Regal Rexnord Reports Strong Q4 2025 Earnings with Record Order Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy RRX?
Source: seekingalpha
- 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.
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 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: 178.300
Low
160.00
Averages
179.57
High
212.00
Current: 178.300
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 Reports Strong Q4 Earnings Driven by Data Center Demand
- Earnings Beat: Regal Rexnord (RRX) reported adjusted earnings of $2.51 per share for Q4, surpassing analysts' expectations of $2.48, indicating strong profitability driven by data center demand.
- Revenue Growth: The company achieved a 4.3% year-over-year revenue increase to $1.52 billion in Q4, although it narrowly missed Wall Street's consensus estimate of $1.54 billion, reflecting ongoing market demand fluctuations.
- Order Surge: Daily orders surged 53.8% year-over-year, primarily due to robust demand for the data center E-Pod solution, securing approximately $735 million in E-Pod orders during the quarter, with initial shipments expected in early 2027, showcasing the company's competitive edge in a key growth market.
- Optimistic Outlook: Regal Rexnord forecasts earnings of $5.29 to $6.09 per share for 2026, with adjusted earnings projected between $10.20 and $11.00, representing roughly 10% growth at the midpoint, reflecting the company's confidence in future growth and cash flow.
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
Software Stocks Plunge for Eighth Session Amid AI Demand Concerns
- Software Sector Decline: Software stocks fell for the eighth consecutive session on Thursday, marking the longest losing streak since May 2021, as investor concerns about AI undermining demand in the SaaS economy intensified.
- ETF Performance: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) dropped 1.9%, extending its decline to approximately 30% from late October highs, indicating a waning confidence in tech stocks.
- Individual Stock Movements: Palantir Technologies Inc. (NASDAQ:PLTR) fell 4.4% after an 11% drop on Wednesday, suggesting a diminishing market expectation for its growth prospects in the AI-driven landscape.
- Broader Economic Impact: Bitcoin slid 9% to $66,000, negatively impacting software stocks tied to crypto markets, while commodities also faced broad declines, with silver plunging 13% to $76 an ounce and gold slipping 2% to $4,865 per ounce.
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 Reports Strong Q4 Earnings Driven by Data Center Demand
- Earnings Beat: Regal Rexnord (RRX) reported adjusted earnings of $2.51 per share for Q4, surpassing analysts' expectations of $2.48, indicating strong profitability driven by data center demand.
- Revenue Growth: The company achieved a 4.3% year-over-year revenue increase to $1.52 billion in Q4, although it narrowly missed Wall Street's consensus estimate of $1.54 billion, reflecting ongoing market demand fluctuations.
- Order Surge: Daily orders surged 53.8% year-over-year, primarily due to robust demand for the data center E-Pod solution, securing approximately $735 million in E-Pod orders during the quarter, with initial shipments expected in early 2027, showcasing the company's competitive edge in a key growth market.
- Optimistic Outlook: Regal Rexnord forecasts earnings of $5.29 to $6.09 per share for 2026, with adjusted earnings projected between $10.20 and $11.00, representing roughly 10% growth at the midpoint, reflecting the company's confidence in future growth and cash flow.
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
Software Stocks Plunge for Eighth Session Amid AI Demand Concerns
- Software Sector Decline: Software stocks fell for the eighth consecutive session on Thursday, marking the longest losing streak since May 2021, as investor concerns about AI undermining demand in the SaaS economy intensified.
- ETF Performance: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) dropped 1.9%, extending its decline to approximately 30% from late October highs, indicating a waning confidence in tech stocks.
- Individual Stock Movements: Palantir Technologies Inc. (NASDAQ:PLTR) fell 4.4% after an 11% drop on Wednesday, suggesting a diminishing market expectation for its growth prospects in the AI-driven landscape.
- Broader Economic Impact: Bitcoin slid 9% to $66,000, negatively impacting software stocks tied to crypto markets, while commodities also faced broad declines, with silver plunging 13% to $76 an ounce and gold slipping 2% to $4,865 per ounce.
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
