Tue, May 6, 5:36 PM (16 days ago)
**Regal Rexnord Corporation (RRX) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,418.1 million, down 8.4% YoY due to divestitures (-7.9%) and negative foreign currency translation (-1.2%), partially offset by organic sales growth (0.7%). - **Net Income:** $57.5 million, up from $20.4 million YoY, driven by lower operating expenses and a lower effective tax rate (21.2% vs. 34.8%). - **Earnings per Share (EPS):** $0.86, up from $0.30 YoY. - **Operating Expenses:** $367.9 million, down 12.2% YoY, primarily due to the divestiture of the industrial motors and generators business. - **Cash Flow from Operations:** $102.3 million, up $19.2 million YoY. **Segment Performance:** - **Automation & Motion Control (AMC):** Net sales down 1.0% YoY, with organic sales growth of 0.4%. - **Industrial Powertrain Solutions (IPS):** Net sales down 4.8% YoY, with organic sales decline of 3.4%. - **Power Efficiency Solutions (PES):** Net sales up 6.2% YoY, with organic sales growth of 8.0%. **Profit Margins:** - **Gross Profit Margin:** 37.2% vs. 35.7% YoY. - **Operating Margin:** 11.3% vs. 8.7% YoY. **Cash Flow and Liquidity:** - **Cash and Cash Equivalents:** $305.3 million, down from $393.5 million at the end of 2024. - **Working Capital:** $1,535.0 million, stable compared to the end of 2024. - **Debt:** $5,291.8 million in long-term debt, down from $5,452.7 million at the end of 2024. **Future Operations and Uncertainties:** - **Guidance:** Updated annual GAAP diluted EPS guidance to a range of $4.49 to $5.29. - **Risks:** Tariffs, trade policy changes, geopolitical conflicts, and supply chain disruptions pose risks to future operations. - **Strategic Initiatives:** Continued focus on cost synergies, procurement efficiencies, and footprint rationalization. **Trends and Outlook:** - **Organic Sales Growth:** Positive in PES, stable in AMC, and negative in IPS. - **Tax Rate:** Lower effective tax rate due to non-deductible loss from divestiture. - **Debt Management:** Plans to use cash generated from operations to reduce debt and fund interest obligations. **Summary:** Regal Rexnord Corporation reported a mixed Q1 2025, with revenue declines due to divestitures and currency translation, but improved profitability and cash flow. The company faces risks from tariffs and geopolitical tensions but is focused on strategic initiatives to drive future growth.