Regal Rexnord Provides Update On Tariff-Related Impacts

Core Viewpoint - Regal Rexnord Corporation is providing insights into the estimated impacts of current and potential U.S. tariffs on imports from Canada, China, and Mexico, as well as on steel and aluminum, during its participation at the Bank of America Global Industrials Conference 2025 [1] Group 1: Tariff Impact Estimates - The company estimates a gross, unmitigated annualized cost impact from existing tariffs at approximately $60 million, with most goods imported from Canada and Mexico being exempt from tariffs due to compliance with the USMCA [2] - Tariffs currently in place are expected to have a negligible impact on the company's first quarter 2025 results [4] Group 2: Mitigation Plans - The company has developed plans to fully mitigate the impacts of tariffs, which may include supply chain realignments, production relocations, and pricing actions, aiming to be at least price/cost neutral on a dollar basis [3] - The company expects to achieve margin neutrality by the end of 2025 under the current tariff regime, or by the first half of 2026 if there are no USMCA exclusions [3] Group 3: Company Overview - Regal Rexnord employs around 30,000 associates globally, providing sustainable solutions that power, transmit, and control motion through electric motors and power transmission components [5] - The company's end markets include factory automation, food & beverage, aerospace, medical, data centers, and alternative energy, benefiting from significant secular demand tailwinds [6] - Regal Rexnord operates through three segments: Industrial Powertrain Solutions, Power Efficiency Solutions, and Automation & Motion Control [7]