Regal Rexnord Corporation · NYSE:RRX
Regal Rexnord — Q4 2024 Earnings Presentation
29 slides from Regal Rexnord's earnings presentation, Feb 6, 2025
Slide 1: Fourth Quarter 2024 Earnings
Creating a better tomorrow™… Fourth Quarter 2024 Earnings February 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
4Q 2024 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 4Q 2024 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: 4Q Performance
4Q 2024 4Q PERFORMANCE • Sales Down 1.4% On An Organic Basis* o Sizable EOY Customer Push-Outs; Weaker Machinery/Off- Net Sales* + Adjusted EBITDA* & Margin*+ Highway, Factory Automation, General Industrial, General Commercial Markets o Strength In Residential HVAC, Food & Beverage, Aerospace, $1,48
Slide 5: Partnership with Honeywell on Electric Aircraft
4Q 2024 PARTNERSHIP WITH HONEYWELL ON ELECTRIC AIRCRAFT Validates Strategy To Move Up The Value Chain With Value-Added Solutions Creating a better tomorrow™… 5 1 Aviation Week Intelligence Network Forecast https://aviationweek.com/system/files/market_briefings/aam/aam_07_24_2024.pdf ©2024 Regal Rexn
Slide 6: 4Q 2024 Results, 2025 Outlook
1Q 2021 Creating a better tomorrow™… Opening Comments & Overview LOUIS PINKHAM, CEO 4Q 2024 Results, 2025 Outlook ROB REHARD, CFO Questions & Answers Moti on Co Indus Closing Remarks ntrol trial S LOUIS PINKHAM, CEO Solut ystem ions s
Slide 7: Automation & Motion Control
4Q 2024 AUTOMATION & MOTION CONTROL Sales Net Sales ($M) Adjusted EBITDA* ($M) & EBITDA • Organic Sales* Down 2.3% Margin* • Key Drivers $420.7 $409.8 o General Industrial (-) o Discrete Automation (-) o Food & Beverage (+) o Aerospace & Defense (+) $104.4 $88.5 24.8% 21.6% 4Q23 4Q24 4Q23 4Q24 * Non
Slide 8: Industrial Powertrain Solutions
4Q 2024 INDUSTRIAL POWERTRAIN SOLUTIONS Sales Net Sales ($M) Adjusted EBITDA* • Organic Sales* Down 1.9% ($M) & EBITDA • Key Drivers Margin* $649.7 $635.0 o Machinery/Off-Highway (-) o General Industrial (-) o Metals & Mining (-) $53. $235.2 5 $155.7 $165.3 o Energy (+) $43. o Marine (+) 4 24.0% 26.
Slide 9: Power Efficiency Solutions
4Q 2024 POWER EFFICIENCY SOLUTIONS Sales Net Sales ($M) Adjusted EBITDA* • Organic Sales* Up Slightly ($M) & EBITDA • Key Drivers Margin* $418.0 $416.3 o R-HVAC (+) $165. o Pool (+) 5 $39.0 o N.A. C-HVAC (+) $135. o C-HVAC Outside N.A. (-) 7 $75.5 o General Commercial (-) $63.8 $21.3 18.1% 15.3% 4Q2
Slide 10: Other Financial Updates
4Q 2024 OTHER FINANCIAL UPDATES Capital Expenditures Balance Sheet at December 31, 2024 • $29.3 Million in 4Q 2024 • Total Debt of $5,457.7 Million • Net Debt* of $5,064.2 Million • Net Debt/Adj. EBITDA* of 3.63+ Effective Tax Rate (ETR) • Interest Coverage Ratio* of 3.66+ • 16.5% Adj. ETR* in 4Q 20
Slide 11: 2025 Outlook - Enterprise Guidance
4Q 2024 2025 OUTLOOK - ENTERPRISE GUIDANCE • Sales Of ~$5.86 Billion, Roughly Flat Vs. Prior Year On An Organic Basis ◦ FX Headwind Of ~80 BPS ◦ Flat Organic Embeds Modest End Market Pressure Offset By Outgrowth • Adjusted EBITDA Margin* Of ~23.0% ◦ $54 Million Of Synergies In 2025 ◦ 4Q Exit Rate Ap
Slide 12: 2025 Outlook - Segment Detail
4Q 2024 2025 OUTLOOK - SEGMENT DETAIL Creating a better tomorrow™… 12 ©2024 Regal Rexnord Corporation, Proprietary and Confidential
Slide 13: Questions & Answers
1Q 2021 Creating a better tomorrow™… Opening Comments & Overview LOUIS PINKHAM, CEO 4Q 2024 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 14: Closing Remarks
1Q 2021 Creating a better tomorrow™… Opening Comments & Overview LOUIS PINKHAM, CEO 4Q 2024 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: Adjusted Diluted Earnings Per Share
4Q 2024 APPENDIX ADJUSTED DILUTED EARNINGS PER SHARE Unaudited Three Months Ended Year Ended Dec 31, Dec 31, Dec 31, Dec 31, 2024 2023 2024 2023 GAAP Diluted Earnings (Loss) Per Share $ 0.62 $ 0.84 $ 2.94 $ (0.87) Intangible Amortization 0.98 0.96 3.92 3.49 Restructuring and Related Costs (a) 0.44 0
Slide 16: 2025 Adjusted Annual Guidance
4Q 2024 APPENDIX 2025 ADJUSTED ANNUAL GUIDANCE Unaudited Minimum Maximum 2025 GAAP Diluted EPS Annual Guidance $ 4.42 $ 5.22 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 Separation Related Costs (b) 0.28 0.
Slide 17: 2025 Net Income to Adjusted EBITDA Annual Guidance
4Q 2024 APPENDIX 2025 NET INCOME TO ADJUSTED EBITDA ANNUAL GUIDANCE Unaudited (Dollars in Millions) Minimum Maximum Net Income $ 290.2 $ 342.9 Plus: Income Taxes 84.2 99.5 Plus: Interest Expense 342.5 342.5 Less: Interest Income (14.8) (14.8) Plus: Depreciation 162.7 162.7 Plus: Amortization 338.2 3
Slide 18: Adjusted EBITDA - Three Months Ended
4Q 2024 APPENDIX ADJUSTED EBITDA Unaudited (Dollars in Millions) Three Months Ended Industrial Powertrain Automation & Motion Solutions Power Efficiency Solutions Control Industrial Systems Total Regal Rexnord Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2024 2023
Slide 19: Adjusted EBITDA - Year Ended
4Q 2024 APPENDIX ADJUSTED EBITDA Unaudited (Dollars in Millions) Industrial Powertrain Power and Efficiency Year Ended Automation & Motion Solutions Solutions Control Industrial Systems Total Regal Rexnord Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2024 2023 2024
Slide 20: Net Income to Adjusted EBITDA
4Q 2024 APPENDIX NET INCOME TO ADJUSTED EBITDA Unaudited (Dollars in Millions) Three Months Ended Year Ended Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 Net Income (Loss) $ 42.0 $ 56.6 $ 198.4 $ (54.3) Plus: Income Taxes (3.6) 17.8 49.6 52.7 Plus: Interest Expense 94.6 107.7 399.7 431.0 Less
Slide 21: Adjusted Effective Tax Rate
4Q 2024 APPENDIX ADJUSTED EFFECTIVE TAX RATE Unaudited (Dollars in Millions) Three Months Ended Year Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Income (Loss) before Taxes $ 38.4 $ 74.4 $ 248.0 $ (1.6) (Benefit) Provision for Income Taxes (3.6) 17.8 49.6 52.7 Effect
Slide 22: Adjusted Free Cash Flow
4Q 2024 APPENDIX ADJUSTED FREE CASH FLOW Unaudited (Dollars in Millions) Three Months Ended Year Ended Dec 31, Dec 31, Dec 31, Dec 31, 2024 2023 2024 2023 Net Cash Provided by Operating Activities $ 213.2 $ 201.3 $ 609.4 $ 715.3 (a) Payments for Certain Acquisition Costs (Net of Tax of $11.4 Million
Slide 23: Organic Sales Growth - Three Months
4Q 2024 APPENDIX ORGANIC SALES GROWTH Unaudited (Dollars in Millions) Three Months Ended Industrial Power and Powertrain Efficiency Automation & Industrial Total Regal Solutions Solutions Motion Control Systems Rexnord Net Sales Three Months Ended Dec 31, 2024 $ 635.0 $ 416.3 $ 409.8 $ — $ 1,461.1 I
Slide 24: Organic Sales Growth - Year Ended
4Q 2024 APPENDIX ORGANIC SALES GROWTH Unaudited (Dollars in Millions) Year Ended Industrial Power and Powertrain Efficiency Automation & Industrial Total Regal Solutions Solutions Motion Control Systems Rexnord Net Sales Year Ended Dec 31, 2024 $ 2,598.1 $ 1,644.1 $ 1,633.8 $ 157.8 $ 6,033.8 Net Sal
Slide 25: Debt to EBITDA
4Q 2024 APPENDIX DEBT TO EBITDA Unaudited (Dollars in Millions) Last Twelve Months Dec 31, 2024 Net Income $ 198.4 (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 49.6 charges
Slide 26: Adjusted Gross Margin - 4Q 2024
4Q 2024 APPENDIX ADJUSTED GROSS MARGIN Unaudited (Dollars in Millions) Three Months Ended December 31, 2024 Industrial Power and Automation & Powertrain Efficiency Motion Industrial Total Regal Solutions Solutions Control Systems Rexnord Net Sales $ 635.0 $ 416.3 $ 409.8 $ — $ 1,461.1 Gross Margin $
Slide 27: Adjusted Gross Margin - 4Q 2023
4Q 2024 APPENDIX ADJUSTED GROSS MARGIN Unaudited (Dollars in Millions) Three Months Ended December 31, 2023 Industrial Power and Automation & Powertrain Efficiency Motion Industrial Total Regal Solutions Solutions Control Systems Rexnord Net Sales $ 649.7 $ 418.0 $ 420.7 $ 119.8 $ 1,608.2 Gross Marg
Slide 28: Adjusted Gross Margin - Year 2024
4Q 2024 APPENDIX ADJUSTED GROSS MARGIN Unaudited (Dollars in Millions) Year Ended December 31, 2024 Industrial Power and Automation & Powertrain Efficiency Motion Industrial Total Regal Solutions Solutions Control Systems Rexnord Net Sales $ 2,598.1 $ 1,644.1 $ 1,633.8 $ 157.8 $ 6,033.8 Gross Margin
Slide 29: Adjusted Gross Margin - Year 2023
4Q 2024 APPENDIX ADJUSTED GROSS MARGIN Unaudited (Dollars in Millions) Year Ended December 31, 2023 Industrial Power and Automation & Powertrain Efficiency Motion Industrial Total Regal Solutions Solutions Control Systems Rexnord Net Sales $ 2,403.5 $ 1,808.9 $ 1,516.8 $ 521.5 $ 6,250.7 Gross Margin