Regal Rexnord Reports Robust Financial Performance in Q3 2025

In its latest announcement, Regal Rexnord Corporation (NYSE: RRX) has detailed a commendable performance for the third quarter of 2025. The company reported a diluted earnings per share (EPS) of $1.20, marking a 10.1% increase compared to the previous year's quarter. The adjusted diluted EPS stood at $2.51, rising by 0.8% from the previous year. Moreover, this positive trend reflects strong growth in daily orders, which rose by 9.8% year-over-year, largely driven by a substantial $135 million in project orders for data centers in the AMC PES segment, with an additional $60 million secured in the current month.

The financial results reported for Q3 2025 highlighted a total sales figure of $1,497 million, which shows a minor increase of 1.3% compared to the prior year. The organic sales growth was recorded at 0.7%. The GAAP net income reached $80 million, which is an increase of $7 million from last year, reiterating the company's focus on operational efficiency and effective cost management.

Furthermore, Regal Rexnord outlined its adjusted EBITDA of $339.4 million for the quarter, slightly up from $337 million in the same period last year, demonstrating slight operational improvements. The company reported a solid cash from operating activities amounting to $197.5 million, with an adjusted free cash flow of $174 million. Notably, Regal Rexnord has also proactively reduced its gross debt by $74.5 million during this quarter, leading to a net debt/adjusted EBITDA ratio of approximately 3.2x.

CEO Louis Pinkham commented on the results, expressing satisfaction over the robust momentum achieved in Q3. He noted the significant orders in the data center segment as a highlight of the quarter and indicated strong demand prospects manifesting for Regal Rexnord’s offerings in various markets including discrete automation and food and beverage. He praised the company's successful diversification strategy in the air filtration market for semiconductor clean rooms, attributed to the PES team.

Looking ahead, the company has issued guidance that narrows and lowers its annual forecast for GAAP diluted earnings per share to a range between $4.26 and $4.56, primarily due to unfavorable impacts stemming from newly imposed tariffs and evolving trade policies regarding rare earth materials. The adjusted diluted earnings per share guidance is projected to range from $9.50 to $9.80.

The segment results further illustrated varied performances across Regal Rexnord’s operational divisions. The Automation & Motion Control segment reported net sales of $402 million, a minor increase of 0.1%, while the Industrial Powertrain Solutions segment achieved $662.3 million, a rise of 2.8%. The Power Efficiency Solutions segment reflected sales of $432.7 million, an uptick of 0.3% when compared to the previous year.

In conclusion, Regal Rexnord’s third-quarter earnings exhibit formidable operational achievements and a clear strategy focused on data center demand and market diversification that positions the company well for future growth opportunities. The management's approach of responding to market dynamics while building on a solid order pipeline exceeding $1 billion underlines the potential for sustained success as they tackle challenges head-on, particularly concerning emerging market headwinds and supply chain constraints. The company will host a conference call on October 30, 2025, to delve into these earnings and provide further insights to stakeholders.

For further updates, investors are encouraged to visit Regal Rexnord’s official Investor Relations website.