Regal Rexnord Corporation Stock 12‑Month Price Target Cut to $231.1, Implies 40% Upside

Unitree Robotics, a Chinese company, unveiled a humanoid robot 'Superman' claiming it runs faster than Usain Bolt. The company's IPO on the Shanghai Stock Exchange saw shares surge 460%, valuing it at $50 billion. Investors are betting on the humanoid robotics sector and its supply chain, including companies like Ambarella, Ouster, Cognex, Regal Rexnord, and Harmonic Drive Systems, which saw gains in July.

U.S. industrial production rose 0.2% in July, below expectations. Enpro (NPO) fell 4.9%, Valmont (VMI) 3%, Cummins (CMI) 3.4%, Regal Rexnord (RRX) 3.3%, and FTAI Infrastructure (FIP) 3.4%. Enpro is up 50.2% YTD but 12.6% below its 52-week high.

Regal Rexnord (NYSE:RRX) reported Q2 2026 results with total orders up 8.8% daily, led by Automation and Motion Control (+17.1%). Despite stronger orders and $154 million adjusted free cash flow, management cut full-year adjusted EBITDA margin guidance to 21.3% and lowered adjusted free cash flow guidance by $50 million to $600 million.

Regal Rexnord (RRX) Q2 2026 earnings call reported orders up 8.8% year over year, or 8.1% excluding data center, and sales up 4.2% (3.3% organic). Adjusted gross margin was 39.8% (37.8% excluding IEEPA refunds of $32 million). Adjusted EPS was $2.99, and adjusted free cash flow was $154 million.

Regal Rexnord (NYSE:RRX) reported Q2 adjusted EPS of $2.99 ($2.60 excluding $32m tariff refunds) and adjusted EBITDA margin of 23.5% (21.5% ex-refunds). Automation & Motion Control (AMC) delivered 15.6% organic sales growth, orders up 17.1% and book-to-bill 1.02. Full-year guidance: sales $6.2b, adjusted EPS $10.35-$10.85, FCF $600m, EBITDA margin 22.1% (21.3% ex-refunds).

Regal Rexnord (NYSE: RRX) shares fell 15.8% after its Q2 results were mixed. Revenue rose 4.2% to $1.56B, slightly below the $1.58B expected, and organic growth missed estimates. Adjusted EPS was $2.99 versus $2.58 consensus, and adjusted EBITDA beat, but guidance was only reiterated.