Regal Rexnord reports Q1 adjusted EPS $2.00, consensus $1.99

Reports Q1 revenue $1.55B, consensus $1.56B. CEO Louis Pinkham commented, “The Q1 marked a strong start to the year for Regal Rexnord on several fronts. Our team delivered adjusted gross margins of 36.5% or 37.4% without Industrial Systems, well on our path to 40%, as well as 100 basis points of adjusted EBITDA margin expansion on a pro forma, year-over-year basis, with particularly solid performance in IPS. Cash flow was strong considering normal seasonality, keeping us firmly on track to meet our $700 million free cash flow goal for 2024. And we made steady progress on our many lean, 80/20 and new product development initiatives. We did confront further market headwinds in the quarter, particularly in our PES segment, but our IPS and AMC segments both saw improving order momentum as the quarter unfolded. While orders were down in the Q1 versus prior year, book-to-bill was positive for the first time in four quarters.”