Regal Rexnord Corporation RRX
Regal Rexnord's Q2 2026 results showed genuine operational improvement with daily orders up 8.8% and sales of $1,558.4M up 4.2% YoY, yet the stock has continued sliding to $169.49, now trading at 12.98x EV/EBITDA (26.6% below the peer median of 17.68x) and 1.86x P/S (48.4% below peer median). However, $32.0M of IEEPA tariff refund benefit inflated Q2 adjusted EBITDA growth from roughly 1.5% to 11.2%, the technical picture remains deeply broken with the stock well below both the 50-day ($205.65) and 200-day ($185.99) moving averages, and net insider selling of $74.0M over 24 months persists with no meaningful open-market purchases.
The deleveraging trajectory (total debt down from $6.55B in FY2023 to $5.06B in FY2025) and strong FCF of $893M at a 15.05% FCF margin support a constructive stance, but the combination of earnings quality concerns, a declining smart money score from 0.0693 to 0.0072, and lowered segment outlooks amid residential HVAC and pool weakness warrants patience until Q3 confirms the order recovery is sustainable without one-off benefits.
What could go wrong
- Earnings quality. Q2 2026 adjusted EBITDA growth of 11.2% was inflated by a $32.0M IEEPA tariff refund benefit; underlying growth was roughly 1.5%, raising questions about the durability of margin expansion.
- Technical breakdown. Stock at $169.49 trades well below both the 50-day ($205.65) and 200-day ($185.99) moving averages with RSI at 34.36 and MACD histogram at -1.46, signaling persistent bearish momentum.
- End-market weakness. Management lowered certain segment outlooks amid inflation, pricing lags, and weakness in residential HVAC and pool markets, which could offset data center and automation strength.
- Persistent insider selling. Net insider selling of $74.0M over 24 months with 315 transactions and no meaningful open-market purchases signals continued lack of insider conviction at these levels.
What would change my mind
Where this comes from: PRNewswire Q2 2026 earnings release · Zacks Q2 earnings report · peer_relative composite · technicals as of 2026-08-19. Orin's read on RRX; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All RRX filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Fmr | $1.1B | 0.0% of fund |
| Vanguard Capital Management | $716.9M | 0.0% of fund |
| Vanguard Portfolio Management | $675.1M | 0.0% of fund |
| Wellington Management Group Llp | $615.5M | 0.1% of fund |
| Viking Global Investors | $500.6M | 1.4% of fund |
| State Street | $498.9M | 0.0% of fund |
78 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 316 Form 4 filings, net −$74.1M. Of the 50 on hand, 0 were open-market purchases and 9 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about RRX
Orin answers questions about RRX from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 31.0× | — | 44.5× |
| EV/EBITDA | 12.0× | — | — |
| P/S | 1.66× | — | — |
| P/B | 1.5× | — | — |
-0.2%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.9B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$258
$240 – $286 · +67% against today's price
- 14 buy or overweight
- 8 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| RRXRegal Rexnord Corporation | $10B | 31.0× | 12.0× | 37.8% | 5.3% | 5% |
| CRCrane Company | $12B | 35.3× | 22.5× | 41.7% | 13.0% | 16% |
| DCIDonaldson Company, Inc. | $10B | 22.1× | 17.9× | 34.6% | 11.7% | 28% |
| EPACEnerpac Tool Group Corp. | $2B | 20.2× | 12.8× | 49.0% | 14.7% | 22% |
| FELEFranklin Electric Co., Inc. | $4B | 27.7× | 16.4× | 35.5% | 7.1% | 12% |
| FLSFlowserve Corporation | $10B | 26.4× | 15.5× | 35.1% | 8.0% | 17% |
| GGGGraco Inc. | $12B | 23.9× | 16.4× | 52.6% | 23.5% | 20% |
| GRCThe Gorman-Rupp Company | $2B | 31.6× | 16.9× | 30.6% | 8.9% | 15% |
| IEXIDEX Corporation | $17B | 32.8× | 20.0× | 44.7% | 14.5% | 13% |
| IRIngersoll Rand Inc. | $29B | 30.5× | 16.7× | 37.9% | 12.1% | 9% |
| ITTITT Inc. | $19B | 41.8× | 25.0× | 34.6% | 8.9% | 10% |
| KAIKadant Inc. | $3B | 29.5× | 12.4× | 44.4% | 9.5% | 11% |
| MIDDThe Middleby Corporation | $5B | — | — | 38.0% | -13.2% | -18% |
| NPOEnPro Industries, Inc. | $7B | 149.6× | 35.4× | 42.8% | 3.6% | 3% |
| WTSWatts Water Technologies, Inc. | $12B | 30.9× | 19.1× | 48.8% | 14.3% | 19% |
The median is of the 13 peers listed above and nothing else — check it against the column. This company trades 1.5% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.