Regal Rexnord Corporation · NYSE:RRX
Regal Rexnord — Q2 2026 Earnings Presentation
26 slides from Regal Rexnord's earnings presentation, Aug 5, 2026
Slide 1: Second Quarter 2026 Earnings
Creating a better tomorrow™… Second Quarter 2026 Earnings August 5, 2026 Moti Aamir Paul, Chief Executive Officer on Co Indus Rob Rehard, Executive Vice President, Chief Financial Officer ntrol trial S Solut ystem ions s
Slide 2: 2Q 2026 Forward Looking Statements and Non-GAAP Financial Measures
2Q 2026 FORWARD LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES 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,” “con
Slide 3: Opening Comments
1Q 2021 Creating a better tomorrow™… Opening Comments AAMIR PAUL, CEO 2Q 2026 Results, 2026 Outlook ROB REHARD, CFO Questions & Answers Moti on Co Indus ntrol trial S Solut ystem ions s
Slide 4: Opening Comments
2Q 2026 Opening Comments Creating a better tomorrow™… 4 ©2026 Regal Rexnord Corporation, Proprietary and Confidential
Slide 5: 2Q 2026 Results, 2026 Outlook
1Q 2021 Creating a better tomorrow™… Opening Comments AAMIR PAUL, CEO 2Q 2026 Results, 2026 Outlook ROB REHARD, CFO Questions & Answers Moti on Co Indus ntrol trial S Solut ystem ions s
Slide 6: 2Q 2026 Performance
2Q 2026 2Q PERFORMANCE • Daily Orders Up 8.8% Vs. Prior Year Net Sales Adjusted EBITDA & o AMC Orders Up 17.1%, On Broad-Based Strength Margin* o IPS Orders Up 6.7%, Strength In Energy, General Industrial o PES Orders Up 3.5%, Strength In C-HVAC $1,496.1 $1,558.4 $366.6 $329.7 • Sales Up 3.3% On An
Slide 7: Strong Organic Sales & Orders Growth
2Q 2026 AUTOMATION & MOTION CONTROL Sales Net Sales ($M) Adjusted EBITDA* • Net Sales Up 16.2% ($M) & Margin* • Organic Sales Up 15.6% $477.7 • Key Drivers $411.1 o Data Center (++) o Discrete Automation (++) $100.8 o Aerospace & Defense (+) $80.2 19.5% 21.1% 2Q25 2Q26 2Q25 2Q26 * 2Q26 Adjusted EBIT
Slide 8: Order Strength & Backlog Build Encouraging
2Q 2026 INDUSTRIAL POWERTRAIN SOLUTIONS Sales Net Sales ($M) Adjusted EBITDA* • Net Sales Up 3.0% ($M) & Margin* • Organic Sales Up 2.0% $669.4 $649.8 • Key Drivers $181.4 $175.1 o Energy (+) $53. o Machinery/Off-Highway (-) $235.2 5 $43. 4 26.9% 27.1% 2Q25 2Q26 2Q25 2Q26 * 2Q26 Adjusted EBITDA Marg
Slide 9: Continued Strength In Commercial HVAC
2Q 2026 POWER EFFICIENCY SOLUTIONS Sales Net Sales ($M) Adjusted EBITDA* • Net Sales Down 5.5% ($M) & Margin* • Organic Sales Down 6.6% $435.2 $411.3 • Key Drivers $165. o R-HVAC (-) 5 $39.0 $84.4 o Pool (-) $135. $74.4 o C-HVAC (++) 7 $21.3 17.1% 20.5% 2Q25 2Q26 2Q25 2Q26 $189.8 * 2Q26 Adjusted EBI
Slide 10: Mid-Point Reflects ~10% Adjusted EPS Growth In 2026
2Q 2026 2026 OUTLOOK - ENTERPRISE GUIDANCE • Revenue: Sales Growth Framework Unchanged. • Adj. EBITDA Margin: Outlook Now Factors IEEPA Refunds Worth ~$48M, Net Of A Longer Timeline To Realize Productivity Gains To Prioritize Service; Higher Inflation; Less Favorable Mix. • Free Cash Flow: Outlook N
Slide 11: 2026 Outlook - Segment Detail
2Q 2026 2026 OUTLOOK - SEGMENT DETAIL Creating a better tomorrow™… 11 ©2026 Regal Rexnord Corporation, Proprietary and Confidential
Slide 12: 2Q 2026 Results, 2026 Outlook
Creating a better tomorrow™… Opening Comments AAMIR PAUL, CEO 2Q 2026 Results, 2026 Outlook ROB REHARD, CFO Questions & Answers Moti on Co Indus ntrol trial S Solut ystem ions s
Slide 13: Adjusted Diluted Earnings Per Share
2Q 2026 APPENDIX ADJUSTED DILUTED EARNINGS PER SHARE Unaudited Three Months Ended Six Months Ended Jun 30, Jun 30, Jun 30, Jun 30, 2026 2025 2026 2025 GAAP Diluted Earnings Per Share(a) $ 1.74 $ 1.19 $ 2.71 $ 2.05 Intangible Amortization 0.98 0.99 1.95 1.96 Restructuring and Related Costs(b) 0.11 0.
Slide 14: 2026 Adjusted Annual Guidance
2Q 2026 APPENDIX 2026 ADJUSTED ANNUAL GUIDANCE Unaudited Minimum Maximum GAAP Diluted Earnings Per Share(a) $ 5.42 $ 5.92 Intangible Amortization 3.92 3.92 Restructuring and Related Costs(b) 0.40 0.40 Share-Based Compensation Expense 0.32 0.32 Transaction and Integration Related Costs(c) 0.21 0.21 L
Slide 15: 2026 Net Income to Adjusted EBITDA Annual Guidance
2Q 2026 APPENDIX 2026 NET INCOME TO ADJUSTED EBITDA ANNUAL GUIDANCE Unaudited (Dollars in Millions) Total Regal Rexnord Minimum Maximum Net Income $ 363 $ 396 Plus: Income Taxes 89 96 Plus: Interest Expense 305 305 Less: Interest Income (20) (20) Plus: Depreciation 161 161 Plus: Amortization 345 345
Slide 16: Organic Sales Growth
2Q 2026 APPENDIX ORGANIC SALES GROWTH Unaudited (Dollars in Millions) Three Months Ended June 30, 2026 Industrial Power Automation & Powertrain Efficiency Total Regal Motion Control Solutions Solutions Rexnord Net Sales Three Months Ended Jun 30, 2026 $ 477.7 $ 669.4 $ 411.3 $ 1,558.4 Impact from Fo
Slide 17: Organic Sales Growth
2Q 2026 APPENDIX ORGANIC SALES GROWTH Unaudited (Dollars in Millions) Six Months Ended June 30, 2026 Industrial Power Automation & Powertrain Efficiency Total Regal Motion Control Solutions Solutions Rexnord Net Sales Six Months Ended Jun 30, 2026 $ 934.8 $ 1,317.7 $ 785.0 $ 3,037.5 Impact from Fore
Slide 18: Adjusted EBITDA
2Q 2026 APPENDIX ADJUSTED EBITDA Unaudited (Dollars in Millions) Three Months Ended Automation & Motion Industrial Powertrain Control Solutions Power Efficiency Solutions Total Regal Rexnord Jun 30, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 GAAP
Slide 19: Adjusted EBITDA
2Q 2026 APPENDIX ADJUSTED EBITDA Unaudited (Dollars in Millions) Six Months Ended Automation & Motion Industrial Powertrain Control Solutions Power Efficiency Solutions Total Regal Rexnord Jun 30, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 GAAP In
Slide 20: Adjusted Gross Margin
2Q 2026 APPENDIX ADJUSTED GROSS MARGIN Unaudited (Dollars in Millions) Three Months Ended Automation & Motion Industrial Powertrain Power Efficiency Control Solutions Solutions Total Regal Rexnord Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, 2026 2025 2026 2025 2026 2025 2026 2025
Slide 21: Adjusted Gross Margin
2Q 2026 APPENDIX ADJUSTED GROSS MARGIN Unaudited (Dollars in Millions) Six Months Ended Automation & Motion Industrial Powertrain Power Efficiency Control Solutions Solutions Total Regal Rexnord Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, Jun 30, 2026 2025 2026 2025 2026 2025 2026 2025 G
Slide 22: Net Income to Adjusted EBITDA
2Q 2026 APPENDIX NET INCOME TO ADJUSTED EBITDA Unaudited (Dollars in Millions) Three Months Ended Six Months Ended Jun 30, Jun 30, Jun 30, Jun 30, 2026 2025 2026 2025 Net Income $ 116.8 $ 79.6 $ 181.2 $ 137.1 Plus: Income Taxes 26.9 21.6 39.0 37.1 Plus: Interest Expense 77.4 85.3 158.0 175.5 Less: I
Slide 23: Debt to EBITDA
2Q 2026 APPENDIX DEBT TO EBITDA Unaudited (Dollars in Millions) Last Twelve Months Jun 30, 2026 Net Income $ 324.9 Plus: Income Taxes 73.7 (a) Includes a benefit of $32.0 million related to IEEPA tariff refunds. Plus: Interest Expense 331.6 (b) Relates to costs associated with actions taken for empl
Slide 24: Free Cash Flow
2Q 2026 APPENDIX FREE CASH FLOW Unaudited (Dollars in Millions) Three Months Ended Six Months Ended Jun 30, Jun 30, Jun 30, Jun 30, 2026 2025 2026 2025 Net Cash Provided by Operating Activities $ 176.6 $ 523.2 $ 191.6 $ 625.5 Additions to Property, Plant and Equipment (22.5) (30.2) (39.9) (47.0) Fre
Slide 25: Adjusted Effective Tax Rate
2Q 2026 APPENDIX ADJUSTED EFFECTIVE TAX RATE Unaudited (Dollars in Millions) Three Months Ended Six Months Ended Jun 30, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 Income before Taxes $ 143.7 $ 101.2 $ 220.2 $ 174.2 Provision for Income Taxes 26.9 21.6 39.0 37.1 Effective Tax Rate 18.7 % 21.3 % 17.
Slide 26: Net Interest
2Q 2026 APPENDIX Net Interest Unaudited (Dollars in Millions) December 31, 2026 December 31, 2026 (Annual Guidance - Current) (Annual Guidance - Prior) Interest Expense $ 305 $ 305 Interest Income (20) (18) Charges Related to Accounts Receivable Securitization Facility * 17 15 Net Interest $ 302 $ 3