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Sep 30, 2022

Regal Rexnord Q3 2022 Earnings Report

Regal Rexnord pre-released selected financial measures for Q3 2022 and announced the acquisition of Altra Industrial Motion.

Key Takeaways

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.

Regal Rexnord to acquire Altra Industrial Motion in an all-cash transaction for $62.00 per share.

Transaction values Altra at $4.95 billion, representing 13.6x LTM Adjusted EBITDA.

Regal Rexnord expects 2022 pro forma revenue of ~$7.2 billion with the addition of Altra.

Preliminary third quarter 2022 net sales were $1,325.3 million, and adjusted diluted earnings per share were $2.66.

Total Revenue
$1.33B
Previous year: $893M
+48.4%
EPS
$2.66
Previous year: $2.36
+12.7%
Gross Profit
$408M
Cash and Equivalents
$724M
Free Cash Flow
$111M
Total Assets
$10.2B

Regal Rexnord

Regal Rexnord

Forward Guidance

For the full year of 2022, Regal Rexnord now expects adjusted diluted earnings per share to be in a range of $10.35 to $10.75, which contemplates, among other factors, expected net interest expense of $66 million vs. $50 million expected previously. This and other guidance from Regal Rexnord does not reflect any costs, expenses or other effects of the transaction.