RRX Stock: Insider Activity, Filings & Research

Regal Rexnord Corporation (RRX) — Drillr’s hub for RRX insider activity, SEC filings, earnings signals and AI research. Over the trailing 3 months, RRX insiders filed 0 open-market buys and 10 sales (SEC Form 4).

Sentiment

0/100

Buys (3m)

Sells (3m)

Net (3m)

-$8.3M

Insider trades by month Buys Sells

May

Nov

Feb

May

Context3-month price +2.7%Institutions mixed (13F)

Date	Insider	Type	Shares	Price
May 26, 2026	Rehard Robertofficer: EVP and CFO*	Sell	6,499	$200.00
May 15, 2026	Morton Jerrald Rofficer: EVP and Pres. IPS*	Sell	9,390	$209.13
May 13, 2026	Hodge Rashida Adirector	Grant	923	—
May 13, 2026	CRANDALL THEODORE Ddirector	Grant	923	—
May 13, 2026	Pinkham Louis V.director, officer: Chief Executive Officer	Option	10,009	$154.20
May 13, 2026	Pinkham Louis V.director, officer: Chief Executive Officer	Sell	5,564	$212.01
May 13, 2026	STOELTING CURTIS Wdirector	Grant	923	—
May 13, 2026	SACHDEV RAKESHdirector	Grant	923	—
May 13, 2026	Pinkham Louis V.director, officer: Chief Executive Officer	Sell	5,525	$210.90
May 13, 2026	Pinkham Louis V.director, officer: Chief Executive Officer	Sell	1,624	$212.89
May 13, 2026	Pinkham Louis V.director, officer: Chief Executive Officer	Sell	6,197	$209.88
May 13, 2026	Pinkham Louis V.director, officer: Chief Executive Officer	Sell	299	$216.24
May 13, 2026	BAKKER GERBENdirector	Grant	923	—
May 13, 2026	Pinkham Louis V.director, officer: Chief Executive Officer	Sell	1,900	$215.43
May 13, 2026	DOSS MICHAEL Pdirector	Grant	923	—

Source: RRX SEC Form 4 filings, latest May 26, 2026. For informational purposes only — not investment advice.

Overview

Regal Rexnord Corporation (NYSE:RRX) is a global industrial technology company that designs, manufactures, and sells powertrain solutions, power transmission components, electric motors, and air moving products. Founded in 1955 and headquartered in Beloit, Wisconsin, the company has grown through strategic acquisitions, including the transformational acquisition of Altra Industrial Motion in 2023. Today, Regal Rexnord operates as a diversified industrial equipment manufacturer serving customers across commercial, industrial, climate, and motion control applications worldwide through direct sales, distributors, and independent representatives.

Business

Regal Rexnord operates in the industrial machinery sector, providing essential components that enable motion, power transmission, and climate control across numerous industries. The company's products are fundamental building blocks in manufacturing equipment, HVAC systems, data centers, aerospace applications, and industrial automation. The company operates through three primary business segments following its recent reorganization. The Automation & Motion Control (AMC) segment represents approximately 45% of revenue and provides sophisticated motion control solutions including bearings, couplings, gears, and conveyor systems primarily for industrial automation, aerospace, medical devices, and data center applications. The Industrial Powertrain Solutions (IPS) segment accounts for roughly 30% of revenue and manufactures AC motors, alternators, and switchgear for industrial applications, power generation, marine, agriculture, and defense markets. The Power Efficiency Solutions (PES) segment comprises about 25% of revenue and produces fractional horsepower motors, electronic controls, fans, and blowers primarily for residential and commercial HVAC systems, as well as appliances and water heating equipment. These products serve as critical components in larger systems - for example, the company's motors power HVAC systems in buildings, its bearings enable smooth operation of industrial machinery, and its motion control components facilitate precise automation in manufacturing processes. The company's solutions are typically embedded within original equipment manufacturers' products rather than sold directly to end consumers.

Revenue model

Regal Rexnord generates revenue primarily through direct product sales to original equipment manufacturers (OEMs) and end-users, operating on a traditional manufacturing business model. The company sells its products through multiple channels including direct sales to large OEM customers, a network of independent distributors, and direct sales representatives who serve smaller customers and aftermarket needs. Revenue generation varies by segment, with AMC commanding higher margins due to its engineered solutions and specialized applications, while PES operates on thinner margins due to its more commoditized residential HVAC products. The company's profitability is influenced by several key factors that can expand or contract margins. Positive margin drivers include product mix shifts toward higher-margin engineered solutions, successful realization of acquisition synergies (currently targeting $90 million annually), productivity improvements through lean manufacturing initiatives, and pricing actions to offset inflation. The company's global manufacturing footprint also provides flexibility to optimize production costs and mitigate tariff impacts. Margin pressures come from commodity price inflation affecting steel, copper, and other raw materials, competitive pricing pressure particularly in residential HVAC markets, economic downturns that reduce demand for industrial equipment, and supply chain disruptions that increase costs. The cyclical nature of key end markets like construction, agriculture, and general industrial also creates revenue volatility, while the company's significant debt load from recent acquisitions creates interest expense that pressures net margins.

Competitive moat

Regal Rexnord's competitive position is moderately strong but not insurmountable, built primarily on manufacturing scale, technical expertise, and customer relationships rather than truly defensible moats. The company benefits from switching costs in many applications where its components are designed into customers' products, creating some stickiness as changing suppliers requires re-engineering and requalification. Its broad product portfolio allows for cross-selling opportunities and positions it as a comprehensive solutions provider, which can strengthen customer relationships. The company's global manufacturing footprint provides operational flexibility and cost advantages, particularly important given recent tariff concerns. Its technical expertise in motion control and power transmission, accumulated over decades, creates some barriers to entry for new competitors. Additionally, the company's scale enables it to invest in research and development and maintain extensive distribution networks that smaller competitors cannot match. However, these advantages are not overwhelming. The industrial machinery sector is highly competitive with numerous established players including ABB, Siemens, and Emerson in various product categories. Many of Regal Rexnord's products, particularly in the PES segment, are relatively commoditized with limited differentiation. The company faces constant pressure from low-cost manufacturers, particularly in Asia, and technological disruption could potentially render some of its products obsolete. The cyclical nature of its end markets also means that even strong market positions can be challenged during downturns when customers become more price-sensitive.

Risks & safety

Regal Rexnord presents moderate financial risk with adequate but not exceptional safety margins, primarily constrained by its elevated debt levels following recent acquisitions. • Liquidity and Solvency: Current ratio of 2.26 indicates solid short-term liquidity with $305 million in cash. However, debt-to-equity ratio of 0.85 reflects significant leverage from the Altra acquisition, though management is actively paying down debt. • Cash Generation: Strong free cash flow generation of $500 million annually provides debt service coverage, with management targeting $700+ million going forward. Operating cash flow of $609 million in 2024 demonstrates solid underlying cash generation capability. • Valuation Metrics: Trading at 33x P/E ratio appears expensive relative to cyclical industrial peers, though EV/EBITDA of 11x is more reasonable. Graham number of $43 suggests significant overvaluation from a deep value perspective. • Debt Concerns: Net debt-to-EBITDA leverage around 3.6x is manageable but elevated for a cyclical business. Management targets reducing this to 3x by year-end, which would improve the safety profile. • Cyclical Risk: Exposure to economically sensitive end markets creates earnings volatility risk, though diversification across segments provides some protection.

Recent development

Regal Rexnord has undergone significant transformation over the past few years, centered around the major acquisition of Altra Industrial Motion in 2023 that nearly doubled the company's size and created the current three-segment structure. This acquisition fundamentally repositioned the company from primarily a motor and HVAC component manufacturer to a broader industrial powertrain and motion control solutions provider. The company has focused heavily on synergy realization from this acquisition, achieving $65 million in cost synergies in 2023 and targeting $90 million annually going forward. Management has implemented cross-selling initiatives to leverage the combined product portfolio, with notable success in industrial powertrain applications where they can now offer complete system solutions rather than individual components. Strategic market positioning has shifted toward higher-margin, more engineered applications. The company has highlighted growth opportunities in secular growth markets including aerospace (with a new partnership with Honeywell Aerospace for advanced air mobility), medical devices, data centers, and emerging applications like humanoid robotics where they've identified $100 million in potential opportunities. The company has also emphasized its "in-region, for-region" manufacturing strategy to mitigate tariff risks and serve customers more effectively. Operational improvements have included continued implementation of 80/20 lean initiatives, digital transformation efforts, and product vitality programs aimed at developing higher-margin solutions. The company has maintained its focus on achieving 40% gross margins and targeting 25% EBITDA margins by the end of 2025, representing significant improvement from current levels.

RRX company profile · for informational purposes only — not investment advice.

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