Regal Beloit(US:RRX)2025-10-30 17:50Financial Performance - Net sales for Q3 2025 reached $1,497.0 million, a slight increase from $1,477.4 million in Q3 2024, while net sales for the nine months ended September 30, 2025, were $4,411.2 million, down from $4,572.7 million in the same period last year[12]. - Gross profit for Q3 2025 was $554.2 million, compared to $556.3 million in Q3 2024, and for the nine months ended September 30, 2025, gross profit was $1,646.5 million, down from $1,680.4 million[12]. - Net income attributable to Regal Rexnord Corporation for Q3 2025 was $79.6 million, an increase from $72.7 million in Q3 2024, while net income for the nine months ended September 30, 2025, was $215.9 million, compared to $155.0 million in the prior year[12]. - Earnings per share (EPS) for Q3 2025 was $1.20, up from $1.09 in Q3 2024, and for the nine months ended September 30, 2025, EPS was $3.26, compared to $2.33 in the same period last year[12]. - Comprehensive income for Q3 2025 was $79.2 million, compared to $184.0 million in Q3 2024, while comprehensive income for the nine months ended September 30, 2025, was $552.6 million, up from $232.4 million in the prior year[14]. - Net income for the nine months ended September 30, 2025, was $217.0 million, an increase from $156.4 million for the same period in 2024, representing a growth of 38.7%[24]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $823.0 million, compared to $396.2 million for the same period in 2024, indicating a significant increase of 107.3%[24]. Assets and Liabilities - Total assets as of September 30, 2025, were $13,874.1 million, a decrease from $14,033.7 million at the end of 2024[15]. - Current liabilities increased to $1,266.4 million as of September 30, 2025, compared to $1,215.7 million at the end of 2024[15]. - Long-term debt decreased to $4,780.0 million as of September 30, 2025, down from $5,452.7 million at the end of 2024[15]. - Regal Rexnord Corporation's shareholders' equity increased to $6,763.5 million as of September 30, 2025, compared to $6,259.8 million at the end of 2024[15]. - Total equity as of September 30, 2025, was $6,772.3 million, up from $6,485.8 million as of September 30, 2024, reflecting a growth of 4.4%[21]. - The company had cash and cash equivalents of $400.0 million at the end of September 30, 2025, down from $460.4 million at the end of September 30, 2024[24]. Revenue Breakdown - North America contributed $1,057.8 million to total revenue in Q3 2025, accounting for approximately 70.7% of total revenue, while Asia, Europe, and Rest-of-World contributed $108.2 million, $251.8 million, and $79.2 million, respectively[31]. - For the nine months ended September 30, 2025, total revenue reached $4,411.2 million, compared to $4,572.7 million for the same period in 2024, indicating a decline of 3.5%[32]. - The company reported depreciation of $117.5 million for the nine months ended September 30, 2025, slightly down from $122.6 million for the same period in 2024[24]. Costs and Expenses - The company’s gross profit is influenced by net sales and cost of sales, with raw materials being a significant component of costs[120]. - The company’s operating expenses primarily consist of general and administrative expenses, sales and marketing expenses, and research and development expenses[122]. - Interest expense for the nine months ended September 30, 2025, was $262.5 million, compared to $98.0 million in the same period of 2024, showing a substantial increase[54]. - The company incurred restructuring costs totaling $8.8 million for the three months ended September 30, 2025, compared to $12.9 million for the same period in 2024, indicating a 31.8% decrease[109]. Tax and Compliance - The effective tax rate for the three months ended September 30, 2025 was 12.9%, up from 10.3% in the same period of 2024[84]. - The effective tax rate for the nine months ended September 30, 2025 was 18.4%, down from 25.4% for the same period in 2024, due to tax benefits associated with divestitures and rate reductions[142]. - The Company had approximately $4.4 million of unrecognized tax benefits as of September 30, 2025, which would impact the effective income tax rate if recognized[85]. Shareholder Actions - The maximum value of shares remaining available for repurchase as of September 30, 2025, is $145.0 million, with no repurchases made during the current quarter[190]. - The Board of Directors approved a share repurchase program of up to $500.0 million, which has no expiration date[190]. Market and Economic Conditions - The company expects to incur increased costs due to tariffs imposed by the US government and retaliatory tariffs from other countries, which may lead to delays or disruptions in product deliveries[187]. - Ongoing geopolitical conflicts, such as those between Russia and Ukraine, have negatively impacted the global economy, although the company has not yet seen material effects on its operating results[188]. - The company is subject to risks associated with changes in US and foreign legislation and regulations relating to imports, which could adversely affect its operations and financial results[185].