Regal Rexnord Reports Strong Q4 2025 Earnings with $735M in Data Center Orders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy RRX?
Source: PRnewswire
- Data Center Order Surge: Regal Rexnord secured approximately $735 million in orders for its newly launched E-Pod product in the data center market, further solidifying its position as a key player in power management, indicating strong competitive advantages in a rapidly growing sector.
- Accelerated Organic Sales Growth: In Q4 2025, the AMC segment achieved a 15.2% organic sales growth, demonstrating the company's ability to enhance overall sales performance through continuous product innovation and market expansion strategies, despite sluggish global industrial markets.
- Robust Financial Performance: The company reported a net income of $280.8 million for 2025, reflecting a 41.0% increase from 2024, while maintaining a healthy adjusted EBITDA margin, showcasing ongoing improvements in cost control and operational efficiency.
- Optimistic Future Outlook: Despite facing lackluster macroeconomic data and a volatile global geopolitical environment, Regal Rexnord anticipates continued growth in 2026, supported by a strong backlog of orders and plans for new product market expansions.
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Analyst Views on RRX
Wall Street analysts forecast RRX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RRX is 179.57 USD with a low forecast of 160.00 USD and a high forecast of 212.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 171.160
Low
160.00
Averages
179.57
High
212.00
Current: 171.160
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 to Announce Q4 Earnings on February 4
- Earnings Announcement Date: Regal Rexnord is set to release its Q4 earnings on February 4 after market close, with a consensus EPS estimate of $2.48, reflecting a 6.0% year-over-year growth, indicating potential profitability improvements.
- Revenue Expectations: Analysts forecast revenue of $1.54 billion for the quarter, representing a 5.5% year-over-year increase, which suggests a stable performance in the market despite facing some near-term challenges.
- Historical Performance Review: Over the past two years, Regal Rexnord has beaten EPS estimates 63% of the time and revenue estimates 50% of the time, demonstrating reliability in its earnings forecasts.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 9 downward revisions, while revenue estimates experienced 7 upward revisions and 2 downward revisions, indicating mixed market sentiment regarding the company's future performance.
See More
Regal Rexnord Reports Strong Q4 2025 Performance with Significant Order Growth
- Significant Order Growth: Regal Rexnord reported a 53.8% increase in daily orders in Q4 2025 compared to the previous year, driven by substantial wins in its data center E-Pod solution, securing approximately $735 million in orders, which solidifies its position in the data center power management market.
- Steady Sales Increase: The company achieved sales of $1.523 billion in Q4 2025, reflecting a 4.3% year-over-year growth, with an organic growth rate of 2.9%, demonstrating resilience and sustained customer demand in the global industrial market.
- Substantial Net Income Growth: GAAP net income reached $63.8 million, up 51.9% from $42.0 million in the prior year, showcasing the company's success in cost control and operational efficiency, thereby enhancing investor confidence.
- Optimistic Future Outlook: The company anticipates GAAP diluted earnings per share for 2026 to range between $5.29 and $6.09, with adjusted diluted EPS expected between $10.20 and $11.00, indicating strong confidence in future growth, particularly driven by investments in data centers and robotics.
See More
Regal Rexnord Q4 Earnings Beat Expectations Despite Revenue Miss
- Earnings Beat: Regal Rexnord reported a Q4 non-GAAP EPS of $2.51, exceeding expectations by $0.03, indicating the company's resilience and stability in profitability amidst challenging market conditions.
- Revenue Miss: Despite a year-over-year revenue increase of 4.1% to $1.52 billion, the figure fell short of market expectations by $20 million, reflecting ongoing challenges that may impact investor confidence moving forward.
- Cautious Market Outlook: During the Baird 55th Annual Global Industrial Conference, the company presented its future strategies, emphasizing potential long-term transformations despite short-term challenges, aiming to enhance its competitive position in the market.
- Analyst Rating Dynamics: Seeking Alpha's quant rating on Regal Rexnord reveals market divergence regarding the company's future performance, prompting investors to closely monitor upcoming earnings reports and market reactions to assess its long-term investment value.
See More
Regal Rexnord Reports Strong Q4 2025 Earnings with $735M in Data Center Orders
- Data Center Order Surge: Regal Rexnord secured approximately $735 million in orders for its newly launched E-Pod product in the data center market, further solidifying its position as a key player in power management, indicating strong competitive advantages in a rapidly growing sector.
- Accelerated Organic Sales Growth: In Q4 2025, the AMC segment achieved a 15.2% organic sales growth, demonstrating the company's ability to enhance overall sales performance through continuous product innovation and market expansion strategies, despite sluggish global industrial markets.
- Robust Financial Performance: The company reported a net income of $280.8 million for 2025, reflecting a 41.0% increase from 2024, while maintaining a healthy adjusted EBITDA margin, showcasing ongoing improvements in cost control and operational efficiency.
- Optimistic Future Outlook: Despite facing lackluster macroeconomic data and a volatile global geopolitical environment, Regal Rexnord anticipates continued growth in 2026, supported by a strong backlog of orders and plans for new product market expansions.
See More
Regal Rexnord Declares Quarterly Dividend of $0.35 per Share
- Quarterly Dividend Declaration: Regal Rexnord announces a quarterly dividend of $0.35 per share, consistent with previous distributions, indicating the company's stability in the current economic environment.
- Dividend Yield: The forward yield of 0.92% reflects the company's ongoing commitment to shareholder returns, despite facing market challenges.
- Payment Schedule: The dividend will be payable on April 14, with a record date of March 31 and an ex-dividend date also set for March 31, ensuring shareholders receive their returns promptly.
- Future Cash Flow Target: Regal Rexnord has set a target of achieving $900 million in free cash flow by 2026, and despite recent earnings misses, the company is actively ramping up its data center pipeline to drive growth.
See More
Regal Rexnord Declares Quarterly Dividend
- Quarterly Dividend Announcement: Regal Rexnord's Board declared a dividend of $0.35 per share during its January 26, 2026 meeting, payable on April 14, 2026, reflecting the company's ongoing financial health and commitment to shareholders.
- Consistent Dividend History: The company has paid dividends every quarter since January 1961, indicating stable cash flow and profitability, which helps bolster investor confidence and attract long-term investments.
- Global Business Presence: With 30,000 associates, Regal Rexnord focuses on providing sustainable solutions across various sectors, including food & beverage, aerospace, and medical, showcasing its strong competitive position in diversified markets.
- Operational Segmentation: The company operates through three segments: Industrial Powertrain Solutions, Power Efficiency Solutions, and Automation & Motion Control, ensuring flexibility and innovation across different market demands.
See More
Regal Rexnord to Announce Q4 Earnings on February 4
- Earnings Announcement Date: Regal Rexnord is set to release its Q4 earnings on February 4 after market close, with a consensus EPS estimate of $2.48, reflecting a 6.0% year-over-year growth, indicating potential profitability improvements.
- Revenue Expectations: Analysts forecast revenue of $1.54 billion for the quarter, representing a 5.5% year-over-year increase, which suggests a stable performance in the market despite facing some near-term challenges.
- Historical Performance Review: Over the past two years, Regal Rexnord has beaten EPS estimates 63% of the time and revenue estimates 50% of the time, demonstrating reliability in its earnings forecasts.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 9 downward revisions, while revenue estimates experienced 7 upward revisions and 2 downward revisions, indicating mixed market sentiment regarding the company's future performance.
See More
Regal Rexnord Reports Strong Q4 2025 Performance with Significant Order Growth
- Significant Order Growth: Regal Rexnord reported a 53.8% increase in daily orders in Q4 2025 compared to the previous year, driven by substantial wins in its data center E-Pod solution, securing approximately $735 million in orders, which solidifies its position in the data center power management market.
- Steady Sales Increase: The company achieved sales of $1.523 billion in Q4 2025, reflecting a 4.3% year-over-year growth, with an organic growth rate of 2.9%, demonstrating resilience and sustained customer demand in the global industrial market.
- Substantial Net Income Growth: GAAP net income reached $63.8 million, up 51.9% from $42.0 million in the prior year, showcasing the company's success in cost control and operational efficiency, thereby enhancing investor confidence.
- Optimistic Future Outlook: The company anticipates GAAP diluted earnings per share for 2026 to range between $5.29 and $6.09, with adjusted diluted EPS expected between $10.20 and $11.00, indicating strong confidence in future growth, particularly driven by investments in data centers and robotics.
See More
Regal Rexnord Q4 Earnings Beat Expectations Despite Revenue Miss
- Earnings Beat: Regal Rexnord reported a Q4 non-GAAP EPS of $2.51, exceeding expectations by $0.03, indicating the company's resilience and stability in profitability amidst challenging market conditions.
- Revenue Miss: Despite a year-over-year revenue increase of 4.1% to $1.52 billion, the figure fell short of market expectations by $20 million, reflecting ongoing challenges that may impact investor confidence moving forward.
- Cautious Market Outlook: During the Baird 55th Annual Global Industrial Conference, the company presented its future strategies, emphasizing potential long-term transformations despite short-term challenges, aiming to enhance its competitive position in the market.
- Analyst Rating Dynamics: Seeking Alpha's quant rating on Regal Rexnord reveals market divergence regarding the company's future performance, prompting investors to closely monitor upcoming earnings reports and market reactions to assess its long-term investment value.
See More
Regal Rexnord Reports Strong Q4 2025 Earnings with $735M in Data Center Orders
- Data Center Order Surge: Regal Rexnord secured approximately $735 million in orders for its newly launched E-Pod product in the data center market, further solidifying its position as a key player in power management, indicating strong competitive advantages in a rapidly growing sector.
- Accelerated Organic Sales Growth: In Q4 2025, the AMC segment achieved a 15.2% organic sales growth, demonstrating the company's ability to enhance overall sales performance through continuous product innovation and market expansion strategies, despite sluggish global industrial markets.
- Robust Financial Performance: The company reported a net income of $280.8 million for 2025, reflecting a 41.0% increase from 2024, while maintaining a healthy adjusted EBITDA margin, showcasing ongoing improvements in cost control and operational efficiency.
- Optimistic Future Outlook: Despite facing lackluster macroeconomic data and a volatile global geopolitical environment, Regal Rexnord anticipates continued growth in 2026, supported by a strong backlog of orders and plans for new product market expansions.
See More
Regal Rexnord Declares Quarterly Dividend of $0.35 per Share
- Quarterly Dividend Declaration: Regal Rexnord announces a quarterly dividend of $0.35 per share, consistent with previous distributions, indicating the company's stability in the current economic environment.
- Dividend Yield: The forward yield of 0.92% reflects the company's ongoing commitment to shareholder returns, despite facing market challenges.
- Payment Schedule: The dividend will be payable on April 14, with a record date of March 31 and an ex-dividend date also set for March 31, ensuring shareholders receive their returns promptly.
- Future Cash Flow Target: Regal Rexnord has set a target of achieving $900 million in free cash flow by 2026, and despite recent earnings misses, the company is actively ramping up its data center pipeline to drive growth.
See More
Regal Rexnord Declares Quarterly Dividend
- Quarterly Dividend Announcement: Regal Rexnord's Board declared a dividend of $0.35 per share during its January 26, 2026 meeting, payable on April 14, 2026, reflecting the company's ongoing financial health and commitment to shareholders.
- Consistent Dividend History: The company has paid dividends every quarter since January 1961, indicating stable cash flow and profitability, which helps bolster investor confidence and attract long-term investments.
- Global Business Presence: With 30,000 associates, Regal Rexnord focuses on providing sustainable solutions across various sectors, including food & beverage, aerospace, and medical, showcasing its strong competitive position in diversified markets.
- Operational Segmentation: The company operates through three segments: Industrial Powertrain Solutions, Power Efficiency Solutions, and Automation & Motion Control, ensuring flexibility and innovation across different market demands.
See More
