MILWAUKEE, Feb. 4, 2026 /PRNewswire/ -- Regal Rexnord Corporation (NYSE: RRX) 4Q Highlights Daily Orders Up 53.8% Versus PY, On Substantial Wins In Data Center Traction With Data Center E-Pod Solution, Which Embeds Our Proven Switchgear Technology, Winning Orders Worth ~$735 Million. Initial E- Pod Shipments Expected To Start In Early 2027 Sales Of $1,523.2 Million, Up 4.3% Versus PY, Up 2.9% On An Organic* Basis Gross Margin of 37.5%; Adjusted Gross Margin* Of 37.6%, Up 50 Basis Points Versus PY GAAP Net ...

Company Overview - Regal Rexnord Corporation has 30,000 associates globally, providing sustainable solutions that power, transmit, and control motion [4] - The company offers electric motors and air moving subsystems, along with a portfolio of highly engineered power transmission components and subsystems [4] - Regal Rexnord's automation offerings include controllers, drives, precision motors, and actuators for various applications [4] Market Segments - The company's end markets include discrete automation, food & beverage, aerospace, medical, data center, energy, residential and commercial buildings, general industrial, and metals and mining [5] - These markets benefit from significant secular demand tailwinds, indicating a positive growth outlook [5] Financial Reporting - Regal Rexnord plans to release its fourth quarter 2025 financial results on February 4, 2026, after market close [1] - A conference call to discuss the earnings will be held on February 5, 2026, at 9:00 am CT [2] - Webcast and telephone replay options will be available for three months following the earnings call [3]

Group 1 - Regal Rexnord Corporation (NYSE:RRX) is recognized as one of the top 10 Data Center Cooling Companies to invest in, with a Buy rating reaffirmed by Barclays analyst Julian Mitchell and a price target of $165, indicating a potential upside of 10.85% from current levels [1] - On November 21, Regal Rexnord Corporation signed a Third Amended and Restated Credit Agreement with a banking group led by JPMorgan Chase Bank, securing an unsecured delayed-draw term loan of $850 million maturing on February 21, 2029, and an unsecured revolving credit line of up to $1.5 billion maturing on November 21, 2030 [2] - The company has a strong current ratio of 2.05, indicating its ability to meet short-term obligations with liquid assets, and plans to use the new credit facilities for associated expenses, refinancing existing agreements, general corporate purposes, and financing capital expenditures and working capital [3] Group 2 - Regal Rexnord Corporation provides sustainable solutions through its offerings in motor, power transmission, and air handling solutions, operating in three segments: Power Efficiency Solutions, Industrial Powertrain Solutions, and Automation and Motion Control [4]

Core Viewpoint - The article summarizes the latest analyst ratings from Wall Street, highlighting significant upgrades, downgrades, and new coverage that could impact market sentiment and investment decisions [1][6]. Upgrades - Oppenheimer upgraded General Electric Energy (GEV) from "Hold" to "Outperform," setting a target price of $855, citing improved pricing and sales, along with enhanced factory utilization and operational efficiency [5]. - JPMorgan raised PepsiCo (PEP) from "Neutral" to "Overweight," increasing the target price from $151 to $164, due to the company's accelerated innovation and marketing spending [5]. - HSBC upgraded AbbVie (ABBV) from "Hold" to "Buy," with a target price increase from $225 to $265, noting the company's growth momentum and strong execution capabilities [5]. - Morgan Stanley raised Terex (TEX) from "Equal Weight" to "Overweight," with a target price increase from $47 to $60, as the company's performance has rebounded and its business mix has improved [5]. - Oppenheimer upgraded Dyne Therapeutics (DYN) from "Hold" to "Outperform," significantly raising the target price from $11 to $40, highlighting the stock's undervaluation compared to its competitor Avidity [5]. Downgrades - HSBC downgraded Biogen (BIIB) from "Hold" to "Reduce," with a slight target price decrease from $144 to $143, citing the poor performance of its multiple sclerosis business [5]. - Jefferies lowered Emerson Electric (EMR) from "Buy" to "Hold," maintaining a target price of $145, indicating limited short-term upside due to the company's recent performance outlook [5]. - JPMorgan downgraded Noble Energy (NE) from "Overweight" to "Neutral," raising the target price from $31 to $33, while expressing caution about upstream capital expenditures [5]. - Jefferies downgraded Rexnord (RRX) from "Buy" to "Hold," reducing the target price from $170 to $160, noting that the company's transformation plan is taking longer than expected [5]. - Jefferies lowered Vail Resorts (VLTO) from "Buy" to "Hold," with a target price decrease from $125 to $105, stating that the current stock price reflects the company's stable demand and strong returns [5]. New Coverage - Guggenheim initiated coverage on Amazon (AMZN) with a "Buy" rating and a target price of $300, suggesting that the retail sector is showing signs of improvement despite previous concerns [9]. - B. Riley initiated coverage on Roblox (RBLX) with a "Buy" rating and a target price of $125, highlighting the company's strong long-term fundamentals [13]. - Cowen initiated coverage on Sensata Technologies (IOT) with an "Outperform" rating and a target price of $55, believing the company's platform aligns well with the $45 trillion "physical operations" industry [13]. - B. Riley initiated coverage on Take-Two (TTWO) with a "Buy" rating and a target price of $300, driven by the anticipated release of Grand Theft Auto 6 in November 2026 [13]. - Canadian Imperial Bank of Commerce initiated coverage on Shark Ninja (SN) with a "Buy" rating and a target price of $135, viewing the company as a "category disruptor" [13].

Core Insights - Regal Rexnord Corporation (NYSE:RRX) is identified as a strong investment opportunity, with Barclays analyst Julian Mitchell raising the price target to $165 from $161, maintaining an Overweight rating due to significant data center exposure [1][2]. Group 1: Company Performance - Regal Rexnord confirmed a 10% order growth at the Baird 55th Annual Global Industrial Conference, indicating robust demand [2]. - The company anticipates its data center business to double in the next two years, supported by a billion-dollar pipeline [2]. - Regal Rexnord has secured approximately $30 million in humanoid-related orders and is working on a $100 million bid pipeline, showcasing its strong position in the humanoid market [3]. Group 2: Strategic Focus Areas - The company is focusing on growth in data centers, the medical sector, and automation, which are driving overall growth [2]. - The aerospace segment is another strategic focus, with the aerospace business valued at roughly $350 million, including various products such as servo motors and actuators [3]. - Regal Rexnord manufactures engineered solutions for motion control across multiple industries, including industrial, commercial, aerospace, and energy [3].

Group 1 - The article does not provide any specific information or insights regarding a company or industry [1]

Core Viewpoint - The company has undergone significant transformation over the past six years, focusing on improving margins, free cash flow, and building a stronger portfolio in terms of markets served and products offered [3]. Group 1: Business Transformation - The company has made tremendous progress in enhancing its margins and free cash flow [3]. - The focus has shifted towards accelerating profitable growth, with ongoing investments yielding positive results [3]. - The company acknowledges that it is still in the early stages of market recovery and growth initiatives [3]. Group 2: Leadership Remarks - The CEO, Louis Pinkham, expressed gratitude for the opportunity to present and highlighted the company's achievements [2]. - The presentation included a slide for those unfamiliar with the company, providing an overview of Regal Rexnord [4].

Regal Rexnord Conference Call Summary Company Overview - **Company**: Regal Rexnord - **CEO**: Louis Pinkham - **CFO**: Rob Rehard - **Focus**: Transformation over six years, improving margins and free cash flow, and building a stronger portfolio [2][3] Key Industry Segments 1. **Automation**: - Focus on robotics, including cobots, AGVs, surgical robotics, and humanoids - $30 million in humanoid-related orders booked this year with a $100 million bid pipeline [4] 2. **Aerospace**: - Business valued at approximately $350 million, includes servo motors, actuators, and seals - Partnership with Honeywell for electromechanical actuators for EVTOL aircraft [5] 3. **Data Center**: - Significant growth with a business expected to grow from $30 million to $130 million in two years - $195 million in recent data center wins and a $400 million EPOD bid pipeline [6][7] 4. **Medical**: - Products enable high-precision motion critical for robotic surgeries and lab testing devices [7] Financial Performance and Growth - **Order Growth**: - 10% orders growth reported, with backlogs up 6% in IPS, 15% in AMC, and 18% shippable in Q4 [12] - Anticipated low- to mid-single digit growth for the next year [18] - **Free Cash Flow**: - Expected to increase from $625 million to $900 million, driven by top-line growth, working capital improvements, and reduced cash interest and restructuring expenses [21] - **Gross Margins**: - Current gross margins at 38%, expected to reach 40% by 2026 [17][39] Strategic Initiatives - **Cross-Selling Opportunities**: - Only 20% of customers currently buy multiple products, with a target of $175 million in cross-sell by 2025 [16] - **R&D Investment**: - Increased from 2% to 3% of sales, focusing on technology and differentiation [17] - **Tariff Management**: - Expecting to be tariff cost neutral by mid-next year, with a focus on sourcing rare earth materials outside of China [24][25] Market Dynamics - **Challenges**: - ResiHVAC segment facing a high single-digit decline, but overall PES expected to remain flat [19][40] - Discrete automation growth slower than anticipated, with a correlation to ISM [45] - **Positive Signals**: - Backlog growth in IPS and positive trends in metals, mining, and oil and gas sectors [48] Future Outlook - **Growth Drivers**: - Continued focus on automation, aerospace, data center, and medical technology as key growth areas [8] - Anticipated recovery in factory automation and potential for significant growth in data center projects [26][27] - **AI Utilization**: - AI being leveraged for efficiency and productivity improvements, with a focus on managing supplier relationships and inventory [53][54] Conclusion - Regal Rexnord is well-positioned for growth across multiple strategic markets, with a strong focus on innovation, cross-selling, and operational efficiency. The company anticipates continued improvement in financial performance and market share expansion in the coming years.

Company Overview - Regal Rexnord's total revenue is approximately $5.9 billion[5] - The adjusted gross margin is around 38%[5] - The company has approximately 30,000 associates[6] Segment Performance - Power Efficiency Solutions (PES) generates ~$2.6 billion in sales with an adjusted gross margin of ~42% and an adjusted EBITDA margin of ~26%[5] - Industrial Powertrain Solutions (IPS) generates ~$1.6 billion in sales with an adjusted gross margin of ~40% and an adjusted EBITDA margin of ~22%[5] - Automation & Motion Control (AMC) generates ~$1.6 billion in sales with an adjusted gross margin of ~30% and an adjusted EBITDA margin of ~16%[5] Growth Verticals - Discrete Automation accounts for approximately 20% of sales[12] - Aerospace accounts for approximately 6% of sales[12] - Medical accounts for approximately 3% of sales[12] - Data Center accounts for approximately 3% of sales[12] Data Center Wins - Automation & Motion Control secured an $80 million order for switchgear[31] - Automation & Motion Control secured a $35 million order[31] - Power Efficiency Solutions secured a $20 million order for HVAC chiller components[33] Robotics Market - Recent wins in the robotics sector are worth approximately $30 million, with a growing backlog[23] - The opportunity funnel in robotics is worth approximately $100 million[23] Aerospace Market - The company estimates a $220,000 ship set potential per plane in the Advanced Air Mobility (AAM) market[27] Data Center Market - The E-POD bid pipeline is greater than $400 million and growing[36] - The data center market is estimated to be around $10 billion[36] Financial Outlook - The company is trading at a Free Cash Flow (FCF) yield of approximately 7%[44]

Core Insights - Regal Rexnord Corporation will present at the Baird Global Industrial Conference on November 12, 2025, from 12:00 to 12:30 PM CT [1] - A live webcast of the presentation will be available on the Regal Rexnord investor website, with an archive accessible for 90 days post-event [2] Company Overview - Regal Rexnord employs 30,000 associates globally, focusing on sustainable solutions that power, transmit, and control motion [3] - The company offers electric motors, air moving subsystems, and a range of power transmission components for industrial applications [3] - Regal Rexnord's automation products include controllers, drives, precision motors, and actuators for various applications, including factory automation and surgical tools [3] Market Segments - The company operates in several end markets, benefiting from strong secular demand, including discrete automation, food & beverage, aerospace, medical, data centers, energy, residential and commercial buildings, general industrial, and metals and mining [4] Operating Segments - Regal Rexnord is structured into three operating segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions [5] - The company is headquartered in Milwaukee, Wisconsin, with manufacturing, sales, and service facilities worldwide [5] Financial Performance - Regal Rexnord reported strong financial results for the third quarter of 2025, with a diluted EPS of $1.20, reflecting a 10.1% increase compared to the previous year [6] - The adjusted diluted EPS was $2.51, showing a 0.8% increase year-over-year [6]