DATA CENTER ORDERS OF $135M IN 3Q, PLUS AN ADDITIONAL $60M IN OCTOBER
MILWAUKEE, Oct. 29, 2025 /PRNewswire/ -- Regal Rexnord Corporation (NYSE: RRX)
3Q Highlights
-- Diluted EPS Of $1.20, Up 10.1% Versus PY; Adjusted Diluted EPS* Of $2.51,
Up 0.8% Versus PY
-- Daily Orders Up 9.8% Versus PY, Largely Reflecting Data Center Project
Orders In AMC & PES Worth $135 Million
-- Sales Of $1,497.0 Million, Up 1.3% Versus PY, Up 0.7% On An Organic*
Basis
-- GAAP Net Income Of $80.0 Million Versus PY Of $$73.0 Million, Up $7.0
Million Versus PY
-- Adjusted EBITDA* Of $339.4 Million Versus PY Of $337.0 Million, Up $2.4
Million Versus PY
-- Cash From Operating Activities Of $197.5 Million; Adjusted Free Cash
Flow* Of $174 Million
-- Paid Down $74.5 million Of Gross Debt; Net Debt/Adjusted EBITDA
(Including Synergies)* Now 3.2x
-- Published 2024 Sustainability Report. Reduced Scope 1 & 2 Emissions By
13% Y/Y, And Achieved Industry Leading Safety Metrics, Including 0.55
Total Recordable Incident Rate
-- Investing In A New 100K Square Foot Assembly Facility In Texas To Support
Data Center Demand Growth
*Non-GAAP Financial Measurement, see reconciliation in tables below
CEO Louis Pinkham commented, "Our enterprise gained significant momentum in the third quarter by delivering very strong orders, nicely above our expectations. The highlight is positive momentum in data center, where we secured orders worth $135 million in 3Q, plus an additional $60 million to date in 4Q. These orders came in the AMC and PES segments, and we see opportunities in IPS as well. We have been making growth investments in the data center market, which are paying off, and we have plans to do much more. Our capabilities here are positioning us as an emerging scale player, with a bid pipeline that is now over $1 billion."
Mr. Pinkham continued, "I was also pleased to see order strength in other markets this quarter, including in discrete automation, food & beverage, and a nice win by our PES team for air filtration solutions in semiconductor clean rooms, as PES executes its growth strategy of diversifying into new, secular markets. Order growth for IPS was low single digits in the quarter, which marks its fifth sequential quarter of positive orders growth - solid performance given broadly sluggish IPS end markets, and provides more evidence that our cross-sell initiatives have momentum. Across the enterprise, I am proud of our teams for pursuing a diverse range of growth opportunities, which is allowing us to more than offset order weakness in short cycle industrial and residential HVAC markets."
Mr. Pinkham concluded, "Looking at our third quarter results beyond orders, our team demonstrated strong execution, and delivered operational results in line with our guidance on sales and adjusted EBITDA, with some partial offsets below the line. Highlights include a return to positive organic sales growth, with IPS delivering outperformance on sales, and PES coming in nicely ahead on adjusted EBITDA margin. We also made further progress paying down our debt, and ended the quarter having paid down all variable rate debt and with line of sight to a net leverage ratio of roughly 3x by the end of 2025. While some persistent end market headwinds, newly implemented tariffs, and additional challenges procuring rare earth magnets are tempering performance, our teams remain focused on driving stronger growth. Looking forward, our order trends demonstrate we are making progress, and raise our confidence that we can deliver accelerating organic growth, including mid-single digit growth in 4Q and while still early in our planning, low- to mid-single digit growth in 2026."
Guidance**
The Company has narrowed and lowered its annual guidance for GAAP diluted earnings per share to a range of $4.26 to $4.56 and for Adjusted Diluted Earnings per Share to a range of $9.50 to $9.80, primarily due to net unfavorable impacts from recently announced tariffs and China trade policies related to rare earth magnets since our second quarter report. We now expect net tariff impacts to be slightly unfavorable in the year on a dollar cost basis and anticipate achieving dollar cost neutrality in the middle of next year, and margin neutrality as we exit 2026.
**Period charges associated with the Securitization Facility recorded as Loss on Sale of Accounts Receivable are included in the Company's interest expense guidance.
Segment Performance
Segment results for the third quarter of 2025 versus the third quarter of the prior year are summarized below:
-- Automation & Motion Control net sales were $402.0 million, an increase of
0.1%, or a decrease of 1.0% on an organic basis. The decline primarily
reflects project timing in our data center business, headwinds in the
medical market, and persistent challenges sourcing rare earth magnets,
particularly for products serving the medical and defense markets. These
headwinds were largely offset by growth in discrete automation, and in
the aerospace market. Adjusted EBITDA margin was 20.5% of net sales.
-- Industrial Powertrain Solutions net sales were $662.3 million, an
increase of 2.8%, or an increase of 1.6% on an organic basis. The growth
primarily reflects strength in energy and in metals & mining. Adjusted
EBITDA margin was 26.4% of net sales.
-- Power Efficiency Solutions net sales were $432.7 million, an increase of
0.3%, or an increase of 0.8% on an organic basis. The results primarily
reflect growth in the pool and commercial HVAC markets. Residential HVAC
sales in the quarter were flat. Adjusted EBITDA margin was 19.0% of net
sales.
Conference Call
Regal Rexnord will hold a conference call to discuss this earnings release at 9:00 AM CT (10:00 AM ET) on Thursday, October 30, 2025. To listen to the live audio and view the presentation during the call, please visit Regal Rexnord's Investor website: https://investors.regalrexnord.com. To listen by phone or to ask the presenters a question, dial 1.877.264.6786 (U.S. callers) or +1.412.317.5177 (international callers) and enter 3256108# when prompted. Participants on the call will include Louis Pinkham, CEO, Rob Rehard, CFO, and Rakesh Sachdev, Chairman of the Board.
A webcast replay will be available at the link above, and a telephone replay will be available at 1.877.344.7529 (U.S. callers) or +1.412.317.0088 (international callers), using a replay access code of 9971498#. Both replays will be accessible for three months after the earnings call.
Supplemental Materials
Supplemental materials and additional information for the quarter ended September 30, 2025, will be accessible before the conference call on October 30, 2025 on Regal Rexnord's Investor website: https://investors.regalrexnord.com. The Company intends to disseminate important information about the Company to its investors on the Investors section of its website: https://investors.regalrexnord.com. Investors are advised to look at Regal Rexnord's website for future important information about the Company. The content of the Company's website is not incorporated by reference into this document or any other report or document Regal Rexnord files with the Securities and Exchange Commission ("SEC").
About Regal Rexnord
Regal Rexnord's 30,000 associates around the world help create a better tomorrow by providing sustainable solutions that power, transmit and control motion. The Company's electric motors and air moving subsystems provide the power to create motion. A portfolio of highly engineered power transmission components and subsystems efficiently transmits motion to power industrial applications. The Company's automation offering, comprised of controllers, drives, precision motors, and actuators, controls motion in applications ranging from factory automation to precision tools used in surgical applications.
The Company's end markets benefit from meaningful secular demand tailwinds, and include discrete automation, food & beverage, aerospace, medical, data center, energy, residential and commercial buildings, general industrial, and metals and mining.
Regal Rexnord is comprised of three operating segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions. Regal Rexnord is headquartered in Milwaukee, Wisconsin and has manufacturing, sales and service facilities worldwide. For more information, including a copy of our Sustainability Report, visit RegalRexnord.com.
Forward Looking Statements
All statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as "anticipate," "believe," "confident," "estimate," "expect," "intend," "plan," "may," "will," "project," "forecast," "would," "could," "should, " and similar expressions, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Forward-looking statements include, but are not limited to, statements about expected market or macroeconomic trends, future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements in this communication include, without limitation: the possibility that the Company may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the sale of the Industrial Motors and Generators businesses, the acquisition of Altra Industrial Motion Corp. ("Altra Transaction"), and the merger with the Rexnord Process & Motion Control
business (the "Rexnord PMC business") within the expected time-frames or at all and to successfully integrate Altra Industrial Motion Corp. ("Altra") and the Rexnord PMC business; the Company's substantial indebtedness as a result of the Altra Transaction and the effects of such indebtedness on the Company's financial flexibility; the Company's ability to achieve its objectives on reducing its indebtedness on the desired timeline; dependence on key suppliers and the potential effects of supply disruptions; fluctuations in commodity prices and raw material costs; any unforeseen changes to or the effects on liabilities, future capital expenditures, revenue, expenses, synergies, indebtedness, financial condition, losses and future prospects; unanticipated operating costs, customer loss and business disruption or the Company's inability to forecast customer needs; the Company's ability to retain key executives and employees; uncertainties regarding our ability to execute restructuring plans within expected costs and timing; challenges to the tax treatment that was elected with respect to the merger with the Rexnord PMC business and related transactions; actions taken by competitors and their ability to effectively compete in the increasingly competitive global industries and markets; our ability to develop new products based on technological innovation, such as the Internet of Things and artificial intelligence, and marketplace acceptance of new and existing products; dependence on significant customers and distributors; risks associated with climate change, including unexpected weather events in markets in which we do business, and uncertainty regarding our ability to deliver on our sustainability commitments and/or to meet related investor, customer and other third party expectations relating to our sustainability efforts; changes to and uncertainty in trade policy, including tariffs on imports into the US from Canada, Mexico, China, and other countries, and retaliatory tariffs and import/export restrictions, including Chinese export restrictions on certain rare earth minerals, or other trade restrictions imposed by the US or other governments; risks associated with global manufacturing, including risks associated with public health crises and political, societal or economic instability, including instability caused by ongoing geopolitical conflicts; issues and costs arising from the integration of acquired companies and businesses; prolonged declines in one or more markets, including disruptions caused by labor disputes or other labor activities, natural disasters, terrorism, acts of war, international conflicts, pandemics and political and government actions; risks associated with excess or obsolete inventory charges including related write-offs or write-downs; economic changes in global markets, such as reduced demand for products, currency exchange rates, inflation rates, interest rates, recession, government policies, including policy changes affecting taxation, trade, tariffs, import/export regulations, immigration, customs, border actions and the like, and other external factors that the Company cannot control; product liability, asbestos and other litigation, or claims by end users, government agencies or others that products or customers' applications failed to perform as anticipated; unanticipated liabilities of acquired businesses; unanticipated adverse effects or liabilities from business exits or divestitures; the Company's ability to identify and execute on future M&A opportunities, including significant M&A transactions; the impact of any such M&A transactions on the Company's results, operations and financial condition, including the impact from costs to execute and finance any such transactions; unanticipated costs or expenses that may be incurred related to product warranty issues; infringement of intellectual property by third parties, challenges to intellectual property, and claims of infringement on third party technologies; risks related to foreign currency fluctuations or changes in global commodity prices or interest rates; effects on earnings of any significant impairment of goodwill; losses from failures, breaches, attacks or disclosures involving information technology infrastructure and data; costs and unanticipated liabilities arising from rapidly evolving laws and regulations, including data privacy laws, labor and employment laws, environmental laws and regulations, and tax laws and regulations, including the One Big Beautiful Bill Act, which was signed on July 4, 2025; and other factors that can be found in our filings with the SEC, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Measures
(Unaudited)
(Dollars in Millions, Except per Share Data)
We prepare our financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We also periodically disclose certain financial measures in our quarterly earnings releases, on investor conference calls, and in investor presentations and similar events that may be considered "non-GAAP" financial measures. This additional information is not meant to be considered in isolation or as a substitute for our results of operations prepared and presented in accordance with GAAP.
In this release, we disclose the following non-GAAP financial measures, and we reconcile these measures in the tables below to the most directly comparable GAAP financial measures: adjusted diluted earnings per share, adjusted income from operations, adjusted operating margin, adjusted net sales, adjusted gross margin, net debt, EBITDA, adjusted EBITDA, adjusted EBITDA (including synergies), interest coverage ratio, interest coverage ratio (including synergies), adjusted EBITDA margin, gross debt/adjusted EBITDA, net debt/adjusted EBITDA, net debt/adjusted EBITDA (including synergies), adjusted cash flows from operations, adjusted free cash flow, adjusted income before taxes, adjusted provision for income taxes, and adjusted effective tax rate. We believe that these non-GAAP financial measures are useful measures for providing investors with additional information regarding our results of operations and for helping investors understand and compare our operating results across accounting periods and compared to our peers. Our management primarily uses adjusted income from operations and adjusted operating margin to help us manage and evaluate our business and make operating decisions, while the other non-GAAP measures disclosed are primarily used to help us evaluate our business and forecast our future results. Accordingly, we believe disclosing and reconciling each of these measures helps investors evaluate our business in the same manner as management. This release also includes non-GAAP forward-looking information. The Company believes that a quantitative reconciliation of this forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of this non-GAAP financial measure would require the Company to predict the timing and likelihood of future restructurings and other charges. Neither these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measure is not provided.
In addition to these non-GAAP measures, we use the term "organic sales growth" to refer to the increase in our sales between periods that is attributable to organic sales. "Organic sales" refers to GAAP sales from existing operations excluding any sales from acquired businesses recorded prior to the first anniversary of the acquisition and excluding any sales from business divested/to be exited recorded prior to the first anniversary of the exit and excluding the impact of foreign currency translation. The impact of foreign currency translation is determined by translating the respective period's organic sales using the currency exchange rates that were in effect during the prior year periods.
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
-------------------------------------- --------------------
Unaudited
(Dollars in Millions, Except per Share
Data)
Three Months Ended Nine Months Ended
------------------------------------------ ------------------------------------------
Sep 30, Sep 30, Sep 30, Sep 30,
2025 2024 2025 2024
-------------------- -------------------- -------------------- --------------------
Net Sales $ 1,497.0 $ 1,477.4 $ 4,411.2 $ 4,572.7
Cost of Sales 942.8 921.1 2,764.7 2,892.3
-------------------- -------------------- -------------------- --------------------
Gross Profit 554.2 556.3 1,646.5 1,680.4
Operating
Expenses 379.8 382.2 1,130.2 1,174.2
Loss on Sale of
Businesses -- -- -- 4.3
-------------------- -------------------- -------------------- --------------------
Total Operating
Expenses 379.8 382.2 1,130.2 1,178.5
-------------------- -------------------- -------------------- --------------------
Income from
Operations 174.4 174.1 516.3 501.9
Interest Expense 87.0 98.0 262.5 305.1
Interest Income (5.3) (5.1) (14.6) (13.2)
Other Expense
(Income), Net 0.8 (0.2) 2.4 0.4
-------------------- -------------------- -------------------- --------------------
Income before
Taxes 91.9 81.4 266.0 209.6
Provision for
Income Taxes 11.9 8.4 49.0 53.2
-------------------- -------------------- -------------------- --------------------
Net Income 80.0 73.0 217.0 156.4
Less: Net Income
Attributable to
Noncontrolling
Interests 0.4 0.3 1.1 1.4
-------------------- -------------------- -------------------- --------------------
Net Income
Attributable to
Regal Rexnord
Corporation $ 79.6 $ 72.7 $ 215.9 $ 155.0
==================== ==================== ==================== ====================
Earnings Per
Share
Attributable to
Regal Rexnord
Corporation:
Basic $ 1.20 $ 1.09 $ 3.26 $ 2.33
==================== ==================== ==================== ====================
Assuming
Dilution $ 1.20 $ 1.09 $ 3.25 $ 2.32
==================== ==================== ==================== ====================
Cash Dividends
Declared Per
Share $ 0.35 $ 0.35 $ 1.05 $ 1.05
==================== ==================== ==================== ====================
Weighted
Average Number
of Shares
Outstanding:
Basic 66.4 66.4 66.3 66.4
==================== ==================== ==================== ====================
Assuming
Dilution 66.6 66.7 66.5 66.8
==================== ==================== ==================== ====================
CONDENSED CONSOLIDATED
BALANCE SHEETS
----------------------- ----------------------- -----------------------
Unaudited
(Dollars in Millions)
Sep 30, 2025 Dec 31, 2024
----------------------- -----------------------
ASSETS
Current Assets:
Cash and Cash
Equivalents $ 400.0 $ 393.5
Trade Receivables, Less
Allowances of $15.2
million and $29.9
million in 2025 and
2024, Respectively 508.0 842.8
Inventories 1,366.3 1,227.5
Prepaid Expenses and
Other Current Assets 320.0 287.5
Total Current Assets 2,594.3 2,751.3
Net Property, Plant and
Equipment 925.9 921.0
Operating Lease Assets 139.6 141.3
Goodwill 6,605.2 6,458.9
Intangible Assets, Net
of Amortization 3,502.6 3,664.5
Deferred Income Tax
Benefits 37.7 30.0
Other Noncurrent Assets 68.8 66.7
Total Assets $ 13,874.1 $ 14,033.7
======================= =======================
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable $ 597.6 $ 542.8
Dividends Payable 23.2 23.2
Accrued Compensation and
Benefits 196.8 191.3
Accrued Interest 90.2 84.0
Other Accrued Expenses 315.6 333.8
Current Operating Lease
Liabilities 37.6 35.6
Current Maturities of
Long-Term Debt 5.4 5.0
Total Current
Liabilities 1,266.4 1,215.7
Long-Term Debt 4,780.0 5,452.7
Deferred Income Taxes 774.6 815.5
Pension and Other Post
Retirement Benefits 110.5 109.5
Noncurrent Operating
Lease Liabilities 108.8 114.1
Other Noncurrent
Liabilities 61.5 59.0
Equity:
Regal Rexnord
Corporation
Shareholders' Equity:
Common Stock, $0.01 par
value, 150.0 million
Shares Authorized, 66.4
million and 66.3
million Shares Issued
and Outstanding for
September 30, 2025 and
December 31, 2024,
Respectively 0.7 0.7
Additional Paid-In
Capital 4,680.2 4,658.0
Retained Earnings 2,190.0 2,043.8
Accumulated Other
Comprehensive Loss (107.4) (442.7)
----------------------- -----------------------
Total Regal Rexnord
Corporation
Shareholders' Equity 6,763.5 6,259.8
Noncontrolling Interests 8.8 7.4
----------------------- -----------------------
Total Equity 6,772.3 6,267.2
----------------------- -----------------------
Total Liabilities and
Equity $ 13,874.1 $ 14,033.7
======================= =======================
CONDENSED CONSOLIDATED
STATEMENTS OF CASH
FLOW
---------------------- -------------------------- ------------------------ ----------------------- -----------------------
Unaudited
(Dollars in Millions)
Three Months Ended Nine Months Ended
---------------------------------------------------- ------------------------------------------------
Sep 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024
-------------------------- ------------------------ ----------------------- -----------------------
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net Income $ 80.0 $ 73.0 $ 217.0 $ 156.4
Adjustments to
Reconcile Net Income
to Net Cash Provided
by Operating
Activities (Net of
Acquisitions and
Divestitures):
Depreciation 41.9 40.6 117.5 122.6
Amortization 87.3 86.8 259.5 260.0
Noncash Lease Expense 10.7 10.8 32.5 33.0
Share-Based
Compensation Expense 9.4 8.3 29.1 26.9
Financing Fee Expense 3.1 3.2 10.4 9.4
Loss on Sale of
Businesses -- -- -- 4.3
Loss (Gain) on Sale of
Assets 2.1 -- (6.2) --
Benefit from Deferred
Income Taxes (30.1) (35.2) (73.2) (89.0)
Other Non-Cash Changes 2.0 1.8 4.3 8.0
Change in Operating
Assets and
Liabilities, Net of
Acquisitions and
Divestitures
Receivables 40.7 44.1 359.3 27.3
Inventories (17.6) (8.5) (107.4) (54.3)
Accounts Payable (18.3) (24.2) 38.7 0.7
Other Assets and
Liabilities (13.7) (45.9) (58.5) (109.1)
-------------------------- ------------------------ ----------------------- -----------------------
Net Cash Provided
by Operating
Activities 197.5 154.8 823.0 396.2
CASH FLOWS FROM
INVESTING ACTIVITIES:
Additions to Property,
Plant and Equipment (23.5) (29.3) (70.5) (80.2)
Proceeds Received from
Sales of Property,
Plant and Equipment 0.6 -- 15.4 1.3
Proceeds Received from
Sale of Businesses,
Net of Cash
Transferred -- -- 3.0 374.8
Net Cash Used in
(Provided by)
Investing Activities (22.9) (29.3) (52.1) 295.9
CASH FLOWS FROM
FINANCING ACTIVITIES:
Borrowings Under
Revolving Credit
Facility 283.5 381.0 1,143.3 1,316.2
Repayments Under
Revolving Credit
Facility (306.5) (373.2) (1,183.3) (1,380.5)
Repayments of
Long-Term Borrowings (51.5) (122.1) (668.4) (668.4)
Dividends Paid to
Shareholders (23.3) (23.3) (69.7) (69.9)
Shares Surrendered for
Taxes (0.7) (1.1) (8.0) (12.4)
Proceeds from the
Exercise of Stock
Options 0.2 0.3 1.6 4.1
Repurchase of Common
Stock -- (50.0) -- (50.0)
Net Cash Used in
Financing Activities (98.3) (188.4) (784.5) (860.9)
EFFECT OF EXCHANGE
RATES ON CASH AND
CASH EQUIVALENTS 3.6 12.9 20.1 (6.1)
-------------------------- ------------------------ ----------------------- -----------------------
Net Increase
(Decrease) in Cash
and Cash Equivalents 79.9 (50.0) 6.5 (174.9)
Cash and Cash
Equivalents at
Beginning of Period 320.1 510.4 393.5 635.3
-------------------------- ------------------------ ----------------------- -----------------------
Cash and Cash
Equivalents at End of
Period $ 400.0 $ 460.4 $ 400.0 $ 460.4
========================== ======================== ======================= =======================
ADJUSTED
DILUTED
EARNINGS PER
SHARE
--------------- ---------------- ---------------- ---------------- ----------------
Unaudited
Three Months Ended Nine Months Ended
---------------------------------- ----------------------------------
Sep 30, Sep 30, Sep 30, Sep 30,
2025 2024 2025 2024
---------------- ---------------- ---------------- ----------------
GAAP Diluted
Earnings Per
Share $ 1.20 $ 1.09 $ 3.25 $ 2.32
Intangible
Amortization 0.99 0.98 2.95 2.95
Restructuring
and Related
Costs (a) 0.15 0.22 0.45 0.60
Share-Based
Compensation
Expense 0.13 0.11 0.38 0.34
Transaction and
Integration
Related Costs
(b) 0.07 0.09 0.22 0.24
Operating Lease
Asset Step Up -- -- 0.01 0.01
Accounts
Receivable
Securitization
Transaction
Costs -- -- 0.01 --
Impairments and
Exit Related
Costs -- -- -- 0.02
Loss on Sale of
Business (c) -- -- -- 0.06
Loss (Gain) on
Sale of Assets 0.02 -- (0.07) (0.01)
Discrete Tax
Items (0.05) -- (0.06) 0.25
Adjusted Diluted
Earnings Per
Share 2.51 2.49 7.14 6.78
================ ================ ================ ================
(a) Relates to costs associated with actions taken for employee reductions,
facility consolidations and site closures, product line exits and other
asset charges.
(b) For 2025, primarily relates to (1) integration costs associated with the
Altra Transaction and (2) IT carve-out costs for the three months ended
March 31, 2025 associated with the sale of the industrial motors and
generators businesses. For 2024, primarily relates to (1) legal,
professional service and integration costs associated with the Altra
Transaction and (2) legal, professional service, rebranding and IT
carve-out costs associated with the sale of the industrial motors and
generators businesses.
(c) Related to the sale of the industrial motors and generators businesses.
2025 ADJUSTED
ANNUAL
GUIDANCE
--------------- ------------------------------- -------------------------------
Unaudited
------------------------------- -------------------------------
Minimum Maximum
------------------------------- -------------------------------
GAAP Diluted
Earnings Per
Share $ 4.26 $ 4.56
Intangible
Amortization 3.93 3.93
Restructuring
and Related
Costs (a) 0.61 0.61
Share-Based
Compensation
Expense 0.51 0.51
Transaction and
Integration
Related Costs
(b) 0.30 0.30
Accounts
Receivable
Securitization
Transaction
Costs 0.01 0.01
Operating Lease
Asset Step Up 0.01 0.01
Gain on Sale of
Assets (0.07) (0.07)
Discrete Tax
Items (0.06) (0.06)
------------------------------- -------------------------------
Adjusted Diluted
Earnings Per
Share $ 9.50 $ 9.80
=============================== ===============================
(a) Relates to costs associated with actions taken for employee reductions,
facility consolidations and site closures, product line exits and other
asset charges.
(b) Primarily relates to (1) integration costs associated with the Altra
Transaction and (2) IT carve-out costs associated with the sale of the
industrial motors and generators businesses.
ORGANIC SALES GROWTH
----------------------
Unaudited
(Dollars in Millions)
Three Months Ended
-------------------------------------------------------------------------------------
September 30, 2025
-------------------------------------------------------------------------------------
Industrial Power and
Automation & Powertrain Efficiency Total Regal
Motion Control Solutions Solutions Rexnord
-------------------- -------------------- -------------------- -------------------
Net Sales Three Months
Ended Sep 30, 2025 $ 402.0 $ 662.3 $ 432.7 $ 1,497.0
Impact from Foreign
Currency Exchange
Rates (4.3) (7.5) (2.2) (14.0)
-------------------- -------------------- -------------------- -------------------
Organic Sales Three
Months Ended Sep 30,
2025 $ 397.7 $ 654.8 $ 430.5 $ 1,483.0
==================== ==================== ==================== ===================
Net Sales Three Months
Ended Sep 30, 2024 $ 401.6 $ 644.2 $ 431.6 $ 1,477.4
Net Sales from
Businesses Divested -- -- (4.6) (4.6)
-------------------- -------------------- -------------------- -------------------
Adjusted Net Sales
Three Months Ended Sep
30, 2024 $ 401.6 $ 644.2 $ 427.0 $ 1,472.8
==================== ==================== ==================== ===================
Three Months Ended Sep
30, 2025 Net Sales
Growth % 0.1 % 2.8 % 0.3 % 1.3 %
Three Months Ended Sep
30, 2025 Foreign
Currency Impact % 1.1 % 1.2 % 0.5 % 0.9 %
Three Months Ended Sep
30, 2025 Divestitures
% -- % -- % (1.0) % (0.3) %
Three Months Ended Sep
30, 2025 Organic Sales
Growth % (1.0) % 1.6 % 0.8 % 0.7 %
ORGANIC SALES GROWTH
----------------------
Unaudited
(Dollars in Millions)
Nine Months Ended
-------------------------------------------------------------------------------------------
September 30, 2025
-------------------------------------------------------------------------------------------
Industrial Power and
Automation & Powertrain Efficiency Industrial Total Regal
Motion Control Solutions Solutions Systems Rexnord
---------------- ---------------- ---------------- ------------------- ----------------
Net Sales Nine Months
Ended Sep 30, 2025 $ 1,209.4 $ 1,924.8 $ 1,277.0 $ -- $ 4,411.2
Impact from Foreign
Currency Exchange
Rates (2.0) (2.9) 0.2 -- (4.7)
---------------- ---------------- ---------------- ------------------- ----------------
Organic Sales Nine
Months Ended Sep 30,
2025 $ 1,207.4 $ 1,921.9 $ 1,277.2 $ -- $ 4,406.5
================ ================ ================ =================== ================
Net Sales Nine Months
Ended Sep 30, 2024 $ 1,224.0 $ 1,963.1 $ 1,227.8 $ 157.8 $ 4,572.7
Net Sales from
Businesses Divested -- -- (11.5) (157.8) (169.3)
---------------- ---------------- ---------------- ------------------- ----------------
Adjusted Net Sales Nine
Months Ended Sep 30,
2024 $ 1,224.0 $ 1,963.1 $ 1,216.3 $ -- $ 4,403.4
================ ================ ================ =================== ================
Nine Months Ended Sep
30, 2025 Net Sales
Growth % (1.2) % (2.0) % 4.0 % (100.0) % (3.5) %
Nine Months Ended Sep
30, 2025 Foreign
Currency Impact % 0.2 % 0.1 % (0.1) % -- % 0.1 %
Nine Months Ended Sep
30, 2025 Divestitures
% -- % -- % (0.9) % (100.0) % (3.7) %
Nine Months Ended Sep
30, 2025 Organic Sales
Growth % (1.4) % (2.1) % 5.0 % -- % 0.1 %
ADJUSTED EBITDA
---------------------- -------- -------- -------- -------- --------- --------- -------- --------
Unaudited
(Dollars in Millions)
Three Months Ended
--------------------------------------------------------------------------------
Industrial Power and
Automation & Powertrain Efficiency Total Regal
Motion Control Solutions Solutions Rexnord
------------------ ------------------ -------------------- ------------------
Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30,
2025 2024 2025 2024 2025 2024 2025 2024
-------- -------- -------- -------- --------- --------- -------- --------
GAAP Income from
Operations $ 22.7 $ 31.0 $ 86.1 $ 84.5 $ 65.6 $ 58.6 $ 174.4 $ 174.1
Restructuring and
Related Costs (a) 2.5 6.6 9.6 9.0 1.7 3.5 13.8 19.1
Transaction and
Integration Related
Costs (b) 1.3 1.0 3.8 5.2 0.9 1.5 6.0 7.7
Loss on Sale of
Accounts Receivable
(c) 1.0 -- 2.3 -- 1.7 -- 5.0 --
Accounts Receivable
Securitization
Transaction Costs -- -- 0.1 -- -- -- 0.1 --
Operating Lease Asset
Step Up -- -- 0.2 0.2 -- -- 0.2 0.2
Loss on Sale of Assets 2.1 -- -- -- -- -- 2.1 --
Adjusted Income from
Operations $ 29.6 $ 38.6 $ 102.1 $ 98.9 $ 69.9 $63.6 $ 201.6 $201.1
======== ======== ======== ======== ========= ========= ======== ========
Amortization $ 34.6 $ 33.9 $ 51.1 $ 50.9 $ 1.6 $ 2.0 $ 87.3 $ 86.8
Depreciation 14.8 12.3 17.9 18.9 9.2 9.4 41.9 40.6
Share-Based
Compensation Expense 3.6 2.6 4.0 4.0 1.8 1.7 9.4 8.3
Other Income
(Expense), Net -- 0.1 (0.5) -- (0.3) 0.1 (0.8) 0.2
-------- -------- -------- -------- --------- --------- -------- --------
Adjusted EBITDA $ 82.6 $ 87.5 $ 174.6 $ 172.7 $ 82.2 $ 76.8 $ 339.4 $ 337.0
======== ======== ======== ======== ========= ========= ======== ========
GAAP Operating Margin
% 5.6 % 7.7 % 13.0 % 13.1 % 15.2 % 13.6 % 11.6 % 11.8 %
Adjusted Operating
Margin* % 7.4 % 9.6 % 15.4 % 15.4 % 16.2 % 14.7 % 13.5 % 13.6 %
Adjusted EBITDA Margin
% 20.5 % 21.8 % 26.4 % 26.8 % 19.0 % 17.8 % 22.7 % 22.8 %
(a) Relates to costs associated with actions taken for employee reductions,
facility consolidations and site closures, product line exits and other
asset charges.
(b) For 2025, primarily relates to integration costs associated with the
Altra Transaction. For 2024, primarily relates to (1) legal, professional
service and integration costs associated with the Altra Transaction and
(2) legal, professional service, rebranding and IT carve-out costs
associated with the sale of the industrial motors and generators
businesses.
(c) Represents charges associated with the Securitization Facility.
ADJUSTED EBITDA
---------------------- ------- ------- ------- ------- -------- -------- ------ ------- ------- ----------
Unaudited
(Dollars in Millions)
Nine Months Ended
Industrial Power and
Automation & Powertrain Efficiency Industrial
Motion Control Solutions Solutions Systems Total Regal Rexnord
---------------- ---------------- ------------------ --------------- -------------------
Sep
Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, 30, Sep 30, Sep 30, Sep 30,
2025 2024 2025 2024 2025 2024 2025 2024 2025 2024
------- ------- ------- ------- -------- -------- ------ ------- ------- ----------
GAAP Income from
Operations $ 88.2 $ 113.0 $ 260.2 $ 256.4 $ 167.9 $ 132.2 $ -- $ 0.3 $ 516.3 $ 501.9
Restructuring and
Related Costs (a) 5.5 11.8 30.3 20.3 4.0 18.6 -- 3.1 39.8 53.8
Transaction and
Integration Related
Costs (b) 3.9 2.3 12.0 12.5 3.3 3.0 -- 3.4 19.2 21.2
Loss on Sale of
Accounts Receivable
(c) 1.0 -- 2.3 -- 1.7 -- -- -- 5.0 --
Accounts Receivable
Securitization
Transaction Costs 0.3 -- 0.5 -- 0.3 -- -- -- 1.1 --
Operating Lease Asset
Step Up -- -- 0.6 0.9 -- -- -- -- 0.6 0.9
Impairments and Exit
Related Costs -- 1.1 -- 0.2 -- 0.2 -- -- -- 1.5
Loss on Sale of
Businesses (d) -- -- -- -- -- -- -- 4.3 -- 4.3
Gain on Sale of Assets (0.2) (0.8) (6.0) -- -- -- -- -- (6.2) (0.8)
------- ------- ------- ------- -------- -------- ------ ------- ------- ----------
Adjusted Income from
Operations $98.7 $ 127.4 $ 299.9 $ 290.3 $ 177.2 $154.0 $ -- $11.1 $575.8 $582.8
======= ======= ======= ======= ======== ======== ====== ======= ======= ==========
Amortization $ 103.0 $ 102.5 $ 151.6 $ 151.1 $ 4.9 $ 6.2 $ -- $ 0.2 $ 259.5 $ 260.0
Depreciation 37.3 35.2 52.3 59.6 26.9 28.1 -- 0.4 116.5 123.3
Share-Based
Compensation Expense 10.3 7.3 12.3 12.6 6.5 5.6 -- 1.4 29.1 26.9
Other Income (Expense),
Net (0.1) (0.1) (1.3) (0.2) (1.0) (0.1) -- -- (2.4) (0.4)
------- ------- ------- ------- -------- -------- ------ ------- ------- ----------
Adjusted EBITDA (e) $ 249.2 $ 272.3 $ 514.8 $ 513.4 $ 214.5 $ 193.8 $ -- $ 13.1 $ 978.5 $ 992.6
GAAP Operating Margin % 7.3 % 9.2 % 13.5 % 13.1 % 13.1 % 10.8 % -- % 0.2 % 11.7 % 11.0 %
Adjusted Operating
Margin % 8.2 % 10.4 % 15.6 % 14.8 % 13.9 % 12.5 % -- % 7.0 % 13.1 % 12.7 %
Adjusted EBITDA Margin
% 20.6 % 22.2 % 26.7 % 26.2 % 16.8 % 15.8 % -- % 8.3 % 22.2 % 21.7 %
(a) Relates to costs associated with actions taken for employee reductions,
facility consolidations and site closures, product line exits and other
asset charges.
(b) For 2025, primarily relates to (1) integration costs associated with the
Altra Transaction and (2) IT carve-out costs for the three months ended
March 31, 2025 associated with the sale of the industrial motors and
generators businesses. For 2024, primarily relates to (1) legal,
professional service and integration costs associated with the Altra
Transaction and (2) legal, professional service, rebranding and IT
carve-out costs associated with the sale of the industrial motors and
generators businesses.
(c) Represents charges associated with the Securitization Facility.
(d) Related to the sale of the industrial motors and generators businesses.
(e) Adjusted EBITDA and Adjusted EBITDA Margin % Excluding Industrial for the
nine months ended September 2024 is calculated as follows:
Sep 30, 2024
------------
Total Regal Rexnord Adjusted EBITDA 992.6
Less: Industrial Systems Adjusted EBITDA 13.1
------------
Adjusted EBITDA excluding Industrial Systems 979.5
============
Total Regal Rexnord Net Sales 4,572.7
Less: Industrial Systems Net Sales 157.8
------------
Net Sales excluding Industrial Systems 4,414.9
============
Adjusted EBITDA Margin % excluding Industrial Systems 22.2 %
ADJUSTED GROSS MARGIN
---------------------- ------- ------- ------- ------- ------- ------- ------- -------
Unaudited
(Dollars in Millions)
Three Months Ended
----------------------------------------------------------------------
Industrial Power and
Automation & Powertrain Efficiency Total Regal
Motion Control Solutions Solutions Rexnord
---------------- ---------------- ---------------- ----------------
Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30,
2025 2024 2025 2024 2025 2024 2025 2024
Gross Margin $ 148.7 $ 156.5 $ 274.0 $ 268.0 $ 131.5 $ 131.8 $ 554.2 $ 556.3
Restructuring and
Related Costs (a) 1.5 3.6 5.3 4.2 1.6 2.9 8.4 10.7
Operating Lease Asset
Step Up -- -- 0.2 0.2 -- -- 0.2 0.2
------- ------- ------- ------- ------- ------- ------- -------
Adjusted Gross Margin $ 150.2 $ 160.1 $ 279.5 $ 272.4 $ 133.1 $ 134.7 $ 562.8 $ 567.2
======= ======= ======= ======= ======= ======= ======= =======
Gross Margin % 37.0 % 39.0 % 41.4 % 41.6 % 30.4 % 30.5 % 37.0 % 37.7 %
Adjusted Gross Margin % 37.4 % 39.9 % 42.2 % 42.3 % 30.8 % 31.2 % 37.6 % 38.4 %
(a) Relates to costs associated with actions taken for employee reductions,
facility consolidations and site closures, product line exits and other
asset charges.
ADJUSTED GROSS MARGIN
---------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------- ---------
Unaudited
(Dollars in Millions)
Nine Months Ended
--------------------------------------------------------------------------------------------
Industrial Power and
Automation & Powertrain Efficiency Industrial Total Regal
Motion Control Solutions Solutions Systems Rexnord
---------------- ---------------- ---------------- --------------------
Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30, Sep 30,
2025 2024 2025 2024 2025 2024 2025 2024 2025 2024
Gross Margin $ 461.4 $ 485.6 $ 811.9 $ 803.3 $ 373.2 $ 352.3 $ -- $ 39.2 $ 1,646.5 $ 1,680.4
Restructuring and
Related Costs (a) 3.7 5.7 18.1 11.8 3.1 16.9 -- 1.1 24.9 35.5
Operating Lease Asset
Step Up -- -- 0.6 0.9 -- -- -- -- 0.6 0.9
------- ------- ------- ------- ------- ------- ------- ------- --------- ---------
Adjusted Gross Margin $ 465.1 $ 491.3 $ 830.6 $ 816.0 $ 376.3 $ 369.2 $ -- $ 40.3 $ 1,672.0 $ 1,716.8
======= ======= ======= ======= ======= ======= ======= ======= ========= =========
Gross Margin % 38.2 % 39.7 % 42.2 % 40.9 % 29.2 % 28.7 % -- % 24.8 % 37.3 % 36.7 %
Adjusted Gross Margin %
(b) 38.5 % 40.1 % 43.2 % 41.6 % 29.5 % 30.1 % -- % 25.5 % 37.9 % 37.5 %
(a) Relates to costs associated with actions taken for employee reductions,
facility consolidations and site closures, product line exits and other
asset charges.
(b) The following table reflects Adjusted Gross Margin of the Company for the
nine months ended September 30, 2024 Excluding Industrial:
Sep 30, 2024
------------
Total Regal Rexnord Adjusted Gross Margin 1,716.8
Less: Industrial Systems Adjusted Gross Margin 40.3
------------
Adjusted Gross Margin excluding Industrial Systems 1,676.5
============
Total Regal Rexnord Net Sales 4,572.7
Less: Industrial Systems Net Sales 157.8
------------
Net Sales excluding Industrial Systems 4,414.9
============
Adjusted Gross Margin % excluding Industrial Systems 38.0 %
NET INCOME TO ADJUSTED
EBITDA
---------------------- ------------------ ------------------ ----------------- -----------------
Unaudited
(Dollars in Millions)
Three Months Ended Nine Months Ended
------------------------------------
Sep 30, Sep 30, Sep 30, Sep 30,
2025 2024 2025 2024
------------------ ------------------ ----------------- -----------------
Net Income $ 80.0 $ 73.0 $ 217.0 $ 156.4
Plus: Income Taxes 11.9 8.4 49.0 53.2
Plus: Interest Expense 87.0 98.0 262.5 305.1
Less: Interest Income (5.3) (5.1) (14.6) (13.2)
Plus: Depreciation 41.9 40.6 116.5 123.3
Plus: Amortization 87.3 86.8 259.5 260.0
------------------ ------------------ ----------------- -----------------
EBITDA $ 302.8 $ 301.7 $ 889.9 $ 884.8
-----------------------
Plus: Restructuring and
Related Costs (a) 13.8 19.1 39.8 53.8
Plus: Share-Based
Compensation Expense 9.4 8.3 29.1 26.9
Plus: Transaction and
Integration Related
Costs (b) 6.0 7.7 19.2 21.2
Plus: Loss on Sale of
Accounts Receivable
(c) 5.0 -- 5.0 --
Plus: Accounts
Receivable
Securitization
Transaction Costs 0.1 -- 1.1 --
Plus: Operating Lease
Asset Step Up 0.2 0.2 0.6 0.9
Plus: Impairments and
Exit Related Costs -- -- -- 1.5
Plus: Loss on Sale of
Businesses (d) -- -- -- 4.3
Plus: Loss (Gain) on
Sale of Assets 2.1 -- (6.2) (0.8)
------------------ ------------------ ----------------- -----------------
Adjusted EBITDA $ 339.4 $ 337.0 $ 978.5 $ 992.6
================== ================== ================= =================
(a) Relates to costs associated with actions taken for employee reductions,
facility consolidations and site closures, product line exits and other
asset charges.
(b) For 2025, primarily relates to (1) integration costs associated with the
Altra Transaction and (2) IT carve-out costs for the three months ended
March 31, 2025 associated with the sale of the industrial motors and
generators businesses. For 2024, primarily relates to (1) legal,
professional service and integration costs associated with the Altra
Transaction and (2) legal, professional service, rebranding and IT
carve-out costs associated with the sale of the industrial motors and
generators businesses.
(c) Represents charges associated with the Securitization Facility.
(d) Related to the sale of the industrial motors and generators businesses.
DEBT TO EBITDA
----------------------------- --------------------------------------------
Unaudited
(Dollars in Millions)
Last Twelve Months
--------------------------------------------
Sep 30, 2025
--------------------------------------------
Net Income $ 259.1
Plus: Income Taxes 45.4
Plus: Interest Expense 357.1
Less: Interest Income (20.2)
Plus: Depreciation 157.5
Plus: Amortization 346.0
--------------------------------------------
EBITDA $ 1,144.9
Plus: Restructuring and
Related Costs (a) 77.6
Plus: Share-Based Compensation
Expense 37.1
Plus: Transaction and
Integration Related Costs
(b) 31.7
Plus: Loss on Sale of
Businesses (c) 4.2
Plus: Impairments and Exit
Related Costs 2.5
Plus: Loss on Sale of Accounts
Receivable (d) 5.0
Plus: Accounts Receivable
Securitization Transaction
Costs 1.1
Plus: Operating Lease Asset
Step Up 0.6
Less: Gain on Sale of Assets (8.5)
--------------------------------------------
Adjusted EBITDA (e) $ 1,296.2
Current Maturities of
Long-Term Debt 5.4
Long-Term Debt 4,780.0
--------------------------------------------
Total Gross Debt $ 4,785.4
Cash and Cash Equivalents (400.0)
--------------------------------------------
Net Debt $ 4,385.4
Gross Debt/Adjusted EBITDA* 3.69
Net Debt/Adjusted EBITDA* (e) 3.38
Interest Coverage Ratio*
(e)(f) 3.85
(a) Relates to costs associated with actions taken for employee reductions,
facility consolidations and site closures, product line exits and other
asset charges.
(b) Primarily relates to (1) legal, professional service, and integration
costs associated with the Altra Transaction and (2) legal, professional
service, rebranding and IT carve-out costs associated with the sale of
the industrial motors and generators businesses.
(c) Related to the sale of the industrial motors and generators businesses.
(d) Represents charges associated with the Securitization Facility.
(e) Synergies expected to be realized in the future are included in the
calculation of EBITDA that serves as the basis for financial covenant
compliance for certain of the Company's debt. The impact of the synergies
the Company expects to realize within 18 months is as follows:
Adjusted EBITDA $ 1,296.2
Synergies to be Realized Within
18 Months $ 55.0
-------------------------------------------
Adjusted EBITDA (including
synergies)* $ 1,351.2
===========================================
Net Debt/Adjusted EBITDA
(including synergies) 3.25
Interest Expense 357.1
Interest Income (20.2)
-------------------------------------------
Net Interest Expense $ 336.9
Interest Coverage Ratio
(including synergies)*(1) 4.01
(1) Computed as Adjusted EBITDA
(including synergies)/Net
Interest Expense
(f) Computed as Adjusted
EBITDA/Net Interest
Expense
ADJUSTED FREE CASH
FLOW
---------------------- ---------------- ---------------- ---------------- ----------------
Unaudited
(Dollars in Millions)
Three Months Ended Nine Months Ended
---------------------------------- ----------------------------------
Sep 30, Sep 30, Sep 30, Sep 30,
2025 2024 2025 2024
Net Cash Provided by
Operating Activities 197.5 154.8 823.0 396.2
Payments for Certain
Costs to Sell
Businesses (Net of Tax
of $1.7 Million in
2024)(a) -- -- -- 10.5
---------------- ---------------- ---------------- ----------------
Adjusted Cash Flows
from Operations 197.5 154.8 823.0 406.7
Additions to Property
Plant and Equipment (23.5) (29.3) (70.5) (80.2)
---------------- ---------------- ---------------- ----------------
Adjusted Free Cash Flow $ 174.0 $ 125.5 $ 752.5 $ 326.5
================ ================ ================ ================
(a) Reflects the payment of Regal Rexnord's advisor success fees and income
taxes paid related to the sale of the industrial motors and generators
businesses.
ADJUSTED EFFECTIVE TAX
RATE
---------------------- --------------- ---------------- --------------- ---------------
Unaudited
(Dollars in Millions)
Three Months Ended Nine Months Ended
--------------------------------
Sep 30, Sep 30, Sep 30, Sep 30,
2025 2024 2025 2024
--------------- ---------------- --------------- ---------------
Income before Taxes $ 91.9 $ 81.4 $ 266.0 $ 209.6
Provision for Income
Taxes 11.9 8.4 49.0 53.2
--------------- ---------------- --------------- ---------------
Effective Tax Rate 12.9 % 10.3 % 18.4 % 25.4 %
Income before Taxes 91.9 81.4 266.0 209.6
Intangible
Amortization 87.3 86.8 259.5 260.0
Restructuring and
Related Costs (a) 13.8 19.1 39.8 53.8
Share-Based
Compensation Expense 9.4 8.3 29.1 26.9
Transaction and
Integration Related
Costs (b) 6.0 7.7 19.2 21.2
Accounts Receivable
Securitization
Transaction Costs 0.1 -- 1.1 --
Operating Lease Asset
Step Up 0.2 0.2 0.6 0.9
Impairments and Exit
Related Costs -- -- -- 1.5
Loss on Sale of
Businesses (c) -- -- -- 4.3
Loss (Gain) on Sale of
Assets 2.1 -- (6.2) (0.8)
--------------- ---------------- --------------- ---------------
Adjusted Income before
Taxes* $ 210.8 $ 203.5 $ 609.1 $ 577.4
=============== ================ =============== ===============
Provision for Income
Taxes $ 11.9 $ 8.4 $ 49.0 $ 53.2
Tax Effect of
Intangible
Amortization 21.2 21.1 63.3 63.2
Tax Effect of
Restructuring and
Related Costs 3.7 4.6 9.6 13.2
Tax Effect of
Share-Based
Compensation Expense 0.9 1.0 3.5 4.6
Tax Effect of
Transaction and
Integration Related
Costs 1.4 1.8 4.7 5.0
Tax Effect of Accounts
Receivable
Securitization
Transaction Costs -- -- 0.3 --
Tax Effect of
Operating Lease Asset
Step Up -- -- -- 0.1 0.2
Tax Effect of
Impairments and Exit
Related Costs -- -- -- 0.4
Tax Effect of Loss
(Gain) on Sale of
Assets 0.6 -- (1.5) (0.2)
Tax Effect of Discrete
Tax Items 3.7 -- 4.2 (16.3)
--------------- ---------------- --------------- ---------------
Adjusted Provision for
Income Taxes* $ 43.4 $ 36.9 $ 133.2 $ 123.3
=============== ================ =============== ===============
Adjusted Effective Tax
Rate* 20.6 % 18.1 % 21.9 % 21.4 %
(a) Relates to costs associated with actions taken for employee reductions,
facility consolidations and site closures, product line exits and other
asset charges.
(b) For 2025, primarily relates to (1) integration costs associated with the
Altra Transaction and (2) IT carve-out costs for the three months ended
March 31, 2025 associated with the sale of the industrial motors and
generators businesses. For 2024, primarily relates to (1) legal,
professional service and integration costs associated with the Altra
Transaction and (2) legal, professional service, rebranding and IT
carve-out costs associated with the sale of the industrial motors and
generators businesses.
(c) Related to the sale of the industrial motors and generators businesses.
View original content:https://www.prnewswire.com/news-releases/regal-rexnord-reports-strong-third-quarter-2025-financial-results-302598891.html
SOURCE Regal Rexnord Corporation
(END) Dow Jones Newswires
October 29, 2025 16:01 ET (20:01 GMT)