Regal Rexnord Corp

We also made further progress paying down our debt, and ended the quarter having paid down all variable rate debt and with line of sight to a net leverage ratio of roughly 3x by the end of 2025.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

(e) Synergies expected to be realized in the future are included in the calculation of EBITDA that serves as the basis for financial covenant compliance for certain of the Company's debt.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Reduced Scope 1 2 Emissions By 13% Y Y, And Achieved Industry Leading Safety Metrics, Including 0.55 Total Recordable Incident Rate Investing In A New 100K Square Foot Assembly Facility In Texas To Support Data Center Demand Growth CEO Louis Pinkham commented , Our enterprise gained significant momentum in the third quarter by delivering very strong orders, nicely above our expectations.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Pinkham continued, I was also pleased to see order strength in other markets this quarter, including in discrete automation, food beverage, and a nice win by our PES team for air filtration solutions in semiconductor clean rooms, as PES executes its growth strategy of diversifying into new, secular markets.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Order growth for IPS was low single digits in the quarter, which marks its fifth sequential quarter of positive orders growth - solid performance given broadly sluggish IPS end markets, and provides more evidence that our cross-sell initiatives have momentum.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

While some persistent end market headwinds, newly implemented tariffs, and additional challenges procuring rare earth magnets are tempering performance, our teams remain focused on driving stronger growth.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Forward-looking statements include, but are not limited to, statements about expected market or macroeconomic trends, future strategic plans and future financial and operating results.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

While some persistent end market headwinds, newly implemented tariffs, and additional challenges procuring rare earth magnets are tempering performance, our teams remain focused on driving stronger growth.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

*Non-GAAP Financial Measurement, see reconciliation in tables below Guidance** The Company has narrowed and lowered its annual guidance for GAAP diluted earnings per share to a range of $4.26 to $4.56 and for Adjusted Diluted Earnings per Share to a range of $9.50 to $9.80, primarily due to net unfavorable impacts from recently announced tariffs and China trade policies related to rare earth magnets since our second quarter report.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

We now expect net tariff impacts to be slightly unfavorable in the year on a dollar cost basis and anticipate achieving dollar cost neutrality in the middle of next year, and margin neutrality as we exit 2026.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

The decline primarily reflects project timing in our data center business, headwinds in the medical market, and persistent challenges sourcing rare earth magnets, particularly for products serving the medical and defense markets.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

These headwinds were largely offset by growth in discrete automation, and in the aerospace market.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements.

SEC original ↗Regal Rexnord Corp — Earnings release (8-K exhibit)EX-99Oct 30, 2025