REGAL REXNORD CORP (RRX) Business

ITEM 1 - BUSINESS

Our Company

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. The Company is headquartered in Milwaukee, Wisconsin and has manufacturing, sales and service facilities worldwide.

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

A description of the 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 April 30, 2024, the Company sold its industrial motors and generators businesses, which represented the substantial majority of the Industrial Systems operating segment. See Note 3 - Acquisitions and Divestitures of the Notes to the Consolidated Financial Statements for further information.

Strategy

The Company seeks to create value for its key stakeholders – its customers, its shareholders and its associates – by accelerating profitable growth, raising its margins, generating more cash and increasing its return on invested capital. The Company also plans to create significant value for stakeholders by deploying excess capital towards maintaining a strong balance sheet and returning capital to shareholders through dividends, periodic stock repurchases and, over time, funding highly synergistic M&A transactions. The primary aspects of the strategy to achieve the Company's value creation objectives include:

•Leveraging 80/20 Initiatives to accelerate profitable growth. The Company's 80/20 initiatives encompass broadly-applied, data-driven processes used to focus its resources on the most valuable growth opportunities. 80/20 initiatives

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are particularly leveraged to align product and service offerings to what customers need and value – an alignment measured on several metrics, in particular organic growth and gross margin.

•Deploying the Regal Rexnord Business System (‘‘RBS’’). RBS is the Company's framework for continuous improvement, and includes a set of tools, regularly deployed through targeted, continuous improvement events, or Kaizens, to systematically remove waste, variation and overburden from all processes. The disciplined use of RBS, in combination with 80/20 initiatives, is critical to driving profitable growth.

•Raising exposure to markets with secular growth tailwinds. The Company is focused on growing its position in prioritized secular growth markets, including some with strong regulatory tailwinds tied to rising energy efficiency requirements. These markets include discrete automation (including robotics), aerospace, data center and medical. A significant portion of growth investments are directed to end markets with secular growth characteristics.

•Maintaining a strong portfolio of highly-engineered products and trusted, long-standing brands. Many of the Company's products are characterized by technology leadership and reflect deep application expertise. Significant investments are made in the product portfolio to ensure it aligns with what customers value – a strategic directive embodied in the Regal Rexnord value of driving Innovation with Purpose. To this end, the Company plans to double its new product vitality in the medium term with the majority of new product introductions focused on serving secular growth markets, expanding the industrial powertrain offering, supporting rising demand for greater energy efficiency, and/or leveraging digital capabilities to enhance our products' performance and ease-of-use.

•Leveraging Regal Rexnord’s unrivaled scale and scope to enable unique customer value-propositions. We believe that the broad scope of the Company's product portfolio, plus the scale of its go-to-market capabilities, positions it to offer customers a unique and compelling value proposition. For example, our portfolio breadth makes Regal Rexnord the logical choice for customers to consolidate their power transmission spending, which can create value by raising convenience, improving accountability, and lowering transaction costs. Similarly, with over two thousand associates engaged in sales or sales support roles, we have broad go-to-market scale and scope, which enhances our ability to serve customers, globally. Scaled go-to-market also allows us to monetize new products in a highly effective manner, which reduces time-to-market and can help drive market share gains.

•Providing a broader offering of increasingly robust solutions. One of our key product-related growth initiatives is integrating multiple products or components into value-added solutions. The significant and distinctive scale and scope of our portfolio of power transmission components, automation solutions, and premium efficiency electric motors uniquely positions us to provide these solutions across a wide range of applications and end markets. One of our principal strategic initiatives in this regard is selling industrial powertrains, which combine our high-efficiency electric motors with the critical power transmission components that connect the motor to whatever it is powering, sold as an integrated solution. By engineering our components into solutions, we are able to provide customers with greater reliability, energy efficiency, ease-of-use, and enhanced data analytics, while often also reducing customers' engineering costs. A dedicated powertrain solutions team leverages relevant product, technology and application expertise from across our segments to provide a single point of contact for our customers to design and procure these sub-systems. Beyond powertrains, each of our segments takes the lead in particular end markets to pursue cross-sell opportunities that leverage the broad Regal Rexnord portfolio.

•Utilizing the Company's flexible global manufacturing presence. Our global manufacturing base consists of manufacturing locations across North America, Europe, Asia Pacific and the rest of the world. Our ability to shift production between locations has helped us navigate geopolitical, supply chain and other disruptions, including shifts in global tariff and trade policies, and provide better service levels to our customers, including higher product availability and shorter lead times. We expect our flexible global manufacturing footprint will provide similar benefits in the future.

•Improving business durability. Improving the durability of our business is about increasing the consistency of our sales performance. While our portfolio already has many characteristics that bolster durability, such as deriving nearly 40% of our sales through the distributor channel, which largely reflects less cyclical aftermarket transactions, we are also pursuing a number of initiatives aimed at raising durability further. Examples of these initiatives include pursuing original equipment manufacturers ("OEMs") sales that have higher aftermarket potential, and directing more of our growth investment to serving markets and applications with secular tailwinds. These initiatives are tied to new solutions, services and channel initiatives. For example, we are strategically investing in secular markets across the portfolio with a particular emphasis on AMC. Our largest segment, IPS, is targeting first fit sales that have higher aftermarket potential, and our PES business is launching new products specifically for the aftermarket.

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•Leveraging the Company's strong free cash flows to enhance its growth profile and raise shareholder returns. We expect to continue to maintain our long track record of strong free cash flow generation, which supports expeditious de-leveraging post acquisitions, funding inorganic growth initiatives through M&A activity, and returning capital to shareholders through dividends and stock repurchases. The strong cash flow generating capabilities of our portfolio derive, in part, from a large installed base of our products, our reputation for product quality, our trusted and well-recognized brands, and high levels of like-for-like replacement activity for many of our products in the markets we serve.

•Realizing synergies from M&A transactions. Our acquisition of Altra and merger with the Rexnord PMC business are continuing to generate significant revenue and cost synergies, which we expect will contribute increasingly to our organic top line growth and have, and should continue to, meaningfully benefit our adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") margins, net income, and free cash flow.

•Conducting ongoing portfolio assessments. We review our business portfolio on an ongoing basis to ensure that it continues to align with our growth strategy. The Industrial Systems Divestiture is discussed in further detail below.

Acquisition and Divestitures

Industrial Systems Divestiture

On April 30, 2024, the Company sold its industrial motors and generators businesses, which represented the substantial majority of the Industrial Systems operating segment, for $444.0 million. See Note 3 - Acquisitions and Divestitures of the Notes to the Consolidated Financial Statements for further information.

Altra Transaction

On October 26, 2022, the Company entered into an Agreement and Plan of Merger (the “Altra Merger Agreement”) by and among us, Altra, and Aspen Sub, Inc., a Delaware corporation and our wholly owned subsidiary (“Merger Sub”). Altra is a leading global manufacturer of highly-engineered products and sub-systems in the factory automation and industrial power transmission markets. We entered into the Altra Merger Agreement because we believed that we could recognize substantial revenue and cost synergies through the combination.

On March 27, 2023, in accordance with the terms and conditions of the Altra Merger Agreement, Merger Sub merged with and into Altra (the "Altra Merger"), with Altra surviving the Altra Merger as a wholly owned subsidiary of the Company (the “Altra Transaction”). The total purchase price for the acquisition of Altra was $5.1 billion. See Note 3 – Acquisitions and Divestitures of the Notes to the Consolidated Financial Statements for additional information regarding the Altra Transaction.

Sales, Marketing and Distribution

We sell our products directly to OEMs, distributors and end-users. We have multiple divisions that promote our brands across their respective sales organizations. These sales organizations consist of varying combinations of our own internal direct sales people as well as exclusive and non-exclusive manufacturers' representative organizations.

We operate large distribution facilities in the US and in Mexico, which serve as hubs for our North American distribution and logistics operations. Products are shipped from these facilities to our customers utilizing common carriers. We also operate or partner with numerous warehouse and distribution facilities in our global markets to service the needs of our customers. In addition, we have select manufacturer representatives' warehouses located in specific geographic areas to serve local customers.

We derive a significant portion of revenue from our OEM customers. Certain portions of our sales are to key OEM customers which makes our relationship with each of these customers important to our business. We have long-standing relationships with these customers and we expect these customer relationships will continue for the foreseeable future. In 2025, 2024, and 2023, we had no customer that accounted for more than 10% of our consolidated net sales.

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Competition

Industrial Powertrain Solutions and Automation & Motion Control Segments

The principal markets for IPS and AMC are highly fragmented. The majority of competitors in these markets offer limited product lines and/or serve specific applications, industries or geographic markets. A small number of larger competitors offer broader product lines that serve multiple markets, applications, and geographies. Competition in these segments is based on factors that include product quality, lead times, availability, custom engineering capabilities, price, reliability, and engineering support.

Power Efficiency Systems

Electric motor and electronic drive manufacturing is a highly competitive global industry in which there is an emphasis on quality, reliability, systems integration and technological capabilities such as energy efficiency, delivery performance, price and service. We compete with a variety of domestic and international competitors. Many manufacturers of electric motors and drives operate production facilities globally, producing products for both the US domestic and export markets. Global electric motor manufacturers, particularly those located in Europe, Japan, China, India and elsewhere in Asia, compete with us as they attempt to expand their market penetration around the world, especially in North America. In our air moving business, we compete primarily with a select group of OEMs that focus on quality, reliability, and energy efficiency.

Engineering, Research and Development

We believe that innovation is critical to our future growth and success and are committed to investing in new products, technologies and processes that deliver real value to our customers. Our research and development expenses consist primarily of costs for (i) salaries and related personnel expenses; (ii) the design and development of new energy efficient products and enhancements; (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 gain additional market share, whether in new or existing segments.

We believe the key driver of our innovation strategy is the development of products that include energy efficiency, embedded intelligence and variable speed technology solutions. Each of our business units has its own, as well as shared, product development and design teams that continuously work to enhance our existing products and develop new products for our growing base of customers that require custom and standard solutions. Our state-of-the-art product development and testing laboratories provide a significant competitive advantage in the development of high-quality motors, electric generators, and mechanical products incorporating leading design characteristics such as low vibration, low noise, improved safety, reliability, sustainability and enhanced energy efficiency. Increasingly, our research and development and other engineering efforts have focused on smart products that communicate and allow for monitoring, diagnostics and predictive maintenance.

Patents, Trademarks and Licenses

With our emphasis on product development and innovation, our businesses maintain the proprietary nature of our technologies and manufacturing processes through a combination of trademark, patent, copyright, and trade secret protection. We own a number of US patents and foreign patents relating to our businesses. While we believe that our patents provide certain competitive advantages, we do not consider any one patent or group of patents essential to our business as a whole. We also use various registered and unregistered trademarks, and we believe these trademarks are significant in the marketing of most of our products. However, we believe the successful manufacture and sale of our products generally depends more upon our technological, manufacturing and marketing skills.

Manufacturing and Operations

We have developed and acquired global operations in locations such as Mexico, China, India and Europe so that we can sell our products in these markets, follow our multinational customers, take advantage of global talent and complement our operations in the US and Canada. In addition, we have an extensive internal logistics operation and a network of distribution facilities with the capability to modify standard products to quickly meet specific customer requirements. This gives us the ability to efficiently and promptly deliver a customer's unique product to the desired location.

We manufacture a majority of the products that we sell, but also strategically source components and finished goods from an established global network of suppliers. We strategically leverage a global supply chain to reduce our overall costs and lead-

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times. We generally maintain a dual sourcing capability to ensure a reliable supply source for our customers, although in some cases we depend on a limited number of single source suppliers for certain specialty materials and components. We regularly invest in machinery and equipment to improve and maintain our facilities. Base materials for our products consist primarily of steel, copper and aluminum. Additionally, significant components of our product costs consist of bearings, plastic, electronic assemblies, electronic components, permanent magnets and ferrous and non-ferrous castings.

Facilities

We have manufacturing, sales and service facilities in the US, Mexico, China, Europe, India, and Australia, as well as a number of other locations throughout the world. Refer to Item 2 - Properties for further information on our facilities by segment.

Our corporate offices are located in Milwaukee, Wisconsin in an approximately 142,000 square foot rented office building and in Rosemont, Illinois in an approximately 26,500 square foot rented office building. We believe our equipment and facilities are well maintained and adequate for our present needs. However, we continuously evaluate our property portfolio, including properties that have been or will be transferred to us pursuant to acquisitions, to ensure that our facilities are being used efficiently.

Backlog

Our backlog represents the estimated remaining value of work to be performed under firm contracts. As of December 31, 2025, our backlog was $2,536.0 million, as compared to $1,707.0 million on December 31, 2024. See Note 2 - Accounting Policies of the Notes to the Consolidated Financial Statements for the transaction price allocated to remaining unsatisfied performance obligations. The difference between backlog and remaining unsatisfied performance obligations relates primarily to contracts with contractual terms of 12 months or less, which are excluded from our calculation of remaining unsatisfied performance obligations.

Human Capital Management

As of December 31, 2025, we employed approximately 29,200 associates worldwide, of whom approximately 28,700 were full-time. Of those associates, approximately 8,700 were located in the US, 8,100 in Mexico, 3,600 in China, 3,500 in India and 4,800 in the rest of the world.

The Company believes that our associates are our most valuable asset and strives to be an employer of choice through our demonstrated commitment to associate safety, living our Regal Rexnord values, and strong talent development focus. The Company offers market competitive compensation, health and well-being programs, retirement, and other benefits, based on the markets in which we operate to motivate high performance. We consider our associate relations to be good.

A core goal of our performance management process is to develop and maintain a high-performing organization that is well-positioned to meet our business objectives. Creating a high-performing organization requires associates and managers to exhibit transparency in their day-to-day interactions, and use data to drive decision-making and accountability. Global full-time professional associates (excluding those governed by a collective bargaining agreement) participate in our performance management process, which focuses on enabling associates and managers to gain alignment through:

•a structured annual goal-setting process where associates and their managers work collaboratively to develop specific, measurable, achievable, relevant and time-bound ("SMART") goals that align with our business objectives and Company values;

•period evaluations of annual SMART goals progress and regular coaching sessions with their managers; and

•an annual performance assessment that provides a direct link between the associate’s performance and pay.

In addition to our focus on performance, we also have a strong commitment to our Company values:

•Integrity;

•Responsibility;

•Diversity, Engagement & Inclusion;

•Customer Success;

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•Innovation with Purpose;

•Continuous Improvement;

•Performance;

•Passion to Win;

•….with a Sense of Urgency.

In addition to emphasizing our Company values as a key part of associate life, we promote a commitment to ethics and compliance among our workforce through our Code of Business Conduct and Ethics (our "Code"). In 2025, 99.6% of our global employees completed training on our Code during our annual training period.

In 2025, we conducted a global associate engagement survey to gain feedback from our associates and executed a robust action plan in response to the survey results in an effort to enhance associate engagement.

At our Company, we are committed to creating a better tomorrow by strengthening the communities where our associates live and work. In addition to the numerous local community service projects in which our associates participate, we have established a charitable giving program designed to empower our associates with a voice in directing contributions toward local causes as to which the Company and our associates have a meaningful connection. In 2025, this program enabled us to allocate $1.1 million to charitable organizations across the US, Mexico and Canada, reinforcing our commitment to making a positive impact in these communities.

Environmental Matters

We believe that sustainable business practices strengthen our Company by helping us better serve our customers, delivering higher returns for our shareholders, creating more opportunities for our associates, and making meaningful contributions to the communities in which we operate. In the realm of environmental impact, we remain committed to achieving carbon neutrality across our absolute Scope 1 and 2 emissions by 2032. Our focus has been on executing against the Regal Rexnord Roadmap to Carbon Neutral to achieve our environmental impact goals through leveraging controllable levers within our operational footprint, including investments in building and processing equipment efficiency, on-site renewable energy, and operational efficiency. In parallel with our efforts to reduce our Scope 1 and 2 emissions, we continue to prioritize innovation and product design that focuses on increasing the overall energy efficiency of our product offerings. These efforts are aimed at reducing the portion of our Scope 3 emissions associated with the direct use of our products while also reflecting our broader focus on sustainability across the value chain. Achieving net-zero is a longer-term goal to which we continue to strive as we navigate external factors beyond our control – such as advancements in technology and infrastructure, broad adoption of low-carbon energy efficient solutions, and the timing and scope of our suppliers’ emission reduction efforts.

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Information About Our Executive Officers

The names, ages, and positions of our executive officers as of February 20, 2026 are listed below along with their business experience during the past five years. Officers are elected annually by the Company's Board of Directors (the "Board"). There are no family relationships among these officers, nor any arrangements or understanding between any officer and any other persons pursuant to which the officer was elected.

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Website Disclosure

Our Internet address is www.regalrexnord.com. We make available free of charge (other than an investor's own Internet access charges) through our Internet website our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and amendments to those reports, as soon as reasonably practicable after we electronically file such material with, or furnish such material to, the Securities and Exchange Commission. In addition, we have adopted a Code of Business Conduct and Ethics that applies to our officers, directors and associates which satisfies the requirements of the New York Stock Exchange regarding a “code of business conduct.” We have also adopted Corporate Governance Guidelines addressing the subjects required by the New York Stock Exchange. In September 2025, we produced our 2024 Sustainability Report. We make copies of the foregoing, as well as the charters of our Board committees, available free of charge on our website. We intend to satisfy the disclosure requirements under Item 5.05 of Form 8-K regarding amendments to, or waivers from, our Code of Business Conduct and Ethics by posting such information on our web site at the address stated above. We are not including the information contained on or available through our website as a part of, or incorporating such information by reference into, this Annual Report on Form 10-K.