RRX
Regal Rexnord Corporation
Is RRX Halal?
Industrial motion-and-power maker with a permissible core business, but current acquisition debt pushes debt/assets above the examined limits.
What You Should Know
Regal Rexnord Corporation manufactures electric motors, drives, controls, bearings and power-transmission components. Its March 31, 2026 Form 10-Q reports assets of $13,780.8 million, interest-bearing debt of $4,706.4 million, cash of $401.0 million and trade receivables of $577.3 million. Debt/assets is 34.15%, liquidity/assets is 2.91%, receivables-plus-cash/assets is 7.10% and disclosed interest income is 0.31% of quarterly sales; the debt screen fails even though the other known ratios pass.
⚠️ Concerns
- •Debt/assets is 34.15%, above the examined 33% limits
- •Acquisition debt remains the deciding financial issue despite deleveraging
- •Aerospace, industrial and downstream end uses are not quantified
- •Receivables securitization and derivatives require continuing contract review
- •Re-screen after debt repayment or the next filing
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
4,706.4 / 13,780.8
401 / 13,780.8
978.3 / 13,780.8
4.6 / 1,479.1
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.15%, above the examined FTSE 33.333% limit; liquidity/assets is 2.91%, receivables plus cash/assets is 7.10%, and disclosed interest income is 0.31%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.15%, above the examined MSCI 33.33% limit; this is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.15%, above the examined Malaysia 33% limit; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed and reproducible historical issuer market-cap series is not stored; the debt failure independently prevents a pass.
Business-activity disclosure
Regal Rexnord manufactures electric motors, drives, controls, bearings and power-transmission components. Industrial manufacturing is generally permissible, while aerospace, defense-adjacent, customer end-use, supply-chain and acquisition activities require continuing qualitative review.
Limitation: The filing does not allocate revenue into a universal prohibited-activity numerator by customer, end use, government exposure or product application.
Purification
Regal Rexnord discloses $4.6 million of interest income, or 0.31% of quarterly sales, but does not prescribe a scholar-approved purification percentage or quantify all screened business activity.
Inputs, assumptions and primary sources
- Amounts are USD millions from Regal Rexnord's March 31, 2026 Form 10-Q.
- Debt combines $23.8 million of current maturities and $4,682.6 million of long-term debt; operating leases are excluded.
- Cash and cash equivalents are $401.0 million; no separate interest-bearing securities balance is identified.
- Trade receivables, net are $577.3 million and first-quarter net sales are $1,479.1 million. Receivables sold under the securitization facility are not added after derecognition.
- Disclosed interest income is $4.6 million; the filing does not provide a universal prohibited-activity revenue numerator.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Similar Stocks
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →