- Regal Rexnord’s adjusted EPS for the first quarter of 2025 was $2.15, surpassing the prior year’s $2 and exceeding estimates of $1.83.
- Net sales for the quarter reached $1.42 billion, a decrease of 8.4% compared to the previous year, but higher than the estimated $1.38 billion.
- Net income rose significantly to $57.3 million from $19.8 million the previous year and was above the estimated $45.4 million.
- The company maintained its forecast for adjusted EPS for the full year 2025 in the range of $9.60 to $10.40, against an estimate of $9.65.
- Due to a gain from asset sales in Q1 2025, the company revised its GAAP Diluted EPS guidance for the year to a range of $4.49 to $5.29.
- The company’s PES segment achieved 8.0% organic growth, benefiting from strong R-HVAC markets and an improvement in adjusted EBITDA margin.
- Overall, the enterprise experienced positive organic growth and improvements in adjusted gross and EBITDA margins, with free cash flow increasing by 32% and $164 million in gross debt reduction.
- The IPS segment met its sales forecasts despite slow industrial markets and achieved over a point in adjusted EBITDA margin expansion.
- The AMC segment exceeded sales and margin targets, bolstered by strong performance in aerospace and growth in discrete automation.
- The company’s stock has strong support with 10 buy recommendations, 1 hold, and no sell ratings.
Regal Rexnord on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been closely monitoring Regal Rexnord’s performance. According to Baptista Research‘s report titled “RRX US: Its Efforts Towards Synergy Realization & Cost Efficiency Initiatives Yielding Results?“, Regal Rexnord’s fourth quarter results showcased a mix of strengths and challenges. The company demonstrated strong operational execution, making progress in areas like synergy realization, gross margin expansion, and debt reduction. Specifically, the Automation and Motion Control (AMC) segment exceeded revenue expectations and experienced a nearly 9% increase in orders, while the Power Efficiency Solutions (PES) segment showed impressive growth in the residential HVAC vertical.
Baptista Research‘s analysis highlights the commendable performance of Regal Rexnord in key operational areas, indicating positive momentum for the company’s future prospects. The report suggests that the company’s focus on cost efficiency initiatives is yielding tangible results, contributing to its overall financial health. With top independent analysts like Baptista Research providing insights on platforms like Smartkarma, investors gain valuable perspectives on Regal Rexnord’s strategic direction and operational achievements, helping them make informed investment decisions in the dynamic market landscape.
A look at Regal Rexnord Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Regal Rexnord Corporation, a company specializing in the design, manufacture, and sale of electric motors and controls, is forecasted to have a positive long-term outlook based on its Smartkarma Smart Scores. With a strong Value score of 4, Regal Rexford is deemed to offer good value for investors. Despite a lower Dividend score of 2, the company shows promising Growth potential with a score of 3. In terms of Resilience and Momentum, Regal Rexnord scored 2 and 3 respectively, indicating moderate performance in these areas.
Regal Rexnord Corporation’s diverse product portfolio includes gearboxes, automotive transmissions, rotary cutting tools, automatic transfer switches, and electric generators. The company caters to a broad customer base, including distributors, original equipment manufacturers, and end users worldwide. Overall, Regal Rexnord’s favorable Value score suggests promising prospects for investors seeking long-term growth in the electric motors and controls sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
