Regal Rexnord Corporation · NYSE:RRX
Regal Rexnord — Q1 2025 Earnings Presentation
25 slides from Regal Rexnord's earnings presentation, May 6, 2025
Slide 1: First Quarter 2025 Earnings
Creating a better tomorrow™… First Quarter 2025 Earnings May 6, 2025 Moti Louis Pinkham, Chief Executive Officer on Co Indus Rob Rehard, Executive Vice President, Chief Financial Officer ntrol trial S Solut ystem ions s
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
1Q 2025 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 & Overview
1Q 2021 Creating a better tomorrow™… Opening Comments & Overview LOUIS PINKHAM, CEO 1Q 2025 Results, 2025 Outlook ROB REHARD, CFO Questions & Answers Moti on Co Indus Closing Remarks ntrol trial S LOUIS PINKHAM, CEO Solut ystem ions s
Slide 4: 1Q Performance
1Q 2025 1Q PERFORMANCE • Sales Up 0.7% On An Organic Basis (Up 2.3% On A Daily Organic Basis) Net Sales* + Adjusted EBITDA* & Margin*+ o Strength In Residential HVAC, Aerospace, Energy o Discrete Automation Returns To Growth $1,428.9 $1,418.1 $307.2 $309.5 • Daily Orders Up 3.3% 21.5% 21.8% o Fourth
Slide 5: Strong Position in Rapidly Growing Humanoid Market
1Q 2025 STRONG POSITION IN RAPIDLY GROWING HUMANOID MARKET Creating a better tomorrow™… ©2025 Regal Rexnord Corporation, Proprietary and Confidential
Slide 6: ystem
1Q 2021 Creating a better tomorrow™… Opening Comments & Overview LOUIS PINKHAM, CEO 1Q 2025 Results, 2025 Outlook ROB REHARD, CFO Questions & Answers Moti on Co Indus Closing Remarks ntrol trial S LOUIS PINKHAM, CEO Solut ystem ions s
Slide 7: Automation & Motion Control: Returns To Growth
1Q 2025 AUTOMATION & MOTION CONTROL Sales Net Sales ($M) Adjusted EBITDA ($M) & EBITDA • Organic Sales Up 0.4% Margin • Key Drivers $400.2 $396.3 o Aerospace & Defense (+) o Discrete Automation (+) $89.9 $86.5 o General Industrial (-) o Medical (-) 22.5% 21.8% 1Q24 1Q25 1Q24 1Q25 1Q Returns To Growt
Slide 8: Industrial Powertrain Solutions: Healthy 1Q Margin Performance
1Q 2025 INDUSTRIAL POWERTRAIN SOLUTIONS Sales Net Sales ($M) Adjusted EBITDA • Organic Sales Down 3.4% ($M) & EBITDA • Key Drivers Margin $643.4 o Machinery/Off-Highway (-) $612.7 o Metals & Mining (-) o Energy (+) $53. $235.2 5 $166.3 $164.9 $43. 4 25.8% 26.9% 1Q24 1Q25 1Q24 1Q25 Healthy 1Q Margin
Slide 9: Power Efficiency Solutions: A Strong Return To Growth
1Q 2025 POWER EFFICIENCY SOLUTIONS Sales Net Sales ($M) Adjusted EBITDA • Organic Sales Up 8.0% ($M) & EBITDA • Key Drivers Margin $409.1 o R-HVAC (+) $385.3 $165. o General Commercial (-) 5 $39.0 $135. 7 $58.1 $51.0 $21.3 13.2% 14.2% 1Q24 1Q25 1Q24 1Q25 $189.8 A Strong Return To Growth & Improved P
Slide 10: Other Financial Updates
1Q 2025 OTHER FINANCIAL UPDATES Capital Expenditures Balance Sheet at March 31, 2025 • $16.8 Million in 1Q 2025 • Total Debt of $5,296.9 Million • Net Debt of $4,991.6 Million • Net Debt/Adj. EBITDA of 3.62+ Effective Tax Rate (ETR) • Interest Coverage Ratio of 3.78+ • 22.5% Adj. ETR in 1Q 2025 Rest
Slide 11: 2025 Outlook - Enterprise Guidance
1Q 2025 2025 OUTLOOK - ENTERPRISE GUIDANCE • Re-Affirming 2025 Adjusted Guidance • Given Company's Mitigation Actions, Tariffs As Currently In Effect Are Expected To Be Neutral To 2025 Adj. EBITDA & EPS Guidance Reflects ~10% Adjusted EPS Growth Creating a better tomorrow™… Guidance as of May 5, 202
Slide 12: Tariff Impacts
1Q 2025 TARIFF IMPACTS Mitigation Actions - Implementation Began In 1Q • Supply Chain Realignments • Production Relocations • Productivity Measures • Pricing Actions Other Considerations • Approximately 95% Of Imports From Mexico & Canada Are USMCA Compliant • Dual Country Sourced On Most China Impo
Slide 13: 2025 Outlook - Segment Detail
1Q 2025 2025 OUTLOOK - SEGMENT DETAIL Creating a better tomorrow™… 13 ©2025 Regal Rexnord Corporation, Proprietary and Confidential
Slide 14: ystem
1Q 2021 Creating a better tomorrow™… Opening Comments & Overview LOUIS PINKHAM, CEO 1Q 2025 Results, 2025 Outlook ROB REHARD, CFO Questions & Answers Moti on Co Indus Closing Remarks ntrol trial S LOUIS PINKHAM, CEO Solut ystem ions s
Slide 15: ystem
1Q 2021 Creating a better tomorrow™… Opening Comments & Overview LOUIS PINKHAM, CEO 1Q 2025 Results, 2025 Outlook ROB REHARD, CFO Questions & Answers Moti on Co Indus Closing Remarks ntrol trial S LOUIS PINKHAM, CEO Solut ystem ions s
Slide 16: Adjusted Diluted Earnings Per Share
1Q 2025 APPENDIX ADJUSTED DILUTED EARNINGS PER SHARE Unaudited Three Months Ended Mar 31, Mar 31, 2025 2024 GAAP Diluted Earnings Per Share $ 0.86 $ 0.30 Intangible Amortization 0.97 0.98 Restructuring and Related Costs (a) 0.18 0.19 Share-Based Compensation Expense 0.13 0.11 Transaction and Integra
Slide 17: 2025 Adjusted Annual Guidance
1Q 2025 APPENDIX 2025 ADJUSTED ANNUAL GUIDANCE Unaudited Minimum Maximum 2025 GAAP Diluted EPS Annual Guidance $ 4.49 $ 5.29 Intangible Amortization 3.84 3.84 (a) Restructuring and Related Costs 0.56 0.56 Share-Based Compensation Expense 0.50 0.50 Transaction and Integration Related Costs (b) 0.28 0
Slide 18: 2025 Net Income to Adjusted EBITDA Annual Guidance
1Q 2025 APPENDIX 2025 NET INCOME TO ADJUSTED EBITDA ANNUAL GUIDANCE Unaudited (Dollars in Millions) Minimum Maximum Net Income $ 294.8 $ 347.5 Plus: Income Taxes 85.6 100.9 Plus: Interest Expense 342.5 342.5 Less: Interest Income (14.8) (14.8) Plus: Depreciation 162.7 162.7 Plus: Amortization 338.2
Slide 19: Organic Sales Growth
1Q 2025 APPENDIX ORGANIC SALES GROWTH Unaudited (Dollars in Millions) Three Months Ended Industrial Power and Automation & Powertrain Efficiency Industrial Total Regal Motion Control Solutions Solutions Systems Rexnord Net Sales Three Months Ended Mar 31, 2025 $ 396.3 $ 612.7 $ 409.1 $ — $ 1,418.1 I
Slide 20: Adjusted EBITDA
1Q 2025 APPENDIX ADJUSTED EBITDA Unaudited (Dollars in Millions) Three Months Ended Automation & Motion Industrial Powertrain Control Solutions Power Efficiency Solutions Industrial Systems Total Regal Rexnord Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, 2025 2024
Slide 21: Adjusted Gross Margin
1Q 2025 APPENDIX ADJUSTED GROSS MARGIN Unaudited (Dollars in Millions) Three Months Ended Industrial Automation & Powertrain Power Efficiency Total Regal Motion Control Solutions Solutions Industrial Systems Rexnord Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, 2025
Slide 22: Net Income to Adjusted EBITDA
1Q 2025 APPENDIX NET INCOME TO ADJUSTED EBITDA Unaudited (Dollars in Millions) Three Months Ended Mar 31, 2025 Mar 31, 2024 Net Income $ 57.5 $ 20.4 Plus: Income Taxes 15.5 10.9 Plus: Interest Expense 90.2 105.4 Less: Interest Income (4.2) (3.1) Plus: Depreciation 39.1 41.5 Plus: Amortization 85.4 8
Slide 23: Adjusted Effective Tax Rate
1Q 2025 APPENDIX ADJUSTED EFFECTIVE TAX RATE Unaudited (Dollars in Millions) Three Months Ended March 31, 2025 March 31, 2024 Income before Taxes $ 73.0 $ 31.3 Provision for Income Taxes 15.5 10.9 Effective Tax Rate 21.2 % 34.8 % Income before Taxes $ 73.0 $ 31.3 Intangible Amortization 85.4 86.7 Re
Slide 24: Free Cash Flow
1Q 2025 APPENDIX FREE CASH FLOW Unaudited (Dollars in Millions) Three Months Ended Mar 31, Mar 31, 2025 2024 Net Cash Provided by Operating Activities $ 102.3 $ 83.1 Additions to Property Plant and Equipment (16.8) (18.5) Free Cash Flow $ 85.5 $ 64.6 Creating a better tomorrow™… 24 ©2025 Regal Rexno
Slide 25: Debt to EBITDA
1Q 2025 APPENDIX DEBT TO EBITDA Unaudited (Dollars in Millions) Last Twelve Months Mar 31, 2025 Net Income $ 235.5 (a) Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset Plus: Income Taxes 54.2 charges