MILWAUKEE, Sept. 17, 2024 /PRNewswire/ -- Regal Rexnord Corporation (NYSE:RRX) is hosting its 2024 Investor Day today at The Mandarin Oriental Hotel in New York City beginning at 8:30 AM ET. A live webcast of the event will be accessible on the Company's investor relations website at investors.regalrexnord.com.
CEO Louis Pinkham, CFO Rob Rehard, and other members of the executive leadership team will discuss the Company's strategic growth objectives, including plans to accelerate profitable organic sales growth, continue to expand adjusted gross margins and adjusted EBITDA margins, grow free cash flow, and drive significant potential value creation through various capital deployment initiatives.
In conjunction with today's event, the Company is maintaining its previously announced annual 2024 guidance, including sales of $6.2 billion, GAAP diluted earnings per share in a range of $3.70 to $4.10, and adjusted diluted earnings per share* in a range of $9.40 to $9.80. However, based on recent performance, the Company now believes that the lower half of the outlook range is more likely.
The Company is also introducing the following financial targets for the 2024 to 2027 period:
Organic net sales growth at a CAGR of 2% to 5%
Adjusted gross margins** rising to ~40% exiting 2025 and remaining steady thereafter
Adjusted EBITDA margins** rising to ~25% exiting 2025 and remaining steady thereafter
Adjusted diluted earnings per share** growth at a low double digit CAGR
Adjusted free cash flow margins** in the low- to mid-teens by 2027
Net leverage** declining to ~2.5x in 2025 and to 1.5–2.0x by 2027
Commenting on the Company's three-year outlook, CEO Louis Pinkham said: "We see many opportunities to create significant value for shareholders by capitalizing on the strengths of our enterprise, which over the last five years we have dramatically transformed, through organic and inorganic actions, to be increasingly durable, high-margin, and cash generative. As we will discuss in some detail at our investor meeting today, our teams are working on a wide range of compelling initiatives to accelerate organic growth. We also see a clear path to top quartile gross, EBITDA and cash flow margins, ROIC expansion, and meaningful opportunities to create value through de-levering and, over time, inorganic growth. In short, we believe Regal Rexnord presents a highly compelling value creation opportunity, underpinned by lots of controllable execution."
Supplemental MaterialsSupplemental materials and additional information will be accessible on Regal Rexnord's Investor website: https://investors.regalrexnord.com. The Company intends to disseminate important information about the Company to its investors on the Investors section of its website: https://investors.regalrexnord.com. Investors are advised to look at Regal Rexnord's website for future important information about the Company.
About Regal RexnordRegal Rexnord's 30,000 associates around the world help create a better tomorrow by providing sustainable solutions that power, transmit and control motion. The Company's electric motors and air moving subsystems provide the power to create motion. A portfolio of highly engineered power transmission components and subsystems efficiently transmits motion to power industrial applications. The Company's automation offering, comprised of controls, actuators, drives, and precision motors, controls motion in applications ranging from factory automation to precision control in surgical tools.
The Company's end markets benefit from meaningful secular demand tailwinds, and include factory automation, food & beverage, aerospace, medical, data center, warehouse, alternative energy, residential and commercial buildings, general industrial, construction, metals and mining, and agriculture.
Regal Rexnord is comprised of three operating segments: Industrial Powertrain Solutions, Power Efficiency Solutions, and Automation & Motion Control. Regal Rexnord is headquartered in Milwaukee, Wisconsin and has manufacturing, sales and service facilities worldwide. For more information, including a copy of our Sustainability Report, visit RegalRexnord.com.
* Non-GAAP Financial Measure, See Appendix for Reconciliation to the most directly comparable GAAP financial measure.** Regal Rexnord does not provide a reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because it is unable to predict certain adjustment items without unreasonable effort.
Forward Looking StatementsAll statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as "anticipate," "believe," "confident," "estimate," "expect," "intend," "plan," "may," "will," "project," "forecast," "target, " ...
