- Regal Rexnord’s adjusted earnings per share (EPS) for the second quarter were $2.48, surpassing the estimated $2.44 and last year’s $2.29.
- The company reported net sales of $1.50 billion, a 3.3% decline year-over-year but slightly above the estimated $1.49 billion.
- Industrial Powertrain Solutions recorded net sales of $649.8 million, marking a 3.8% decrease from the previous year, slightly below the expected $655.9 million.
- Power Efficiency Solutions achieved net sales of $435.2 million, a 5.9% increase year-over-year, exceeding the estimated $421.2 million.
- Automation & Motion Control saw net sales of $411.1 million, a 2.6% decrease year-over-year, slightly under the projected $415.8 million.
- The adjusted operating margin improved to 13.2% from last year’s 13%, although it was slightly lower than the expected 13.4%.
- Net income rose to $79.2 million, a 27% increase year-over-year, falling short of the $104.9 million estimate.
- Regal Rexnord updated its annual guidance for GAAP diluted earnings per share to a range of $4.50 to $5.10.
- The company also narrowed its annual guidance for 2025 Adjusted Diluted EPS to between $9.70 and $10.30.
- The Power Efficiency Solutions segment achieved 6.5% organic growth, benefiting from strong R-HVAC and C-HVAC markets.
- Automation & Motion Control met sales targets but faced temporary margin pressure due to rare earth magnet availability, expected to improve later in the year.
- Industrial Powertrain Solutions delivered more than a point of adjusted EBITDA margin expansion despite market challenges.
- Analysts have given Regal Rexnord 10 buy ratings and 1 hold rating, with no sell ratings.
Regal Rexnord on Smartkarma
Regal Rexnord’s analyst coverage on Smartkarma by Baptista Research highlights a mixed performance in the fourth quarter, showcasing both strengths and challenges. The report titled “RRX US: Its Efforts Towards Synergy Realization & Cost Efficiency Initiatives Yielding Results?” delves into the company’s financial health and future prospects. Positive aspects include strong operational execution, progress in synergy realization, gross margin expansion, and debt reduction. The Automation and Motion Control (AMC) segment exceeded revenue expectations, experiencing a nearly 9% increase in orders, while Power Efficiency Solutions (PES) showcased impressive growth in the residential HVAC vertical.
A look at Regal Rexnord Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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 that designs, manufactures, and sells electric motors and controls, has received a mixed outlook based on Smartkarma Smart Scores. While showing strong momentum with a score of 5, indicating positive stock price trends, its value is rated at 4, suggesting favorable valuation metrics. However, other factors such as dividend (2), growth (3), and resilience (3) scored lower, signaling room for improvement in those areas. This indicates that while the company is currently experiencing positive momentum and is considered to be well-valued, there may be challenges in terms of dividend yield, growth prospects, and resilience against market volatilities.
Regal Beloit markets its wide range of products including gearboxes, automotive transmissions, rotary cutting tools, automatic transfer switches, and electric generators to distributors, original equipment manufacturers, and end users globally. Despite the mixed Smart Scores, the company’s focus on electric motors and controls hints at its potential for growth and innovation in the evolving industry landscape. Investors should closely monitor how Regal Rexnord navigates through the areas of improvement highlighted by the Smart Scores to gain a clearer picture of its long-term performance and sustainability.
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
