Regal Rexnord reports Q4 adjusted EPS $2.28, consensus $2.24

Reports Q4 revenue $1.61B, consensus $1.62B. CEO Louis Pinkham commented, “Our team delivered strong performance in the fourth quarter – in line with our prior commitments – despite persistent destocking and various end market headwinds, especially in our PES segment. Strong execution supported enterprise adjusted EBITDA of $347 million and adjusted EBITDA margin rising by 40 basis points on a pro forma, year-over-year basis, on lower sales. The enterprise also generated $171 million of adjusted free cash flow in the quarter, and $683 million for the year, which predominantly was used for debt paydown. We expect even stronger adjusted free cash flow in 2024, which combined with anticipated proceeds from the sale of our Industrial Motors and Generators businesses should enable over $900 million of debt paydown this year, which we expect to bring our net debt to adjusted EBITDA ratio to roughly 3 times, and eliminate most borrowings under our term loan.”