Regal Beloit(US:RRX)2025-08-06 11:35markdown [Executive Summary & Business Outlook](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Business%20Outlook) Regal Rexnord reported strong Q2 2025 financial results, exceeding expectations, with robust segment performance, significant debt reduction, and narrowed full-year guidance [Second Quarter 2025 Highlights](index=1&type=section&id=1.1.%20Second%20Quarter%202025%20Highlights) Regal Rexnord Corporation reported strong second-quarter 2025 financial results, with adjusted diluted EPS up 8.3% year-over-year and GAAP net income increasing significantly. The company also generated substantial cash from operating activities and reduced gross debt | Metric | Q2 2025 Value ($M) | YoY Change | Source | | :-------------------------------- | :------------ | :--------- | :----- | | Diluted EPS | $1.19 | - | [3] | | Adjusted Diluted EPS* | $2.48 | Up 8.3% | [3] | | Daily Orders | - | Down 2.5% | [3] | | Sales | $1,496.1 | Down 3.3% | [3] | | Organic Sales* | - | Down 1.2% | [3] | | Gross Margin | 37.7% | - | [3] | | Adjusted Gross Margin* | 38.2% | Up 10.0 Basis Points | [3] | | GAAP Net Income | $79.6 | Up from $63.0 | [3] | | Adjusted EBITDA* | $329.7 | Down from $335.3 | [3] | | Adjusted EBITDA Margin* | 22.0% | - | [3] | | Cash From Operating Activities | $523.2 | - | [3] | | Adjusted Free Cash Flow* | $493 | - | [3] | | Gross Debt Paid Down | $469.8 | - | [3] | | Net Debt/Adjusted EBITDA (Including Synergies)* | ~3.3x | - | [3] | - Awarded a **$35 million** data center order in early July, with sales expected to start by year-end, positioning the company for **significant additional content** with this customer over the next 12 months[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=1.2.%20CEO%20Commentary) CEO Louis Pinkham highlighted strong Q2 performance, exceeding sales and earnings expectations. He noted robust organic growth in the PES segment and adjusted EBITDA margin expansion in both PES and IPS, despite market headwinds. The company is focused on accelerating growth through cross-sell synergies and new product vitality, with significant cross-sell opportunities identified - PES segment achieved **6.5% organic growth** and a **point of adjusted EBITDA margin expansion**, driven by strong R-HVAC and C-HVAC markets[2](index=2&type=chunk) - IPS segment delivered **over a point of adjusted EBITDA margin expansion** despite persistent end market headwinds[2](index=2&type=chunk) - AMC segment met sales goals but experienced temporary, mix-related margin pressure due to rare earth magnet availability, expected to improve in the back half of the year[2](index=2&type=chunk) - Strong orders in IPS and AMC indicate gaining momentum from end market recovery and outgrowth initiatives[2](index=2&type=chunk) - Ended Q2 with a **$300 million cross-sell opportunity funnel**, on track to realize **$170 million in cross-sell synergies this year** and **$250 million by 2027**[2](index=2&type=chunk) [FY 2025 Guidance](index=1&type=section&id=1.3.%20FY%202025%20Guidance) Regal Rexnord narrowed its full-year 2025 guidance for Adjusted Diluted Earnings per Share and confirmed expectations for Adjusted Free Cash Flow, with mitigation actions in place to offset tariff impacts | Metric | Previous Guidance | New Guidance Range | Source | | :-------------------------------- | :---------------- | :----------------- | :----- | | Adjusted Diluted EPS | - | $9.70 - $10.30 | [3, 5] | | GAAP Diluted EPS | - | $4.50 - $5.10 | [5] | | Adjusted Free Cash Flow (excluding securitization) ($M) | - | $700 | [3] | | Adjusted Free Cash Flow (inclusive of securitization) ($B) | - | Over $1.0 | [3] | - Mitigation actions are on track to neutralize the impact of current tariffs on **2025 Adjusted EBITDA** and **Adjusted EPS**[3](index=3&type=chunk)[5](index=5&type=chunk) [Financial Statements](index=5&type=section&id=2.%20Financial%20Statements) The company's Q2 2025 financial statements show decreased net sales but increased net income, a slight asset reduction, and significantly improved operating cash flow due to securitization [Condensed Consolidated Statements of Income](index=5&type=section&id=2.1.%20Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended June 30, 2025, Regal Rexnord reported a decrease in net sales but an increase in net income attributable to the corporation, driven by lower interest expense and a higher income before taxes compared to the prior year | Metric | Three Months Ended Jun 30, 2025 ($M) | Three Months Ended Jun 30, 2024 ($M) | Six Months Ended Jun 30, 2025 ($M) | Six Months Ended Jun 30, 2024 ($M) | | :--------------------------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | Net Sales | $1,496.1 | $1,547.6 | $2,914.2 | $3,095.3 | | Gross Profit | $564.7 | $571.0 | $1,092.3 | $1,124.1 | | Income from Operations | $182.3 | $193.9 | $342.0 | $327.8 | | Net Income | $79.6 | $63.0 | $137.1 | $83.4 | | Net Income Attributable to Regal Rexnord Corporation | $79.2 | $62.5 | $136.5 | $82.3 | | Diluted EPS | $1.19 | $0.94 | $2.05 | $1.23 | | Cash Dividends Declared Per Share | $0.35 | $0.35 | $0.70 | $0.70 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=2.2.%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets slightly decreased compared to December 31, 2024, primarily due to a reduction in cash and trade receivables, while total equity increased | Metric | Jun 30, 2025 ($M) | Dec 31, 2024 ($M) | | :--------------------------------------- | :----------- | :----------- | | Cash and Cash Equivalents | $320.1 | $393.5 | | Trade Receivables, Net | $549.9 | $842.8 | | Inventories | $1,348.3 | $1,227.5 | | Total Current Assets | $2,518.8 | $2,751.3 | | Total Assets | $13,902.7 | $14,033.7 | | Total Current Liabilities | $1,260.1 | $1,215.7 | | Long-Term Debt | $4,849.6 | $5,452.7 | | Total Liabilities and Equity | $13,902.7 | $14,033.7 | | Total Regal Rexnord Corporation Shareholders' Equity | $6,699.6 | $6,259.8 | [Condensed Consolidated Statements of Cash Flow](index=7&type=section&id=2.3.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Operating cash flows significantly increased for the three and six months ended June 30, 2025, largely due to a new accounts receivable securitization facility. This strong operating cash generation was used to repay debt | Metric | Three Months Ended Jun 30, 2025 ($M) | Three Months Ended Jun 30, 2024 ($M) | Six Months Ended Jun 30, 2025 ($M) | Six Months Ended Jun 30, 2024 ($M) | | :--------------------------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | Net Cash Provided by Operating Activities | $523.2 | $158.3 | $625.5 | $241.4 | | Net Cash (Used in) Provided by Investing Activities | $(25.7) | $342.7 | $(29.2) | $325.2 | | Net Cash Used in Financing Activities | $(493.7) | $(504.5) | $(686.2) | $(672.5) | | Net Decrease in Cash and Cash Equivalents | $14.8 | $(12.0) | $(73.4) | $(124.9) | | Cash and Cash Equivalents at End of Period | $320.1 | $510.4 | $320.1 | $510.4 | - The **$400 million** accounts receivable securitization facility contributed **$368.5 million of net proceeds** to operating cash flows in Q2 2025, used to repay outstanding bank loans[4](index=4&type=chunk) [Segment Performance](index=2&type=section&id=3.%20Segment%20Performance) Segment performance in Q2 2025 varied, with PES showing strong growth, while AMC and IPS faced declines due to market headwinds and project timing [Automation & Motion Control](index=2&type=section&id=3.1.%20Automation%20%26%20Motion%20Control) The Automation & Motion Control segment experienced a decrease in net sales and organic sales in Q2 2025, primarily due to headwinds in the medical market, project timing in data centers, and temporary rare earth magnet sourcing issues. Despite this, the segment maintained a solid Adjusted EBITDA margin | Metric | Q2 2025 | Q2 2024 | YoY Change (Q2) | YTD 2025 | YTD 2024 | YoY Change (YTD) | | :----------------------- | :------ | :------ | :-------------- | :------- | :------- | :--------------- | | Net Sales ($M) | $411.1 | $422.2 | -2.6% | $807.4 | $822.4 | -1.8% | | Organic Sales Growth (%) | -3.4% | - | - | -1.5% | - | - | | Adjusted EBITDA ($M) | $80.2 | $94.9 | -15.5% | $166.7 | $184.8 | -9.8% | | Adjusted EBITDA Margin (%) | 19.5% | 22.5% | -3.0 pts | 20.6% | 22.5% | -1.9 pts | | Adjusted Gross Margin (%) | 38.0% | 40.4% | -2.4 pts | 39.0% | 40.3% | -1.3 pts | - Sales decline primarily reflects headwinds in the medical market, project timing in the data center market, and temporary challenges sourcing rare earth magnets, which impacted shipments of certain higher margin products into the defense and medical markets. These issues are expected to be resolved by year-end[9](index=9&type=chunk) - Partially offset by growth in the aerospace market[9](index=9&type=chunk) [Industrial Powertrain Solutions](index=2&type=section&id=3.2.%20Industrial%20Powertrain%20Solutions) The Industrial Powertrain Solutions segment experienced a decrease in net sales and organic sales in Q2 2025, mainly due to large project timing in the metals & mining market. Despite this, the segment achieved adjusted EBITDA margin expansion | Metric | Q2 2025 | Q2 2024 | YoY Change (Q2) | YTD 2025 | YTD 2024 | YoY Change (YTD) | | :----------------------- | :------ | :------ | :-------------- | :------- | :------- | :--------------- | | Net Sales ($M) | $649.8 | $675.5 | -3.8% | $1,262.5 | $1,318.9 | -4.3% | | Organic Sales Growth (%) | -4.4% | - | - | -3.9% | - | - | | Adjusted EBITDA ($M) | $175.1 | $174.4 | +0.4% | $340.0 | $340.7 | -0.2% | | Adjusted EBITDA Margin (%) | 26.9% | 25.8% | +1.1 pts | 26.9% | 25.8% | +1.1 pts | | Adjusted Gross Margin (%) | 43.8% | 40.9% | +2.9 pts | 43.7% | 41.2% | +2.5 pts | - Sales decline primarily reflects large project timing in the metals & mining market[9](index=9&type=chunk) [Power Efficiency Solutions](index=2&type=section&id=3.3.%20Power%20Efficiency%20Solutions) The Power Efficiency Solutions segment demonstrated strong performance in Q2 2025, with increases in net sales and organic sales, primarily driven by growth in the residential and commercial HVAC markets. The segment also achieved adjusted EBITDA margin expansion | Metric | Q2 2025 | Q2 2024 | YoY Change (Q2) | YTD 2025 | YTD 2024 | YoY Change (YTD) | | :----------------------- | :------ | :------ | :-------------- | :------- | :------- | :--------------- | | Net Sales ($M) | $435.2 | $410.9 | +5.9% | $844.3 | $796.2 | +6.0% | | Organic Sales Growth (%) | 6.5% | - | - | 7.3% | - | - | | Adjusted EBITDA ($M) | $74.4 | $66.0 | +12.7% | $132.5 | $117.0 | +13.2% | | Adjusted EBITDA Margin (%) | 17.1% | 16.1% | +1.0 pts | 15.7% | 14.7% | +1.0 pts | | Adjusted Gross Margin (%) | 30.0% | 31.1% | -1.1 pts | 28.8% | 29.5% | -0.7 pts | - Results primarily reflect growth in the residential and commercial HVAC markets[9](index=9&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=4.%20Non-GAAP%20Financial%20Measures) This section explains key non-GAAP financial measures, including adjusted EPS, organic sales, EBITDA, gross margin, debt ratios, free cash flow, and effective tax rate [Non-GAAP Measures Explanation](index=4&type=section&id=4.1.%20Non-GAAP%20Measures%20Explanation) Regal Rexnord uses various non-GAAP financial measures to provide additional insights into its operations and facilitate comparisons across periods and with peers. These measures are not substitutes for GAAP results but are used by management for business evaluation and forecasting - Non-GAAP measures disclosed include **adjusted diluted earnings per share**, **adjusted income from operations**, **adjusted operating margin**, **adjusted net sales**, **adjusted gross margin**, **net debt**, **EBITDA**, **adjusted EBITDA**, **adjusted free cash flow**, and **adjusted effective tax rate**[16](index=16&type=chunk) - Organic sales growth refers to the increase in sales from existing operations, excluding sales from acquired or divested businesses and the impact of foreign currency translation[17](index=17&type=chunk) [Adjusted Diluted Earnings Per Share](index=8&type=section&id=4.2.%20Adjusted%20Diluted%20Earnings%20Per%20Share) Adjusted diluted EPS for Q2 2025 increased to $2.48, up from $2.29 in Q2 2024, after adjusting for items such as intangible amortization, restructuring costs, and transaction-related expenses. The company also narrowed its full-year 2025 adjusted diluted EPS guidance | Metric | Three Months Ended Jun 30, 2025 | Three Months Ended Jun 30, 2024 | Six Months Ended Jun 30, 2025 | Six Months Ended Jun 30, 2024 | | :--------------------------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | GAAP Diluted Earnings Per Share | $1.19 | $0.94 | $2.05 | $1.23 | | Intangible Amortization | $0.99 | $0.98 | $1.96 | $1.96 | | Restructuring and Related Costs | $0.12 | $0.20 | $0.30 | $0.39 | | Transaction and Integration Related Costs | $0.07 | $0.06 | $0.15 | $0.15 | | Adjusted Diluted Earnings Per Share | $2.48 | $2.29 | $4.63 | $4.29 | | 2025 Adjusted Annual Guidance | Minimum | Maximum | | :--------------------------------------- | :------ | :------ | | GAAP Diluted (Loss) Earnings Per Share | $4.50 | $5.10 | | Adjusted Diluted Earnings Per Share | $9.70 | $10.30 | [Organic Sales Growth](index=9&type=section&id=4.3.%20Organic%20Sales%20Growth) Overall organic sales growth for Regal Rexnord was down 1.2% in Q2 2025 and down 0.2% for the six months ended June 30, 2025. Performance varied by segment, with Power Efficiency Solutions showing strong positive organic growth, while Automation & Motion Control and Industrial Powertrain Solutions experienced declines | Segment | Q2 2025 Organic Sales Growth % | YTD 2025 Organic Sales Growth % | | :--------------------------------------- | :----------------------------- | :---------------------------- | | Automation & Motion Control | (3.4)% | (1.5)% | | Industrial Powertrain Solutions | (4.4)% | (3.9)% | | Power Efficiency Solutions | 6.5% | 7.3% | | Total Regal Rexnord | (1.2)% | (0.2)% | [Adjusted EBITDA](index=10&type=section&id=4.4.%20Adjusted%20EBITDA) Regal Rexnord's Adjusted EBITDA for Q2 2025 was $329.7 million, slightly down from $338.2 million in Q2 2024, with an Adjusted EBITDA Margin of 22.0%. The Industrial Powertrain Solutions and Power Efficiency Solutions segments showed positive Adjusted EBITDA margin expansion | Metric | Three Months Ended Jun 30, 2025 ($M) | Three Months Ended Jun 30, 2024 ($M) | Six Months Ended Jun 30, 2025 ($M) | Six Months Ended Jun 30, 2024 ($M) | | :--------------------------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | GAAP Income from Operations | $182.3 | $193.9 | $342.0 | $327.8 | | Adjusted Income from Operations | $198.1 | $201.3 | $374.3 | $381.7 | | Adjusted EBITDA | $329.7 | $338.2 | $639.2 | $655.6 | | Adjusted EBITDA Margin % | 22.0% | 21.9% | 21.9% | 21.2% | | Segment (Q2 2025) | Adjusted EBITDA ($M) | Adjusted EBITDA Margin % | | :--------------------------------------- | :------------------- | :----------------------- | | Automation & Motion Control | $80.2 | 19.5% | | Industrial Powertrain Solutions | $175.1 | 26.9% | | Power Efficiency Solutions | $74.4 | 17.1% | | Total Regal Rexnord | $329.7 | 22.0% | - Adjusted EBITDA excluding Industrial Systems for Q2 2024 was **$335.3 million**, with a margin of **22.2%**[30](index=30&type=chunk) [Adjusted Gross Margin](index=12&type=section&id=4.5.%20Adjusted%20Gross%20Margin) Regal Rexnord's Adjusted Gross Margin for Q2 2025 was 38.2%, an increase of 0.4 percentage points from Q2 2024. Industrial Powertrain Solutions showed significant margin expansion, while Automation & Motion Control and Power Efficiency Solutions experienced slight declines | Metric | Three Months Ended Jun 30, 2025 ($M) | Three Months Ended Jun 30, 2024 ($M) | Six Months Ended Jun 30, 2025 ($M) | Six Months Ended Jun 30, 2024 ($M) | | :--------------------------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | Gross Margin | $564.7 | $571.0 | $1,092.3 | $1,124.1 | | Adjusted Gross Margin | $571.4 | $584.5 | $1,109.2 | $1,149.6 | | Gross Margin % | 37.7% | 36.9% | 37.5% | 36.3% | | Adjusted Gross Margin % | 38.2% | 37.8% | 38.1% | 37.1% | | Segment (Q2 2025) | Adjusted Gross Margin % | | :--------------------------------------- | :---------------------- | | Automation & Motion Control | 38.0% | | Industrial Powertrain Solutions | 43.8% | | Power Efficiency Solutions | 30.0% | | Total Regal Rexnord | 38.2% | [Debt and Interest Coverage Ratios](index=15&type=section&id=4.6.%20Debt%20and%20Interest%20Coverage%20Ratios) Regal Rexnord reported a Net Debt/Adjusted EBITDA ratio of 3.50x and a Gross Debt/Adjusted EBITDA ratio of 3.75x as of June 30, 2025. Including expected synergies, the Net Debt/Adjusted EBITDA ratio improved to 3.34x, demonstrating progress in debt reduction | Metric (Last Twelve Months Ended Jun 30, 2025) | Value ($M) | | :--------------------------------------- | :------ | | Adjusted EBITDA | $1,293.8 | | Total Gross Debt | $4,854.8 | | Net Debt | $4,534.7 | | Gross Debt/Adjusted EBITDA* | 3.75 | | Net Debt/Adjusted EBITDA* | 3.50 | | Interest Coverage Ratio* | 3.72 | | Synergies to be Realized Within 18 Months | $65.0 | | Adjusted EBITDA (including synergies)* | $1,358.8 | | Net Debt/Adjusted EBITDA (including synergies) | 3.34 | | Interest Coverage Ratio (including synergies)* | 3.90 | [Adjusted Free Cash Flow](index=16&type=section&id=4.7.%20Adjusted%20Free%20Cash%20Flow) Adjusted Free Cash Flow significantly increased to $493.0 million in Q2 2025, up from $136.4 million in Q2 2024, largely benefiting from the accounts receivable securitization facility. Year-to-date, Adjusted Free Cash Flow reached $578.5 million | Metric | Three Months Ended Jun 30, 2025 ($M) | Three Months Ended Jun 30, 2024 ($M) | Six Months Ended Jun 30, 2025 ($M) | Six Months Ended Jun 30, 2024 ($M) | | :--------------------------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | Net Cash Provided by Operating Activities | $523.2 | $158.3 | $625.5 | $241.4 | | Adjusted Cash Flows from Operations | $523.2 | $168.8 | $625.5 | $251.9 | | Additions to Property Plant and Equipment | $(30.2) | $(32.4) | $(47.0) | $(50.9) | | Adjusted Free Cash Flow | $493.0 | $136.4 | $578.5 | $201.0 | [Adjusted Effective Tax Rate](index=17&type=section&id=4.8.%20Adjusted%20Effective%20Tax%20Rate) The Adjusted Effective Tax Rate for Q2 2025 was 22.6%, a decrease from 23.5% in Q2 2024, reflecting adjustments for various non-cash and non-recurring items | Metric | Three Months Ended Jun 30, 2025 ($M) | Three Months Ended Jun 30, 2024 ($M) | Six Months Ended Jun 30, 2025 ($M) | Six Months Ended Jun 30, 2024 ($M) | | :--------------------------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | Income before Taxes | $101.2 | $96.9 | $174.2 | $128.2 | | Provision for Income Taxes | $21.6 | $33.9 | $37.1 | $44.8 | | Effective Tax Rate | 21.3% | 35.0% | 21.3% | 34.9% | | Adjusted Income before Taxes* | $214.1 | $200.3 | $398.5 | $373.9 | | Adjusted Provision for Income Taxes* | $48.4 | $47.0 | $89.8 | $86.4 | | Adjusted Effective Tax Rate* | 22.6% | 23.5% | 22.5% | 23.1% | [Corporate Information & Disclosures](index=2&type=section&id=5.%20Corporate%20Information%20%26%20Disclosures) This section provides an overview of Regal Rexnord, outlines forward-looking statement risks, details investor relations, and describes the new accounts receivable securitization facility [About Regal Rexnord](index=3&type=section&id=5.1.%20About%20Regal%20Rexnord) Regal Rexnord is a global company with 30,000 associates, providing sustainable solutions for motion power, transmission, and control. The company operates through three segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions, serving diverse end markets with secular demand tailwinds - Regal Rexnord provides sustainable solutions that power, transmit, and control motion through electric motors, air moving subsystems, highly engineered power transmission components, and automation offerings[10](index=10&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, benefiting from **secular demand tailwinds**[11](index=11&type=chunk) - Comprised of three operating segments: **Automation & Motion Control**, **Industrial Powertrain Solutions**, and **Power Efficiency Solutions**[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=5.2.%20Forward-Looking%20Statements) This section outlines the inherent risks and uncertainties associated with forward-looking statements made by Regal Rexnord, emphasizing that actual results could differ materially due to various factors including market trends, strategic plans, financial results, and external economic and geopolitical conditions - Forward-looking statements are not guarantees of future performance and are subject to numerous assumptions, risks, and uncertainties beyond the company's control[13](index=13&type=chunk) - Important factors that could cause actual results to differ include inability to achieve expected benefits from acquisitions/divestitures, **substantial indebtedness**, dependence on key suppliers, fluctuations in commodity prices, trade policy changes, global manufacturing risks, and economic changes in global markets[13](index=13&type=chunk)[14](index=14&type=chunk) - The company disclaims any obligation to update or revise any forward-looking statement, except as required by law[14](index=14&type=chunk) [Investor Relations & Supplemental Materials](index=2&type=section&id=5.3.%20Investor%20Relations%20%26%20Supplemental%20Materials) Regal Rexnord provides details for its Q2 2025 earnings conference call, including access information for the live audio webcast, presentation, and telephone replay. Supplemental materials are available on the company's investor website, which is also used for disseminating important company information - A conference call to discuss earnings will be held on Wednesday, **August 6, 2025**, at **9:00 AM CT (10:00 AM ET)**[6](index=6&type=chunk) - Live audio and presentation available on Regal Rexnord's Investor website: https://investors.regalrexnord.com[6](index=6&type=chunk) - Webcast and telephone replays will be accessible for **three months** after the earnings call[7](index=7&type=chunk) [Accounts Receivable Securitization Facility](index=2&type=section&id=5.4.%20Accounts%20Receivable%20Securitization%20Facility) On June 30, 2025, Regal Rexnord entered into a new $400 million accounts receivable securitization facility, which generated $368.5 million in net proceeds. These proceeds were primarily used to repay outstanding borrowings under existing bank loans, enhancing the company's liquidity and debt management - Company entered into a **$400 million** accounts receivable securitization facility on **June 30, 2025**[4](index=4&type=chunk) - The facility contributed **$368.5 million of net proceeds** to operating cash flows in the quarter[4](index=4&type=chunk) - Proceeds were used to repay the majority of outstanding borrowings under the Company's existing bank loans[4](index=4&type=chunk)