Regal Rexnord Corp Stock Price, News & Analysis

Regal Rexnord Corporation (NYSE: RRX) has completed the first phase of financing for its acquisition of Altra Industrial Motion Corp., securing $1.1 billion through amendments to its credit agreement. CEO Louis Pinkham expressed optimism about the financing, citing strong bank market support. The financing includes a $500 million upsized revolving credit facility and $600 million in incremental term loan commitments, enhancing liquidity and flexibility for integrating Altra. The company aims to leverage the acquisition for future growth while maintaining an investment-grade credit profile.

Regal Rexnord Corporation (NYSE: RRX) will present at the Baird 2022 Global Industrial Conference in Chicago on November 9, 2022, at 12:00 PM CT. CEO Louis Pinkham and CFO Rob Rehard will lead the presentation. Interested parties can access presentation materials and a live webcast on the Company’s investor relations website. Regal Rexnord is a leader in industrial powertrain solutions and is committed to energy efficiency across its four segments: Motion Control Solutions, Climate Solutions, Commercial Systems, and Industrial Systems.

Regal Rexnord Corporation (NYSE: RRX) announced investment grade ratings from major credit agencies. Moody's assigned a Long-Term Issuer Rating of Baa3 and Fitch a BBB- rating, both with stable outlooks. Additionally, S&P assigned a BB+ Issuer Credit Rating. These ratings support Regal Rexnord's acquisition plans for Altra Industrial Motion Corp. The CEO highlighted that these ratings validate the strong credit profile and expected synergy, while aiming for a net leverage target of 2.0-2.5x by 2024.

Regal Rexnord Corporation reported a 48% increase in sales for Q3 2022 compared to the previous year, with an 8% organic growth. Although daily orders declined by 3.6%, the backlog rose nearly 70% since 2021. Adjusted EBITDA margin improved to 20.9%, while adjusted EPS was $2.66, down from $2.88 in the previous year. The company raised its 2022 guidance for adjusted EPS to a range of $10.35 to $10.75. CEO Louis Pinkham emphasized strong execution despite macroeconomic challenges.

On October 28, 2022, Regal Rexnord Corporation (NYSE: RRX) declared a quarterly dividend of $0.35 per share, payable on January 13, 2023. Shareholders must be on record by the close of business on December 30, 2022. Regal Rexnord has maintained a consistent dividend payout since January 1961. The company excels in engineering and manufacturing industrial powertrain solutions and energy-efficient systems, contributing positively to both customers and environmental sustainability.

Regal Rexnord Corporation (NYSE: RRX) has announced its definitive agreement to acquire Altra Industrial Motion Corp. (Nasdaq: AIMC) for $62.00 per share, valuing Altra at $4.95 billion. The transaction is projected to accelerate Regal Rexnord's automation portfolio, with expected annualized cost synergies of $160 million by year four. Pro forma revenue for 2022 is anticipated to reach $7.2 billion, increasing to $8.3 billion by 2025, along with improved EBITDA margins. The acquisition aims to enhance shareholder value and capitalize on growth opportunities across various markets.

Regal Rexnord Corporation (NYSE: RRX) will release its third quarter 2022 financial results after market close on October 31, 2022. The company plans to host a conference call to discuss these results on November 1, 2022, at 9:00 am CT (10:00 am ET). Investors can listen live via Regal Rexnord's Investors website or by phone. A replay of the webcast and a telephone version will also be available for three months following the conference call.

Regal Rexnord is a global leader in industrial powertrain solutions and energy-efficient technologies, serving customers worldwide.

Regal Rexnord Corporation hosted its 2022 Investor Day on September 13, 2022, at the New York Stock Exchange. Key executives discussed strategic growth objectives including plans for organic revenue growth targeting a high single-digit rate, with estimates around $5.2 billion for 2022. The company reaffirmed its earnings guidance, with GAAP EPS between $7.01 and $7.61, and adjusted EPS between $10.20 and $10.80. New targets for 2023-2025 include organic net sales growth of 4% to 6% and a 300 basis point expansion in adjusted EBITDA margins.

Regal Rexnord Corporation (NYSE: RRX) is set to host an investor conference on September 13, 2022, from 8:00 AM ET to 12:00 PM ET at the New York Stock Exchange. The event will also feature a live webcast and a replay available on their website. Interested participants can register here or on their Investor Relations website.