shares of the company’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $146.20, for a total transaction of $5,253,697.00. Following the completion of the transaction, the chief executive officer owned 103,262 shares in the company, valued at approximately $15,096,904.40. This represents a 25.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.82% of the company’s stock.

Institutional Trading of Regal Rexnord

A number of large investors have recently added to or reduced their stakes in the company. Leeward Investments LLC MA raised its stake in Regal Rexnord by 28.9% during the fourth quarter. Leeward Investments LLC MA now owns 232,566 shares of the company’s stock valued at $32,634,000 after purchasing an additional 52,155 shares in the last quarter. Strategic Family Wealth Counselors L.L.C. bought a new position in Regal Rexnord during the 4th quarter valued at about $423,000. Empire Life Investments Inc. grew its stake in shares of Regal Rexnord by 0.3% during the fourth quarter. Empire Life Investments Inc. now owns 56,778 shares of the company’s stock valued at $7,967,000 after buying an additional 145 shares during the last quarter. Crossmark Global Holdings Inc. increased its stake in Regal Rexnord by 62.3% in the fourth quarter. Crossmark Global Holdings Inc. now owns 4,271 shares of the company’s stock worth $599,000 after purchasing an additional 1,639 shares during the period. Finally, Sequoia Financial Advisors LLC increased its stake in Regal Rexnord by 54.0% in the 4th quarter. Sequoia Financial Advisors LLC now owns 2,672 shares of the company’s stock worth $375,000 after buying an additional 937 shares during the period. Institutional investors own 99.72% of the company’s stock.

Regal Rexnord Trading Up 12.2%

The company has a debt-to-equity ratio of 0.71, a current ratio of 2.05 and a quick ratio of 0.97. The stock’s 50-day moving average price is $150.85 and its 200 day moving average price is $146.57. The firm has a market capitalization of $13.28 billion, a PE ratio of 51.56, a price-to-earnings-growth ratio of 1.59 and a beta of 1.13.

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.