Workflow
Regal Beloit(RRX)
icon
Search documents
RRX or TRMB: Which Is the Better Value Stock Right Now?
ZACKS· 2025-07-09 16:40
Core Insights - Regal Rexnord (RRX) and Trimble Navigation (TRMB) are two stocks in the Manufacturing - General Industrial sector, with RRX currently presenting a better value opportunity compared to TRMB [1] Valuation Metrics - RRX has a forward P/E ratio of 15.15, while TRMB has a significantly higher forward P/E of 27.35 [5] - The PEG ratio for RRX is 1.52, indicating a more favorable valuation relative to its expected earnings growth, compared to TRMB's PEG ratio of 2.74 [5] - RRX's P/B ratio stands at 1.54, whereas TRMB's P/B ratio is 3.49, further highlighting RRX's superior valuation metrics [6] Earnings Outlook - RRX holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to recent revisions in earnings estimates, while TRMB has a Zacks Rank of 4 (Sell) [3][4] - The solid earnings outlook for RRX, combined with its favorable valuation metrics, positions it as the superior value option in comparison to TRMB [6]
Regal Rexnord Corporation to Host Second Quarter 2025 Earnings Conference Call on Wednesday, August 6, 2025
Prnewswire· 2025-07-08 12:00
MILWAUKEE, July 8, 2025 /PRNewswire/ -- Regal Rexnord Corporation (NYSE: RRX) announced today that it plans to release its second quarter 2025 financial results after the market closes on Tuesday, August 5, 2025.Regal Rexnord will host a conference call to discuss the earnings release at 9:00 am CT (10:00 am ET) on Wednesday, August 6, 2025. To listen to the live audio and view the presentation during the call, please visit Regal Rexnord's Investor website: https://investors.regalrexnord.com. To listen by p ...
Regal Beloit(RRX) - 2025 Q1 - Quarterly Report
2025-05-06 17:33
Financial Performance - Net sales for the three months ended March 31, 2025, were $1,418.1 million, a decrease of 8.3% compared to $1,547.7 million for the same period in 2024[12]. - Gross profit for the same period was $527.6 million, down from $553.1 million, reflecting a gross margin of 37.2%[12]. - Net income attributable to Regal Rexnord Corporation increased to $57.3 million, compared to $19.8 million in the prior year, representing a growth of 189.4%[12]. - Earnings per share attributable to Regal Rexnord Corporation were $0.86, significantly higher than $0.30 for the same quarter last year[12]. - Comprehensive income for the three months ended March 31, 2025, was $181.9 million, compared to a loss of $67.5 million in the prior year[14]. - Net income for the three months ended March 31, 2025, was $57.5 million, compared to $20.4 million for the same period in 2024, representing an increase of 181.8%[21]. - The company reported a consolidated income from operations of $159.7 million for Q1 2025, an increase from $133.9 million in Q1 2024[114]. Assets and Liabilities - Total assets as of March 31, 2025, were $14,032.3 million, slightly down from $14,033.7 million at the end of 2024[16]. - Current liabilities increased to $1,218.4 million from $1,215.7 million, with accounts payable rising to $589.3 million[16]. - Long-term debt decreased to $5,291.8 million from $5,452.7 million, indicating a reduction in leverage[16]. - Cash and cash equivalents were $305.3 million, down from $393.5 million at the end of 2024[16]. - Total debt as of March 31, 2025, was $5,296.9 million, a decrease from $5,457.7 million as of December 31, 2024[54]. - As of March 31, 2025, total current assets were $1,165.6 million, an increase from $1,132.2 million as of December 31, 2024[139]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased to $102.3 million in Q1 2025 from $83.1 million in Q1 2024, a growth of 23.0%[21]. - Cash flow provided by operating activities increased by $19.2 million to $102.3 million for the three months ended March 31, 2025, compared to $83.1 million in 2024[124]. - Cash flow used in investing activities decreased to $3.5 million for the three months ended March 31, 2025, from $17.5 million in the same period in 2024[125]. - Capital expenditures for the three months ended March 31, 2025, totaled $16.8 million[47]. - The company anticipates capital spending for property, plant, and equipment to be approximately $120 million in 2025[126]. Segment Performance - North America generated $1,002.3 million in revenue for Q1 2025, accounting for 70.6% of total revenue, while Asia contributed $95.0 million, representing 6.7%[29]. - The Automation & Motion Control segment reported net sales of $396.3 million, a decrease of $3.9 million or 1.0% compared to Q1 2024, with a negative foreign currency translation impact of 1.4%[117]. - The Industrial Powertrain Solutions segment had net sales of $612.7 million, a decrease of $30.7 million or 4.8% compared to Q1 2024, with an organic sales decline of 3.4%[118]. - The Power Efficiency Solutions segment achieved net sales of $409.1 million, an increase of $23.8 million or 6.2% compared to Q1 2024, driven by an organic sales increase of 8.0%[119]. Tax and Interest - The effective tax rate for the three months ended March 31, 2025, was 21.2%, a decrease from 34.8% for the same period in 2024, primarily due to a non-deductible loss from the divestiture of the industrial motors and generators businesses[70]. - The average daily balance in borrowings under the Multicurrency Revolving Facility was $81.4 million for the three months ended March 31, 2025, compared to $98.5 million for the same period in 2024[61]. - The company paid $76.9 million in interest during the three months ended March 31, 2025, compared to $94.8 million in the same period of 2024, a reduction of 18.9%[21]. Shareholder Actions - The company declared dividends of $0.35 per share, totaling $23.2 million for the quarter[18]. - The Company authorized a share repurchase program of up to $500.0 million, with $145.0 million remaining available for purchase as of March 31, 2025[167]. - Curtis Stoelting terminated a Rule 10b5-1 trading arrangement on February 14, 2025, which allowed for the potential sale of up to 4,500 shares[168]. - A new Rule 10b5-1 trading arrangement was entered into by Mr. Stoelting for the sale of up to 9,000 shares, effective May 26, 2025[169]. Derivatives and Hedging - The Company has commodity forward contracts to hedge forecasted purchases of commodities, with a notional amount of $56.0 million for copper as of March 31, 2025[84]. - The Company had currency forward contracts with a notional amount of $1,227.5 million for euros as of March 31, 2025[84]. - The fair value of derivative currency contracts as of March 31, 2025, was $18.7 million, compared to $1.0 million on December 31, 2024[92]. - The company recorded an estimated liability for incurred claims related to sub-fractional motors, but cannot assure that these claims will not materially affect its subsidiary's financial condition[74]. - The company is exposed to foreign currency risks from operations, including translation of local currency balances and intercompany loans, and aims to minimize this exposure through foreign currency exchange contracts[146]. Restructuring and Future Outlook - The restructuring costs for the three months ended March 31, 2025, totaled $9.8 million, slightly up from $9.3 million in the same period of 2024[96]. - The company expects to incur approximately $16.8 million in future restructuring charges throughout the remainder of 2025[96]. - The company plans to mitigate the impact of current tariffs on 2025 earnings through various actions[113]. - The company expects to incur increased costs due to tariffs imposed by the US government and retaliatory tariffs from other countries, which may impact financial results[159].
Regal Beloit(RRX) - 2025 Q1 - Earnings Call Transcript
2025-05-06 15:02
Financial Data and Key Metrics Changes - Sales in the first quarter were up 0.7% year-over-year on an organic basis, or 2.3% on a daily organic basis, with strength in residential HVAC, aerospace, and energy markets [11][12] - Adjusted gross margin was 37.9%, up 50 basis points year-over-year, while adjusted EBITDA margin was 21.8%, up 30 basis points [13][14] - Adjusted earnings per share in the quarter was $2.15, up 7.5% year-over-year, or approximately 10% adjusted for the impact of the Industrial Systems divestiture [14] - Free cash flow generated in the quarter was nearly $86 million, up 32% year-over-year, contributing to a debt reduction of $164 million [14][32] Business Line Data and Key Metrics Changes - Automation and Motion Control (AMC) net sales were up 40 basis points year-over-year on an organic basis, driven by strength in aerospace and defense, and a return to growth in discrete automation [22] - Industrial Powertrain Solutions (IPS) net sales were down 3.4% year-over-year on an organic basis, reflecting weakness in the machinery off-highway market [25] - Power Efficiency Solutions (PES) net sales were up 8% year-over-year on an organic basis, largely due to strong growth in residential HVAC, which was up nearly 30% [28][29] Market Data and Key Metrics Changes - IPS sales in North America were up low single digits, while sales in China, Europe, and the rest of the world experienced weakness [26] - Orders in IPS were up nearly 9% in the first quarter, reflecting further outgrowth in attractive markets [26] - Organic orders in April were down 1.8%, largely due to aerospace project timing in AMC and anticipated order rebalancing in PES [12] Company Strategy and Development Direction - The company is focused on executing growth, synergy, and cash flow acceleration plans, while implementing robust tariff mitigation strategies [10][14] - The humanoid robot market is identified as a significant growth opportunity, with expectations of strong double-digit CAGRs for the next decade [15][19] - The company aims to leverage its automation portfolio to gain market share in the humanoid space, with recent wins worth over $20 million in annual sales [20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving growth prospects, noting three quarters of positive orders growth and a belief that most end markets are near trough levels of demand [7][9] - The company reaffirmed its earnings guidance for the year, despite macroeconomic uncertainties and tariff-related challenges [9][33] - Management emphasized confidence in achieving tariff-related cost and margin neutrality by mid-2026 [42][44] Other Important Information - The company ended the quarter with total debt of approximately $5.3 billion and net debt just below $5 billion [32] - The company plans to continue deploying the majority of its free cash flow to debt reduction in 2025 [32] Q&A Session Summary Question: Dynamics of long cycle versus short cycle orders - Management noted good momentum in winning longer cycle projects, especially in IPS, while short cycle orders remained stable [48][50] Question: Competitive positioning and share gains - Management highlighted a net advantageous position due to global manufacturing footprint and dual country sourcing strategies, expecting share opportunities to arise [53][54] Question: EBITDA margin outlook and drivers - Management expects a step-up in EBITDA margins in the second half, driven by mix, volume, and price synergies [58][59] Question: PES revenue outlook and conservatism in guidance - Management expressed caution regarding the second half outlook for PES due to macroeconomic factors, despite strong first quarter performance [63] Question: Mitigation of tariff impacts - Management outlined that supply chain realignments and production relocations are primary mitigation strategies, with pricing actions also contributing [69][70] Question: IPS margin guide and mix effects - Management confirmed that the margin guide for IPS is primarily affected by mix rather than tariff pressures [83] Question: Humanoid market opportunities - Management indicated that the $100 million opportunity funnel is global, with recent wins not primarily based in China [100]
Regal Beloit(RRX) - 2025 Q1 - Earnings Call Transcript
2025-05-06 14:00
Financial Data and Key Metrics Changes - Sales in Q1 2025 increased by 0.7% year-over-year on an organic basis, or 2.3% on a daily organic basis, with notable strength in residential HVAC, aerospace, and energy markets [10][12] - Adjusted gross margin was 37.9%, up 50 basis points year-over-year, while adjusted EBITDA margin was 21.8%, up 30 basis points [12][13] - Adjusted earnings per share in the quarter was $2.15, reflecting a 7.5% increase year-over-year, or approximately 10% adjusted for the impact of the Industrial Systems divestiture [13] - Free cash flow generated in the quarter was nearly $86 million, up 32% year-over-year, contributing to a $164 million debt repayment [13][33] Business Line Data and Key Metrics Changes - Automation and Motion Control (AMC) net sales were up 40 basis points year-over-year on an organic basis, driven by strength in aerospace and defense, with discrete automation returning to growth [22][23] - Industrial Powertrain Solutions (IPS) net sales decreased by 3.4% year-over-year on an organic basis, reflecting weakness in the machinery off-highway market, but orders were up nearly 9% [25][27] - Power Efficiency Solutions (PES) net sales increased by 8% year-over-year on an organic basis, primarily due to strong growth in residential HVAC, which was up nearly 30% [29][30] Market Data and Key Metrics Changes - IPS sales in North America were up low single digits, while sales in China, Europe, and the rest of the world experienced declines [26] - Orders in IPS were up nearly 9% in Q1, indicating strong performance in metals and mining and marine markets [27] - Organic orders in April were down 1.8%, largely due to aerospace project timing in AMC and anticipated order rebalancing in PES [11] Company Strategy and Development Direction - The company is focused on executing growth, synergy, and cash flow acceleration plans while implementing robust tariff mitigation strategies [8][10] - Regal Rexnord is well-positioned in the humanoid robot market, with expectations for significant growth opportunities in the coming years [14][19] - The company aims to achieve EBITDA margin neutrality by mid-2026 through effective tariff mitigation actions [40][43] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving growth prospects, noting that most end markets are at or near trough levels of demand and starting to rebound [6][7] - The company reaffirmed its 2025 guidance, indicating confidence in its ability to manage through tariff-related uncertainties while maintaining a positive outlook on order momentum [34][45] - Management highlighted the potential for share gains due to tariff-related pricing and strategic opportunities [38][45] Other Important Information - The company ended the quarter with total debt of approximately $5.3 billion and net debt just below $5 billion, with plans to continue deploying free cash flow to debt reduction [33] - The company has a funnel of opportunities worth approximately $100 million in the humanoid robot market, with several recent wins worth over $20 million in annual sales [20][104] Q&A Session Summary Question: Dynamics of long cycle vs short cycle orders - Management noted good momentum in winning longer cycle projects, particularly in IPS, while short cycle orders remained stable [49][50] Question: Competitive positioning and share gains - Management emphasized a net advantageous position due to global manufacturing footprint and dual country sourcing strategies, expecting share opportunities to arise [53][54] Question: EBITDA margin outlook and tariff impacts - Management expects a step-up in EBITDA margins in the second half of the year, primarily driven by mix and volume improvements, with confidence in achieving EBITDA neutrality by year-end [59][60] Question: PES revenue outlook and conservatism in guidance - Management indicated that while pleased with Q1 performance, they remain cautious about the second half due to macroeconomic factors [63] Question: Mitigation of tariff impacts - Management outlined that supply chain realignments and production relocations are primary mitigation strategies, with pricing actions also contributing [70][71] Question: Humanoid market opportunities - Management clarified that the $100 million opportunity funnel is global, with recent wins primarily not based in China [102][104]
Regal Beloit(RRX) - 2025 Q1 - Earnings Call Presentation
2025-05-06 11:30
Creating a better tomorrow™… First Quarter 2025 Earnings May 6, 2025 Louis Pinkham, Chief Executive Officer Industrial Rob Rehard, Executive Vice President, Chief Financial Officer Motion Control Solutions Systems 1Q 2025 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 "anticipate," "believe," "c ...
Regal Beloit(RRX) - 2025 Q1 - Quarterly Results
2025-05-06 10:46
[Regal Rexnord Q1 2025 Financial Results](index=1&type=section&id=Regal%20Rexnord%20Reports%20Strong%20First%20Quarter%202025%20Financial%20Results) [First Quarter 2025 Highlights](index=1&type=section&id=1Q%20Highlights) Regal Rexnord reported strong Q1 2025 results, driven by **0.7% organic sales growth**, a **7.5% increase in Adjusted Diluted EPS to $2.15**, and **$85.5 million in free cash flow**, while reducing debt and seeing positive order momentum Q1 2025 Key Financial Metrics (Values in Millions, except per share and percentages) | Metric | Q1 2025 Value | Change vs. PY | Note | | :--- | :--- | :--- | :--- | | Sales | $1,418.1M | -8.4% | +0.7% on an Organic Basis | | Adjusted Diluted EPS | $2.15 | +7.5% | +10% excluding Industrial Systems | | GAAP Diluted EPS | $0.86 | +186.7% | - | | Adjusted EBITDA Margin | 21.8% | +30 bps | - | | Free Cash Flow | $85.5M | +32.4% | - | | Gross Debt Paid Down | $164M | - | Net Debt/Adj. EBITDA at ~3.6x | | Daily Orders | - | +3.3% | Excluding currency impacts | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Louis Pinkham highlighted all segments exceeded guidance, expressing optimism for organic growth despite macro uncertainty from U.S. trade policy, with plans to achieve **tariff cost neutrality by 2025** and **margin neutrality by mid-2026** - All segments exceeded guidance, with PES achieving **8.0% organic growth** and AMC returning to growth in discrete automation[2](index=2&type=chunk) - The company is cautiously optimistic about an organic growth inflection, supported by several quarters of positive orders growth and a sense that most end markets are at or near trough demand levels[2](index=2&type=chunk) - Recent shifts in U.S. trade policy and tariffs have heightened macro uncertainty, but the company has aggressive mitigation plans and expects to achieve **tariff cost neutrality in 2025**[2](index=2&type=chunk) [2025 Financial Guidance](index=2&type=section&id=FY%20Guidance) The company updated its **2025 GAAP Diluted EPS guidance** to **$4.49-$5.29** due to a Q1 asset sale gain, while reaffirming **full-year Adjusted Diluted EPS guidance** at **$9.60-$10.40**, expecting tariff impact neutralization through mitigation actions 2025 Full-Year Guidance | Metric | Guidance Range | | :--- | :--- | | GAAP Diluted EPS | $4.49 - $5.29 | | Adjusted Diluted EPS | $9.60 - $10.40 | - The company expects to neutralize the impact of current tariffs on its **2025 Adjusted EPS** through mitigation actions[4](index=4&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) In Q1 2025, segment performance was mixed, with **Power Efficiency Solutions (PES)** leading at **8.0% organic growth**, **Automation & Motion Control (AMC)** showing **0.4% organic growth**, and **Industrial Powertrain Solutions (IPS)** declining **3.4% organically** but maintaining a strong **26.9% adjusted EBITDA margin** [Automation & Motion Control (AMC)](index=2&type=section&id=Automation%20%26%20Motion%20Control) The AMC segment's **net sales** decreased **1.0% to $396.3 million** but achieved **0.4% organic growth**, driven by aerospace & defense and discrete automation, offsetting headwinds in other markets, with an **adjusted EBITDA margin** of **21.8%** AMC Q1 2025 Performance | Metric | Value | | :--- | :--- | | Net Sales | $396.3M (-1.0% YoY) | | Organic Sales Growth | +0.4% YoY | | Adjusted EBITDA Margin | 21.8% | [Industrial Powertrain Solutions (IPS)](index=2&type=section&id=Industrial%20Powertrain%20Solutions) The IPS segment reported **net sales** of **$612.7 million**, a **4.8% decrease** (**3.4% organic**), primarily due to weakness in metals & mining and machinery/off-highway markets, partially offset by energy growth, while maintaining a strong **adjusted EBITDA margin** of **26.9%** IPS Q1 2025 Performance | Metric | Value | | :--- | :--- | | Net Sales | $612.7M (-4.8% YoY) | | Organic Sales Growth | -3.4% YoY | | Adjusted EBITDA Margin | 26.9% | [Power Efficiency Solutions (PES)](index=2&type=section&id=Power%20Efficiency%20Solutions) The PES segment delivered strong results with **net sales** of **$409.1 million**, an increase of **6.2%** (**8.0% organic**), primarily driven by the North American residential HVAC market, achieving an **adjusted EBITDA margin** of **14.2%** PES Q1 2025 Performance | Metric | Value | | :--- | :--- | | Net Sales | $409.1M (+6.2% YoY) | | Organic Sales Growth | +8.0% YoY | | Adjusted EBITDA Margin | 14.2% | [Financial Statements](index=6&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Income](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) For Q1 2025, Regal Rexnord reported **net sales** of **$1.42 billion**, down from **$1.55 billion** due to divestiture, but **net income attributable to the company** significantly increased to **$57.3 million** from **$19.8 million**, resulting in **diluted EPS** of **$0.86** compared to **$0.30** in Q1 2024 Q1 2025 vs. Q1 2024 Income Statement (in Millions, except per share) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $1,418.1 | $1,547.7 | | Gross Profit | $527.6 | $553.1 | | Income from Operations | $159.7 | $133.9 | | Net Income Attributable to Regal Rexnord | $57.3 | $19.8 | | Diluted EPS | $0.86 | $0.30 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, the company's **balance sheet** shows **total assets** of **$14.03 billion**, stable from year-end 2024, with **cash and cash equivalents** decreasing to **$305.3 million** from **$393.5 million**, **total debt** reduced to **$5.30 billion** from **$5.46 billion**, and **total equity** increasing to **$6.43 billion** Balance Sheet Highlights (in Millions) | Account | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $305.3 | $393.5 | | Total Current Assets | $2,753.4 | $2,751.3 | | Goodwill | $6,513.2 | $6,458.9 | | Total Assets | $14,032.3 | $14,033.7 | | Total Current Liabilities | $1,218.4 | $1,215.7 | | Long-Term Debt | $5,291.8 | $5,452.7 | | Total Equity | $6,430.4 | $6,267.2 | [Condensed Consolidated Statements of Cash Flow](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOW) In Q1 2025, **net cash provided by operating activities** increased to **$102.3 million** from **$83.1 million**, resulting in **$85.5 million** in **free cash flow** (a **32.4% YoY increase**), with **$192.5 million** used in **financing activities**, primarily for debt repayments Q1 2025 vs. Q1 2024 Cash Flow (in Millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $102.3 | $83.1 | | Net Cash Used in Investing Activities | ($3.5) | ($17.5) | | Net Cash Used in Financing Activities | ($192.5) | ($168.0) | | Net Decrease in Cash | ($88.2) | ($112.9) | - Free cash flow (Net Cash from Operations less Capex) was **$85.5 million** for Q1 2025, compared to **$64.6 million** in Q1 2024[35](index=35&type=chunk) [Non-GAAP Reconciliations](index=9&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including **Adjusted Diluted EPS**, **Organic Sales Growth**, **Adjusted EBITDA**, and **Free Cash Flow**, by removing effects of intangible amortization, restructuring, and non-recurring items to offer a clearer view of ongoing operational performance [Adjusted Diluted Earnings Per Share](index=9&type=section&id=ADJUSTED%20DILUTED%20EARNINGS%20PER%20SHARE) The company reconciled its **Q1 2025 GAAP Diluted EPS of $0.86** to an **Adjusted Diluted EPS of $2.15**, primarily by adding back intangible amortization (**$0.97**), restructuring costs (**$0.18**), and share-based compensation (**$0.13**) Q1 2025 GAAP to Adjusted EPS Reconciliation | Description | Per Share Amount | | :--- | :--- | | GAAP Diluted EPS | $0.86 | | Intangible Amortization | $0.97 | | Restructuring and Related Costs | $0.18 | | Share-Based Compensation Expense | $0.13 | | Transaction and Integration Related Costs | $0.08 | | Gain on Sale of Assets | ($0.07) | | **Adjusted Diluted EPS** | **$2.15** | [Organic Sales Growth](index=10&type=section&id=ORGANIC%20SALES%20GROWTH) Total company **net sales** declined **8.4% YoY** due to a **7.9% divestiture impact** and **1.2% negative currency impact**, resulting in **0.7% organic sales growth** in Q1 2025, led by **PES (+8.0%)** and **AMC (+0.4%)**, despite an **IPS decline (-3.4%)** Q1 2025 Organic Sales Growth by Segment | Segment | Net Sales Growth % | Foreign Currency Impact % | Divestitures % | Organic Sales Growth % | | :--- | :--- | :--- | :--- | :--- | | AMC | (1.0)% | (1.4)% | — % | 0.4% | | IPS | (4.8)% | (1.4)% | — % | (3.4)% | | PES | 6.2% | (0.9)% | (0.9)% | 8.0% | | **Total Regal Rexnord** | **(8.4)%** | **(1.2)%** | **(7.9)%** | **0.7%** | [Adjusted EBITDA](index=11&type=section&id=ADJUSTED%20EBITDA) Total company **Adjusted EBITDA** for Q1 2025 was **$309.5 million** with a **21.8% margin**, comparable to **$307.2 million** (**21.5% margin**) in Q1 2024 (excluding divested Industrial Systems), with **IPS** contributing the largest at **$164.9 million** (**26.9% margin**) Q1 2025 Adjusted EBITDA by Segment (in Millions) | Segment | Adjusted EBITDA | Adjusted EBITDA Margin % | | :--- | :--- | :--- | | AMC | $86.5 | 21.8% | | IPS | $164.9 | 26.9% | | PES | $58.1 | 14.2% | | **Total Regal Rexnord** | **$309.5** | **21.8%** | [Debt to EBITDA](index=13&type=section&id=DEBT%20TO%20EBITDA) As of March 31, 2025, the company's **total gross debt** was **$5.30 billion** and **net debt $4.99 billion**, resulting in a **Net Debt to LTM Adjusted EBITDA ratio of 3.83x**, which improves to **3.62x** including **$75.0 million** in expected synergies Debt Metrics as of March 31, 2025 (in Millions, except ratios) | Metric | Value | | :--- | :--- | | Total Gross Debt | $5,296.9 | | Net Debt | $4,991.6 | | LTM Adjusted EBITDA | $1,302.3 | | Net Debt/Adjusted EBITDA | 3.83x | | Adjusted EBITDA (including synergies) | $1,377.3 | | Net Debt/Adjusted EBITDA (including synergies) | 3.62x | [Company Information and Disclosures](index=3&type=section&id=Company%20Information%20and%20Disclosures) This section provides an overview of Regal Rexnord's global operations and segments, alongside crucial disclosures regarding forward-looking statements and associated risks, including those related to **acquisitions and divestitures**, **substantial indebtedness**, **supply chain disruptions**, and **trade policy and tariffs** [About Regal Rexnord](index=3&type=section&id=About%20Regal%20Rexnord) Regal Rexnord is a global company with **30,000 employees** providing sustainable power, transmission, and motion control solutions across **three segments**: **Industrial Powertrain Solutions**, **Power Efficiency Solutions**, and **Automation & Motion Control**, serving diverse end markets - The company is comprised of **three operating segments**: Industrial Powertrain Solutions, Power Efficiency Solutions, and Automation & Motion Control[11](index=11&type=chunk) - Key end markets include discrete automation, food & beverage, aerospace, medical, data center, energy, residential and commercial buildings, general industrial, and metals and mining[10](index=10&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward%20Looking%20Statements) This section cautions that the report contains forward-looking statements subject to risks and uncertainties, including the ability to achieve synergies from **acquisitions and divestitures**, **substantial indebtedness**, **supply chain disruptions**, and changes in **trade policy and tariffs** - Forward-looking statements are subject to risks, including the ability to achieve expected benefits from the Altra acquisition and Industrial Systems divestiture[12](index=12&type=chunk) - The company's **substantial indebtedness** is cited as a risk factor affecting financial flexibility[12](index=12&type=chunk) - Uncertainty in trade policy, including **tariffs on imports and export restrictions**, is highlighted as a significant risk[12](index=12&type=chunk)
Regal Rexnord (RRX) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-05-06 00:05
Core Insights - Regal Rexnord (RRX) reported revenue of $1.42 billion for the quarter ended March 2025, reflecting an 8.4% decline year-over-year, while EPS increased to $2.15 from $2.00 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.37 billion by 3.44%, and the EPS surpassed the consensus estimate of $1.82 by 18.13% [1] Revenue Breakdown - Automation & Motion Control (AMC) revenues were $396.30 million, exceeding the two-analyst average estimate of $380.10 million, with a year-over-year change of -1% [4] - Industrial Powertrain Solutions (IPS) revenues reached $612.70 million, slightly below the average estimate of $614.62 million, representing a year-over-year decline of 4.8% [4] - Power Efficiency Solutions (PES) revenues amounted to $409.10 million, surpassing the average estimate of $385.58 million, with a year-over-year increase of 6.2% [4] Stock Performance - Regal Rexnord shares have returned +13% over the past month, significantly outperforming the Zacks S&P 500 composite, which saw a change of +0.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]
Regal Rexnord (RRX) Q1 Earnings and Revenues Top Estimates
ZACKS· 2025-05-05 22:55
Financial Performance - Regal Rexnord reported quarterly earnings of $2.15 per share, exceeding the Zacks Consensus Estimate of $1.82 per share, and up from $2 per share a year ago, representing an earnings surprise of 18.13% [1] - The company posted revenues of $1.42 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.44%, but down from $1.55 billion year-over-year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.39 on revenues of $1.48 billion, and for the current fiscal year, it is $9.77 on revenues of $5.85 billion [7] - The estimate revisions trend for Regal Rexnord is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Market Performance - Regal Rexnord shares have declined approximately 28% since the beginning of the year, contrasting with the S&P 500's decline of 3.3% [3] - The Manufacturing - General Industrial industry, to which Regal Rexnord belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [8]
REGAL REXNORD REPORTS STRONG FIRST QUARTER 2025 FINANCIAL RESULTS
Prnewswire· 2025-05-05 20:34
Core Insights - Regal Rexnord Corporation reported a strong start to 2025, with all segments exceeding guidance, achieving positive organic growth, and increasing free cash flow by 32% [2][3][8] - The company anticipates achieving tariff cost neutrality in 2025 and margin neutrality by mid-2026, despite macroeconomic uncertainties due to recent shifts in U.S. trade policy [2][3][8] Financial Performance - The company reported GAAP diluted earnings per share of $0.86 and adjusted diluted earnings per share of $2.15, representing a 7.5% increase year-over-year [8][19] - Free cash flow for the first quarter was $85.5 million, up 32.4% compared to the previous year [8] - Net sales for the first quarter were $1,418.1 million, down 8.4% year-over-year, but up 0.7% on an organic basis [8][21] Segment Performance - The Automation & Motion Control segment had net sales of $396.3 million, a decrease of 1.0%, but an increase of 0.4% on an organic basis, driven by growth in aerospace and defense [9][21] - The Industrial Powertrain Solutions segment reported net sales of $612.7 million, down 4.8%, reflecting declines in metals and mining markets [9][21] - The Power Efficiency Solutions segment achieved net sales of $409.1 million, an increase of 6.2%, primarily due to growth in the North American residential HVAC market [9][21] Guidance - The company updated its annual guidance for 2025 GAAP diluted earnings per share to a range of $4.49 to $5.29, while reaffirming adjusted diluted earnings per share guidance of $9.60 to $10.40 [3][19] - Mitigation actions are expected to neutralize the impact of current tariffs on 2025 adjusted earnings per share [3][19] Cash Flow and Debt Management - The company paid down $164 million of gross debt in the first quarter, resulting in a net debt to adjusted EBITDA ratio of approximately 3.6x [8][19] - Cash from operating activities was reported at $102.3 million for the quarter [8][19]