Financial Performance - Regal Rexnord reported quarterly earnings of $2.34 per share, missing the Zacks Consensus Estimate of $2.46 per share, but showing an increase from $2.28 per share a year ago, resulting in an earnings surprise of -4.88% [1] - The company posted revenues of $1.46 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.01%, and down from $1.61 billion year-over-year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.15 on revenues of $1.43 billion, and for the current fiscal year, it is $10.35 on revenues of $6.06 billion [7] - The estimate revisions trend for Regal Rexnord is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - Regal Rexnord operates within the Zacks Manufacturing - General Industrial industry, which is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Regal Rexnord's stock may be influenced by the overall outlook for the industry, as empirical research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Core Insights - Regal Rexnord Corporation reported a weaker-than-expected top line in Q4 2024, with sales of $1,461.1 million, down 9.1% year-over-year, and down 1.4% on an organic basis [3][8] - The company achieved an adjusted gross margin of 37.1%, up 60 basis points from the previous year, and surpassed its annual synergy target by $11 million [3][8] - For 2025, Regal Rexnord provided guidance for GAAP diluted earnings per share in the range of $4.42 to $5.22 and adjusted diluted earnings per share in the range of $9.60 to $10.40 [2] Financial Performance - Q4 2024 GAAP net income was $42.0 million compared to $56.6 million in Q4 2023, while adjusted diluted EPS was $2.34, up 2.6% year-over-year [8][22] - The company paid down $205 million of gross debt in Q4 and $938 million for the full year, exceeding its targeted reduction [3][8] - Cash from operating activities was $213.2 million, with adjusted free cash flow of $185.3 million, an increase of 8.4% compared to the previous year [8] Segment Performance - The Automation & Motion Control segment reported net sales of $409.8 million, a decrease of 2.6%, while the Industrial Powertrain Solutions segment had net sales of $635.0 million, down 2.3% [9][20] - The Power Efficiency Solutions segment saw net sales of $416.3 million, a slight decrease of 0.4%, but experienced growth in residential HVAC markets [9][20] - Adjusted EBITDA margins for the segments were 21.6% for Automation & Motion Control, 26.0% for Industrial Powertrain Solutions, and 15.3% for Power Efficiency Solutions [9][20] Strategic Initiatives - The company is focusing on growth, margin improvement, and debt reduction initiatives, with a notable partnership announced with Honeywell to collaborate on electric aircraft [3][8] - Regal Rexnord is on track to achieve a 40% adjusted gross margin by the end of 2025, following a year of transformation that included the divestiture of the Industrial Systems business [3][8] - The company is cautiously optimistic about 2025, citing improving orders and growth prospects, particularly in the latter half of the year [3][8]

Company Overview - Regal Rexnord Corporation has 30,000 associates globally, providing sustainable solutions that power, transmit, and control motion [4] - The company offers electric motors and air moving subsystems, along with a portfolio of highly engineered power transmission components and subsystems [4] - Regal Rexnord's automation offerings include controls, actuators, drives, and precision motors for various applications [4] Market Segments - The company's end markets include factory automation, food & beverage, aerospace, medical, data center, warehouse, alternative energy, residential and commercial buildings, general industrial, construction, metals and mining, and agriculture [5] - These markets benefit from significant secular demand tailwinds, indicating strong growth potential [5] Financial Reporting - Regal Rexnord plans to release its fourth quarter 2024 financial results after the market closes on February 5, 2025 [1] - A conference call to discuss the earnings release will take place on February 6, 2025, at 9:00 am CT [2] - Webcast and telephone replay options will be available for three months following the earnings conference call [3] Operating Segments - Regal Rexnord operates through three segments: Industrial Powertrain Solutions, Power Efficiency Solutions, and Automation & Motion Control [6] - The company is headquartered in Milwaukee, Wisconsin, with manufacturing, sales, and service facilities worldwide [6]

Regal Rexnord Corporation (NYSE:RRX) Q3 2024 Earnings Call Transcript November 5, 2024 10:00 AM ET Company Participants Rob Barry - IR Louis Pinkham - CEO Rob Rehard - CFO Conference Call Participants Mike Halloran - Baird Jeff Hammond - KeyBanc Capital Markets Julian Mitchell - Barclays Nigel Coe - Wolfe Research Joe Ritchie - Goldman Sachs Christopher Glynn - Oppenheimer Operator Good morning and welcome to Regal Rexnord Third Quarter 2024 Earnings Call. All participants will be in listen-only mode. [Oper ...

&RegalRexnord Creating a better tomorrow™… Third Quarter 2024 Earnings November 5, 2024 Louis Pinkham, Chief Executive Officer Rob Rehard, Executive Vice President, Chief Financial Officer Motion Control Solutions Industrial Systems 3Q 2024 FORWARD LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES All statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as "anticip ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-07283 REGAL REXNORD CORPORATION (Exact name of registrant as specified in its charter) Wisconsin 39-0875718 (State or other jurisdiction of incorporation)(IRS Employer I ...

Financial Performance - GAAP diluted EPS of $1.09 and adjusted diluted EPS of $2.49, up 18.6% year-over-year[1] - Sales totaled $1,477.4 million, down 10.4% compared to the previous year; organic sales decreased by 2.7%[1] - Adjusted EBITDA of $337.0 million, slightly up from $330.0 million year-over-year, with a record adjusted EBITDA margin of 22.8%, an increase of 110 basis points[1] - Net income attributable to Regal Rexnord Corporation for the three months ended September 30, 2024, was $72.7 million, compared to a net loss of $139.5 million in the same period last year[16] - Basic earnings per share for the three months ended September 30, 2024, was $1.09, compared to a loss of $2.10 per share in the same period last year[16] - The company reported a net income of $73.0 million for Q3 2024, a significant recovery from a net loss of $138.6 million in Q3 2023[25] Sales and Revenue Breakdown - Automation & Motion Control segment net sales were $401.6 million, a decrease of 4.3%[3] - Industrial Powertrain Solutions segment net sales were $644.2 million, an increase of 0.5%[4] - Power Efficiency Solutions segment net sales were $431.6 million, a decrease of 6.4%[5] - Total net sales for the three months ended September 30, 2024, reached $1,477.4 million, with Industrial Powertrain Solutions contributing $644.2 million, Power and Efficiency Solutions $431.6 million, and Automation & Motion Control $401.6 million[34] - For the nine months ended September 30, 2024, total net sales amounted to $4,572.7 million, with Industrial Powertrain Solutions at $1,963.1 million, Power and Efficiency Solutions at $1,227.8 million, and Automation & Motion Control at $1,224.0 million[35] Debt and Cash Management - Paid down $114 million of gross debt in Q3, totaling $733 million year-to-date, on track to pay down approximately $900 million of debt for the year[1] - Long-term debt decreased to $5,654.6 million as of September 30, 2024, compared to $6,377.0 million at the end of 2023[17] - Cash and cash equivalents were $458.6 million as of September 30, 2024, down from $574.0 million at the end of 2023[17] - Total current liabilities decreased to $1,208.6 million as of September 30, 2024, from $1,326.4 million at the end of 2023[17] - Net Debt as of September 30, 2024, was $5,198.9 million, with a Gross Debt to Adjusted EBITDA ratio of 4.23[26] Guidance and Future Expectations - Company expects modestly positive organic growth in Q4 2024[1] - Annual guidance for 2024 adjusted diluted EPS updated to a range of $9.15 to $9.45, down from $9.40 to $9.80[2] - The company provided annual guidance for GAAP diluted EPS in the range of $3.27 to $3.57 for 2024[21] - The company expects to realize $100 million in synergies within 18 months, improving the interest coverage ratio to 3.63 when including these synergies[28] Operational Efficiency and Cost Management - Synergies of $27 million achieved in Q3, on track to deliver $90 million for the year[1] - The company incurred transaction and integration-related costs of $10.5 million, primarily associated with the Altra Transaction[22] - Restructuring and related costs for the three months totaled $10.7 million, while for the nine months, these costs were $35.5 million[34][35] - The company is focused on actions related to employee reductions, facility consolidations, and product line exits as part of its restructuring strategy[34][35] Profitability Metrics - Adjusted EBITDA for Regal Rexnord was $339.2 million for the three months ended September 30, 2024, compared to $330.0 million excluding Industrial Systems[23] - Adjusted operating margin improved to 15.4% in Q3 2024 from 9.3% in Q3 2023[22] - The adjusted EBITDA margin for the three months ended September 30, 2024, was 26.2%, compared to 24.2% in the same period of 2023[19] - Adjusted Income from Operations for Q3 2024 was $290.3 million, up from $209.2 million in Q3 2023, representing an increase of 38.8%[24] Cash Flow and Investment Activities - Net cash provided by operating activities decreased to $154.8 million from $186.7 million year-over-year[18] - Adjusted free cash flow for the nine months ended September 30, 2024, is $326.5 million, down from $512.2 million in 2023[29] - The company had a net cash used in investing activities of $29.3 million for the three months ended September 30, 2024[18] Market and Economic Impact - The company experienced a foreign currency impact of (0.3)% on organic sales growth for the three months ended September 30, 2024[19] - The effective tax rate for the three months ended September 30, 2024, is 10.3%, compared to (10.1)% in the same period of 2023[30]

For the quarter ended September 2024, Regal Rexnord (RRX) reported revenue of $1.48 billion, down 10.5% over the same period last year. EPS came in at $2.49, compared to $2.10 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.51 billion, representing a surprise of -2.09%. The company delivered an EPS surprise of +1.63%, with the consensus EPS estimate being $2.45.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Core Viewpoint - Regal Rexnord reported quarterly earnings of $2.49 per share, exceeding the Zacks Consensus Estimate of $2.45 per share, and showing an increase from $2.10 per share a year ago, indicating a positive earnings surprise of 1.63% [1] Financial Performance - The company posted revenues of $1.48 billion for the quarter ended September 2024, which was below the Zacks Consensus Estimate by 2.09% and a decrease from $1.65 billion year-over-year [2] - Over the last four quarters, Regal Rexnord has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] Stock Performance - Regal Rexnord shares have increased approximately 14.2% since the beginning of the year, while the S&P 500 has gained 20.1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.74 on revenues of $1.53 billion, and for the current fiscal year, it is $9.48 on revenues of $6.13 billion [7] - The outlook for the Manufacturing - General Industrial industry, to which Regal Rexnord belongs, is currently in the top 41% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

MILWAUKEE, Nov. 4, 2024 /PRNewswire/ -- Regal Rexnord Corporation (NYSE: RRX)3Q Highlights GAAP Diluted EPS Of $1.09, Adjusted Diluted EPS* Of $2.49, Up 18.6% Versus PY Paid Down $114 Million Of Gross Debt In 3Q, $733 Million Year-To-Date. On Track To Pay Down ~$900 Million Of Debt In The Year. Net Debt/Adjusted EBITDA (Including Synergies)* Of ~3.6x Adjusted Free Cash Flow* Of $125.5 Million Sales Of $1,477.4 Million, Down 10.4% Versus PY; Down 2.7% On An Organic* Basis GAAP Gross Margin Of 37.7%; Adjusted ...