Regal Rexnord Corporation reported its earnings for the fourth quarter (Q4) and full year (FY) 2025. For Q4 2025, net sales increased 2.9% on an organic basis, supported by strength in the data center, discrete automation, and metals & mining sectors, while the R-HVAC segment faced headwinds. Adjusted gross margin for the quarter was 37.6%, up 0.5 percentage points year-over-year, and adjusted EBITDA margin reached 21.6%. The company delivered adjusted EBITDA synergies of USD 7 million and highlighted benefits from price realization and disciplined cost management, offset by unfavorable tariff impacts and product mix headwinds. Adjusted diluted EPS for Q4 2025 was USD 2.51, representing a 7.3% increase. Adjusted free cash flow for the quarter totaled USD 140.6 million, with net debt leverage down to 3.1 times. For the full year 2025, adjusted diluted EPS was USD 9.65, up 5.8%. Adjusted free cash flow for the period was USD 893.1 million, including the impact of ARS, and the company paid down USD 709.4 million of gross debt by year-end. During the period, Regal Rexnord Corporation noted significant momentum from its new E-Pod offering and continued to invest in secular new product development, especially in data center infrastructure. The company emphasized ongoing synergy realization and reaffirmed its commitment to creating a better tomorrow through portfolio scale and scope expansion.

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