NYSE$RRX

Regal Rexnord Corp · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Regal Rexnord reported its fourth quarter 2024 financial results, with diluted EPS of $0.62 and adjusted diluted EPS of $2.34, up 2.6% year-over-year.

Regal Rexnord reported a mixed fourth quarter, with sales down 9.1% year-over-year but adjusted diluted EPS up 2.6%. The company made good progress on growth, margin, and debt reduction initiatives, despite weaker-than-expected end markets. Strong performance in the IPS segment and exceeding synergy targets were key highlights.

  • Diluted EPS was $0.62, with adjusted diluted EPS at $2.34, marking a 2.6% increase year-over-year.
  • The company paid down $205 million of gross debt in Q4, with net debt/adjusted EBITDA (including synergies) at approximately 3.6x.
  • Adjusted gross margin reached 37.1%, up 60 basis points year-over-year, and adjusted EBITDA margin was 21.7%.
  • Synergies of $23 million were realized, exceeding the plan, and a strategic partnership with Honeywell on electric aircraft was announced.

Headline financials

Total Revenue

$1.46B

Previous: $1.61B-9.1%
EPS (adj)

$2.34

Previous: $2.28+2.6%
Daily Orders Growth

4.4%

No prior period
Adjusted Gross Margin

37.1%

No prior period
Adjusted EBITDA

$318M

No prior period
Adjusted EBITDA Margin

21.7%

No prior period
Capital Expenditures

-$29.3M

Previous: -$30.4M+3.6%
Net Income

$42M

Previous: $55.9M-24.9%
Operating Income

$128M

Previous: $154M-16.7%
Gross Profit

$511M

Previous: $563M-9.3%

Revenue & EPS history

Regal Rexnord · Revenue · Quarterly

$1.46B

Q4 2024-9.1%vs Q4 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Regal Rexnord · $1.52B total across 3 segments · Q3 2023

  • Industrial Powertrain
    $641M
  • Power Efficiency
    $461M
  • Automation & Motion
    $420M

Forward guidance

Regal Rexnord introduced guidance for 2025 GAAP Diluted Earnings per Share in a range of $4.42 to $5.22 and for Adjusted Diluted Earnings per Share in a range of $9.60 to $10.40.

Tailwinds

  • Continued good progress on growth initiatives.
  • Solid outgrowth and healthy margin gains in the IPS segment.
  • Solid progress in the PES segment, with Resi HVAC growing low-20s.
  • AMC segment met sales commitment despite discrete automation weakness.
  • Improving orders and green shoots in some key end markets.

Headwinds

  • Weaker-than-expected end markets in the fourth quarter.
  • Softer mix caused the company to fall short of margin targets.
  • General industrial and machinery/off-highway markets were weaker than expected, particularly in December.
  • Uncertainties regarding currency headwinds.
  • Unknowns related to potential tariffs and other regulatory changes.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.1%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+0.9%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+13.6%

Q1 2025

Best reaction

-15.9%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.5%+0.3%-0.5%
Q4 2025+12.2%+24.9%+4.6%
Q3 2025-3.7%-10.2%-3.1%
Q1 2025+13.6%+21.7%+25.5%
Q4 2024-7.9%-12.5%-20.9%
Q3 2024-0.6%+3.6%+2.3%
Q2 2024+2.8%-7.4%+5.9%
Q1 2024-4.8%-2.4%-13.6%
Q4 2023+7.6%+12.2%+25.9%
Q3 2023-15.9%-14.5%+5.0%
Q2 2023+7.6%+3.7%+4.3%
Q1 2023-2.2%-2.3%+6.2%
Q4 2022+12.2%+12.2%+16.4%
Q3 2022-12.2%-21.0%-14.8%
Q2 2022-0.6%+1.8%+2.4%
Q1 2022-2.7%-2.7%-6.3%
Q4 2020-1.6%-4.6%-5.0%
Q3 2021+8.2%+9.2%+6.7%
Q2 2021+3.8%+4.0%+1.0%
Q1 2021-1.5%-1.6%-6.8%
Q3 2020+4.4%+8.0%+12.0%
Q2 2020+0.1%+2.0%+2.6%
Q1 2020+3.4%+4.4%+16.0%
Q4 2019-4.0%-2.7%-28.8%
Q3 2019+0.5%-0.3%+1.0%
Q2 2019+1.4%+0.2%-0.0%
Q1 2019+2.2%+2.7%+3.7%
Q4 2018-1.3%-0.5%-4.6%
Q3 2018+0.8%-0.4%-0.2%
Q2 2018-0.9%-2.2%+1.3%
Q1 2018-3.9%+0.3%-2.9%
Q4 2017-3.5%-6.9%-2.1%
Q3 2017-5.4%-4.2%-6.6%
Q2 2017-4.7%-6.5%-11.9%
Q1 2017-0.7%+1.3%+4.8%
Q4 2016+0.9%+0.7%+1.6%
Q3 2016+6.1%+7.7%+16.4%
Q2 2016+2.3%+3.6%-4.4%
Q1 2016-1.2%
Q3 2015-3.8%
Q2 2015-0.0%
Q1 2015+0.4%
Q4 2013-1.1%
Q4 2015-1.1%
Q3 2014+0.6%
Q2 2014-0.8%
Q1 2014+2.0%
Q3 2013-0.4%
Q2 2013-0.2%
Q1 2013-2.1%
Q4 2012+0.8%
Q4 2010+0.8%
Q3 2012-3.1%
Q2 2012+1.9%
Q1 2012-0.4%
Q4 2011-1.1%
Q3 2011+0.7%
Q2 2011-1.4%
Q1 2011+3.2%
Q4 2008+3.2%
Q3 2010-1.1%
Q3 2009-1.1%
Q2 2009-1.2%
Q2 2010-1.2%
Q1 2010-1.2%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro