Core Insights - Regal Rexnord reported $1.46 billion in revenue for the quarter ended December 2024, reflecting a year-over-year decline of 9.2% [1] - The EPS for the same period was $2.34, compared to $2.28 a year ago, indicating a slight increase [1] - The revenue fell short of the Zacks Consensus Estimate of $1.49 billion by 2.01%, while the EPS also missed the consensus estimate of $2.46 by 4.88% [1] Revenue Breakdown - Automation & Motion Control (AMC) revenues were $409.80 million, exceeding the three-analyst average estimate of $400.67 million, but showing a year-over-year decline of 2.6% [4] - Industrial Powertrain Solutions (IPS) revenues were $635 million, below the estimated $648 million, representing a year-over-year decline of 2.3% [4] - Power Efficiency Solutions (PES) revenues were $416.30 million, missing the three-analyst average estimate of $438 million, with a year-over-year change of -0.4% [4] Adjusted EBITDA Performance - Adjusted EBITDA for Industrial Powertrain Solutions (IPS) was $165.30 million, slightly below the estimated $169 million [4] - Adjusted EBITDA for Automation & Motion Control (AMC) was $88.50 million, compared to the two-analyst average estimate of $93 million [4] - Adjusted EBITDA for Power Efficiency Solutions (PES) was $63.80 million, missing the two-analyst average estimate of $75 million [4] Stock Performance - Regal Rexnord shares have returned -0.8% over the past month, contrasting with the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

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]

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 ...

Wall Street analysts forecast that Regal Rexnord (RRX) will report quarterly earnings of $2.45 per share in its upcoming release, pointing to a year-over-year increase of 16.7%. It is anticipated that revenues will amount to $1.51 billion, exhibiting a decline of 8.5% compared to the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Pr ...