Hello my dears,
This week Juan watched a documentary about humanoid robots. He was full of enthusiasm that they are getting better and better and are already being used. I couldn't stop him.
During the discussion, we agreed that it is currently very difficult to predict which company could prevail here.
When researching the topic of industrial robots, we repeatedly came across ABB.
And since Juan knows my enthusiasm for shovel suppliers. He came across ABB.
The Regal Rexnord Corporation $RRX (+6,21%) came across it.
The great thing about the company is that we are also involved in future sectors such as AI data centers and aerospace.
My dears, how many of you already know the company?
Feel free to share your thoughts in the comments.
The Regal Rexnord Corporation is engaged in the design and manufacture of factory automation subsystems, industrial powertrain solutions, automation and mechanical power transmission components, electric motors and electronic controls, air motion products, and specialty electrical components and systems. The company consists of the segments Industrial Powertrain Solutions (IPS), Power Efficiency Solutions (PES) and Automation & Motion Control (AMC). The IPS segment develops, produces and services assembled and unassembled bearings, clutches, mechanical power transmission drives, gearboxes and geared motors, clutches, brakes and components for industrial powertrains. The PES segment develops and produces AC and DC motors with an output of a few to around five hp, electronic speed control systems and more. The AMC segment develops, produces and services conveyor products, subsystems for conveyor automation, components for the aerospace industry, solutions for precision rotary motion and much more.
Number of employees: 28,950
Humanoid robot shares belong in the portfolio.
Why it's worth buying this supplier!
The rapid advances in AI will contribute to a faster transition to humanoids because they can be trained in virtual worlds. The stock market is still underestimating the pace of penetration of humanoids. Tesla wants to start series production of Optimus as early as this year. The Spring Event in China impressively demonstrated how agile and fast-acting Unitree's humanoids already are. Humanoids will become the largest volume market in the long term, which is why it is important to have a position there.
Regal Rexnord is becoming a system supplier for data centers and humanoids.
Growth is likely to accelerate in the medium term - a new favorite!
The physical implementation of the AI revolution is producing a clear beneficiary in Regal Rexnord (RRX), which has become an indispensable system supplier for data centers and robotics. The bare figures for the last quarter clearly show why this upturn is only just beginning. Data centers: record orders thanks to time savings The hunger for AI computing power demands one thing above all: speed. This is where the "e-Pods" come in - turnkey, modular power supply units, switchgear and cooling systems from RR should speed things up.
Through the strategic acquisition of Altra Industrial Motion, the Group has successfully transformed itself from a traditional motor manufacturer into a key heavyweight in the fast-growing industrial automation market. The management is consistently applying the 80/20 principle to streamline the product portfolio and systematically increase profit margins by focusing on the most profitable customers and products. As a "shovel seller" in the industry, the company benefits in the long term from megatrends such as energy efficiency.
The share price breaks out to an all-time high and the order backlog ensures long-term growth prospects. Starting in 2021, the share price fell into a sideways trend for almost exactly five years, even reaching its lowest level since October 2020 in April 2025 (EUR 84). This makes the current rally all the more impressive. Driven by the latest quarterly figures and high expectations in advance, the share price has risen by 46% to EUR 181 in the last two weeks. In particular, the high demand for data centers has recently led to an increase in incoming orders.
Regal Rexnord is involved in data centers and robotics. Humanoids already offer a USD 100 million order pipeline.
Von J. Meyer - Updated on 09.04.26
REGAL REXNORD is highly exciting because the company can not only map the expansion of the AI infrastructure, but also has a foot in the door with humanoids. Regal Rexnord has already received concrete orders there and is already talking about a USD 100 million order pipeline at this early stage of market penetration!
Data center as a growth driver
For a long time, Regal Rexnord was perceived as a traditional industrial value, but its transformation into a systems provider is now bearing fruit in the most lucrative sector of the present day: data centers. While the traditional switchgear business is recording an impressive growth rate of 30% p.a. and is expected to reach the USD 190 million mark in 2026, the real story lies in the so-called "ePODs". These modular energy solutions have brought Regal Rexnord an order backlog of USD 735 million. As around 50% of the added value in these modules comes from the company itself, the company is no longer just positioning itself as a parts supplier, but as an indispensable infrastructure partner for the big tech giants. The scaling in Texas and Canada also ensures that deliveries can be made smoothly from 2027.
Joints for the future: the breakthrough in humanoids
Regal Rexnord is undergoing an equally radical change in robotics. Away from simple motors and towards highly complex joint solutions. The company now offers complete joint systems for humanoid robots - from the shoulder to the knee. With a current project funnel of USD 200 million, half of which is purely for humanoids, Regal Rexnord is a "pure play" in the physical implementation of AI. The fact that the company has already received orders worth USD 40 million for prototypes from leading North American OEMs underlines its technological maturity. Thanks to its experience with miniature drives, such as those used in "da Vinci" surgical robots, Regal Rexnord has a decisive competitive advantage in terms of precision and scalability that pure component manufacturers can hardly match.
Conclusion: A new earnings dynamic is starting - P/E27e of just 14.4!
While 2026 will be characterized by slight growth and investments in working capital to pre-finance the data center ramp-up, 2027 will be the year of the harvest. The current valuation with a P/E ratio of 18.3 for 2026 still reflects the transition phase. In view of the new earnings momentum and the margin expansion towards 40%, the P/E ratio will fall to an attractive 14.4 based on 2027 estimates. Regal Rexnord is therefore one of the exciting opportunities to benefit from the expansion of the AI infrastructure and humanoid robots at the same time. The breakout from the consolidation represents a fresh long signal.
Regal / Rexnord
In October 2021, these industry leaders were merged to form Regal Rexnord.
Regal Rexnord brand family
- Automatisierungslösungen(Automation Solutions)
- Bauer-Getriebemotor(Bauer Gear Motor was founded in 1927)
- Berg (is the world's leading manufacturer of miniature precision mechanical components)
- Bibby Turboflex (world leader in the design and manufacture of advanced industrial couplings )
- Boston Gear (high-performance power transmission components, 30,000 standard products)
- Browning (Browning V-belt drives, speed reducers, gears, bearings and pinion products)
- Cambridge (Cambridge Engineered Solutions is the world's largest manufacturer of metal conveyor belts and wire mesh. Cambridge also manufactures gears, water screen systems and woven metal mesh).
- CENTA (CENTA is the world's leading supplier of torsion couplings and drive shafts for rail, marine and power generation. )
- Jahrhundert (Century electric motors power pool and spa pumps, residential and commercial heating, ventilation and air conditioning systems and more).
- Delevan (Delevan is a specialty manufacturer of coil winding and resolver technologies, offering the most reliable products in the industry. Our pedigree was established in the aerospace and defense markets where innovative solutions, high reliability and performance are keys to success.
- Delroyd(Delroyd Worm Gear, founded in 1923, is known worldwide for designing and manufacturing high quality, durable worm gear drives as well as unique, customized worm gear products).
- DuralonTuflite(non-metallic composite bearing architecture)
- Durst (Durst specializes in off-road products for specialty vehicles. Durst hydraulic pump drives are an essential drive element for cranes)
- Elco (Elco manufactures commercial refrigeration and HVAC motors in more than 80 countries worldwide)
- Falk (The Falk portfolio includes gear drives, geared motors, couplings)
- FASCO® (FASCO electric motors power commercial HVAC, pumping and air handling applications. With a 100-year history, FASCO is known as an industry innovator)
- Foote-Jones (Heavy industry relies on Foote-Jones drives for high torque applications. Foote-Jones manufactures screw drives, worm gearboxes, shaft mounted drives, parallel shaft drives and spiral bevel gearboxes. Foote-Jones products are used in papermaking equipment, rock crushers, forestry mining equipment and other industries).
- Formsprag-Kupplung (For over 50 years, Formsprag Clutch has been recognized as the world's leading authority in the design and manufacture of durable overrunning clutches, reverse clutches, bidirectional clutches and clutch couplings).
- Genteq (As an innovator in electronically commutated motor technology, Genteq has earned a reputation as an industry leader. Genteq motors and blowers provide unparalleled performance in air moving, residential and light commercial HVAC applications).
- Genteq Hermetic (Genteq Hermetic produces motors for residential and commercial air conditioning and refrigeration compressor OEMs. With a product range from 0.4 kW to 2.24 mW, the Genteq Hermetic brand is recognized for high performance and innovation).
- Grove Gear (Gro)ve Gear manufactures standard and custom gear drives for industrial and specialty applications. Grove Gear gear drives can be found in cranes, material handling, pulp and paper and other industries)-
- Guardian-Kupplungen (Guardian has been designing and manufacturing world-class couplings and other power transmission components for more than 70 years).
- Highfield (Highfield is a leading global manufacturer of high quality safety systems for the electric, gas and water utility industries. Our complete line of interlocking devices and hardware meets our customers' growing need for security, safety and maximum protection against meter tampering and theft of service).
- Hub City (Hub City manufactures power transmission products for use in packaging, recreation, transportation, military, construction, arts and entertainment, communications, material handling, medical and food processing equipment).
- Huco (With more than 40 years of innovation, Huco is recognized as a global leader in precision clutch and piston motor technologies. Backed by extensive application experience and utilizing the most advanced materials, Huco designs and manufactures innovative power transmission solutions to meet the most demanding customer requirements).
- Industriekupplung(Industrial Clutch was founded in 1930 and is recognized as a leading manufacturer of clutches, brakes and controls for various heavy-duty applications. Industrial Clutch specializes in providing standard, modified or custom solutions for OEMs and design engineers to meet their specific drive requirements).
- Jaure (Jaure is a European market leader in the manufacture of flexible couplings and transmission elements. Jaure produces standard flexible couplings and customized components to meet customer needs. Jaure products are available in the iron and steel production, shipbuilding, wind power, railroad and petrochemical industries).
- Kilian (Kilian was founded in 1920 and has become one of the world's largest manufacturers of precision machined bearings and value-added assemblies. )
- Kollmorgen (Kollmorgen is a global manufacturer of precision motion control technologies and solutions for various industries, including aerospace, defense, medical, robotics and industrial automation. Founded in 1916, Kollmorgen has a long history of innovation in developing advanced motion systems that improve accuracy, speed and efficiency in complex applications. Its core products include servo motors, drives and controllers).
- Kop-Flex (Kop-Flex is a single source for couplings for demanding applications. From high performance, high speed disk, diaphragm and gear couplings to standard couplings and engineered products, Kop-Flex offers the broadest selection of couplings on the market today).
- Lamiflex-Kupplungen(Lamiflex Couplings is a leading manufacturer of high-speed disk couplings and related power transmission products).
- LEESON (The LEESON brand includes thousands of AC motors, DC motors, gearmotors and variable speed solutions. LEESON washdown motors are critical in industries such as food processing, pharmaceuticals, chemical processing, brewing and beverage manufacturing because of their ability to withstand liquid ingress).
- Link-Gürtel(Link-Belt produces bearing and chain products for industrial applications such as construction equipment, forest products, mining and others).
- Marathon-Sonderprodukte(Marathon Special Products offers a range of power blocks, terminal blocks and fuse holders for the utility and industrial markets. As an industry leader since the 1930s, the Marathon Special Products brand has the expertise to develop customized products).
- Marland-Kupplung(Founded in 1931, Marland Clutch has grown to become a global leader in the design and manufacture of reverse clutches and overrunning clutches by providing high-quality, rugged solutions that exceed industry performance requirements and maximize uptime. World-class Marland backstops, clutches and clutch couplings utilize either the principle of cylindrical rollers on inclined camshafts for low speed applications or enhanced sprag technology for high speed requirements).
- McGill (McGill manufactures precision bearings for a wide range of industrial applications. With more than 1,400 different combinations and configurations, McGill's CAMROL bearing line can withstand contamination from dust, water and other particulates).
- Milwaukee-Ausrüstung(Milwaukee Gear Drive Components offers a wide range of products and services. The brand has a history of building, reconditioning and servicing gears. In addition to manufacturing custom drives for high-speed applications, Milwaukee Gear also manufactures heavy-duty transfer cases for off-road use).
- ModSort (The patented ModSort Divert and Transfer Module can be connected to an existing or new conveyor system and utilizes industry standard 24V connectors to facilitate installation in your application).
- Morrill Motors (Morrill has a long history of manufacturing electric motors for commercial refrigeration applications. Both Morrill's permanent split capacitor bearings and electronically commutated motors offer high efficiency and quiet operation).
- Morse (Morse drive components play a significant role in demanding applications in power generation, material handling, pulp and paper, and forestry. Morse manufactures proven chain drives, mechanical couplings, worm gears and clutches.
- Nicotra Gebhardt(Based in Italy, Nicotra Gebhardt designs, manufactures and sells fans for ventilation and air conditioning, roof and fume extraction, clean room applications, industrial applications and customized applications. Nicotra Gebhardt has expertise in aerodynamics, acoustics, mechanics and assembly.
- Nook (Since 1969, Nook has manufactured premium linear motion solutions for various markets, including heavy industrial automation, precision machining, and aerospace and defense. Headquartered in Cleveland, Ohio, USA, Nook offers screw jacks, ball and acme screws, rod actuators and other linear motion solutions).
- Nuttall Gear (Founded in 1887, Nuttall Gear developed and introduced single-helical gears, one of the most significant contributions to the field of gear technology. Today, Nuttall is the leading company specializing in the supply of complete, individually packaged drive assemblies that combine both mechanical and electrical components to meet specific customer requirements).
- Perceptiv (Perceptiv Intelligence uses cloud-based technology to track, report, communicate and share performance data. Perceptiv is an interconnected matrix of intelligent, digital solutions with the potential to empower and elevate).
- Portescap (From medical devices to various industrial applications that save, enhance and improve lives, Portescap offers miniature motor technologies to meet the motion needs of a variety of end markets. We serve our customers through a wide range of innovative product technologies including brushless DC, brushed DC, can stack motors, disc magnet motors and stepper linear actuators to optimize application performance. Our products deliver motion in a compact package with high efficiency and low energy consumption.
- Remco (Remco is the original supplier of replacement electric motors and fan assemblies to the HVAC industry in the UK. Remco serves all sectors of the industry and is a specialist in components for new, old and obsolete HVAC equipment).
- Rex (Rex supplies high quality gears, bearings and couplings that are field proven in the world's most demanding applications).
- Rexnord (Rexnord Power Transmission products include gear drives, bearings, couplings, industrial chains, brakes and a range of conveyor belt components).
- Rexnord Aerospace (For over 60 years, Rexnord has supplied high quality bearings, seals, gears and electrical components used in the aerospace industry worldwide. As a leading supplier of highly engineered specialty bearings and mechanical seals, Rexnord products can be found in all areas of the aerospace industry, from engine systems and flight controls to landing gear and aircraft structures. Whether it's the rudder of an airplane or the landing gear, Rexnord Aerospace products ensure smooth operation).
- Rollway (Rollway produces high quality open ball and roller bearings for OEM and end users. Rollway's portfolio of standard and metric bearings plays a significant role in the industry. Rollway bearings.)
- Siegelmeister (Sealmaster's premium model ball bearings and mounted roller bearings are the industry's preferred bearing product. Sealmaster bearings are available in multiple high performance seal options for both wet and dry applications).
- Stearns (Stearns offers a full line of standard and specialty AC and DC industrial brakes and clutches. Stearns commercial braking solutions keep workers safe while mechanical operations scale).
- Stieber (Stieber, with more than 75 years of experience, is a world leader in the research, development and production of high-precision freewheels and idler wheels).
- Stromag (Stromag was founded in 1932 and has become a globally recognized leader in the development and manufacture of innovative drive components for industrial powertrain applications).
- Svendborg-Bremsen(Since 1989, Svendborg Brakes has been recognized as a leading global expert in intelligent braking solutions for industrial applications).
- System Plast (With manufacturing and service centers worldwide, System Plast is a global leader in high-quality plastic conveyor chains, modular plastic belts and industry-leading conveyor components).
- TB Wood's (Founded in 1857, TB Wood's has become a global leader in the design and manufacture of industrial couplings and belt drive solutions. TB Wood's advanced coupling products, including Sure-Flex® and Dura-Flex® elastomeric couplings, Form-Flex® disc couplings, G-Flex grid couplings and Jaw couplings, represent the latest in coupling technology).
- Thomas (Thomas manufactures disc couplings through design innovation, advanced materials and lean manufacturing processes).
- Thomson (Since 1946, Thomson has set the standard for linear motion components, providing solutions for countless markets and applications. Headquartered in Downers Grove, Illinois, USA, Thomson manufactures linear bearings and guides, electric linear actuators, ball and guide screws, ball splines, linear units, stepper motor linear actuators, screw jacks and robotic transfer units).
- Thomson Power Systems (Thomson Power Systems specializes in the design, development and assembly of custom power generation controls, automatic transfer switches and switchgear. The power generation industry relies on Thomson products for low and medium voltage applications).
- Tollok (Tollok manufactures advanced shaft locking devices for the power generation and process industries and general industrial applications).
- Twiflex (Twiflex, founded in 1946, specializes in the design, manufacture and supply of advanced braking technologies for industrial applications. Twiflex offers the world's largest selection of pneumatic, hydraulic and mechanical industrial disc brake calipers, as well as a complete line of power units, disc brake systems, flexible couplings and shaft coupling couplings).
- Warner Electric(Warner Electric, founded in 1927, has become a global leader in the development of innovative electromagnetic clutch and brake solutions).
- Wichita-Kupplung(Wichita Clutch, founded in 1949, is a leading global designer and manufacturer of heavy-duty clutches and brakes that are essential components in industrial process equipment).
Regal Rexnord und ABB Robotics arbeiten für eine nahtlose Integration der 7. Cobot-Achsen zusammen
Sales breakdown by business segment:
2025 (USD)
Industrial Powertrain Solutions 2.61 billion
Automation & Motion Control 1.7 billion
Power Effciency Solutions 1.65 billion
Eliminations -28 million
Geographical distribution of sales:
2025 (USD)
North America 4.16 billion
Europe 1 billion
Asia 443 million
Rest-Of-World 329 million
Juan summary (short & sweet) - Regal Rexnord 2025-2028
Here is the compact Juan summary of the key financial figures - just the way you like it: direct, clear, no frills.
"Regal Rexnord delivers a clean, increasingly robust set of figures. Sales and EBIT are growing steadily, with margins increasing slightly year on year - a sign of operational discipline. Free cash flow remains strong and will jump up again significantly from 2027. Net debt falls consistently, the gearing ratio practically halves over three years. EPS shows strong double-digit growth - exactly what you want to see from a quality compounder. Overall: solid, predictable performance with a clear improvement in financial strength."
Market value 14,180
Number of shares (in thousands) 66,565
Date of publication 04,02,2026
Short Juan summary - Valuation ratios Regal Rexnord
(based on your MarketScreener valuation page )
"Regal Rexnord looks like a cleanly valued quality stock with a clear tendency to undervalue from 2027 onwards. FCF yield is rising strongly, while the dividend is growing moderately but steadily. The dividend yield remains low - typical for a growth compounder. The P/E ratio falls significantly from 2027, the PEG slips into the attractive range below 1. Overall: valuation eases, cash flow power increases - a setup that combines quality with growing efficiency."
Brief overall conclusion from Juan - Finance + Valuation
(Basis: Financial ratios & valuation ratios from your MarketScreener tab )
"Regal Rexnord shows the profile of a mature quality compounder that is getting stronger operationally while growing into a more attractive valuation. Sales, EBIT and free cash flow are rising steadily, margins are improving year on year and debt is clearly falling. From 2027, the valuation picture tilts: FCF yield increases, P/E ratio falls, PEG slips into the sweet spot below 1. The dividend grows moderately, but remains deliberately low because the focus is clearly on reinvestment and scaling. Overall: solid fundamental momentum + more relaxed valuation = a setup that can be really fun in the long term."
$RRX (+6,21%) (SHARE PRICE 213.02 USD 01.05.2026)
