Regal Rexnord reports Q1 adjusted EPS $2.15, consensus $1.83

Reports Q1 revenue $1.42B, consensus $1.38B. CEO Louis Pinkham commented, “Q1 marked a strong start to the year, with all segments exceeding guidance, in some cases by wide margins. As an enterprise, we delivered positive organic growth, further gains in adjusted gross margin and adjusted EBITDA margin, grew free cash flow by 32%, and paid down $164M of gross debt – all reflecting solid execution from our teams, including disciplined cost management…However, recent shifts in U.S. trade policy, in particular around tariffs, have heightened macro uncertainty, though evidence of a slowdown has been largely absent from current demand, and improving longer cycle project activity is providing better visibility for the second half and 2026…We have been aggressively implementing plans to mitigate tariff impacts, and expect to achieve tariff cost neutrality in 2025, and margin neutrality by the middle of 2026, under current tariffs. We also continue to execute our synergies, pursue a wide range of growth, productivity, lean and working capital self-help opportunities, and drive free cash flow to continue paying down our debt. In short, I am confident that we will create value for our shareholders in 2025.”