Activist Kerrisdale argues Regal Rexnord has transformed into an AI infrastructure play via the Rexnord P&M Control and Altra Industrial Motion acquisitions, expanding exposure to data centers, robotics, and automation. The note highlights a 30% CAGR in Regal's data-center switchgear and a potential doubling in two years, alongside an ~11.5x 2027 EBITDA multiple, suggesting significant upside if the thesis proves true.
Regal Rexnord Corp (NYSE: RRX) has positioned itself as a prominent player in the ongoing automation rally, indicating strong growth potential. This trend highlights an increasing demand for automation solutions, which could significantly enhance RRX's market position and profitability moving forward.
Viking Global Investors increased RRX stake by 309.19% on April 11. RRX stock has declined 39.91% in the past year, 35.81% in 2025. Earnings report on May 5 could shift market perceptions of RRX. Industrial sector faces challenges, but RRX’s diverse portfolio may offer resilience. Halvorsen's investment signals optimism in RRX despite recent poor performance.
