Regal Rexnord Corporation

RRX

Equity

ISIN US7587501039 / Valor 965733

New York Stock Exchange, Inc (2024-12-23)

USD 156.15+0.12%

Regal Rexnord Corporation
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About company

Regal Rexnord Corporation is a prominent player in the manufacturing sector, specializing in the production of gearing systems and related technologies. The company's product portfolio includes gearboxes that are integral to a wide range of industrial applications across various markets. These gearboxes are designed to adjust the rotational speed, torque, and direction of powertrains, ensuring efficient operation and movement of machinery. Beyond its core offerings in gearing systems, Regal Rexnord has also developed innovative solutions for equipment monitoring. Their easy-to-install vibration and temperature monitoring systems are designed to preemptively identify issues before they escalate into critical problems. This technology underscores the company's commitment to providing cost-effective, scalable, and flexible solutions that cater to the diverse needs of industries globally. While the company has set ambitious goals for achieving carbon emission neutrality and net zero emissions by 2032 and 2050, respectively, its primary business focus remains on delivering high-quality, reliable products and systems that enhance the operational efficiency of its clients' machinery and equipment.

Summarized from source with an LLMView SourceSector: Industrials

Third Quarter 2024 Earnings

Regal Rexnord Corporation reported its financial results for the third quarter of 2024, highlighting a GAAP diluted EPS of $1.09 and an adjusted diluted EPS of $2.49, marking an 18.6% increase compared to the previous year. The company also paid down $114 million of gross debt in the third quarter, contributing to a year-to-date total of $733 million, with a target to reduce approximately $900 million by the end of the year.

Revenue and Sales Performance

For the third quarter of 2024, Regal Rexnord Corporation reported sales of $1,477.4 million, which represents a 10.4% decrease compared to the previous year. On an organic basis, sales were down by 2.7%. Despite the decline in sales, the company achieved a record adjusted gross margin of 38.4%.

Profitability and Margins

Regal Rexnord Corporation achieved a GAAP net income of $73.0 million for the third quarter of 2024, a significant improvement from the previous year's GAAP net loss of $(138.6) million. The adjusted EBITDA for the quarter was $337.0 million, up from $330.0 million in the prior year, with a record adjusted EBITDA margin of 22.8%, an increase of 110 basis points year-over-year.

Segment Performance

In the third quarter of 2024, the Automation & Motion Control segment saw net sales of $401.6 million, a decrease of 4.3%. The Industrial Powertrain Solutions segment reported net sales of $644.2 million, a slight increase of 0.5%. Meanwhile, the Power Efficiency Solutions segment experienced a 6.4% decline in net sales, totaling $431.6 million.

Updated Guidance

Regal Rexnord Corporation updated its annual guidance for 2024, adjusting the GAAP diluted earnings per share to a range of $3.27 to $3.57, down from the previous range of $3.70 to $4.10. The adjusted diluted earnings per share guidance was also revised to a range of $9.15 to $9.45, reflecting weaker demand in certain segments.

Summarized from source with an LLMView Source

Key figures

4.97%1Y

-5.47%3Y

81.1%5Y

Performance

34.8%1Y

37.3%3Y

39.6%5Y

Volatility