RRX REGAL REXNORD CORP

Overview and Growth

In fiscal 2025, REGAL REXNORD CORP recorded $5.93B of revenue, net income of $279.50M, and an operating cash inflow of $990.80M. The $5.93B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 1.6% below fiscal 2024 revenue of $6.03B, marking a top-line contraction. Diluted earnings per share were $4.20, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS increased by 42.9% from $2.94 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Asset turnover was 0.43x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $2.22B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 37.4%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operations produced $680.80M of income after the reported operating expense base, before the remaining non-operating and tax effects. Operating margin measured 11.5%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $279.50M, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 4.7% margin after operating costs and the remaining recognized items. Pretax income was $352.50M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 5.9%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $71.70M, the amount recognized between pretax income and the final net-income result. Relative to pretax income, the tax provision measured 20.3%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

At period end, the $13.92B asset base was financed through $7.07B of liabilities and $6.85B of equity. At period end, current assets of $2.71B compared with current liabilities of $1.26B, defining the company’s short-term resource position. Current assets covered current liabilities by 2.15x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $521.70M, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 41.3% of current liabilities, showing how much near-term coverage came from cash alone. The company carried $4.79B of total debt at period end, which frames its leverage and debt-service burden. The debt-to-equity relationship was 0.7x, showing how much debt the company carried for each unit of book equity. The debt-to-assets relationship was 34.4%, comparing borrowing with the total asset balance. Liabilities represented 50.8% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 3.7%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $990.80M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 3.54x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $97.70M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 9.9%, connecting investment intensity with the company’s cash-generation base. Free cash flow came to $893.10M, leaving a positive amount after capital expenditures. Free cash flow represented 15.0% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 6.4% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.