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Regal Rexnord (RRX) investor relations material
Regal Rexnord Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q4 daily orders surged 53.8% year-over-year, driven by a $735M E-Pod data center order, with year-end backlog up 50% and strong performance in automation, aerospace/defense, and robotics.
Full-year 2025 daily orders grew 15.5%, with adjusted EPS of $9.65 (up 5.8–6%) and adjusted free cash flow of $893.1M, supporting significant debt reduction.
Q4 adjusted EPS was $2.51, up 7.3% year-over-year; Q4 organic sales rose 2.9%.
Strategic focus on growth markets such as data centers, automation, aerospace, and robotics contributed to performance.
Financial highlights
Q4 net sales were $1,523.2M (up 4.3% year-over-year, 2.9% organic); full-year net sales were $5,934.5M (down 1.6%, up 0.8% organically).
Q4 adjusted gross margin was 37.6% (up 50 bps); adjusted EBITDA margin was 21.6% for Q4 and 22.0% for the year.
Q4 free cash flow was $141M; full-year adjusted free cash flow was $893.1M.
Net debt leverage reduced to 3.1x by year-end 2025.
Outlook and guidance
2026 sales growth guidance is ~3%, with 1–1.5 pts from data center projects and 1.5 pts from price/tariffs.
Adjusted EBITDA margin forecast to rise 50 bps to 22.5%; adjusted EPS guidance is $10.20–$11.00 (~10% growth at midpoint).
Free cash flow for 2026 projected at ~$650M, reflecting working capital investment for data center growth.
Net leverage target for 2026 is 2.7x by year-end, with continued debt paydown prioritized.
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