November 3, 2026
Aamir Paul, Chief Executive Officer
Rob Rehard, Executive Vice President, Chief Financial Officer
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 in 2024 and the acquisition of Altra Industrial Motion Corp. in 2023 ("Altra Transaction") within the expected time-frames or at all and to successfully integrate Altra Industrial Motion Corp. ("Altra"); 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 and risks associated with the transition of our new CEO; uncertainties regarding our ability to execute restructuring plans within expected costs and timing or at all; 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 our ability to effectively compete in the increasingly competitive global industries and markets; our ability to develop new products based on technological innovation and marketplace acceptance of new and existing products; our ability to keep pace with rapidly evolving technological developments related to advances in artificial intelligence; dependence on significant customers and distributors; risks that customers may make changes and adjustments to their orders which could result in actual revenue recognized being lower or higher than disclosed order values; 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 and rapidly evolving sustainability regulations; 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; the Company's ability to identify and execute on future mergers and acquisitions ("M&A") opportunities or other strategic 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; risks associated with stock price volatility; 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.
In this presentation, 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), net interest expense, 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), cash flows from operations, 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.
Opening Comments & Enterprise HeadlinesAAMIR PAUL, CEO
Enterprise PerformanceROB REHARD, CFO
Segment Results & OutlookROB REHARD, CFO
Questions & Answers
Opening CommentsOrders
+5.7%
3Q25
3Q26
Net Sales ($M)
$1,497
$1,588
3Q25
3Q26
Daily Orders Up 5.7% Vs. Prior Year
Sales Up 6.1% On An Organic Basis
Free Cash Flow
($M)
$174
$194
3Q25
3Q26
Adjusted Diluted
EPS*
$2.90
$2.51
3Q25
3Q26
Adjusted Diluted EPS Of $2.72* Ex. IEEPA Refunds, Up 8.4% Vs. Prior Year
Net Debt/Adjusted EBITDA Incl. Synergies At 2.9x
AAMIR PAUL, CEO
Enterprise PerformanceROB REHARD, CFO
Segment Results & OutlookROB REHARD, CFO
Questions & AnswersOrders
+5.7%
3Q25
3Q26
Net Sales ($M)
$1,497
$1,588
3Q25
3Q26
Adjusted EBITDA
($M) & Margin*
$339
$351
22.7%
22.1%
3Q25
3Q26
Daily Orders Up 5.7% Vs. Prior Year
Sales Up 6.1% On An Organic Basis
Adjusted Gross Margin Of 37.7% Or 36.8% Ex. IEEPA Refunds
Adjusted EBITDA Margin Of 22.1% Or 21.2% Ex. IEEPA Refunds
Net Debt / Adj.
EBITDA incl. Synergies
3.3x
2.9x
3Q25
3Q26
Free Cash Flow
($M)
$174
$194
3Q25
3Q26
Adjusted Diluted
EPS*
$2.90
$2.51
3Q25
3Q26
Adjusted Diluted EPS Of $2.90, Up 15.5% Vs. Prior Year, Or $2.72 Ex. IEEPA Refunds, Up 8.4% Vs. Prior Year
Free Cash Flow Of $194 Million
Net Debt/Adjusted EBITDA Incl. Synergies At 2.9x
Creating a better tomorrow™…
$ Millions, Except Per Share Data and Percentages
* 3Q26 Adjusted EBITDA and Adjusted Diluted EPS include a net benefit related to IEEPA tariff
refunds of $14.7 million, and $0.18, respectively 7
Opening Comments & Enterprise HeadlinesAAMIR PAUL, CEO
Enterprise PerformanceROB REHARD, CFO
Segment Results & OutlookROB REHARD, CFO
Questions & AnswersOrders
3Q25
3Q26
Net Sales ($M)
$501
$402
3Q25
3Q26
Adjusted EBITDA*
($M) & Margin*
$96
$83
20.5%
19.2%
3Q25
3Q26
Daily Orders Down 4.9%
Organic Sales Up 25.2%
Adjusted EBITDA Up 16.2%
* 3Q26 Adjusted EBITDA Margin of 18.7% excluding a $2.6 million net benefit related to IEEPA tariff refunds
Strong Organic Sales & Demand OutlookOrders
3Q25
3Q26
Net Sales ($M)
$662
$650
3Q25
3Q26
Adjusted EBITDA*
($M) & Margin*
$175
$169
26.4%
26.0%
3Q25
3Q26
Daily Orders Up 9.6%
Organic Sales Down 1.8%
Adjusted EBITDA Down 3.2%
* 3Q26 Adjusted EBITDA Margin of 25.2% excluding a $5.1 million net benefit related to IEEPA tariff refunds
Orders & Backlog StrengtheningCreating a better tomorrow™… 10
Daily Orders Up 12.0%
Net Sales ($M)
$433
$438
3Q25
3Q26
Orders
3Q25
3Q26
Organic Sales Up 0.4%
Adjusted EBITDA*
($M) & Margin*
$82
$86
19.0%
19.7%
3Q25
3Q26
Adjusted EBITDA Up 5.0%
* 3Q26 Adjusted EBITDA Margin of 18.1% excluding a $7.0 million net benefit related to IEEPA tariff refunds
Healthy Growth Outlook Aided By New Air Moving SolutionsRevenue: Modestly Raising Outlook
Adj. EBITDA Margin: Modest Decline, Related To Segment Mix
Depreciation: Down On Lower CapEx
Adjusted Effective Tax Rate: Down To ~20.8%, Primarily On Tax Planning Initiatives
Free Cash Flow: Outlook Remains ~$600 Million
* Net interest includes charges related to accounts receivables securitization facility. See Appendix for Reconciliation to Corresponding GAAP Measure.
EBITDA Outlook Unchanged; Mid-Point Reflects ~11% Adjusted EPS Growth
Creating a better tomorrow™… 12
* No further IEEPA refund benefits expected in 4Q 2026
Creating a better tomorrow™…
Opening Comments & Enterprise HeadlinesAAMIR PAUL, CEO
Enterprise PerformanceROB REHARD, CFO
Segment Results & OutlookROB REHARD, CFO
Questions & Answers ADJUSTED DILUTED EARNINGS PER SHAREUnaudited
Three Months Ended Nine Months Ended
Sep 30, 2026 | Sep 30, 2025 | Sep 30, 2026 | Sep 30, 2025 | ||
GAAP Diluted (Loss) Earnings Per Share⁽ᵃ⁾ | $ (0.19) | $ 1.20 | $ | 2.52 | $ 3.25 |
Intangible Amortization | 0.98 | 0.99 | 2.94 | 2.95 | |
Goodwill Impairment | 1.78 | - | 1.78 | - | |
Restructuring and Related Costs⁽ᵇ⁾ | 0.13 | 0.15 | 0.35 | 0.45 | |
Share-Based Compensation Expense | 0.14 | 0.13 | 0.21 | 0.38 | |
Transaction and Integration Related Costs⁽ᶜ⁾ | 0.04 | 0.07 | 0.16 | 0.22 | |
CEO Transition Costs | 0.01 | - | 0.03 | - | |
(Gain) Loss on Sale of Assets | (0.01) | 0.02 | 0.02 | (0.07) | |
Discrete Tax Items | 0.02 | (0.05) | 0.02 | (0.06) | |
Accounts Receivable Securitization Transaction Costs | - | - | 0.01 | 0.01 | |
Operating Lease Asset Step Up | - | - | 0.01 | 0.01 | |
Adjusted Diluted Earnings Per Share⁽ᵃ⁾⁽ᵈ⁾ | $ 2.90 | $ 2.51 | $ | 8.05 | $ 7.14 |
Includes $0.18 and $0.58 of net benefit related to IEEPA tariff refunds for the three and nine months ended September 30, 2026, respectively.
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, 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.
For the three months ended September 30, 2026, Adjusted Diluted Earnings Per Share is based on weighted average shares outstanding assuming dilution of 66.8 million.
2026 ADJUSTED ANNUAL GUIDANCE | ||||||
Unaudited | ||||||
Minimum | Maximum | |||||
GAAP Diluted Earnings Per Share⁽ᵃ⁾ | $ | 3.76 | $ | 4.06 | ||
Intangible Amortization | 3.91 | 3.91 | ||||
Goodwill Impairment | 1.78 | 1.78 | ||||
Restructuring and Related Costs⁽ᵇ⁾ | 0.53 | 0.53 | ||||
Share-Based Compensation Expense | 0.32 | 0.32 | ||||
Transaction and Related Costs⁽ᶜ⁾ | 0.21 | 0.21 | ||||
CEO Transition Costs | 0.03 | 0.03 | ||||
Loss on Sale of Assets | 0.02 | 0.02 | ||||
Discrete Tax Items | 0.02 | 0.02 | ||||
Accounts Receivable Securitization Transaction Costs | 0.01 | 0.01 | ||||
Operating Lease Asset Step Up | 0.01 | 0.01 | ||||
Adjusted Diluted Earnings Per Share⁽ᵃ⁾ $ 10.60 $ 10.90
Includes $0.58 of net benefit related to IEEPA tariff refunds.
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
Primarily relates to integration costs associated with the Altra Transaction.
2026 NET INCOME TO ADJUSTED EBITDA ANNUAL GUIDANCE | ||||||||
Unaudited (Dollars in Millions) | ||||||||
Minimum | Maximum | |||||||
Net Income | $ | 251 | $ | 272 | ||||
Plus: Income Taxes | 80 | 89 | ||||||
Plus: Interest Expense | 310 | 310 | ||||||
Less: Interest Income | (22) | (22) | ||||||
Plus: Depreciation | 152 | 152 | ||||||
Plus: Amortization | 346 | 346 | ||||||
EBITDA(a) | $ | 1,117 | $ | 1,147 | ||||
Plus: Goodwill Impairment | 119 | 119 | ||||||
Plus: Restructuring and Related Costs(b) | 45 | 45 | ||||||
Plus: Share-Based Compensation Expense | 28 | 28 | ||||||
Plus: Transaction and Integration Related Costs(c) | 17 | 17 | ||||||
Plus: Loss on Sale of Accounts Receivable(d) | 17 | 17 | ||||||
Plus: CEO Transition Costs | 3 | 3 | ||||||
Plus: Loss on Sale of Assets | 2 | 2 | ||||||
Plus: Accounts Receivable Securitization Transaction Costs | 1 | 1 | ||||||
Plus: Operating Lease Asset Step Up | 1 | 1 | ||||||
Plus: Amortization of Internal Use Software | 1 | 1 | ||||||
Adjusted EBITDA(a) | $ | 1,351 | $ | 1,381 | ||||
Creating a better tomorrow™…
Includes $46.6 million of net benefit related to IEEPA tariff refunds.
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
Primarily relates to integration costs associated with the Altra Transaction 17
ORGANIC SALES GROWTH | |||
Unaudited | |||
(Dollars in Millions) | |||
Three Months Ended | |||
September 30, 2026 | |||
Automation & | Industrial Power Powertrain Efficiency | Total Regal | |
Motion Control | Solutions Solutions | Rexnord | |
Net Sales Three Months Ended Sep 30, 2026 | $ 500.6 | $ 649.5 $ 437.9 | $ 1,588.0 |
Impact from Foreign Currency Exchange Rates | 2.6 | (0.2) (3.5) | (1.1) |
Organic Sales Three Months Ended Sep 30, 2026 $ 503.2 $ 649.3 $ 434.4 $ 1,586.9
Net Sales Three Months Ended Sep 30, 2025 | $ 402.0 | $ 662.3 | $ 432.7 | $ 1,497.0 |
Net Sales from Businesses Divested | - | (0.8) | - | (0.8) |
Adjusted Net Sales Three Months Ended Sep 30, 2025 $ 402.0 $ 661.5 $ 432.7 $ 1,496.2
Three Months Ended Sep 30, 2026 Net Sales Growth % | 24.5 % | (1.9)% | 1.2 % | 6.1 % |
Three Months Ended Sep 30, 2026 Foreign Currency Impact % | (0.7)% | - % | 0.8 % | 0.1 % |
Three Months Ended Sep 30, 2026 Divestitures % | - % | (0.1)% | - % | (0.1)% |
Three Months Ended Sep 30, 2026 Organic Sales Growth % | 25.2 % | (1.8)% | 0.4 % | 6.1 % |
Unaudited
(Dollars in Millions)
Nine Months Ended September 30, 2026
Automation & Motion Control | Industrial Powertrain Solutions | Power Efficiency Solutions | Total Regal Rexnord | |
Net Sales Nine Months Ended Sep 30, 2026 | $ 1,435.4 | $ 1,967.2 | $ 1,222.9 | $ 4,625.5 |
Impact from Foreign Currency Exchange Rates | (12.5) | (27.0) | (15.2) | (54.7) |
Organic Sales Nine Months Ended Sep 30, 2026 | $ 1,422.9 | $ 1,940.2 | $ 1,207.7 | $ 4,570.8 |
Net Sales Nine Months Ended Sep 30, 2025 | $ 1,209.4 | $ 1,924.8 | $ 1,277.0 | $ 4,411.2 |
Net Sales from Businesses Divested | - | (2.4) | - | (2.4) |
Adjusted Net Sales Nine Months Ended Sep 30, 2025 | $ 1,209.4 | $ 1,922.4 | $ 1,277.0 | $ 4,408.8 |
Nine Months Ended Sep 30, 2026 Net Sales Growth % | 18.7 % | 2.2 % | (4.2)% | 4.9 % |
Nine Months Ended Sep 30, 2026 Foreign Currency Impact % | 1.0 % | 1.4 % | 1.2 % | 1.3 % |
Nine Months Ended Sep 30, 2026 Divestitures % | - % | (0.1)% | - % | (0.1)% |
Nine Months Ended Sep 30, 2026 Organic Sales Growth % | 17.7 % | 0.9 % | (5.4)% | 3.7 % |
Creating a better tomorrow™… 19
ADJUSTED EBITDAUnaudited
(Dollars in Millions) Three Months Ended
Automation & Motion Control
Industrial Powertrain
Solutions Power Efficiency Solutions Total Regal Rexnord
Sep 30, 2026 | Sep 30, 2025 | Sep 30, 2026 | Sep 30, 2025Sep 30, 2026 | Sep 30, 2025 | Sep 30, 2026 | Sep 30, 2025 | ||
GAAP (Loss) Income from Operations⁽ᵃ⁾ | $ (81.3) | $ 22.7 | $ 88.6 | $ 86.1 | $ 74.1 | $ 65.6 | $ 81.4 | $ 174.4 |
Goodwill Impairment | 119.3 | - | - | - | - | - | 119.3 | - |
Restructuring and Related Costs⁽ᵇ⁾ | 6.7 | 2.5 | 4.1 | 9.6 | 0.7 | 1.7 | 11.5 | 13.8 |
Transaction and Integration Related Costs⁽ᶜ⁾ | 0.5 | 1.3 | 2.4 | 3.8 | 0.4 | 0.9 | 3.3 | 6.0 |
CEO Transition Costs | 0.2 | - | 0.4 | - | 0.2 | - | 0.8 | - |
Loss on Sale of Accounts Receivable⁽ᵈ⁾ | 1.3 | 1.0 | 2.0 | 2.3 | 1.0 | 1.7 | 4.3 | 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 (Gain) on Sale of Assets | - | 2.1 | - | - | (1.1) | - | (1.1) | 2.1 |
Adjusted Income from Operations | $ 46.7 | $ 29.6 $ 97.7 | $ 102.1 $ 75.3 $ 69.9 $ 219.7 $ 201.6 | |||||
Amortization | $ 35.2 | $ 34.6 | $ 51.1 | $ 51.1 | $ 0.6 | $ 1.6 | $ 86.9 | $ 87.3 |
Depreciation | 11.2 | 14.8 | 15.6 | 17.9 | 8.6 | 9.2 | 35.4 | 41.9 |
Amortization of Internal Use Software | 0.1 | - | 0.1 | - | 0.1 | - | 0.3 | - |
Share-Based Compensation Expense | 2.9 | 3.6 | 4.4 | 4.0 | 2.0 | 1.8 | 9.3 | 9.4 |
Other (Expense) Income, Net | (0.1) | - | 0.1 | (0.5) | (0.3) | (0.3) | (0.3) | (0.8) |
Adjusted EBITDA⁽ᵃ⁾ | $ 96.0 | $ 82.6 $ 169.0 | $ 174.6 $ 86.3 $ 82.2 $ 351.3 $ 339.4 | |||||
GAAP Operating Margin % | (16.2)% | 5.6 % | 13.6 % | 13.0 % | 16.9 % | 15.2 % | 5.1 % | 11.6 % |
Adjusted Operating Margin % | 9.3 % | 7.4 % | 15.0 % | 15.4 % | 17.2 % | 16.2 % | 13.8 % | 13.5 % |
Adjusted EBITDA Margin % | 19.2 % | 20.5 % | 26.0 % | 26.4 % | 19.7 % | 19.0 % | 22.1 % | 22.7 % |
Creating a better tomorrow™…
For 2026, includes net benefits of $2.6 million, $5.1 million, $7.0 million and $14.7 million for AMC, IPS, PES and total Regal Rexnord, respectively, related to IEEPA tariff refunds.
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
Primarily relates to integration costs associated with the Altra Transaction. 20
Unaudited
(Dollars in Millions) Nine Months Ended
Automation & Motion Control
Industrial Powertrain
Solutions Power Efficiency Solutions Total Regal Rexnord
Sep 30, 2026 | Sep 30, 2025 | Sep 30, 2026 | Sep 30, 2025 | Sep 30, 2026 | Sep 30, 2025 | Sep 30, 2026 | Sep 30, 2025 | |||||||
GAAP (Loss) Income from Operations⁽ᵃ⁾ | $ (1.3) | $ 88.2 | $ 265.5 | $ 260.2 | $ 185.1 | $ 167.9 | $ 449.3 | $ 516.3 | ||||||
Goodwill Impairment | 119.3 | - | - | - | - | - | 119.3 | - | ||||||
Restructuring and Related Costs⁽ᵇ⁾ | 8.7 | 5.5 | 16.1 | 30.3 | 6.5 | 4.0 | 31.3 | 39.8 | ||||||
Transaction and Integration Related Costs⁽ᶜ⁾ | 2.7 | 3.9 | 9.1 | 12.0 | 1.9 | 3.3 | 13.7 | 19.2 | ||||||
CEO Transition Costs | 0.9 | - | 1.4 | - | 0.7 | - | 3.0 | - | ||||||
Loss on Sale of Accounts Receivable⁽ᵈ⁾ | 3.4 | 1.0 | 5.2 | 2.3 | 3.3 | 1.7 | 11.9 | 5.0 | ||||||
Accounts Receivable Securitization Transaction Costs | 0.2 | 0.3 | 0.4 | 0.5 | 0.2 | 0.3 | 0.8 | 1.1 | ||||||
Operating Lease Asset Step Up | - | - | 0.6 | 0.6 | - | - | 0.6 | 0.6 | ||||||
(Gain) Loss on Sale of Assets | - | (0.2) | 2.4 | (6.0) | (0.6) | - | 1.8 | (6.2) | ||||||
Adjusted Income from Operations | $ 133.9 | $ 98.7 | $ 300.7 | $ 299.9 | $ 197.1 | $ 177.2 | $ 631.7 | $ 575.8 | ||||||
Amortization | $ 104.5 | $ 103.0 | $ 153.5 | $ 151.6 | $ 1.9 | $ 4.9 | $ 259.9 | $ 259.5 | ||||||
Depreciation | 35.7 | 37.3 | 48.9 | 52.3 | 26.6 | 26.9 | 111.2 | 116.5 | ||||||
Amortization of Internal Use Software | 0.2 | - | 0.4 | - | 0.2 | - | 0.8 | - | ||||||
Share-Based Compensation Expense | 6.1 | 10.3 | 8.8 | 12.3 | 4.8 | 6.5 | 19.7 | 29.1 | ||||||
Other (Expense) Income, Net | (0.4) | (0.1) | 0.3 | (1.3) | (0.8) | (1.0) | (0.9) | (2.4) | ||||||
Adjusted EBITDA⁽ᵃ⁾ | $ 280.0 | $ 249.2 | $ 512.6 | $ 514.8 | $ 229.8 | $ 214.5 | $ 1,022.4 | $ 978.5 | ||||||
GAAP Operating Margin % | (0.1)% | 7.3 % | 13.5 % | 13.5 % | 15.1 % | 13.1 % | 9.7 % | 11.7 % | ||||||
Adjusted Operating Margin % | 9.3 % | 8.2 % | 15.3 % | 15.6 % | 16.1 % | 13.9 % | 13.7 % | 13.1 % | ||||||
Adjusted EBITDA Margin % | 19.5 % | 20.6 % | 26.1 % | 26.7 % | 18.8 % | 16.8 % | 22.1 % | 22.2 % |
Creating a better tomorrow™…
For 2026, includes net benefits of $8.5 million, $13.3 million, $24.8 million and $46.6 million for AMC, IPS, PES and total Regal Rexnord, respectively, related to IEEPA tariff refunds.
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with 21
the sale of the industrial motors and generators businesses.
ADJUSTED GROSS MARGINUnaudited
(Dollars in Millions) Three Months Ended
Automation & Motion Control
Industrial Powertrain Solutions
Power Efficiency
Solutions Total Regal Rexnord
Sep 30,
2026
Sep 30,
2025
Sep 30,
2026
Sep 30,
2025
Sep 30,
2026
Sep 30,
2025
Sep 30,
2026
Sep 30,
2025
Gross Margin⁽ᵃ⁾
$ 173.1
$ 148.7
$ 274.9
$ 274.0
$ 142.2
$ 131.5
$ 590.2
$ 554.2
Restructuring and Related Costs⁽ᵇ⁾
5.6
1.5
3.2
5.3
(0.4)
1.6
8.4
8.4
Operating Lease Asset Step Up
-
-
0.2
0.2
-
-
0.2
0.2
Adjusted Gross Margin⁽ᵃ⁾ $ 178.7 $ 150.2 $ 278.3 $ 279.5 $ 141.8 $ 133.1 $ 598.8 $ 562.8
Gross Margin %
34.6 %
37.0 %
42.3 %
41.4 %
32.5 %
30.4 %
37.2 %
37.0 %
Adjusted Gross Margin %
35.7 %
37.4 %
42.8 %
42.2 %
32.4 %
30.8 %
37.7 %
37.6 %
For 2026, includes net benefits of $2.6 million, $5.1 million, $7.0 million and $14.7 million for AMC, IPS, PES and total Regal Rexnord, respectively, related to IEEPA tariff refunds.
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
Creating a better tomorrow™… 22
ADJUSTED GROSS MARGINUnaudited
(Dollars in Millions) Nine Months Ended
Automation & Motion Control
Industrial Powertrain Solutions
Power Efficiency
Solutions Total Regal Rexnord
Sep 30, | Sep 30, | Sep 30, | Sep 30, | Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||
2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||
Gross Margin⁽ᵃ⁾ | $ 518.2 | $ 461.4 | $ 836.6 | $ 811.9 | $ 396.9 | $ 373.2 | $ 1,751.7 | $ 1,646.5 | |
Restructuring and Related Costs⁽ᵇ⁾ | 6.3 | 3.7 | 11.6 | 18.1 | 4.6 | 3.1 | 22.5 | 24.9 | |
Operating Lease Asset Step Up | - | - | 0.6 | 0.6 | - | - | 0.6 | 0.6 | |
Loss on Sale of Assets | - | - | 2.4 | - | 0.5 | - | 2.9 | - |
Adjusted Gross Margin⁽ᵃ⁾ $ 524.5 $ 465.1 $ 851.2 $ 830.6 $ 402.0 $ 376.3 $ 1,777.7 $ 1,672.0
Gross Margin % | 36.1 % | 38.2 % | 42.5 % | 42.2 % | 32.5 % | 29.2 % | 37.9 % | 37.3 % |
Adjusted Gross Margin % | 36.5 % | 38.5 % | 43.3 % | 43.2 % | 32.9 % | 29.5 % | 38.4 % | 37.9 % |
For 2026, includes net benefits of $8.5 million, $13.3 million, $24.8 million and $46.6 million for AMC, IPS, PES and total Regal Rexnord, respectively, related to IEEPA tariff refunds.
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
Unaudited
(Dollars in Millions)
Three Months Ended Nine Months Ended
Sep 30, | Sep 30, | Sep 30, | Sep 30, | |||
2026 | 2025 | 2026 | 2025 | |||
Net (Loss) Income | $ (12.3) | $ 80.0 | $ 168.8 | $ 217.0 | ||
Plus: Income Taxes | 22.9 | 11.9 | 62.0 | 49.0 | ||
Plus: Interest Expense | 77.0 | 87.0 | 234.9 | 262.5 | ||
Less: Interest Income | (6.5) | (5.3) | (17.3) | (14.6) | ||
Plus: Depreciation | 35.4 | 41.9 | 111.2 | 116.5 | ||
Plus: Amortization | 86.9 | 87.3 | 259.9 | 259.5 | ||
EBITDA⁽ᵃ⁾ | $ 203.4 | $ 302.8 | $ 819.5 | $ 889.9 | ||
Plus: Goodwill Impairment | 119.3 | - | 119.3 | - | ||
Plus: Restructuring and Related Costs⁽ᵇ⁾ | 11.5 | 13.8 | 31.3 | 39.8 | ||
Plus: Share-Based Compensation Expense | 9.3 | 9.4 | 19.7 | 29.1 | ||
Plus: Transaction and Integration Related Costs⁽ᶜ⁾ | 3.3 | 6.0 | 13.7 | 19.2 | ||
Plus: CEO Transition Costs | 0.8 | - | 3.0 | - | ||
Plus: Loss on Sale of Accounts Receivable⁽ᵈ⁾ | 4.3 | 5.0 | 11.9 | 5.0 | ||
Plus: Accounts Receivable Securitization Transaction Costs | - | 0.1 | 0.8 | 1.1 | ||
Plus: Operating Lease Asset Step Up | 0.2 | 0.2 | 0.6 | 0.6 | ||
Plus: Amortization of Internal Use Software | 0.3 | - | 0.8 | - | ||
Plus: (Gain) Loss on Sale of Assets | (1.1) | 2.1 | 1.8 | (6.2) | ||
Adjusted EBITDA⁽ᵃ⁾ | $ 351.3 | $ 339.4 | $ 1,022.4 | $ 978.5 |
Creating a better tomorrow™…
Includes a net benefit of $14.7 million and $46.6 million related to IEEPA tariff refunds for the three and nine months ended September 30, 2026, respectively.
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and 24
(2) IT carve-out costs associated with the sale of the industrial motors and generators businesses.
Represents charges associated with the Securitization Facility.
©2026 Regal Rexnord Corporation, Proprietary and Confidential
DEBT TO EBITDAUnaudited
(Dollars in Millions) Last Twelve
Months
Sep 30, 2026
Net Income $ 232.6
Plus: Income Taxes 84.7
Plus: Interest Expense 321.6
Less: Interest Income (26.4)
Plus: Depreciation 148.2
Plus: Amortization 346.5
EBITDA⁽ᵃ⁾ $ 1,107.2
Plus: Goodwill Impairment 119.3
Plus: Restructuring and Related Costs⁽ᵇ⁾ 38.3
Plus: Share-Based Compensation Expense 27.8
Plus: Transaction and Integration Related Costs⁽ᶜ⁾ 19.4
Plus: Loss on Sale of Accounts Receivable⁽ᵈ⁾ 16.5
Plus: Accounts Receivable Securitization Transaction Costs 0.8
Plus: CEO Transition Costs 10.0
Plus: Operating Lease Asset Step Up 0.8
Plus: Amortization of Internal Use Software 0.8
Plus: Loss on Sale of Businesses 4.5
Plus: Loss on Sale of Assets 5.4
Adjusted EBITDA⁽ᵃ⁾⁽ᵉ⁾ $ 1,350.8
Includes a net benefit of $46.6 million related to IEEPA tariff refunds.
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
Primarily relates to integration costs associated with the Altra Transaction.
Represents charges associated with the Securitization Facility.
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 15 months is as follows:
Adjusted EBITDA $ 1,350.8
Synergies to be Realized Within 15 Months 20.0
Adjusted EBITDA (including synergies) $ 1,370.8
Net Debt/Adjusted EBITDA (including synergies) 2.92
Interest Expense $ 321.6
Interest Income (26.4)
Net Interest Expense $ 295.2
Current Maturities of Long-Term Debt | 24.7 | |
Long-Term Debt | 4,427.5 | Interest Coverage Ratio (including synergies)(1) 4.64 |
Total Gross Debt | $ 4,452.2 | (1) Computed as Adjusted EBITDA (including synergies)/Net Interest Expense |
Cash and Cash Equivalents⁽ᶠ⁾ | (451.2) | |
Net Debt | $ 4,001.0 | (f) Includes cash and cash equivalents in Assets Held for Sale of $1.6 Million as of September 30, 2026. |
Gross Debt/Adjusted EBITDA | 3.30 | (g) Computed as Adjusted EBITDA/Net Interest Expense |
Net Debt/Adjusted EBITDA(e) | 2.96 | |
Interest Coverage Ratio(e)(g) | 4.58 |
Creating a better tomorrow™… 25
FREE CASH FLOWUnaudited
(Dollars in Millions)
Three Months Ended Nine Months Ended
Sep 30, 2026 | Sep 30, 2025 | Sep 30, 2026 | Sep 30, 2025 | |
Net Cash Provided by Operating Activities | $ 219.8 | $ 197.5 | $ 411.4 | $ 823.0 |
Additions to Property, Plant and Equipment | (26.1) | (23.5) | (66.0) | (70.5) |
Free Cash Flow | $ 193.7 | $ 174.0 | $ 345.4 | $ 752.5 |
Unaudited
(Dollars in Millions)
Three Months Ended Nine Months Ended | ||||||||
Sep 30, 2026 | Sep 30, 2025 | Sep 30, 2026 | Sep 30, 2025 | |||||
Income before Taxes | $ | 10.6 | $ | 91.9 | $ | 230.8 | $ 266.0 | |
Provision for Income Taxes | 22.9 | 11.9 | 62.0 | 49.0 | ||||
Effective Tax Rate | 216.0 % | 12.9 % | 26.9 % | 18.4 % | ||||
Income before Taxes | $ | 10.6 | $ | 91.9 | $ | 230.8 | $ 266.0 | |
Goodwill Impairment | 119.3 | - | 119.3 | - | ||||
Intangible Amortization | 86.9 | 87.3 | 259.9 | 259.5 | ||||
Restructuring and Related Costs⁽ᵃ⁾ | 11.5 | 13.8 | 31.3 | 39.8 | ||||
Share-Based Compensation Expense | 9.3 | 9.4 | 19.7 | 29.1 | ||||
Transaction and Integration Related Costs⁽ᵇ⁾ | 3.3 | 6.0 | 13.7 | 19.2 | ||||
CEO Transition Costs | 0.8 | - | 3.0 | - | ||||
Accounts Receivable Securitization Transaction Costs | - | 0.1 | 0.8 | 1.1 | ||||
Operating Lease Asset Step Up | 0.2 | 0.2 | 0.6 | 0.6 | ||||
(Gain) Loss on Sale of Assets | (1.1) | 2.1 | 1.8 | (6.2) | ||||
Adjusted Income before Taxes $ 240.8 $ 210.8 $ 680.9 $ 609.1 | ||||||||
Provision for Income Taxes | $ | 22.9 | $ | 11.9 | $ | 62.0 | $ 49.0 | |
Tax Effect of Intangible Amortization | 21.2 | 21.2 | 63.6 | 63.3 | ||||
Tax Effect of Restructuring and Related Costs | 2.6 | 3.7 | 7.4 | 9.6 | ||||
Tax Effect of Share-Based Compensation Expense | 0.3 | 0.9 | 5.6 | 3.5 | ||||
Tax Effect of Transaction and Integration Related Costs | 0.8 | 1.4 | 3.3 | 4.7 | ||||
Tax Effect of CEO Transition Costs | 0.2 | - | 0.7 | - | ||||
Tax Effect of Accounts Receivable Securitization Transaction Costs | - | - | 0.2 | 0.3 | ||||
Tax Effect of Operating Lease Asset Step Up | - | - | 0.1 | 0.1 | ||||
Tax Effect of (Gain) Loss on Sale of Assets | (0.3) | 0.6 | 0.4 | (1.5) | ||||
Discrete Tax Items | (1.0) | 3.7 | (1.3) | 4.2 | ||||
Adjusted Provision for Income Taxes | $ | 46.7 | $ | 43.4 | $ | 142.0 | $ 133.2 | |
Adjusted Effective Tax Rate | 19.4 % | 20.6 % | 20.9 % | 21.9 % | ||||
Creating a better tomorrow™…
Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, 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. 27
Net Interest
Unaudited
(Dollars in Millions)
December 31, 2026 (Annual Guidance - Current)
December 31, 2026 (Annual Guidance - Prior)
Interest Expense $ 310 $ 305
Interest Income (22) (20)
Charges Related to Accounts Receivable Securitization Facility * 17 17
Net Interest $ 305 $ 302
*Presented in Operating Expenses