Regal Rexnord Corporation (RRX): Business Model Canvas [Dec-2025 Updated]

You're trying to map out exactly where Regal Rexnord Corporation is heading after all the recent moves, and honestly, the story isn't just about making motors anymore; it's a sharp pivot toward high-margin industrial technology. As an analyst who's seen a few industrial cycles, I can tell you the focus is clear: serving secular growth areas like the Data Center industry, which already boasts a bid pipeline exceeding $1 billion. With full-year 2025 sales guidance hovering around $5.96 billion, understanding how they structure their value proposition-from energy efficiency gains to critical component supply-is key to seeing where the next big returns will come from. Dive into the full Business Model Canvas below to see the nine blocks defining their strategy right now.

Regal Rexnord Corporation (RRX) - Canvas Business Model: Key Partnerships

You're looking at the core external relationships that keep Regal Rexnord Corporation (RRX) moving, especially as they navigate complex supply chains and new market entries as of late 2025. These aren't just vendor lists; these are strategic alignments critical to hitting their targets.

Honeywell Aerospace for advanced air mobility (eVTOL) solutions

The multi-year collaboration with Honeywell (HON) is a clear play for future growth in Advanced Air Mobility (AAM). This partnership focuses on integrating Regal Rexnord Corporation's advanced, automated manufacturing expertise with Honeywell Aerospace Technologies' flight control system integration and certification know-how, specifically for Electric Vertical Take-Off and Landing (eVTOL) aircraft. The scope covers everything from component manufacturing through final assembly and testing of Honeywell's flight control actuation systems. While specific revenue attribution for 2025 isn't public, this effort supports the megatrends of automation and the future of aviation, which are key to the Automation & Motion Control (AMC) segment.

Here's a quick look at the context for this high-value segment:

• Regal Rexnord Corporation's Q3 2025 sales were $1,497.0 million.
• The company is targeting an Adjusted EBITDA Margin of 25% exiting 2025.
• The Aerospace market provided growth that helped offset headwinds in other areas during Q3 2025.

Global electrical equipment distributors like Grainger and Motion Industries

Regal Rexnord Corporation relies heavily on broad distribution channels to move its Industrial Powertrain Solutions (IPS) and Power Efficiency Solutions (PES) products. While specific sales volume through Grainger or Motion Industries isn't broken out, the structure of the business, post-Altra acquisition, points to massive channel dependency. The pro forma business structure, which informs the current state, anticipated that over 40% of sales by 2025 would be into markets with secular growth tailwinds, many of which are served via these large distributors.

The scale of the business that flows through these channels is substantial, given the segment sales reported for Q3 2025:

Segment	Q3 2025 Net Sales (USD)	Organic Growth Y/Y
Industrial Powertrain Solutions (IPS)	$662.3 million	1.6%
Power Efficiency Solutions (PES)	$432.7 million	0.8%

Strategic suppliers for rare earth magnets and other critical components

Supply chain stability, particularly for specialized materials, is a near-term risk that directly impacts margins. Regal Rexnord Corporation flagged temporary rare earth magnet availability as a factor affecting higher-margin shipments in the medical and defense markets within the AMC segment during Q2 2025. The company is actively managing this exposure, which is tied to China trade policies. Management noted in Q3 2025 that they anticipate achieving dollar cost neutrality on net tariff impacts, which include rare earth magnet-related costs, by the middle of 2026, though margin neutrality is pushed to the exit of 2026. The unmitigated annual cost impact from tariffs was estimated at approximately $175 million currently.

This supply pressure is a key factor in financial guidance adjustments:

• Full-year 2025 Adjusted EBITDA margin guidance was reduced to approximately 22.0%.
• The Q3 2025 Adjusted EBITDA margin was 22.7%, including $11 million in synergy benefits.
• The company's full-year 2025 Adjusted EPS guidance was lowered to a range of $9.50 to $9.80.

Original Equipment Manufacturers (OEMs) for integrated component supply

Working directly with OEMs is vital for capturing high-value, integrated business, especially in high-growth areas like data centers. Regal Rexnord Corporation secured data center project orders worth $135 million in Q3 2025, with an additional $60 million in October 2025, primarily in the AMC and PES segments. This indicates strong integration with large infrastructure OEMs. The company is expanding capacity to meet this demand, including a new 100,000 square foot assembly facility in Dallas, Texas, with first shipments expected by mid-2026. The overall enterprise is tracking toward a full-year 2025 sales guidance of approximately $5.96 billion.

The OEM focus is driving order momentum:

• Daily orders were up 9.8% year-over-year in Q3 2025.
• The current E-POD (Electrical Pods) bid pipeline, serving data center OEMs, exceeds $400 million.
• The company achieved $120 million in cross-sell synergies through the end of the previous year, with a total funnel of $300 million.

Finance: draft 13-week cash view by Friday.

Regal Rexnord Corporation (RRX) - Canvas Business Model: Key Activities

Regal Rexnord Corporation focuses its key activities on global manufacturing, strategic integration realization, innovation investment, and proactive risk management against external pressures.

Manufacturing industrial powertrain and motion control components globally.

The operational backbone involves manufacturing across key segments, evidenced by the third quarter of 2025 financial reporting. Total net sales for Q3 2025 reached $1,497.0 million. This manufacturing output is segmented across three primary areas:

• Industrial Powertrain Solutions (IPS) net sales: $662.3 million.
• Power Efficiency Solutions (PES) net sales: $432.7 million.
• Automation & Motion Control (AMC) net sales: $402.0 million.

Order intake shows momentum, with daily orders increasing by 9.8% compared to the previous year in Q3 2025. A significant driver of this activity is the data center market, where the company booked $135 million in orders during Q3 2025, with an additional $60 million in orders reported in October. To support this growth, Regal Rexnord is investing in a new 100,000 square foot assembly facility in Texas.

Realizing $170 million in cross-sell synergies for 2025 from integrations.

A core activity involves capturing value from prior transactions, specifically through cross-selling initiatives. Regal Rexnord Corporation is on track to realize a target of $170 million in cross-sell synergies for the full year 2025. This is part of a larger, multi-year goal, with the total cross-sell synergy opportunity targeted to reach $250 million by 2027. By the end of the previous year, $120 million of cross-sell synergies had already been achieved.

The synergy realization contributes to overall financial health, as seen in the Q3 2025 Adjusted EBITDA of $339.4 million, where synergies nearly offset other pressures. Here's a look at the synergy context:

Synergy Metric	Amount	Timeframe/Status
2025 Realization Target	$170 million	On track for full year 2025
Total Target	$250 million	By 2027
Achieved Through End of 2024	$120 million	Cumulative realization

Research and development (R&D) of energy-efficient and digital solutions.

Regal Rexnord Corporation is advancing its product vitality through focused R&D investments. Management has stated an objective to double its product vitality exiting 2025 compared to the 2022 level. This R&D focus is translating into new product introductions, such as the ePods (modular electrical pods) for the data center market. Furthermore, the company received its first electromechanical actuator production order for EVOL during the third quarter of 2025.

Mitigating tariff impacts via supply chain realignments and pricing actions.

The company actively manages risks from external factors like tariffs and supply chain constraints, such as those related to rare earth magnets. In Q2 2025 guidance, management expressed confidence that mitigation actions were on track to neutralize the impact of current tariffs on the 2025 Adjusted EPS. However, tariff impacts were noted as a factor contributing to the Industrial Powertrain Solutions (IPS) segment's adjusted EBITDA margin being slightly below expectations in Q3 2025. The adjusted gross margin for Q3 2025 was 37.6%, which was down 80 basis points year-over-year, partly influenced by tariffs.

The company is also making physical supply chain adjustments, including investing in a new 100,000 square foot assembly facility in Texas to support data center demand growth.

Regal Rexnord Corporation (RRX) - Canvas Business Model: Key Resources

You're looking at the core assets Regal Rexnord Corporation (RRX) relies on to deliver its value proposition. These aren't just things they own; they are the engines of their business right now, late in 2025.

Global manufacturing and assembly footprint, including new Texas data center facility.

Regal Rexnord Corporation is actively scaling its physical capacity to meet demand, particularly in the data center sector. This involves strategic additions to its existing global network.

The expansion plan includes establishing a new $\text{100,000}$ square foot facility in Dallas, Texas, specifically to support data center demand growth, with first shipments anticipated by mid-2026. This complements the existing footprint, which includes adding approximately $\text{50,000}$ square feet to its British Columbia facility and maintaining its $\text{75,000}$ square foot operation in Mexico. The company's bid pipeline for data center solutions, like customizable modular Electrical Pods (E-PODs), currently exceeds $\text{400}$ million. This physical expansion underpins the expectation that the data center business could double over the next two years.

Intellectual property (IP) portfolio covering motors, controls, and power transmission.

The value here is embedded in the engineering behind the products that power, transmit, and control motion. While specific patent counts aren't immediately available for late 2025, the IP centers on highly engineered components and subsystems.

• IP covers electric motors and air moving subsystems.
• IP covers power transmission components and subsystems.
• IP covers automation offerings: controllers, drives, precision motors, and actuators.

Strong balance sheet with $\text{174}$ million adjusted free cash flow in 3Q 2025.

Financial strength is a key resource, allowing for investment and debt management. The third quarter of 2025 showed solid cash generation, which is critical given ongoing tariff impacts.

Here's a quick look at the financial scale based on the third quarter 2025 results:

Metric	Amount (3Q 2025)
Adjusted Free Cash Flow	$\text{174}$ million
Cash From Operating Activities	$\text{197.5}$ million
Adjusted Diluted EPS	$\text{\$2.51}$
Net Debt/Adjusted EBITDA (Including Synergies)	$\sim\text{3.2x}$

The company used this cash flow to pay down $\text{74.5}$ million in gross debt during the quarter, ending with no remaining variable rate debt. The full-year 2025 free cash flow is projected to be approximately $\text{625}$ million.

Technical expertise in electromechanical and digital motion control.

The human capital and specialized knowledge are central to the Automation & Motion Control segment and product development across the enterprise. This expertise is spread across a substantial global workforce.

• Global workforce of approximately $\text{30,000}$ associates.
• Expertise in electromechanical systems for industrial applications.
• Focus on digital motion control solutions for factory automation.
• Secured orders worth $\text{135}$ million in 3Q 2025 for data center projects alone.

The technical teams are driving growth in secular markets, with management expecting the data center business to double over the next two years. That's a significant commitment to digital motion control applications.

Regal Rexnord Corporation (RRX) - Canvas Business Model: Value Propositions

You're looking at what Regal Rexnord Corporation actually delivers to its customers-the core reasons they choose RRX over the competition. It's all about tangible performance improvements, honestly.

Energy-Efficient Industrial Solutions

Regal Rexnord Corporation focuses heavily on providing technologies that lower energy use, which directly cuts down on operating costs for you. For instance, specific blower systems, like the DEC Star®, have shown the capability to reduce energy usage by up to 35% when compared to other blower systems. Also, some of their smaller motor innovations, such as the GlacAir™ motor, can use up to 85% less energy than a standard motor. Regal Rexnord offers electric motors with efficiency levels spanning from IE1 up to IE5, meeting various global standards for high efficiency.

• Motor efficiency levels offered: IE1 to IE5.
• DEC Star® system energy reduction: up to 35%.
• GlacAir™ motor energy reduction: up to 85%.

Integrated, High-Reliability Powertrain and Automation Systems

The value here is bundling complex motion control and power transmission into reliable packages. This integration capability is reflected in the segment sales performance from the third quarter of 2025. You can see how the different parts of the business contribute to the total revenue base, which was $1,497.0 million for that quarter. Furthermore, the company is actively realizing value from its past transactions, aiming for a total of $250 million in cross-sell synergies, having already achieved $120 million through the end of 2024.

Operating Segment	Q3 2025 Net Sales (Millions USD)	Q3 2025 Adjusted EBITDA Margin
Industrial Powertrain Solutions	$662.3	26.4%
Power Efficiency Solutions	$432.7	19.0%
Automation & Motion Control	$402.0	20.5%

Critical Components for Secular Growth Markets

Regal Rexnord Corporation is strategically positioned to supply components into markets with long-term, structural growth trends. Data centers are a prime example; in the third quarter of 2025 alone, the company secured orders worth $135 million across the AMC and PES segments specifically for data center projects. They are building on this momentum, reporting an additional $60 million in data center orders in October 2025. The total bid pipeline for this sector is now over $1 billion, and management sees the Electrical Pods (E-PODs) offering serving this market as addressing a potential $10 billion annual market. Aerospace strength also provided a tailwind for the Automation & Motion Control segment during Q3 2025.

• Data Center Orders Secured (3Q 2025): $135 million.
• Data Center Orders Secured (4Q to date): $60 million.
• Total Data Center Bid Pipeline: Over $1 billion.
• E-PODs Market Potential: $10 billion annually.

Global Service and Aftermarket Support for Installed Base

You get the assurance of support across a massive installed base globally. Regal Rexnord Corporation has 30,000 associates worldwide, supporting products that power, transmit, and control motion across industries like food & beverage, energy, and general industrial applications. While I don't have the specific aftermarket revenue figure for 2025, the sheer scale of their product portfolio-including motors, drives, controls, and power transmission components-necessitates a robust service network to maintain uptime for customers. This global footprint is defintely a key part of the long-term value proposition.

Finance: draft 13-week cash view by Friday.

Regal Rexnord Corporation (RRX) - Canvas Business Model: Customer Relationships

You're looking at how Regal Rexnord Corporation manages the connections with its diverse industrial customer base, which supports a trailing twelve months (TTM) revenue ending September 30, 2025, of $5.872B. With about 30,000 associates globally, the structure for these relationships is clearly segmented based on the complexity and volume of the business.

The relationships fall into distinct categories, from highly involved, custom engineering support for strategic partners to high-volume, standardized transactions through established channels.

Dedicated direct sales teams for large OEM and key account management

For the largest Original Equipment Manufacturers (OEMs) and strategic accounts, Regal Rexnord deploys dedicated, direct sales resources. This is where the deep, long-term partnership model lives, often involving co-development or guaranteed supply agreements. A clear example of this focus is the recent success in the data center market, which requires significant, dedicated engineering alignment.

• Secured a $35 Million Data Center Order in early July 2025, with sales expected to start by year-end.
• Reported total data center orders in Q3 2025 worth $135 million across the Automation & Motion Control (AMC) and Power Efficiency Solutions (PES) segments.
• Booked an additional $60 million in data center orders in October 2025, bringing recent momentum to $175 million.
• The company is investing in a new 100,000 square foot assembly facility in Texas specifically to support this data center demand growth.

Technical consultation and engineering support for complex industrial projects

When projects are complex-think custom-engineered systems for energy or metals & mining applications-the relationship shifts to one requiring heavy technical consultation. This isn't just selling a motor; it's selling an integrated motion control or power transmission solution. The company's commitment to operational excellence and safety underpins the trust required for these engagements; for instance, the 2024 Sustainability Report highlighted an industry-leading Total Recordable Incident Rate (TRIR) of 0.55.

The scale of the business units involved shows where this high-touch support is concentrated. Here's a look at the sales breakdown from the third quarter of 2025, which totaled $1,497.0 million in net sales:

Segment	Q3 2025 Net Sales (Millions USD)	Relationship Focus
Industrial Powertrain Solutions (IPS)	$662.3	Complex industrial applications, energy, metals & mining projects.
Power Efficiency Solutions (PES)	$432.7	HVAC and pool/leisure water markets, often involving system integration.
Automation & Motion Control (AMC)	$402.0	Discrete automation, medical, and emerging technology like humanoid robotics orders ($8 million booked).

Standardized, transactional relationships through distributor networks

A significant portion of Regal Rexnord Corporation's volume moves through a broad, established network of industrial and electrical distributors. This channel supports the aftermarket and standard product sales, relying on efficiency and broad availability. The Power Efficiency Solutions (PES) segment, with Q3 2025 sales of $432.7 million, is explicitly focused on driving growth through these partners, as evidenced by the dedicated leadership role for a Director of Sales focused on National Distribution within that segment.

This transactional relationship is governed by clear expectations, as seen in supplier guidelines emphasizing integrity and adherence to freight instructions to ensure cost-effective flow of goods. The goal here is high velocity and broad market coverage, which is critical for supporting the residential HVAC and general industrial replacement markets.

• The Director of Sales for Distribution is tasked with maximizing revenue growth through strategic distributors in North America for the PES segment.
• PES segment sales in Q3 2025 reflected strong growth in pool and commercial HVAC markets.
• The company has sales, engineering, manufacturing, and distribution facilities across the Americas, Europe, Asia, Africa, and Australia to support this global channel.

Finance: draft 13-week cash view by Friday.

Regal Rexnord Corporation (RRX) - Canvas Business Model: Channels

You're looking at how Regal Rexnord Corporation moves its products to market as of late 2025. It's a mix of high-touch direct engagement for big projects and broad distribution for general needs.

Direct sales force for major industrial and data center customers

The direct sales force targets the largest accounts, which is clearly paying off given the recent focus on digital infrastructure. For the third quarter of 2025, the Automation & Motion Control (AMC) segment, which includes Data Center business, posted net sales of $402.0 million. This channel secured major project wins, including $135 million in data center project orders during Q3 2025 alone. Furthermore, momentum carried into October, with an additional $60 million in data center orders booked. This direct engagement is crucial for capturing large, complex content, as seen with a separate $35 million data center order awarded in early July 2025, with sales expected to start by the end of that year. The Industrial Powertrain Solutions segment, likely also utilizing direct sales for large industrial clients, reported net sales of $662.3 million in Q3 2025.

Extensive global network of distributors and resellers

Regal Rexnord Corporation relies on a wide net to reach the broader market for its components. This network is described as formidable and global. The company maintains over 14 offices and numerous manufacturing, sales, and service facilities across the United States, Canada, Mexico, Europe, and Asia. This infrastructure supports a workforce of approximately 29,000 employees globally, who service this extensive channel. The reliance on distributors is noted as a key factor in the business, with risks associated with dependence on significant distributors mentioned in forward-looking statements. The Power Efficiency Solutions segment, which saw growth in residential and commercial HVAC, likely benefits significantly from this channel, reporting net sales of $432.7 million in Q3 2025.

Digital channels and e-commerce for parts and standard products

While specific revenue attribution to digital channels isn't public, the structure implies that standard parts and smaller replacement items flow through digital platforms and the distributor network. The company is a leading manufacturer of components like bearings, couplings, gears, and industrial chain, which are often part of routine MRO (maintenance, repair, and operations) purchasing. One partner distributor notes carrying a database of over 49,500,000 item numbers, with over 930,000 different references in stock, suggesting a massive catalog supported by digital infrastructure. The overall business scale, with Trailing Twelve Months (TTM) revenue ending September 30, 2025, at $5.872B, indicates substantial transaction volume moving through all channels, including digital.

Aftermarket service centers for maintenance and repair

Service and repair are integrated into the channel strategy, supported by the company's physical footprint. Regal Rexnord Corporation has numerous service facilities worldwide, complementing its sales offices. These centers support the installed base of motors, drives, and power transmission components across industries like aerospace, agriculture, and food and beverage. The focus on aftermarket support is a steady revenue driver, even when original equipment manufacturer (OEM) project timing causes headwinds, as seen in Q1 2025 when project timing impacted the data center market. The company's commitment to service is a key part of its value proposition to customers relying on uptime.

Here's a quick look at the financial scale underpinning these channels for the third quarter of 2025:

Metric	Amount (Q3 2025)	Context
Total Net Sales	$1,497.0 million	Total revenue across all channels.
Industrial Powertrain Solutions Sales	$662.3 million	Represents a significant portion of sales, likely heavily reliant on direct/distributor channels.
Power Efficiency Solutions Sales	$432.7 million	Sales driven by HVAC/Pool, often involving distributors and service.
Automation & Motion Control Sales	$402.0 million	Includes major data center wins secured via direct sales.
Recent Data Center Orders Secured	$175 million	Value of recent large orders secured through direct engagement.
Net Debt/Adjusted EBITDA Ratio	Approximately 3.2x	Indicates financial health supporting ongoing channel investment.

Regal Rexnord Corporation (RRX) - Canvas Business Model: Customer Segments

You're looking at the core markets Regal Rexnord Corporation serves as of late 2025. Honestly, the customer base is quite diverse, spanning from the bleeding edge of digital infrastructure to heavy industry. This mix helps balance out the cyclical nature of some of their end markets.

The Data Center industry is definitely a major growth catalyst right now. Management is positioning Regal Rexnord as an emerging scale player here. They secured orders worth $135 million in 3Q 2025, plus an additional $60 million in October 2025 alone. The company emphasized its bid pipeline in this sector is now over $1 billion. They are even investing in a new 100,000 square foot assembly facility in Texas specifically to support this demand growth. Management has signaled expectations to double the data center business over the next two years.

For Discrete Automation and Robotics OEMs, the story is one of order strength. The Automation & Motion Control (AMC) segment saw growth in discrete automation offset earlier segment declines in Q3 2025. Orders in AMC rose 21.5% in July 2025, driven by new data center wins, but overall orders for the segment were down 7.5% in that period.

Residential and Commercial HVAC manufacturers are a key part of the Power Efficiency Solutions (PES) segment. In Q2 2025, PES delivered 6.5% organic growth, heavily aided by strong Residential HVAC (R-HVAC) and Commercial HVAC (C-HVAC) markets. However, the residential side can be volatile; for instance, sales of air conditioning units within the residential HVAC portion of PES were down over 20% in 3Q 2025.

The Energy (oil & gas, wind) and Metals & Mining industries primarily fall under Industrial Powertrain Solutions (IPS). In 3Q 2025, IPS net sales growth primarily reflected strength in energy and metals & mining. To be fair, this market has seen project timing impacts; IPS sales declined 4.4% organically in Q2 2025 due to large project timing in metals & mining. Still, IPS showed resilience with its fifth consecutive quarter of positive orders growth entering Q4 2025.

Finally, Aerospace and Medical device manufacturers are served through the AMC segment. Aerospace showed growth in Q2 2025, partially offsetting other headwinds. The Medical market, though, has seen weakness, with headwinds noted in both Q2 and Q3 2025. A strategic move here is the partnership with Honeywell Aerospace to target the eVTOL aircraft market.

Here's a quick look at the segment sales performance from the 3Q 2025 report:

Operating Segment	3Q 2025 Net Sales (USD)	Key Customer Market Highlight
Industrial Powertrain Solutions (IPS)	$662.3 million	Strength in Energy and Metals & Mining
Power Efficiency Solutions (PES)	$432.7 million	Growth in Commercial HVAC; Residential HVAC units down over 20% in 3Q
Automation & Motion Control (AMC)	$402.0 million	Data Center orders of $135 million in 3Q; Aerospace growth offset Medical weakness

You can see the strategic focus by looking at the order intake. Daily orders for the enterprise were up 9.8% versus the prior year in 3Q 2025, largely driven by those data center projects.

• Data Center bid pipeline exceeds $1 billion.
• Data Center business expected to double over the next two years.
• Aerospace market contributed to growth in AMC segment in 2Q 2025.
• Residential HVAC segment saw 8.0% organic growth in PES in Q1 2025.
• Medical market experienced headwinds in Q3 2025.

Finance: draft 13-week cash view by Friday.

Regal Rexnord Corporation (RRX) - Canvas Business Model: Cost Structure

You're looking at the hard costs driving Regal Rexnord Corporation's operations as of late 2025. Honestly, the cost structure is heavily influenced by managing debt from past transactions and navigating new trade friction.

The Cost of Goods Sold (COGS) components, such as raw materials and manufacturing labor, are reflected in the overall sales figures and margins. For the third quarter of 2025, Regal Rexnord Corporation reported net sales of $1,497.0 million across its three segments. The gross margin for Q2 2025 was reported at 37.7%, with an adjusted gross margin of 38.2% [cite: 7 from second search]. By Q3 2025, the adjusted EBITDA margin stood at 22.7% [cite: 5, 6 from first search].

Debt servicing is a significant cost consideration. As of Q3 2025, the company reported net debt of $4,385.40 million [cite: 5 from first search]. The net debt to Adjusted EBITDA ratio, including synergies, was approximately 3.2x [cite: 4, 6 from first search]. For the twelve months ending September 30, 2025, Regal Rexnord's net long-term debt was reported as $-2.351B [cite: 10 from first search]. The interest coverage ratio stood at 3.85, improving to 4.01 when including synergies [cite: 5 from first search]. During Q3 2025 alone, the company paid down $74.5 million of gross debt [cite: 4, 6 from first search].

Capital Expenditures (CapEx) and Research & Development (R&D) are ongoing investments. Regal Rexnord is investing in a new 100,000 square foot assembly facility in Texas to support data center demand growth [cite: 4, 6 from first search]. The CEO noted that current growth investments are 'very CapEx light' and focus more on assembly and test operations [cite: 1 from second search]. Specific dollar amounts for total R&D and CapEx for the full year 2025 were not explicitly detailed in the latest reports found.

Operating expenses, including Sales, General, and Administrative (SG&A), are embedded within the profitability metrics. The Q3 2025 Adjusted EBITDA was $339.4 million [cite: 4, 6 from first search]. While specific SG&A figures aren't isolated, the margin pressure reflects these overheads alongside other costs.

Tariff-related costs present a dynamic headwind. The gross, unmitigated annualized cost impact from tariffs was initially estimated at approximately $60 million [cite: 1, 2, 3 from first search]. However, later reporting indicated the gross annual unmitigated impact rose to ~$175 million following an India tariff hike, with the expected net dollar cost impact for FY2025 being approximately -$17 million [cite: 3 from second search]. The company expects to achieve dollar cost neutrality in the middle of next year [cite: 4 from second search].

Here's a breakdown of the key financial figures impacting the cost structure as of Q3 2025:

Cost/Metric Component	Financial Number (Latest Available)	Period/Context
Net Sales	$1,497.0 million	Q3 2025
Adjusted EBITDA	$339.4 million	Q3 2025
Adjusted EBITDA Margin	22.7%	Q3 2025
Gross Debt Paid Down	$74.5 million	Q3 2025
Net Debt/Adjusted EBITDA (Incl. Synergies)	~3.2x	Q3 2025
Net Debt	$4,385.40 million	Q3 2025
Gross Annual Unmitigated Tariff Impact	~$175 million	Latest Estimate (Post India Tariff Hike)
Net Tariff Cost Impact (FY25 Estimate)	~-$17 million	FY2025 Guidance

The cost allocation across the business segments for Q3 2025 sales was:

• Industrial Powertrain Solutions net sales: $662.3 million [cite: 4, 6 from first search]
• Power Efficiency Solutions net sales: $432.7 million [cite: 4, 6 from first search]
• Automation & Motion Control net sales: $402.0 million [cite: 4, 6 from first search]

The company is focused on mitigation actions, aiming for margin neutrality as it exits 2026 [cite: 6 from second search]. Finance: draft 13-week cash view by Friday.

Regal Rexnord Corporation (RRX) - Canvas Business Model: Revenue Streams

You're looking at the core ways Regal Rexnord Corporation brings in cash, focusing on the latest reported figures from late 2025. This is where the rubber meets the road for their industrial component sales.

The total net sales for the third quarter of 2025 hit $1,497.0 million, showing a 1.3% increase versus the prior year, with organic sales growth at 0.7% for the enterprise. The full-year 2025 sales guidance is set at approximately $5.96 billion.

Revenue is primarily sourced from product sales across three distinct business segments. Here is the breakdown of the third quarter 2025 segment sales:

Revenue Stream Segment	3Q 2025 Net Sales (Millions USD)	3Q 2025 Organic Sales Change
Industrial Powertrain Solutions (IPS) product sales	$662.3 million	Up 1.6%
Power Efficiency Solutions (PES) product sales	$432.7 million	Up 0.8%
Automation & Motion Control (AMC) product sales	$402.0 million	Down 1.0%

The IPS segment saw its growth driven by strength in the Energy and Metals & Mining markets. The PES segment's sales reflected growth in the pool and commercial HVAC markets, though residential HVAC sales were flat for the quarter. The AMC segment's sales performance was impacted by project timing in data center business and rare earth magnet sourcing challenges for medical and defense products.

Beyond the core product sales, Regal Rexnord Corporation also generates revenue from services, which is a key area of focus for future stability. These streams include:

• Aftermarket parts, service, and repair revenue.
• Revenue from significant data center project wins, which secured orders worth $135 million in 3Q 2025, plus an additional $60 million in October.

The company is actively investing in its service footprint, recognizing the importance of aftermarket capabilities in its value proposition. Also, the momentum in data center orders, which are spread across AMC and PES segments, is positioning Regal Rexnord for future revenue realization.

Finance: draft 13-week cash view by Friday.