# REGAL REXNORD CORP (RRX)

Informational only - not investment advice.

CIK: 0000082811
SIC: 3569 General Industrial Machinery & Equipment, NEC
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3569 General Industrial Machinery & Equipment, NEC](/industry/3569/)
Latest 10-K filed: 2026-02-20
SEC page: https://www.sec.gov/edgar/browse/?CIK=82811
Filing source: https://www.sec.gov/Archives/edgar/data/82811/000008281126000054/rbc-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-20 · accession 0000082811-26-000054 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000082811.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 5,934,500,000 USD | 2025 | verified |
| Net income | 279,500,000 USD | 2025 | verified |
| Assets | 13,921,000,000 USD | 2025 | verified |
| Free cash flow | 893,100,000 USD | 2025 | computed |
| Net margin | 4.71% | 2025 | computed |
| Operating margin | 11.47% | 2025 | computed |
| Revenue YoY | -1.65% | 2025 | computed |
| ROE | 4.08% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | RRX | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 4.7% | 7.7% | 29 | 110 |
| Operating margin | 11.5% | 13.1% | 42 | 104 |
| Revenue growth | -1.6% | 5.8% | 15 | 111 |
| FCF margin | 15.0% | 9.6% | 73 | 103 |
| ROE | 4.1% | 11.7% | 25 | 108 |
| ROA | 2.0% | 5.6% | 26 | 111 |
| Liabilities / equity | 1.03 | 1.10 | 45 | 108 |
| Current ratio | 2.15 | 2.02 | 54 | 110 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 35 Industrial And Commercial Machinery And Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 5934500000 | USD | 2025 | 2026-02-20 |
| Net income | 279500000 | USD | 2025 | 2026-02-20 |
| Assets | 13921000000 | USD | 2025 | 2026-02-20 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000082811.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 3,224,500,000 | 3,360,300,000 | 3,645,600,000 |  |  |  | 5,217,900,000 | 6,250,700,000 | 6,033,800,000 | 5,934,500,000 |
| Net income | 203,400,000 | 213,000,000 | 231,200,000 | 238,900,000 | 187,700,000 | 229,600,000 | 488,900,000 | -57,400,000 | 196,200,000 | 279,500,000 |
| Operating income | 322,500,000 | 331,100,000 | 347,000,000 | 351,100,000 | 278,000,000 | 358,300,000 | 690,400,000 | 377,100,000 | 630,000,000 | 680,800,000 |
| Gross profit | 865,000,000 | 883,600,000 | 964,600,000 | 860,700,000 | 806,600,000 | 1,111,600,000 | 1,669,700,000 | 2,067,300,000 | 2,191,000,000 | 2,217,800,000 |
| Diluted EPS | 4.52 | 4.74 | 5.26 | 5.66 | 4.60 | 4.81 | 7.29 | -0.87 | 2.94 | 4.20 |
| Operating cash flow | 442,300,000 | 291,900,000 | 362,700,000 | 408,500,000 | 435,400,000 | 357,700,000 | 436,200,000 | 715,300,000 | 609,400,000 | 990,800,000 |
| Capital expenditures | 65,200,000 | 65,200,000 | 77,600,000 | 92,400,000 | 47,500,000 | 54,500,000 | 83,800,000 | 119,100,000 | 109,500,000 | 97,700,000 |
| Dividends paid | 42,100,000 | 44,500,000 | 47,200,000 | 48,900,000 | 48,700,000 | 335,600,000 | 90,900,000 | 92,800,000 | 93,000,000 | 93,000,000 |
| Share buybacks | 0.00 | 45,100,000 | 127,800,000 | 165,100,000 | 25,000,000 | 25,800,000 | 239,200,000 | 0.00 | 50,000,000 | 0.00 |
| Assets | 4,358,500,000 | 4,388,200,000 | 4,623,800,000 | 4,430,700,000 | 4,589,000,000 | 10,367,400,000 | 10,268,900,000 | 15,431,400,000 | 14,033,700,000 | 13,921,000,000 |
| Stockholders' equity | 2,038,800,000 | 2,325,500,000 | 2,310,500,000 | 2,351,100,000 | 2,544,400,000 | 6,370,000,000 | 6,388,200,000 | 6,344,300,000 | 6,259,800,000 | 6,844,100,000 |
| Cash and cash equivalents | 284,500,000 | 139,600,000 | 248,600,000 | 331,400,000 | 611,300,000 | 672,800,000 | 688,500,000 | 574,000,000 | 393,500,000 | 521,700,000 |
| Free cash flow | 377,100,000 | 226,700,000 | 285,100,000 | 316,100,000 | 387,900,000 | 303,200,000 | 352,400,000 | 596,200,000 | 499,900,000 | 893,100,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 6.31% | 6.34% | 6.34% |  |  |  | 9.37% | -0.92% | 3.25% | 4.71% |
| Operating margin | 10.00% | 9.85% | 9.52% |  |  |  | 13.23% | 6.03% | 10.44% | 11.47% |
| Return on equity | 9.98% | 9.16% | 10.01% | 10.16% | 7.38% | 3.60% | 7.65% | -0.90% | 3.13% | 4.08% |
| Return on assets | 4.67% | 4.85% | 5.00% | 5.39% | 4.09% | 2.21% | 4.76% | -0.37% | 1.40% | 2.01% |
| Liabilities / equity | 1.14 | 0.89 | 1.00 | 0.88 | 0.80 | 0.63 | 0.61 | 1.43 | 1.24 | 1.03 |
| Current ratio | 2.18 | 2.21 | 2.66 | 2.87 | 2.25 | 2.56 | 2.99 | 2.55 | 2.26 | 2.15 |

## As-reported value updates

3 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/RRX/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000082811.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-06-30 |  |  | 2.12 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 1.80 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.09 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 | 1,768,600,000 |  | 0.48 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 1,649,800,000 | -139,500,000 |  | reported discrete quarter |
| 2023-Q4 | 2023-12-31 |  | 55,900,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 1,547,700,000 | 19,800,000 | 0.30 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 1,547,600,000 | 62,500,000 | 0.94 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 1,477,400,000 | 72,700,000 | 1.09 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,461,100,000 | 41,200,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 1,418,100,000 | 57,300,000 | 0.86 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,496,100,000 | 79,200,000 | 1.19 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,497,000,000 | 79,600,000 | 1.20 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,523,300,000 | 63,600,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 1,479,100,000 | 64,300,000 | 0.96 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 1,558,400,000 | 116,600,000 | 1.74 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from RRX's latest 10-K: [/company/RRX/business/](/company/RRX/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from RRX's latest 10-K: [/company/RRX/risk-factors/](/company/RRX/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/82811/000008281126000229/rbc-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Dollars In Millions Except Per Share Data, Unless Otherwise Noted)

Overview

Regal Rexnord Corporation (NYSE: RRX) (“we,” “us,” “our” or the “Company”) and its associates around the world help create a better tomorrow by providing sustainable solutions that power, transmit and control motion. The Company’s electric motors and air moving subsystems provide the power to create motion. A portfolio of highly engineered power transmission components and subsystems efficiently transmits motion to power industrial applications. The Company's automation offering, comprised of controllers, drives, precision motors, and actuators, controls motion in applications ranging from factory automation to precision tools used in surgical applications. We are headquartered in Milwaukee, Wisconsin and have manufacturing, sales and service facilities worldwide.

Our Company is comprised of three operating segments: Automation & Motion Control ("AMC"), Industrial Powertrain Solutions ("IPS"), and Power Efficiency Solutions ("PES").

A description of our three operating segments is as follows:

•The AMC segment designs, produces and services conveyor products, conveying automation subsystems, aerospace components, precision motion control solutions, high-efficiency miniature servo motors, controls, drives and linear actuators, as well as power management products that include automatic transfer switches, paralleling switchgear, and customized modular electric pod solutions ("E-Pods") that comprise relevant power and thermal management content. The segment sells into markets that include discrete factory automation, food and beverage, aerospace, general industrial, medical and data center.

•The IPS segment designs, produces and services a broad portfolio of highly-engineered transmission products, including mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes and gear motors, clutches, brakes, and industrial powertrain components and solutions. Increasingly, the segment produces industrial powertrain solutions, which are integrated sub-systems comprised of Regal Rexnord motors plus the critical power transmission components that efficiently transmit motion using power generated by the motor to various industrial applications. The segment serves a broad range of markets that include general industrial, metals and mining, energy, discrete automation and commercial HVAC.

•The PES segment designs and produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, electronic drives, fans and blowers, as well as integrated air moving subsystems comprised of two or more of these components. The segment's products are used in residential and commercial HVAC, and in a wide range of general commercial applications.

Components of Profit and Loss

Net Sales. We sell our products to a variety of manufacturers, distributors and end users. Our customers consist of a large cross-section of businesses, ranging from Fortune 100 companies to small businesses. A number of our products are sold to Original Equipment Manufacturers ("OEMs"), who incorporate our products into products they manufacture, and many of our products are built to the requirements of our customers. The majority of our sales are derived from direct sales to customers by sales personnel employed by the Company; however, a significant portion of our sales are derived from sales made by manufacturer’s representatives. Our product sales are made via purchase order, long-term contract, and, in some instances, one-time purchases. Many of our products have broad customer bases, with the levels of concentration of revenue varying from business unit to business unit.

Our level of net sales for any given period is dependent upon a number of factors, including (i) the demand for our products; (ii) the strength of the economy generally and the end markets in which we compete; (iii) our customers’ perceptions of our product quality at any given time; (iv) our ability to meet customer demands in a timely manner; and (v) the selling price of our products. As a result, our total revenue has tended to experience quarterly variations and our total revenue for any particular quarter may not be indicative of future results.

33

We use the term “organic sales" to refer to sales from existing operations excluding (i) sales from acquired businesses recorded prior to the first anniversary of an acquisition (“Acquisition Sales”), if any, (ii) sales attributable to any businesses divested/to be exited, and (iii) the impact of foreign currency translation. The impact of foreign currency translation is determined by translating the respective period’s organic sales using the same currency exchange rates that were in effect during the prior year periods. We use the term “organic sales growth” to refer to the increase in our sales between periods that is attributable to organic sales. We use the term “acquisition growth” to refer to the increase in our sales between periods that is attributable to Acquisition Sales. Organic sales, organic sales growth and acquisition growth are non-GAAP financial measures. See reconciliation of these measures to GAAP net sales in the section entitled "Non-GAAP Measures" below.

Gross Profit. Our gross profit is impacted by our levels of net sales and cost of sales. Our cost of sales consists of costs for, among other things (i) raw materials, including copper, steel and aluminum; (ii) components such as castings, bars, tools, bearings and electronics; (iii) wages and related personnel expenses for fabrication, assembly and logistics personnel; (iv) manufacturing facilities, including depreciation on our manufacturing facilities and equipment, insurance and utilities; and (v) shipping. The majority of our cost of sales consists of raw materials and components. The price we pay for commodities and components can be subject to commodity price fluctuations. We attempt to mitigate portions of the commodity price fluctuations through fixed-price agreements with suppliers and our hedging strategies. When we experience commodity price increases, we have tended to announce price increases to our customers, with such increases generally taking effect a period of time after the public announcements. For those sales we make under long-term arrangements, we tend to include material price formulas that specify quarterly or semi-annual price adjustments based on a variety of factors, including commodity prices.

Outside of general economic cyclicality, our business units experience different levels of variation in sales from quarter to quarter based on factors specific to each business. For example, a portion of our PES segment manufactures products that are used in air conditioning applications. As a result, our sales for that business tend to be lower in the first and fourth quarters and higher in the second and third quarters. In contrast, our IPS and AMC segments each have a broad customer base and a variety of applications, thereby helping to mitigate large quarter-to-quarter fluctuations outside of general economic conditions.

Operating Expenses. Our operating expenses consist primarily of (i) general and administrative expenses; (ii) sales and marketing expenses; (iii) general engineering and research and development expenses; and (iv) handling costs incurred in conjunction with distribution activities. Personnel related costs are our largest operating expense.

Our general and administrative expenses consist primarily of costs for (i) salaries, benefits and other personnel expenses related to our executive, finance, human resource, information technology, legal and operations functions; (ii) occupancy expenses; (iii) technology related costs; (iv) depreciation and amortization; and (v) corporate-related travel. The majority of our general and administrative costs are for salaries and related personnel expenses. These costs can vary by business given the location of our different manufacturing operations.

Our sales and marketing expenses consist primarily of costs for (i) salaries, benefits and other personnel expenses related to our sales and marketing function; (ii) internal and external sales commissions and bonuses; (iii) travel, lodging and other out-of-pocket expenses associated with our selling efforts; and (iv) other related overhead.

Our general engineering and research and development expenses consist primarily of costs for (i) salaries, benefits and other personnel expenses; (ii) the design and development of new products and enhancements to existing products; (iii) quality assurance and testing; and (iv) other related overhead. Our research and development efforts tend to be targeted toward developing new products that would allow us to maintain or gain additional market share, whether in new or existing applications. In particular, a large driver of our research and development efforts is to raise the energy efficiency and lower the environmental impact of our products and sub-systems.

Income from Operations. Our income from operations consists of segment gross profit less segment operating expenses. In addition, there are shared operating costs that cover corporate, engineering and IT expenses that are consistently allocated to the operating segments and are included in segment operating expenses. Income from operations is a key metric used to measure year-over-year performance of the segments.

Recent Developments

On July 1, 2026, Aamir Paul succeeded Louis V. Pinkham as the Company’s Chief Executive Officer. The Board of Directors (the “Board”) appointed Mr. Paul to serve on the Board as a director with an initial term continuing until the Company’s 2027 annual meeting of shareholders.

34

On February 20, 2026, the US Supreme Court ruled that tariffs imposed under IEEPA were not authorized by the statute. The Company is the importer of record for certain raw materials and products that were previously subject to such tariffs under IEEPA. The Company recorded a $33.0 million pre-tax benefit related to certain IEEPA tariff refunds for the three and six months ended June 30, 2026. There are other IEEPA tariff duties that may be eligible for submission and recovery under future phases of the CAPE refund process, but the ultimate amount and timing of recovery is uncertain at this time. For the year ended December 31, 2026, the Company estimates a pre-tax benefit of $49 million, including $33.0 million recorded for the six months ended June 30, 2026. See Note 2 - Other Financial Information of the Notes to the Condensed Consolidated Financial Statements for more information.

35

Results of Operations

Three Months Ended June 30, 2026 Compared to June 30, 2025

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/82811/000008281126000054/rbc-20251231.htm
Complete FY 2025 MD&A: /company/RRX/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-20
Report date: 2025-12-31

ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Dollars In Millions Except Per Share Data, Unless Otherwise Noted)

Overview

General

Regal Rexnord Corporation (NYSE: RRX) (“we,” “us,” “our” or the “Company”) and its associates around the world help create a better tomorrow by providing sustainable solutions that power, transmit and control motion. The Company’s electric motors and air moving subsystems provide the power to create motion. A portfolio of highly engineered power transmission components and subsystems efficiently transmits motion to power industrial applications. The Company's automation offering, comprised of controllers, drives, precision motors, and actuators, controls motion in applications ranging from factory automation to precision tools used in surgical applications. We are headquartered in Milwaukee, Wisconsin and have manufacturing, sales and service facilities worldwide.

As of December 31, 2025, the Company, including its subsidiaries, employed approximately 28,700 full-time people in its global manufacturing, sales, and service facilities and corporate offices. For the year ended December 31, 2025, we reported annual net sales of $5.9 billion compared to $6.0 billion for the year ended December 31, 2024.

Our company is comprised of three operating segments: Automation & Motion Control ("AMC"), Industrial Powertrain Solutions ("IPS"), and Power Efficiency Solutions ("PES").

A description of our three operating segments is as follows:

•The AMC segment designs, produces and services conveyor products, conveying automation subsystems, aerospace components, precision motion control solutions, high-efficiency miniature servo motors, controls, drives and linear actuators, as well as power management products that include automatic transfer switches, paralleling switchgear, and customized modular electric pod solutions ("E-Pods") that comprise relevant power and thermal management content . The segment sells into markets that include discrete factory automation, food and beverage, aerospace, general industrial, medical and data center.

•The IPS segment designs, produces and services a broad portfolio of highly-engineered transmission products, including mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes and gear motors, clutches, brakes, and industrial powertrain components and solutions. Increasingly, the segment produces industrial powertrain solutions, which are integrated sub-systems comprised of Regal Rexnord motors plus the critical power transmission components that efficiently transmit motion using power generated by the motor to various industrial applications. The segment serves a broad range of markets that include general industrial, metals and mining, energy, discrete automation and commercial HVAC.

•The PES segment designs and produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, electronic drives, fans and blowers, as well as integrated air moving subsystems comprised of two or more of these components. The segment's products are used in residential and commercial HVAC, and in a wide range of general commercial applications.

On September 23, 2023, we signed an agreement to sell our industrial motors and generators businesses which represented the substantial majority of the Industrial Systems operating segment. The transaction closed on April 30, 2024. See Note 3 - Acquisitions and Divestitures and Note 5 - Segment Information of the Notes to the Consolidated Financial Statements for further information and a description of the Company's operating segments, respectively.

We have omitted discussion of trends comparing 2023 to 2024 as this information has been previously disclosed within Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations of our 10-K for the year ended December 31, 2024 filed with the SEC on February 21, 2025.

Components of Profit and Loss

Net Sales. We sell our products to a variety of manufacturers, distributors and end users. Our customers consist of a large cross-section of businesses, ranging from Fortune 100 companies to small businesses. A number of our products are sold to Original Equipment Manufacturers ("OEMs"), who incorporate our products into products they manufacture, and many of our products

36

are built to the requirements of our customers. The majority of our sales are derived from direct sales to customers by sales personnel employed by the Company; however, a significant portion of our sales are derived from sales made by manufacturer’s representatives. Our product sales are made via purchase order, long-term contract, and, in some instances, one-time purchases. Many of our products have broad customer bases, with the levels of concentration of revenue varying from business unit to business unit.

Our level of net sales for any given period is dependent upon a number of factors, including (i) the demand for our products; (ii) the strength of the economy generally and the end markets in which we compete; (iii) our customers’ perceptions of our product quality at any given time; (iv) our ability to meet customer demands in a timely manner; and (v) the selling price of our products. As a result, our total revenue has tended to experience quarterly variations and our total revenue for any particular quarter may not be indicative of future results.

We use the term “organic sales" to refer to sales from existing operations excluding (i) sales from acquired businesses recorded prior to the first anniversary of an acquisition (“Acquisition Sales”), (ii) sales attributable to any businesses divested/to be exited, and (iii) the impact of foreign currency translation. The impact of foreign currency translation is determined by translating the respective period’s organic sales using the same currency exchange rates that were in effect during the prior year periods. We use the term “organic sales growth” to refer to the increase in our sales between periods that is attributable to organic sales. We use the term “acquisition growth” to refer to the increase in our sales between periods that is attributable to Acquisition Sales. Organic sales, organic sales growth and acquisition growth are non-GAAP financial measures. See reconciliation of these measures to GAAP net sales in the section entitled "Non-GAAP Measures" below.

Gross Profit. Our gross profit is impacted by our levels of net sales and cost of sales. Our cost of sales consists of costs for, among other things (i) raw materials, including copper, steel and aluminum; (ii) components such as castings, bars, tools, bearings and electronics; (iii) wages and related personnel expenses for fabrication, assembly and logistics personnel; (iv) manufacturing facilities, including depreciation on our manufacturing facilities and equipment, insurance and utilities; and (v) shipping. The majority of our cost of sales consists of raw materials and components. The price we pay for commodities and components can be subject to commodity price fluctuations. We attempt to mitigate portions of the commodity price fluctuations through fixed-price agreements with suppliers and our hedging strategies. When we experience commodity price increases, we have tended to announce price increases to our customers, with such increases generally taking effect a period of time after the public announcements. For those sales we make under long-term arrangements, we tend to include material price formulas that specify quarterly or semi-annual price adjustments based on a variety of factors, including commodity prices.

Outside of general economic cyclicality, our business units experience different levels of variation in sales from quarter to quarter based on factors specific to each business. For example, a portion of our PES segment manufactures products that are used in air conditioning applications. As a result, our sales for that business tend to be lower in the first and fourth quarters and higher in the second and third quarters. In contrast, our IPS and AMC segments each have a broad customer base and a variety of applications, thereby helping to mitigate large quarter-to-quarter fluctuations outside of general economic conditions.

Operating Expenses. Our operating expenses consist primarily of (i) general and administrative expenses; (ii) sales and marketing expenses; (iii) general engineering and research and development expenses; and (iv) handling costs incurred in conjunction with distribution activities. Personnel related costs are our largest operating expense.

Our general and administrative expenses consist primarily of costs for (i) salaries, benefits and other personnel expenses related to our executive, finance, human resource, information technology, legal and operations functions; (ii) occupancy expenses; (iii) technology related costs; (iv) depreciation and amortization; and (v) corporate-related travel. The majority of our general and administrative costs are for salaries and related personnel expenses. These costs can vary by business given the location of our different manufacturing operations.

Our sales and marketing expenses consist primarily of costs for (i) salaries, benefits and other personnel expenses related to our sales and marketing function; (ii) internal and external sales commissions and bonuses; (iii) travel, lodging and other out-of-pocket expenses associated with our selling efforts; and (iv) other related overhead.

Our general engineering and research and development expenses consist primarily of costs for (i) salaries, benefits and other personnel expenses; (ii) the design and development of new products and enhancements to existing products; (iii) quality assurance and testing; and (iv) other related overhead. Our research and development efforts tend to be targeted toward developing new products that would allow us to maintain or gain additional market share, whether in new or existing applications. In particular, a large driver of our research and development efforts is to raise the energy efficiency and lower the environmental impact of our products and sub-systems.

37

Goodwill & Other Asset Impairments.

The following table presents impairments by segment as of December 31, 2025, December 31, 2024 and December 31, 2023:

[[GREPCENT_TABLE]]
[["","Automation & Motion Control","","Industrial Powertrain Solutions","","Power Efficiency Solutions","","Industrial Systems(1)","","Total"],["December 31, 2025"],["Goodwill Impairments","$","\u2014","","","$","\u2014","","","$","\u2014","","","$","\u2014","","","$","\u2014"],["Loss on Sale of Businesses","\u2014","","","4.5","","","\u2014","","","\u2014","","","4.5"],["Total Impairments","$","\u2014","","","$","4.5","","","$","\u2014","","","$","\u2014","","","$","4.5"],["December 31, 2024"],["Goodwill Impairments","$","\u2014","","","$","\u2014","","","$","\u2014","","","$","\u2014","","","$","\u2014"],["Impairment of Other Long-Lived Assets (2)","1.8","","","1.1","","","1.1","","","\u2014","","","4.0"],["Loss on Sale of Businesses (3)","1.1","","","1.7","","","1.4","","","4.3","","","8.5"],["Total Impairments","$","2.9","","","$","2.8","","","$","2.5","","","$","4.3","","","$","12.5"],["December 31, 2023"],["Goodwill Impairments","$","\u2014","","","$","\u2014","","","$","\u2014","","","$","57.3","","","$","57.3"],["Impairment of Other Long-Lived Assets (2)","3.4","","","2.5","","","1.5","","","0.4","","","7.8"],["Loss on Sale of Businesses (3)","\u2014","","","\u2014","","","\u2014","","","87.7","","","87.7"],["Total Impairments","$","3.4","","","$","2.5","","","$","1.5","","","$","145.4","","","$","152.8"]]
[[/GREPCENT_TABLE]]

(1) The goodwill impairment in 2023 was in the global industrial motors reporting unit.

(2) Related to assets held for sale.

(3) Primarily related to the sale of the

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/RRX/mda/fy2025/
All MD&A years: /company/RRX/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/RRX/mda/fy2024/): filed 2025-02-21; accession 0000082811-25-000046 (https://www.sec.gov/Archives/edgar/data/82811/000008281125000046/rbc-20241231.htm)
- [FY 2023 MD&A](/company/RRX/mda/fy2023/): filed 2024-02-26; accession 0000082811-24-000035 (https://www.sec.gov/Archives/edgar/data/82811/000008281124000035/rbc-20231231.htm)
- [FY 2022 MD&A](/company/RRX/mda/fy2022/): filed 2023-02-24; accession 0000082811-23-000040 (https://www.sec.gov/Archives/edgar/data/82811/000008281123000040/rbc-20221231.htm)
- [FY 2022 MD&A](/company/RRX/mda/a-0000082811-22-000069/): filed 2022-03-02; accession 0000082811-22-000069 (https://www.sec.gov/Archives/edgar/data/82811/000008281122000069/rbc-20220101.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3569 General Industrial Machinery & Equipment, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/RRX.md · JSON record: /company/RRX.json · verified financials: /company/RRX/financials.json / /company/RRX/financials.csv · machine TOC for the whole site: /llms.txt