CluenexRegal Rexnord RRX
Regal Rexnord scores weak on business quality (3.4 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Regal Rexnord does
Regal Rexnord designs and manufactures industrial power transmission components, electric motors, and automation equipment, selling directly to original equipment manufacturers and industrial distributors.
- What it does best
Regal Rexnord delivers solid operating margins of 11.7%, though peers like NXT achieve 23.1%. Its primary advantage lies in specialized industrial applications, but heavy leverage and low returns on equity leave little room for error.
- The main risk
Net debt sits at $4.3 billion against total debt of $4.8 billion, creating severe balance sheet vulnerability. Low interest coverage of 2.1x means operating income barely covers debt servicing costs if cash flows dip.
Quality, check by check
Scored against its own industry, from company filings.
Gross margins sit at 37.5% with operating margins at 11.7%. Low ROE of 4.7% indicates the business struggles to generate high returns on capital as it scales.
Operating in industrial equipment, it ranks in the 38th percentile for operating margin. The moat is narrow, limited by high debt and low ROE of 4.7%.
Revenue slipped 1.7% to $6.0 billion, lagging history as annual sales contracted from $6.3 billion in 2023. Growth is near stagnant.
Total debt of $4.8 billion towers over cash reserves of $522.0 million, supported by thin interest coverage of 2.1x. Free cash flow reached $466.0 million, getting softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $30K outside pre-planned sales.
Our sealed record on RRX
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Regal Rexnord scores weak on the Cluenex quality check (3.4 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 1 sold $30K outside pre-planned sales.
Nov 3, 2026.
See RRX today
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Cite this page: Cluenex, “Regal Rexnord (RRX)”, https://cluenex.com/stocks/rrx/, data as of Oct 10, 2026.