Summary of ABB Capital Markets Day Company Overview - **Company**: ABB - **Event**: Capital Markets Day - **Location**: New Berlin, Wisconsin Key Points and Arguments Company Performance and Strategy - ABB has made significant investments, exceeding $100 million, in its new site in New Berlin, which is a testament to its commitment to capital allocation and operational excellence [7] - The company emphasizes a high "say-do" ratio, reflecting its commitment to performance and accountability across its 16 operating divisions [9][10] - ABB aims for record-breaking performance year after year, fostering a culture of ambition and continuous improvement [11] - The company has set ambitious sustainability targets, aiming for an 80% reduction in scope one and two emissions by 2030, with current efforts already showing significant progress [12] Employee Engagement and Culture - Employee engagement is a priority, with an engagement score of 85% among its 110,000 employees, which is above industry standards [13][14] - ABB believes that high employee engagement contributes to overall success, creating a positive feedback loop between engagement and performance [14] Business Segments and Growth Areas - ABB operates in three main business areas: Electrification, Motion, and Automation, with a focus on leveraging synergies between these segments [22][23] - The company is committed to a balanced approach to growth, with a focus on both profitability and expansion, particularly in the automation sector [15][39] - ABB has identified six key areas for performance improvement, emphasizing the importance of a balanced mix of stability, profitability, and growth across its divisions [15][19] Market Trends and Future Outlook - The demand for electricity is expected to outpace overall energy consumption, with ABB positioned to capitalize on this trend through its electrification and automation technologies [34][35] - The company anticipates a quadrupling of electricity usage in data centers over the next seven years, indicating significant growth potential in this sector [37] - ABB projects a long-term organic revenue growth target of 5-7%, with additional growth from acquisitions [39][40] Financial Targets and Capital Allocation - ABB has set a target for a gross margin of over 40%, with specific margin targets for its business areas: Electrification (22-26%), Motion (18-22%), and Automation (14-18%) [41][60] - The company aims for a return on capital employed (ROCE) of 20%, reflecting its commitment to efficient capital management [42][63] - ABB's capital allocation strategy prioritizes organic growth, dividend sustainability, and value-adding acquisitions, with a focus on maintaining a balanced approach to shareholder returns [66][67] Technology and Innovation - ABB is committed to being a technology leader, continuously investing in R&D and leveraging new technologies such as AI to enhance customer productivity and sustainability [33][57] - The company emphasizes the importance of internal collaboration and technology sharing across its business areas to deliver comprehensive solutions to customers [24][26] Conclusion - ABB is well-positioned for future growth, with a strong focus on sustainability, employee engagement, and leveraging its technological capabilities to meet market demands [68] - The company is committed to delivering value to shareholders through disciplined capital allocation and ambitious performance targets [65][66]

Core Insights - Regal Rexnord Corporation will present at the Baird Global Industrial Conference on November 12, 2025, from 12:00 to 12:30 PM CT [1] - A live webcast of the presentation will be available on the Regal Rexnord investor website, with an archive accessible for 90 days post-event [2] Company Overview - Regal Rexnord employs 30,000 associates globally, focusing on sustainable solutions that power, transmit, and control motion [3] - The company offers electric motors, air moving subsystems, and a range of power transmission components for industrial applications [3] - Regal Rexnord's automation products include controllers, drives, precision motors, and actuators for various applications, including factory automation and surgical tools [3] Market Segments - The company operates in several end markets, benefiting from strong secular demand, including discrete automation, food & beverage, aerospace, medical, data centers, energy, residential and commercial buildings, general industrial, and metals and mining [4] Operating Segments - Regal Rexnord is structured into three operating segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions [5] - The company is headquartered in Milwaukee, Wisconsin, with manufacturing, sales, and service facilities worldwide [5] Financial Performance - Regal Rexnord reported strong financial results for the third quarter of 2025, with a diluted EPS of $1.20, reflecting a 10.1% increase compared to the previous year [6] - The adjusted diluted EPS was $2.51, showing a 0.8% increase year-over-year [6]

Core Insights - Regal Rexnord Corporation is undergoing a CEO search process as part of its succession planning, with current CEO Louis Pinkham having significantly contributed to the company's transformation and growth since April 2019 [1][2] - Under Mr. Pinkham's leadership, the company's enterprise value increased from approximately $4.5 billion to $15 billion, achieving a total shareholder return of nearly 100% [1] - The Board of Directors expresses confidence in the company's positioning for future growth, attributing this to the enhanced customer value proposition developed during Mr. Pinkham's tenure [2] Company Overview - Regal Rexnord employs around 30,000 associates globally, focusing on sustainable solutions for power, transmission, and motion control [3] - The company offers a range of products including electric motors, power transmission components, and automation solutions for various applications [3] - Regal Rexnord operates in multiple end markets such as discrete automation, food & beverage, aerospace, medical, data centers, energy, and general industrial sectors [4] Business Segments - The company is structured into three operating segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions [4] - Regal Rexnord is headquartered in Milwaukee, Wisconsin, with manufacturing, sales, and service facilities worldwide [4]

Company Overview - Regal Rexnord Corporation plans to release its third quarter 2025 financial results after the market closes on October 29, 2025 [1] - The company will host a conference call to discuss the earnings release on October 30, 2025, at 9:00 am CT (10:00 am ET) [2] - A webcast replay and telephone replay will be available for three months after the earnings conference call [3] Business Operations - Regal Rexnord employs 30,000 associates globally, focusing on sustainable solutions that power, transmit, and control motion [4] - The company's product offerings include electric motors, air moving subsystems, power transmission components, and automation solutions [4] - Regal Rexnord operates in three segments: Industrial Powertrain Solutions, Power Efficiency Solutions, and Automation & Motion Control [6] Market Demand - The company's end markets include discrete automation, food & beverage, aerospace, medical, data center, energy, residential and commercial buildings, general industrial, and metals and mining, benefiting from significant secular demand tailwinds [5]

Core Insights - Regal Rexnord Corporation published its annual Sustainability Report, highlighting the integration of sustainability into its growth strategy and commitment to creating sustainable solutions [1][3] Sustainability Goals - The company aims to achieve carbon emission neutrality for Scope 1 and 2 GHG emissions by 2032, having reduced absolute emissions by 13% year-over-year in 2024 and decreased GHG emission intensity by 9.8% [2] Recognition and Strategy - Regal Rexnord was ranked 36th on Barron's 2025 list of the 100 most sustainable U.S. companies, marking the second consecutive year of high ranking [3] - The company's strategy includes advancing innovation and sustainability initiatives that align with its values and support emission reduction targets while helping customers meet their sustainability goals [3] Reporting Standards - The sustainability report aligns with the Task Force on Climate-Related Financial Disclosure (TCFD), Global Reporting Initiative (GRI), and Sustainability Accounting Standards Board (SASB), covering the fiscal year ending December 31, 2024 [3] Company Overview - Regal Rexnord employs 30,000 associates globally, providing sustainable solutions that power, transmit, and control motion through electric motors and engineered power transmission components [4][5] - The company operates in various end markets, including discrete automation, food & beverage, aerospace, medical, and energy, among others [5]