Regal Rexnord Corporation ( (RRX) ) has released its Q4 earnings. Here is a breakdown of the information Regal Rexnord Corporation presented to its investors.
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Regal Rexnord Corporation, a global leader in motion control and power transmission solutions, has reported its financial results for the fourth quarter of 2024, showcasing its strategic initiatives in the industrial sector. Despite challenging market conditions, the company maintained solid financial performance, highlighting its focus on growth and sustainability.
In the latest earnings report, Regal Rexnord reported a diluted EPS of $0.62 and an adjusted diluted EPS of $2.34, a 2.6% increase from the previous year. The company managed to pay down $205 million of gross debt in the fourth quarter, maintaining a net debt/adjusted EBITDA ratio of approximately 3.6x. Moreover, daily orders increased by 4.4% compared to the previous year, despite a 9.1% decline in sales, marking a 1.4% drop on an organic basis. Regal Rexnord also announced a strategic partnership with Honeywell to collaborate on electric aircraft (eVTOL), indicating a focus on innovation and future growth.
Key financial metrics revealed a gross margin of 34.9% and an adjusted gross margin of 37.1%, an improvement of 60 basis points from the prior year. The company’s GAAP net income was $42.0 million, compared to $56.6 million in the previous year, with an adjusted EBITDA of $317.6 million. Despite lower volumes, the adjusted EBITDA margin stood at 21.7%, slightly lower than the previous year’s figures. The company also exceeded its synergy target by achieving $101 million in synergies for the year, surpassing expectations by $11 million.
Looking ahead to 2025, Regal Rexnord has introduced guidance for GAAP diluted EPS in the range of $4.42 to $5.22 and adjusted diluted EPS between $9.60 and $10.40. The company remains optimistic about its growth prospects, particularly in the latter half of 2025, as it continues to focus on debt reduction, margin improvement, and strategic growth opportunities. Despite some market uncertainties and headwinds, Regal Rexnord is poised to leverage its capabilities and partnerships to navigate the evolving industrial landscape effectively.
