Regal Beloit(RRX) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter diluted EPS was $0.62, with adjusted diluted EPS of$ 2.34, up 2.6% year-over-year[4] - Sales for the fourth quarter totaled $1,461.1 million, down 9.1% year-over-year, and down 1.4% on an organic basis[4] - Adjusted gross margin for the fourth quarter was 37.1%, an increase of 60 basis points compared to the prior year[4] - Net income attributable to Regal Rexnord Corporation for Q4 2024 was$ 41.2 million, compared to a net loss of $57.4 million in Q4 2023[18] - Net income for Q4 2024 was$ 42.0 million, a decrease of 25.9% from $56.6 million in Q4 2023[32] - Total Regal Rexnord Net Sales for the year ended December 2024 reached$ 6,033.8 million, compared to $5,876.0 million in 2023, representing an increase of 2.7%[31] - For the year ended December 31, 2024, net sales totaled$ 6,033.8 million, representing a growth of 2.2% from $6,250.7 million in 2023[46] Debt and Cash Flow - The company paid down$ 205 million of gross debt in the fourth quarter, with a net debt/adjusted EBITDA ratio of approximately 3.6x[4] - Cash and cash equivalents decreased to $393.5 million at the end of Q4 2024, down from$ 574.0 million at the end of Q4 2023[19] - Long-term debt decreased to $5,452.7 million in 2024 from$ 6,377.0 million in 2023[19] - Net cash provided by operating activities for the year ended December 31, 2024, was $609.4 million, down from$ 715.3 million in 2023[20] - Adjusted free cash flow for Q4 2024 was $185.3 million, compared to$ 170.9 million in Q4 2023, reflecting a 8.1% increase[38] Sales and Growth - Daily order growth improved to 4.4% in the fourth quarter compared to the prior year, with the AMC segment orders up nearly 9%[3] - Organic sales growth for the three months ended December 31, 2024, was (1.4)%, while acquisitions contributed 36.7% to the overall sales growth[21] - Organic sales for the year ended December 31, 2024, were $5,610.0 million, indicating a decline of 5.0% compared to the previous year[46] Margins and Profitability - Adjusted EBITDA for the year ended December 2024 was$ 1,310.2 million, slightly up from $1,307.1 million in 2023, indicating a growth of 0.2%[28] - The adjusted operating margin for the year ended December 31, 2024, was 13.0%, compared to 12.5% in 2023, indicating a slight improvement[21] - GAAP Operating Margin % for the year ended December 2024 was 10.4%, compared to 6.0% in 2023, showing an improvement of 4.4 percentage points[28] - Adjusted Operating Margin % for the year ended December 2024 was 12.7%, compared to 12.3% in 2023, indicating a slight improvement[28] Strategic Initiatives - The company announced a strategic partnership with Honeywell to collaborate on electric aircraft (eVTOL)[4] - Regal Rexnord achieved$ 101 million in synergies for the year, exceeding the target by $11 million[4] - The company expects to realize synergies of$ 85.0 million within the next 18 months, which would improve the adjusted EBITDA to $1,395.2 million[37] Costs and Expenses - The company incurred restructuring and related costs of$ 0.44 per share for the three months ended December 31, 2024[22] - Restructuring and Related Costs for the year ended December 2024 totaled $91.6 million, up from$ 84.4 million in 2023[28] - The company incurred transaction and integration-related costs of $96.7 million for the year ended December 2024[28] Guidance - Full year 2025 guidance for GAAP diluted EPS is projected to be in the range of$ 4.42 to $5.22[2] - The company provided 2025 GAAP diluted EPS annual guidance ranging from$ 4.42 to $5.22[24] - The adjusted diluted EPS annual guidance for 2025 is projected to be between$ 9.60 and $10.40[24]