Today, Regal Rexnord Corp. (RRX) exhibited remarkable after-hours trading activity. The stock price surged to $167.65, reflecting a notable increase of $7.97 or 4.99%. With a trading volume of 2.48K, this significant upward movement underscores growing investor confidence and interest in the company’s performance and future prospects.
Company’s Latest Announcement
May 6, 2024 — Regal Rexnord Corporation (NYSE: RRX) has released its first quarter 2024 earnings results.
Key Highlights from the Earnings Report
- GAAP Diluted EPS: $0.30, Adjusted Diluted EPS: $2.00
- Adjusted Free Cash Flow: $64.6 million; on track for a full-year outlook of $700 million
- Debt Reduction: Paid down $135.0 million of gross debt
- Sales: $1,547.7 million, up 26.4% year-over-year, down 7.5% on a pro forma organic basis
- GAAP Gross Margin: 35.7%; Adjusted Gross Margin: 36.5% versus the previous year’s 33.5% on a pro forma basis
- GAAP Net Income: $20.4 million compared to a net loss of $5.5 million last year
- Adjusted EBITDA: $317.4 million versus $327.1 million last year on a pro forma basis
- Adjusted EBITDA Margin: 20.5%, up 100 basis points year-over-year on a pro forma basis
- Synergies: $26 million; on track to deliver $90 million this year
Updated 2024 Guidance
Regal Rexnord has updated its annual guidance for 2024:
- GAAP Diluted EPS: $3.97 to $4.77
- Adjusted Diluted EPS: $9.60 to $10.40 This revision accounts for the impacts of closing the sale of the Industrial Systems business.
Segment Performance
Performance across various segments compared to the previous year:
- Automation & Motion Control: Net sales of $400.2 million, up 96.9% (down 4.5% pro forma organic). The results reflect the Altra acquisition and strengths in medical, data center, and aerospace markets, offset by weaknesses in factory automation and food & beverage markets. Adjusted EBITDA margin was 22.5%.
- Industrial Powertrain Solutions: Net sales of $643.4 million, up 55.3% (down 1.0% pro forma organic). Strengths in general industrial and energy markets, offset by weaknesses in alternative energy, construction equipment, and agriculture markets. Adjusted EBITDA margin was 25.8%.
- Power Efficiency Solutions: Net sales of $385.3 million, down 17.9% (down 17.8% organic). Declines primarily due to continued weakness in North American residential HVAC markets. Adjusted EBITDA margin was 13.2%.
- Industrial Systems: Net sales of $118.8 million, down 13.3% (down 12.6% organic). Adjusted EBITDA margin was 8.6%.
Following the sale of the Industrial Systems business, effective May 1, 2024, Regal Rexnord will operate through three segments: Industrial Powertrain Solutions, Power Efficiency Solutions, and Automation & Motion Control.
