Regal Rexnord Corporation · NYSE:RRX
Regal Rexnord — Bank of America Global Industrials Conference 2025
16 slides from Regal Rexnord's conference presentation, Mar 19, 2025
Slide 1: Bank of America Global Industrials Conference
BANK OF AMERICA GLOBAL INDUSTRIALS CONFERENCE MARCH 19, 2025
Slide 2: Forward Looking Statements And Non-GAAP Financial Measures
Forward Looking Statements And Non-GAAP Financial Measures All statements in these presentations, 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,
Slide 3: Why Invest In RRX
Why Invest In RRX • Significant Margin Progress. More To Come… Much Of It Self-Help Driven • Strong… And Accelerating Free Cash Flow Generation • Significant Near-Term Equity Opportunity From Debt Paydown • Longer-Term Value Creation Opportunity From Bolt-On M&A & Stock Repurchase • Pursuing Many Op
Slide 4: We Have Been On A Transformation Journey
We Have Been On A Transformation Journey 2018 From To 2024 ~$4B Enterprise Value ~$16B 7 - 9x EV/EBITDA Multiple* 10 - 12x 77% 28% 28% $3.6B Adj. Net Sales* ~$5.9B2 ~24% Customer Concentration1 ~11% ~27% Adj. Gross Margin* ~38%2 ~15% Adj. EBITDA Margin* ~22%2 23% $285M Adj. Free Cash Flow* ~$512M 44
Slide 5: Regal Rexnord Snapshot
Regal Rexnord Snapshot1 (NYSE: RRX) ~$5.9B ~38% ~22% ~30,000 Total Revenue Adj. Gross Margin* Adj. EBITDA Margin* Associates POWER MOTION TRANSMIT MOTION CONTROL MOTION POWER EFFICIENCY SOLUTIONS INDUSTRIAL POWERTRAIN SOLUTIONS AUTOMATION & MOTION CONTROL (PES) (IPS) (AMC) High Efficiency Electric M
Slide 6: Guided By Our Values
Guided By Our Values Integrity Innovation With Purpose Zero-tolerance policy on unethical behavior. We innovate to develop products that are We value integrity most. We are honest, valued by our customer and bring profitable transparent, and trustworthy in all situations. growth for Regal Rexnord. R
Slide 7: Clear Plans To Accelerate Portfolio Wide Organic Growth
Clear Plans To Accelerate Portfolio Wide Organic Growth 2019-2023 Mid-Cycle Segment Organic Growth1 Growth Target Key Drivers of Growth Outlook Innovation investments & rising vitality AMC • ~4.4% 6% • Secular tailwinds • Go-to-market scale & scope IPS ~2.5% 4% • Portfolio scale & scope • Digital in
Slide 8: Strong Secular End Market Exposure
Strong Secular End Market Exposure Discrete Automation Alternative Energy Sales By End Market 1 ~11% - Labor Shortages ~2% - Regulatory Requirements of sales1 - Labor Inflation - Shift From Fossil Fuels Other 6% Data Center 3% General Medical 3% Industrial 25% Residential HVAC Medical Aerospace 6% -
Slide 9: Increasing Mix Of Solutions
Increasing Mix Of Solutions Customer Value Proposition 7th Axis Collaborative Industrial Powertrains Robot Solutions • Full engineering support accelerates customer program timelines • Optimized system performance enhances efficiency and reliability • Offer customers a convenient and accountable par
Slide 10: Electric Aircraft Solutions
Electric Aircraft Solutions Partnership with Honeywell Why We Won • Aerospace heritage and pedigree • Depth and breadth of portfolio, supported by RRX Electro-Mechanical trusted brands Actuator • Qualified subject-matter expertise; Trusted Ball-Screws, Acme Screws advisor with an engineering focus •
Slide 11: Product Scope To Provide Full Powertrain Solutions
Product Scope To Provide Full Powertrain Solutions RRX Motors P O W E R Motion PT Components T R A N S M I T Motion To An Application AMC Servo Motors PES High The Broadest Scope of Power Transmission Components Efficiency Motors Gearing Bearings Couplings IoT The Integrated Solution C O N T R O L S
Slide 12: Distinctive Scale, Unrivaled Scope
Distinctive Scale, Unrivaled Scope Unmatched Capabilities Across the Industrial Powertrain Competitors1 RRX Rank RRX A B C D E F Premium TOP Efficiency Motors 3 TOP Bearings 3 Couplings 1 Clutches & Brakes 1 TOP Digital / IoT 3 TOP Gearing 3 12 1 Representative sample for illustrative purposes only.
Slide 13: The Next Stage In Our Transformation Journey
The Next Stage In Our Transformation Journey 2024 From To 2027E ~$5.9B1 Adj. Net Sales* ~$6.4 to ~$7.0B 28% 28% ~2.2%2 Sales CAGR 2 – 5% 28% 30% (’19 – ’23) (’24E – ’27E) ~38%1 Adj. Gross Margin* ~40% ~22%1 Adj. EBITDA Margin* ~25% 44% HSD Free Cash Flow Margin* Low-Mid Teens 42% Automation & Motion
Slide 14: Significant Equity Upside From Debt Reduction
Significant Equity Upside From Debt Reduction Components of Enterprise Value Key Assumptions • 2025 Guidance Assumptions1 • Sales CAGR & Margins Consistent With 2024 Investor Day Guidance For 2024-2027 Equity • Deploy Post-Dividend Cash Flow to Debt Reduction • Constant EV/EBITDA Multiple Debt Expec
Slide 15: A High Quality Enterprise
Why Invest In RRX • Significant Margin Progress. More To Come… A High Quality Much Of It Self-Help Driven Enterprise • Strong… And Accelerating Free Cash Flow Generation High Secular Exposures • Significant Near-Term Equity Opportunity From Debt Paydown Technology Differentiated Solutions • Longer-T
Slide 16: fs regalRexnord
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