Regal Rexnord delivered a strong second quarter in 2025, exceeding expectations in sales and earnings. The Power Efficiency Solutions (PES) segment showed robust organic growth and margin expansion, driven by strong HVAC markets. The Industrial Powertrain Solutions (IPS) segment also improved its adjusted EBITDA margin despite market headwinds, while the Automation & Motion Control (AMC) segment met its sales target despite temporary margin pressure from rare earth magnet availability, which is expected to improve. The company's strategic focus on cross-sell synergies and new product vitality is gaining momentum, with significant cross-sell opportunities identified and progress toward realizing synergy targets.
The company delivered a solid Q1 with increased adjusted EPS, improved gross and EBITDA margins, and strong free cash flow, despite a slight decline in overall sales.
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.
Regal Rexnord pre-released selected anticipated third quarter 2022 financial measures, including net sales of $1,325.3 million and adjusted diluted earnings per share of $2.66. The company also announced a definitive agreement to acquire Altra Industrial Motion for $62.00 per share in an all-cash transaction.