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

Regal Rexnord Corporation (NYSE:RRX) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. 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.

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

Regal Rexnord Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, April 14th. Shareholders of record on Tuesday, March 31st will be issued a dividend of $0.35 per share. The ex-dividend date is Tuesday, March 31st. This represents a $1.40 dividend on an annualized basis and a yield of 0.7%. Regal Rexnord’s dividend payout ratio is currently 36.18%.

Key Headlines Impacting Regal Rexnord

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

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on RRX shares. Robert W. Baird set a $212.00 price objective on Regal Rexnord in a research report on Friday, October 31st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Regal Rexnord in a report on Thursday, January 22nd. Zacks Research raised Regal Rexnord from a “strong sell” rating to a “hold” rating in a report on Tuesday, December 30th. Jefferies Financial Group lowered shares of Regal Rexnord from a “buy” rating to a “hold” rating and dropped their price target for the company from $170.00 to $160.00 in a research report on Wednesday, December 10th. Finally, Barclays reaffirmed an “overweight” rating and set a $165.00 target price on shares of Regal Rexnord in a research note on Monday, November 3rd. Seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $183.38.

Insider Buying and Selling

In other Regal Rexnord news, CEO Louis V. Pinkham sold 35,935 shares of the business’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $146.20, for a total value of $5,253,697.00. Following the transaction, the chief executive officer directly owned 103,262 shares in the company, valued at $15,096,904.40. The trade was a 25.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.82% of the stock is owned by company insiders.

Hedge Funds Weigh In On Regal Rexnord

Several large investors have recently modified their holdings of the business. AQR Capital Management LLC increased its position in shares of Regal Rexnord by 208.1% during the 1st quarter. AQR Capital Management LLC now owns 17,747 shares of the company’s stock worth $2,011,000 after purchasing an additional 11,987 shares during the last quarter. Jones Financial Companies Lllp raised its stake in shares of Regal Rexnord by 91.6% in the 1st quarter. Jones Financial Companies Lllp now owns 617 shares of the company’s stock valued at $70,000 after acquiring an additional 295 shares during the period. Geneos Wealth Management Inc. lifted its holdings in shares of Regal Rexnord by 135.1% in the 1st quarter. Geneos Wealth Management Inc. now owns 221 shares of the company’s stock worth $25,000 after acquiring an additional 127 shares during the last quarter. Janney Montgomery Scott LLC lifted its holdings in shares of Regal Rexnord by 7.0% in the 2nd quarter. Janney Montgomery Scott LLC now owns 4,406 shares of the company’s stock worth $639,000 after acquiring an additional 287 shares during the last quarter. Finally, KLP Kapitalforvaltning AS increased its holdings in Regal Rexnord by 2.2% in the 2nd quarter. KLP Kapitalforvaltning AS now owns 13,803 shares of the company’s stock valued at $2,005,000 after purchasing an additional 300 shares during the last quarter. Institutional investors and hedge funds own 99.72% of the company’s stock.

Regal Rexnord Price Performance

The company has a current ratio of 2.05, a quick ratio of 0.97 and a debt-to-equity ratio of 0.71. The company’s fifty day moving average is $150.85 and its two-hundred day moving average is $146.57. The stock has a market cap of $13.28 billion, a price-to-earnings ratio of 51.56, a P/E/G 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.