Regal Rexnord Reports Strong Q2 2025 Results

Regal Rexnord Corporation ( (RRX) ) has released its Q2 earnings. Here is a breakdown of the information Regal Rexnord Corporation presented to its investors.

Regal Rexnord Corporation, headquartered in Milwaukee, Wisconsin, is a global leader in providing sustainable solutions for power, transmission, and motion control across various industries, including aerospace, medical, and industrial applications.

In its second quarter of 2025, Regal Rexnord reported strong financial results, with a notable increase in adjusted diluted earnings per share by 8.3% compared to the previous year. Despite a slight decline in sales, the company secured a significant $35 million data center order and demonstrated robust cash flow from operations.

The company’s financial performance was highlighted by a gross margin of 37.7% and an adjusted EBITDA margin of 22.0%. While sales decreased by 3.3% year-over-year, the Power Efficiency Solutions segment achieved a 6.5% organic growth, driven by strong performance in the residential and commercial HVAC markets. Additionally, the company successfully reduced its gross debt by $469.8 million, leveraging proceeds from a new accounts receivable securitization program.

Looking ahead, Regal Rexnord remains focused on accelerating growth through cross-sell synergies and new product development. The company has narrowed its guidance for adjusted diluted earnings per share for the full year 2025, reflecting confidence in its strategic initiatives and mitigation actions to offset tariff impacts.

Overall, Regal Rexnord’s management is optimistic about future growth prospects, emphasizing momentum in end-market recovery and continued execution of outgrowth initiatives, despite ongoing macroeconomic and geopolitical uncertainties.