Regal Rexnord's 15min chart shows Bollinger Bands narrowing, KDJ Death Cross occurs.

The 15-minute chart for Regal Rexnord has recently exhibited a narrowing of Bollinger Bands and a KDJ Death Cross at 08/07/2025 14:45. This indicates a reduction in the magnitude of stock price fluctuations and a shift in momentum towards the downside, potentially leading to further decreases in the stock price.

Title: Regal Rexnord's Q2 2025 Earnings: Strong Financials, Market Uncertainty

Regal Rexnord Corporation (RRX) reported its second-quarter earnings for 2025, delivering an adjusted earnings per share (EPS) of $2.48, which exceeded analysts' expectations of $2.44. The company's revenue also surpassed projections, reaching $1.5 billion USD against the anticipated $1.49 billion USD. Despite these positive results, the stock experienced a decline of 7.1% in premarket trading, closing at $135 USD from the previous close of $145.32 USD [2].

CEO Louis Vernon Pinkham highlighted that the company's team delivered solid second-quarter performance, with sales and adjusted earnings per share in line with expectations. He emphasized confidence in neutralizing tariff impacts on adjusted 2025 EBITDA and earnings, aiming for adjusted EBITDA margin neutrality in the first half of 2026. Organic sales declined 1.2% year-over-year, with headwinds from project timing in metals and mining within IPS and rare earth magnet constraints delaying higher-margin shipments in AMC. These were offset by strength in residential and commercial HVAC and aerospace. The company expects to enter 2026 with low single-digit growth, supported by backlog growth in IPS and AMC [1].

The company's financial highlights included an adjusted gross margin of 38.2% and an adjusted EBITDA margin of 22%, up from the previous quarter. Free cash flow was $493 million, including $368.5 million from accounts receivable securitization, which generated $368.5 million in proceeds to pay down variable bank debt. The company's adjusted earnings per share for Q2 was $2.48, up 8.3% year-over-year [1].

Despite the earnings beat, the stock fell by 7.1% in premarket trading. This decline is attributed to several factors, including the narrowing of Bollinger Bands and a KDJ Death Cross on the 15-minute chart at 08/07/2025 14:45, indicating a reduction in the magnitude of stock price fluctuations and a shift in momentum towards the downside. This could potentially lead to further decreases in the stock price [3].

Analysts displayed a neutral to slightly positive tone, focusing on the company's progress on cross-sell synergies and backlog growth. However, they pressed for clarity on rare earth impacts, margin outlook, and end market recovery. Management maintained a confident tone in prepared remarks, emphasizing disciplined execution and progress on synergies, but demonstrated some caution regarding rare earth supply and macro uncertainty. The strategic focus evolved to emphasize accounts receivable securitization and deleveraging, along with execution on cross-sell synergies and data center market expansion [1].

Risks and concerns identified by management include rare earth magnet availability and tariff volatility, noting temporary headwinds and ongoing mitigation through dual sourcing and supply chain adjustments. Analysts raised concerns about margin variability, rare earth supply, and potential order lumpiness, especially in AMC and IPS.

References
[1] https://seekingalpha.com/news/4480130-regal-rexnord-outlines-250m-cross-sell-synergy-target-as-data-center-orders-fuel-optimism-for
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-regal-rexnord-q2-2025-beats-eps-forecast-stock-dips-93CH-4173924