Regal Beloit(US:RRX)2025-10-30 11:08Financial Performance - Diluted EPS was $1.20, up 10.1% year-over-year; adjusted diluted EPS was $2.51, up 0.8% year-over-year[2] - Sales totaled $1,497 million, reflecting a 1.3% increase year-over-year, and a 0.7% increase on an organic basis[2] - GAAP net income increased to $80 million from $73 million year-over-year[2] - Adjusted EBITDA was $339.4 million, slightly up from $337 million year-over-year[2] - Net income attributable to Regal Rexnord Corporation for Q3 2025 was $79.6 million, up from $72.7 million in Q3 2024, while net income for the nine months ended September 30, 2025, increased to $215.9 million from $155.0 million[17] - Basic earnings per share for Q3 2025 were $1.20, compared to $1.09 in Q3 2024, and for the nine months ended September 30, 2025, it increased to $3.26 from $2.33[17] - Adjusted diluted earnings per share for Q3 2025 were $2.51, compared to $2.49 in Q3 2024, and for the nine months ended September 30, 2025, it increased to $7.14 from $6.78[20] - Net Income for the nine months ended September 30, 2025, increased to $217.0 million, compared to $156.4 million for the same period in 2024, representing a growth of 38.7%[35] Sales and Revenue - Data center orders reached $135 million in Q3, with an additional $60 million secured in October[1] - Automation & Motion Control segment net sales were $402 million, a slight increase of 0.1%[9] - Industrial Powertrain Solutions segment net sales were $662.3 million, up 2.8% year-over-year[9] - Power Efficiency Solutions segment net sales were $432.7 million, an increase of 0.3% year-over-year[9] - Organic sales for the three months ended September 30, 2025, totaled $1,483.0 million, reflecting a growth of 1.3% compared to the same period in 2024[25] - The company reported net sales of $4,411.2 million for the nine months ended September 30, 2025, with a decline of 3.5% year-over-year[26] Expenses and Costs - The company incurred restructuring and related costs of $13.8 million for the three months ended September 30, 2025[27] - The company incurred restructuring and related costs of $39.8 million for the nine months ended September 30, 2025, compared to $53.8 million in 2024, a reduction of 26%[29] - The company incurred transaction and integration-related costs of $19.2 million for the nine months ended September 30, 2025, down from $21.2 million in 2024, a decrease of 9.4%[42] Assets and Liabilities - Total assets as of September 30, 2025, were $13,874.1 million, a decrease from $14,033.7 million as of December 31, 2024[18] - Current liabilities increased to $1,266.4 million as of September 30, 2025, from $1,215.7 million at the end of 2024[18] - Cash and cash equivalents at the end of Q3 2025 were $400.0 million, compared to $460.4 million at the end of Q3 2024[19] - Total Gross Debt as of September 30, 2025, was $4,785.4 million, with a Net Debt of $4,385.4 million after accounting for cash and cash equivalents[38] Future Projections - The company expects mid-single digit organic growth in Q4 and low- to mid-single digit growth in 2026[1][3] - For 2025, the company projects adjusted diluted earnings per share between $9.50 and $9.80, with GAAP diluted earnings per share ranging from $4.26 to $4.56[23] - The company expects to realize synergies of $55.0 million within 18 months, which will positively impact future Adjusted EBITDA[39] Taxation - The effective tax rate increased to 12.9% in Q3 2025 from 10.3% in Q3 2024[42] - Provision for income taxes for the nine months ended September 30, 2025, was $133.2 million, compared to $123.3 million in 2024, indicating an increase of 8.0%[42] - The adjusted effective tax rate for the nine months ended September 30, 2025, was 21.9%, slightly up from 21.4% in 2024[42] Other Financial Metrics - The company paid down $74.5 million of gross debt, achieving a net debt/adjusted EBITDA ratio of approximately 3.2x[2] - Adjusted EBITDA for the nine months ended September 30, 2025, was $978.5 million, slightly down from $992.6 million in 2024, indicating a decrease of 1.4%[29] - Adjusted Free Cash Flow for the nine months ended September 30, 2025, reached $752.5 million, compared to $326.5 million in 2024, indicating a significant increase of 130%[40] - Interest Coverage Ratio, including synergies, is projected at 4.01, indicating strong ability to cover interest expenses[39]