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REGAL REXNORD REPORTS FOURTH QUARTER 2024 FINANCIAL RESULTS
RRXRegal Beloit(RRX) Prnewswire·2025-02-05 21:05

Core Insights - Regal Rexnord Corporation reported a weaker-than-expected top line in Q4 2024, with sales of 1,461.1million,down9.11,461.1 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 4.42to4.42 to 5.22 and adjusted diluted earnings per share in the range of 9.60to9.60 to 10.40 [2] Financial Performance - Q4 2024 GAAP net income was 42.0millioncomparedto42.0 million compared to 56.6 million in Q4 2023, while adjusted diluted EPS was 2.34,up2.62.34, up 2.6% year-over-year [8][22] - The company paid down 205 million of gross debt in Q4 and 938millionforthefullyear,exceedingitstargetedreduction[3][8]−Cashfromoperatingactivitieswas938 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 185.3million,anincreaseof8.4185.3 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 635.0million,down2.3635.0 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]