- Adjusted Earnings Per Share: Regal Rexnord reported an adjusted EPS of $2.34 for the fourth quarter, which missed the analysts’ estimate of $2.47, but was slightly higher than last year’s $2.28.
- Net Sales Performance: The company’s net sales were $1.46 billion, down 9.1% year-over-year and below the expected $1.49 billion.
- Sector Breakdown:
- Industrial Powertrain Solutions: This segment’s net sales were $635.0 million, a 2.3% decline year-over-year, falling short of the $650.6 million estimation.
- Power Efficiency Solutions: Recorded net sales of $416.3 million, down 0.4% year-over-year, missing the $438.2 million target.
- Automation & Motion Control: This segment saw net sales of $409.8 million, which was a 2.6% decrease from the previous year but slightly surpassed the $402.8 million estimate.
- Operating Margin: The adjusted operating margin stood at 12.5%, down from 13% last year and below the predicted 13.5%.
- Net Income: Regal Rexnord’s net income was $41.2 million, registering a 26% decrease year-over-year and significantly below the anticipated $102.8 million.
- 2025 Earnings Guidance: The company forecasts adjusted EPS for the year in the range of $9.60 to $10.40, with analysts estimating $10.33.
- CEO’s Remarks: CEO Louis Pinkham highlighted the company’s progress on growth, margin, and debt reduction initiatives despite challenging market conditions.
- Analyst Recommendations: The stock holds 10 buy recommendations, 1 hold, and no sell ratings.
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
Analysts evaluating Regal Rexnord’s long-term outlook are considering a range of factors, including Value, Growth, and Momentum among others. With a solid score of 4 for Value, the company is seen as offering good value for investors. While the Dividend and Resilience scores are more moderate at 2, the Growth and Momentum scores at 3 reflect a positive trajectory for the company in the future.
Regal Rexnord Corporation specializes in designing and selling electric motors and controls, along with a variety of related products like gearboxes and automotive transmissions. With a focus on serving distributors, OEMs, and end users globally, the company’s offerings cater to a diverse market. Smartkarma Smart Scores indicate a promising outlook for Regal Rexnord, with indications of strong value potential and growth prospects moving forward.
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.
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