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Regal Rexnord (NYSE: RRX) lifts Q2 EPS and narrows 2026 guidance

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Regal Rexnord Corporation reported higher results for the second quarter ended June 30, 2026. Net sales were $1,558.4 million, up 4.2% year over year and 3.3% on an organic basis. GAAP net income rose to $116.8 million from $79.6 million, with diluted EPS of $1.74, up 46.2%. Adjusted diluted EPS was $2.99, up 20.6%, and adjusted EBITDA increased to $366.6 million, including a $32.0 million benefit from IEEPA tariff refunds.

Segment results were mixed. Automation & Motion Control net sales grew 16.2% to $477.7 million with a 21.1% adjusted EBITDA margin. Industrial Powertrain Solutions net sales grew 3.0% to $669.4 million. Power Efficiency Solutions net sales declined 5.5% to $411.3 million, reflecting weakness in residential HVAC and pool markets, partly offset by commercial HVAC strength. Free cash flow was $154.1 million in the quarter, and net debt to adjusted EBITDA including synergies was 3.06x, with management expecting to be below 3.0x in the second half of 2026.

The company narrowed its 2026 GAAP EPS guidance range to $5.42–$5.92 and its adjusted diluted EPS guidance range to $10.35–$10.85, which includes expected IEEPA tariff refund benefits of $0.57 per share; the guidance midpoint remains $10.60.

Positive

  • Q2 2026 GAAP net income increased to $116.8 million and diluted EPS to $1.74, up 46%+ year over year, while adjusted diluted EPS rose 20.6% to $2.99.
  • Net sales reached $1,558.4 million, up 4.2% year over year and 3.3% on an organic basis, supported by 8.8% growth in daily orders and 17.1% daily orders growth in Automation & Motion Control.
  • Adjusted EBITDA grew to $366.6 million, up 11.2% versus the prior year, with a total company adjusted EBITDA margin of 23.5%, including a $32.0 million IEEPA tariff refund benefit.
  • Net debt to adjusted EBITDA including synergies stood at 3.06x at June 30, 2026, and management expects this ratio to be below 3.0x in the second half of 2026.

Negative

  • None.

Filing Explained

At June 30, 2026, Regal Rexnord reported cash and cash equivalents against $4,611.8 million of gross debt, updating the company’s liquidity and debt position for existing common holders.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Net Sales $1,558.4 million Three months ended June 30, 2026; net sales up 4.2% year over year
Q2 2026 GAAP Net Income $116.8 million Three months ended June 30, 2026; up 46.7% versus prior year
Q2 2026 GAAP Diluted EPS $1.74 Diluted EPS for Q2 2026; up 46.2% versus prior year
Q2 2026 Adjusted Diluted EPS $2.99 Adjusted diluted EPS for Q2 2026; up 20.6% versus prior year
Q2 2026 Adjusted EBITDA $366.6 million Adjusted EBITDA for Q2 2026; up 11.2% year over year and includes $32.0M IEEPA refund
Q2 2026 Free Cash Flow $154.1 million Free cash flow for the three months ended June 30, 2026
Net Debt/Adjusted EBITDA (including synergies) 3.06x Net debt to adjusted EBITDA including synergies at June 30, 2026
2026 Adjusted EPS Guidance Range $10.35–$10.85 Full-year 2026 adjusted diluted EPS guidance; midpoint $10.60 includes $0.57 per share IEEPA benefit
Adjusted EBITDA financial
"Adjusted EBITDA Of $366.6 Million Versus PY Of $329.7 Million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
organic sales growth financial
"Organic sales growth also accelerated, to 3.3%, despite headwinds"
Organic sales growth measures how much a company’s revenue rises from its regular business activity — like selling more products, charging higher prices, or selling to more customers — without counting money from buying other businesses or one-time currency effects. Investors watch it because it shows whether demand and the company’s core operations are genuinely getting stronger, similar to judging a garden by how much the plants you planted yourself are growing rather than by adding bought potted plants.
IEEPA tariff refunds regulatory
"2Q 2026 Adjusted EBITDA Includes IEEPA Tariff Refund Benefit Of $32.0 Million"
Refunds under the International Emergency Economic Powers Act (IEEPA) are repayments of import duties, fees, or penalties that were charged because of trade restrictions or sanctions put in place under emergency authority and later reversed, modified, or found inapplicable. For investors, these refunds can change a company’s past cash outflows and future cost structure—similar to getting a billed charge returned after a rule change—affecting reported earnings or cash available for other uses.
Securitization Facility financial
"Represents charges associated with the Securitization Facility."
A securitization facility is a financing arrangement that lets a company package loans or other receivables into tradable securities and sell them to investors, often with a backstop line or support to smooth timing and credit shortfalls. Think of it as a factory that bundles small loans into saleable blocks while a lender provides a safety net; for investors it matters because it affects the liquidity, credit profile and predictability of payments tied to those bundled assets.
Adjusted Effective Tax Rate financial
"ADJUSTED EFFECTIVE TAX RATE Unaudited (Dollars in Millions)"
The adjusted effective tax rate is the percentage of a company’s pre-tax income that it would normally pay in taxes after removing one-time or unusual items, giving a clearer view of its ongoing tax burden. Like clearing away exceptional expenses to see your regular monthly bill, this adjusted rate helps investors compare companies, forecast future profits and cash flow, and value a business without one-off swings distorting the picture.
Automation & Motion Control financial
"Automation & Motion Control (AMC) net sales were $477.7 million"
Net sales $1,558.4 million up 4.2% versus prior year
GAAP net income $116.8 million up 46.7% versus prior year
GAAP diluted EPS $1.74 up 46.2% versus prior year
Adjusted diluted EPS $2.99 up 20.6% versus prior year
Adjusted EBITDA $366.6 million up 11.2% versus prior year
Guidance

For 2026, GAAP diluted EPS guidance is $5.42–$5.92 and adjusted diluted EPS guidance is $10.35–$10.85, including expected IEEPA tariff refund benefits of $0.57 per share; the midpoint remains $10.60.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

What were Regal Rexnord (RRX) second quarter 2026 net sales and growth?
Regal Rexnord reported Q2 2026 net sales of $1,558.4 million, up 4.2% year over year and 3.3% on an organic basis. Growth was driven mainly by Automation & Motion Control and Industrial Powertrain Solutions.

How did Regal Rexnord (RRX) earnings and EPS change versus last year?
GAAP net income rose to $116.8 million from $79.6 million, with diluted EPS increasing to $1.74, up 46.2%. Adjusted diluted EPS was $2.99, up 20.6% compared with the prior-year quarter.

What is Regal Rexnord (RRX) 2026 earnings guidance after the update?
For 2026, GAAP diluted EPS guidance is $5.42–$5.92. Adjusted diluted EPS guidance is $10.35–$10.85, including expected IEEPA tariff refund benefits of $0.57 per share; the midpoint remains $10.60.

How did Regal Rexnord (RRX) business segments perform in Q2 2026?
Automation & Motion Control net sales were $477.7 million, up 16.2%. Industrial Powertrain Solutions net sales were $669.4 million, up 3.0%. Power Efficiency Solutions net sales were $411.3 million, down 5.5% due to residential HVAC and pool weakness.

What was Regal Rexnord (RRX) cash flow and leverage position in Q2 2026?
Free cash flow for Q2 2026 was $154.1 million. Net debt to adjusted EBITDA including synergies was 3.06x at quarter-end, and management indicated an expectation to be below 3.0x in the second half of 2026.

How did IEEPA tariff refunds affect Regal Rexnord (RRX) Q2 2026 results?
Q2 2026 adjusted EBITDA included a $32.0 million benefit from IEEPA tariff refunds. Adjusted diluted EPS for the quarter included a related benefit of $0.39 per share, and 2026 guidance includes $0.57 per share of expected benefits.
0000082811false00000828112026-08-052026-08-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

_______________________

FORM 8-K
_______________________

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):    August 5, 2026
_______________________

              Regal Rexnord Corporation             
(Exact name of registrant as specified in its charter)
Wisconsin1-728339-0875718
(State or Other Jurisdiction of Incorporation)(Commission File Number)(IRS Employer Identification No.)

          111 West Michigan Street, Milwaukee, Wisconsin 53203           
(Address of Principal Executive Offices, Including Zip Code)

Registrant's Telephone Number: (608) 364-8800

_______________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each classTrading symbolName of each exchange on which registered
Common StockRRXNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
_______________________





Item 2.02    Results of Operations and Financial Condition.

On August 5, 2026, Regal Rexnord Corporation issued a press release announcing its financial results for the second quarter ended June 30, 2026. A copy is furnished as Exhibit 99.1 to this report.

Item 9.01.    Financial Statements and Exhibits.
(d)    Exhibits.

Exhibit No.Exhibit Description
99.1
Press release announcing financial results for the second quarter ended June 30, 2026.
104.1Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document).





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

REGAL REXNORD CORPORATION


Date: August 5, 2026          By: /s/ Robert J. Rehard                
Name: Robert J. Rehard
Title: Executive Vice President and Chief Financial Officer




  image.jpg
newsreleaseimagea14.jpg

FOR RELEASE ON: August 5, 2026        

CONTACT:
Robert Barry
VP - Investor Relations
608-361-7530
robert.barry@regalrexnord.com

REGAL REXNORD REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS

MILWAUKEE, WI - Regal Rexnord Corporation (NYSE: RRX)

2Q Highlights
•Daily Orders Up 8.8% Versus PY
•Sales Of $1,558.4 Million, Up 4.2% Versus PY, Up 3.3% On An Organic Basis
•GAAP Net Income Of $116.8 Million Versus PY Of $79.6 Million, Up $37.2 Million Or 46.7% Versus PY
•Adjusted EBITDA Of $366.6 Million Versus PY Of $329.7 Million, Up $36.9 Million Or 11.2% Versus PY
•2Q 2026 Adjusted EBITDA Includes IEEPA Tariff Refund Benefit Of $32.0 Million
•Diluted EPS Of $1.74, Up 46.2% Versus PY; Adjusted Diluted EPS Of $2.99, Up 20.6% Versus PY
•2Q 2026 Adjusted Diluted EPS Includes IEEPA Tariff Refund Benefit Of $0.39
•Cash From Operating Activities of $176.6 Million; Free Cash Flow Of $154.1 Million
•Net Debt To Adjusted EBITDA (Including Synergies) Ended 2Q At 3.06x; Expect To Be Below 3.0x In The Second Half Of 2026
•2026 GAAP EPS Guidance Range Narrowed To $5.42 To $5.92
•2026 Adjusted EPS Guidance Range Narrowed To $10.35 To $10.85, Inclusive Of IEEPA Tariff Refund Benefits Worth $0.57 Per Share; Midpoint Remains $10.60

CEO Aamir Paul commented, "I am honored to serve as Regal Rexnord’s sixth CEO and excited about the opportunities in front of us. I joined the Company because I believe Regal Rexnord is uniquely positioned to leverage its technology leadership, manufacturing scale, and deep customer relationships to address relevant needs across many attractive end markets. In particular, the development of solutions in eVTOL, robotics and data center are exciting frontiers where Regal Rexnord can play a meaningful role. To start, I am spending my time learning the business. Ultimately, the goal is to create a sustainable platform for growth, while also delivering predictable results along the way.”

CFO Rob Rehard commented: “Regal Rexnord delivered solid second-quarter performance. Our mid-term sales growth outlook strengthened further, with enterprise daily orders increasing 8.8% year over year, led by 17.1% daily orders growth in AMC. This momentum reflects improving end markets and continued traction on our growth initiatives. Organic sales growth also accelerated, to 3.3%, despite greater-than-expected headwinds in Resi-HVAC, pool, mining and agriculture markets. Excluding IEEPA refunds, enterprise adjusted EBITDA margins were in line with expectations, despite incremental inflationary pressures, aided in part by incremental synergies; AMC margins improved sequentially and year over year; and adjusted diluted EPS increased versus the prior year.”

Rehard concluded, “Looking forward, our top line outlook remains unchanged. We are holding our adjusted EPS outlook range mid-point, including refunds. Our outlook also now reflects a longer timeline to realize planned productivity gains, in some cases to prioritize service levels. Additionally, we are experiencing a lag in price realization relative to a faster pace of inflation, and modestly unfavorable segment mix impacts. Importantly, these factors do not change our view of a strong and broad-based underlying demand environment. We continue to see positive order momentum across the business.”




Guidance Update

We are narrowing our 2026 GAAP EPS guidance to a range of $5.42 to $5.92. We are also narrowing our 2026 Adjusted Diluted EPS guidance range to $10.35 to $10.85, which now includes expected IEEPA tariff refund benefits worth $0.57 per share. Our Adjusted Diluted EPS guidance range mid-point remains $10.60.


Segment Performance

Segment results for the second quarter of 2026 versus the same period of the prior year are summarized below:

•Automation & Motion Control (AMC) net sales were $477.7 million, an increase of 16.2%, or an increase of 15.6% on an organic basis. Growth was broad-based, but with particular strength in the data center, discrete automation, and aerospace & defense markets. Adjusted EBITDA margin was 21.1% of net sales or 19.9% excluding refunds.

•Industrial Powertrain Solutions (IPS) net sales were $669.4 million, an increase of 3.0%, or an increase of 2.0% on an organic basis. Growth was strongest in the energy market. Adjusted EBITDA margin was 27.1% of net sales or 25.9% excluding refunds.

•Power Efficiency Solutions (PES) net sales were $411.3 million, a decrease of 5.5%, or a decrease of 6.6% on an organic basis due to weakness in the residential HVAC and pool markets, which was partially offset by strength in the commercial HVAC market. Adjusted EBITDA margin was 20.5% of net sales or 16.2% excluding refunds.

Conference Call

Regal Rexnord will hold a conference call to discuss this earnings release at 9:00 AM CT (10:00 AM ET) on Wednesday, August 5, 2026. To listen to the live audio and view the presentation during the call, please visit Regal Rexnord’s Investor website: https://investors.regalrexnord.com. To listen by phone or to ask the presenters a question, dial 1-877-264-6786 (U.S. callers) or 1-412-317-5177 (international callers) and enter 6542343# when prompted. Participants on the call will include Aamir Paul, CEO, and Rob Rehard, EVP & CFO.

A webcast replay will be available at the link above, and a telephone replay will be available at 1-855-669-9658 (U.S. callers) or 1-412-317-0088 (international callers), using a replay access code of 1638161#. Both replays will be accessible for three months after the earnings call.

Supplemental Materials

Supplemental materials and additional information for the quarter ended June 30, 2026 will be accessible before the conference call on August 5, 2026 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. The content of the Company’s website is not incorporated by reference into this document or any other report or document Regal Rexnord files with the Securities and Exchange Commission.

About Regal Rexnord

Regal 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 controllers, drives, precision motors, and actuators, controls motion in applications ranging from factory automation to precision tools used in surgical applications.

The Company’s end markets benefit from meaningful secular demand tailwinds, and include discrete automation, food & beverage, aerospace & defense, medical, data center, energy, residential and commercial buildings, general industrial, and metals and mining.





Regal Rexnord is comprised of three operating segments: Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions. 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.

Forward Looking Statements

All 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,” “would,” “could,” “should,” and similar expressions, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Forward-looking statements include, but are not limited to, statements about expected market or macroeconomic trends, future strategic plans, and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements in this communication include, without limitation: the possibility that the Company may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the sale of the Industrial Motors and Generators businesses in 2024 and the acquisition of Altra Industrial Motion Corp. in 2023 ("Altra Transaction") within the expected time-frames or at all and to successfully integrate Altra Industrial Motion Corp. ("Altra"); the Company's substantial indebtedness as a result of the Altra Transaction and the effects of such indebtedness on the Company's financial flexibility; the Company's ability to achieve its objectives on reducing its indebtedness on the desired timeline; dependence on key suppliers and the potential effects of supply disruptions; fluctuations in commodity prices and raw material costs; any unforeseen changes to or the effects on liabilities, future capital expenditures, revenue, expenses, synergies, indebtedness, financial condition, losses and future prospects; unanticipated operating costs, customer loss and business disruption or the Company's inability to forecast customer needs; the Company's ability to retain key executives and employees and risks associated with the transition of our new CEO; uncertainties regarding our ability to execute restructuring plans within expected costs and timing or at all; challenges to the tax treatment that was elected with respect to the merger with the Rexnord PMC business and related transactions; actions taken by competitors and our ability to effectively compete in the increasingly competitive global industries and markets; our ability to develop new products based on technological innovation and marketplace acceptance of new and existing products; our ability to keep pace with rapidly evolving technological developments related to advances in artificial intelligence; dependence on significant customers and distributors; risks that customers may make changes and adjustments to their orders which could result in actual revenue recognized being lower or higher than disclosed order values; risks associated with climate change, including unexpected weather events in markets in which we do business, and uncertainty regarding our ability to deliver on our sustainability commitments and/or to meet related investor, customer and other third party expectations relating to our sustainability efforts and rapidly evolving sustainability regulations; changes to and uncertainty in trade policy, including tariffs on imports into the US from Canada, Mexico, China, and other countries, and retaliatory tariffs and import/export restrictions, including Chinese export restrictions on certain rare earth minerals, or other trade restrictions imposed by the US or other governments; risks associated with global manufacturing, including risks associated with public health crises and political, societal or economic instability, including instability caused by ongoing geopolitical conflicts; issues and costs arising from the integration of acquired companies and businesses; prolonged declines in one or more markets, including disruptions caused by labor disputes or other labor activities, natural disasters, terrorism, acts of war, international conflicts, pandemics and political and government actions; risks associated with excess or obsolete inventory charges including related write-offs or write-downs; economic changes in global markets, such as reduced demand for products, currency exchange rates, inflation rates, interest rates, recession, government policies, including policy changes affecting taxation, trade, tariffs, import/export regulations, immigration, customs, border actions and the like, and other external factors that the Company cannot control; product liability, asbestos and other litigation, or claims by end users, government agencies or others that products or customers’ applications failed to perform as anticipated; the Company's ability to identify and execute on future mergers and acquisitions ("M&A") opportunities or other strategic transactions; the impact of any such M&A transactions on the Company's results, operations and financial condition, including the impact from costs to execute and finance any such transactions; unanticipated costs or expenses that may be incurred related to product warranty issues; infringement of intellectual property by third parties, challenges to intellectual property, and claims of infringement on third party technologies; risks related to foreign currency fluctuations or changes in global commodity prices or interest rates; effects on earnings of any significant impairment of goodwill; losses from failures, breaches, attacks or disclosures involving information technology infrastructure and data; costs and unanticipated liabilities arising from rapidly evolving laws and regulations,


including data privacy laws, labor and employment laws, environmental laws and regulations, and tax laws and regulations; risks associated with stock price volatility; and other factors that can be found in our filings with the SEC, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Measures
(Unaudited)
(Dollars in Millions, Except per Share Data)

We prepare our financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We also periodically disclose certain financial measures in our quarterly earnings releases, on investor conference calls, and in investor presentations and similar events that may be considered “non-GAAP” financial measures. This additional information is not meant to be considered in isolation or as a substitute for our results of operations prepared and presented in accordance with GAAP.

In this release, we disclose the following non-GAAP financial measures, and we reconcile these measures in the tables below to the most directly comparable GAAP financial measures: adjusted diluted earnings per share, adjusted income from operations, adjusted operating margin, adjusted net sales, adjusted gross margin, net debt, EBITDA, adjusted EBITDA, adjusted EBITDA (including synergies), interest coverage ratio, interest coverage ratio (including synergies), adjusted EBITDA margin, gross debt/adjusted EBITDA, net debt/adjusted EBITDA, net debt/adjusted EBITDA (including synergies), free cash flow, adjusted income before taxes, adjusted provision for income taxes, and adjusted effective tax rate. We believe that these non-GAAP financial measures are useful measures for providing investors with additional information regarding our results of operations and for helping investors understand and compare our operating results across accounting periods and compared to our peers. Our management primarily uses adjusted income from operations and adjusted operating margin to help us manage and evaluate our business and make operating decisions, while the other non-GAAP measures disclosed are primarily used to help us evaluate our business and forecast our future results. Accordingly, we believe disclosing and reconciling each of these measures helps investors evaluate our business in the same manner as management. This release also includes non-GAAP forward-looking information. The Company believes that a quantitative reconciliation of this forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of this non-GAAP financial measure would require the Company to predict the timing and likelihood of future restructurings and other charges. Neither these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measure is not provided.

In addition to these non-GAAP measures, we use the term “organic sales growth” to refer to the increase in our sales between periods that is attributable to organic sales. “Organic sales” refers to GAAP sales from existing operations excluding any sales from acquired businesses recorded prior to the first anniversary of the acquisition and excluding any sales from business divested/to be exited recorded prior to the first anniversary of the exit and excluding the impact of foreign currency translation. The impact of foreign currency translation is determined by translating the respective period’s organic sales using the currency exchange rates that were in effect during the prior year periods.




CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Unaudited
(Dollars in Millions, Except per Share Data)
Three Months EndedSix Months Ended
Jun 30,
2026		Jun 30,
2025		Jun 30,
2026		Jun 30,
2025
Net Sales$1,558.4 $1,496.1 $3,037.5 $2,914.2 
Cost of Sales946.8 931.4 1,876.0 1,821.9 
Gross Profit611.6 564.7 1,161.5 1,092.3 
Operating Expenses396.4 382.4 793.7 750.3 
Income from Operations215.2 182.3 367.8 342.0 
Interest Expense77.4 85.3 158.0 175.5 
Interest Income(6.2)(5.1)(10.9)(9.3)
Other Expense, Net0.3 0.9 0.5 1.6 
Income before Taxes143.7 101.2 220.2 174.2 
Provision for Income Taxes26.9 21.6 39.0 37.1 
Net Income116.8 79.6 181.2 137.1 
Less: Net Income Attributable to Noncontrolling Interests0.2 0.4 0.2 0.6 
Net Income Attributable to Regal Rexnord Corporation$116.6 $79.2 $181.0 $136.5 
Earnings Per Share Attributable to Regal Rexnord Corporation:
Basic$1.75 $1.19 $2.72 $2.06 
Assuming Dilution$1.74 $1.19 $2.71 $2.05 
Cash Dividends Declared Per Share$0.35 $0.35 $0.70 $0.70 
Weighted Average Number of Shares Outstanding:
Basic66.6 66.3 66.5 66.3 
Assuming Dilution66.9 66.5 66.8 66.5 
























CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(Dollars in Millions)
Jun 30, 2026Dec 31, 2025
ASSETS
Current Assets:
Cash and Cash Equivalents$441.6 $521.7 
Trade Receivables, Less Allowances of $10.9 Million and $10.5 Million as of June 30, 2026 and December 31, 2025, Respectively
580.0 524.2 
Inventories1,377.9 1,321.7 
Prepaid Expenses and Other Current Assets422.4 344.7 
Total Current Assets2,821.9 2,712.3 
Net Property, Plant and Equipment868.7 911.8 
Operating Lease Assets146.0 145.2 
Goodwill6,575.8 6,611.3 
Intangible Assets, Net of Amortization3,230.7 3,418.4 
Deferred Income Tax Benefits37.2 36.2 
Other Noncurrent Assets71.5 85.8 
Total Assets$13,751.8 $13,921.0 
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable$642.4 $607.3 
Dividends Payable23.3 23.2 
Accrued Compensation and Benefits204.0 205.5 
Accrued Interest60.1 84.0 
Other Accrued Expenses245.1 281.7 
Current Operating Lease Liabilities40.7 38.5 
Current Maturities of Long-Term Debt24.2 24.1 
Total Current Liabilities1,239.8 1,264.3 
Long-Term Debt4,587.6 4,764.6 
Deferred Income Taxes718.2 752.6 
Pension and Other Post Retirement Benefits99.6 106.0 
Noncurrent Operating Lease Liabilities113.9 114.0 
Other Noncurrent Liabilities69.1 66.2 
Equity:
Regal Rexnord Corporation Shareholders' Equity:
Common Stock, $0.01 Par Value, 150.0 Million Shares Authorized, 66.6 Million and 66.4 Million Shares Issued and Outstanding as of June 30, 2026 and December 31, 2025, Respectively
0.7 0.7 
Additional Paid-In Capital4,687.8 4,688.5 
Retained Earnings2,364.7 2,230.3 
Accumulated Other Comprehensive Loss(137.7)(75.4)
Total Regal Rexnord Corporation Shareholders' Equity6,915.5 6,844.1 
Noncontrolling Interests8.1 9.2 
Total Equity6,923.6 6,853.3 
Total Liabilities and Equity$13,751.8 $13,921.0 



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
Unaudited
(Dollars in Millions)
Three Months EndedSix Months Ended
Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income$116.8 $79.6 $181.2 $137.1 
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities (Net of Acquisitions and Divestitures):
Depreciation38.5 35.5 75.8 75.6 
Amortization86.4 86.8 173.0 172.2 
Noncash Lease Expense11.8 10.9 23.5 21.8 
Share-Based Compensation Expense2.3 10.3 10.4 19.8 
Financing Fee Expense2.0 4.0 4.4 7.3 
Loss (Gain) on Sale of Assets2.4 (2.3)2.9 (8.3)
Benefit from Deferred Income Taxes(16.6)(24.6)(30.8)(43.1)
Other Non-Cash Changes(1.3)1.6 (0.6)2.3 
Change in Operating Assets and Liabilities, Net of Acquisitions and Divestitures
Receivables(2.1)319.2 (60.5)318.6 
Inventories1.9 (48.0)(61.5)(89.8)
Accounts Payable11.6 15.4 34.6 57.0 
Other Assets and Liabilities(77.1)34.8 (160.8)(45.0)
Net Cash Provided by Operating Activities176.6 523.2 191.6 625.5 
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant and Equipment(22.5)(30.2)(39.9)(47.0)
Proceeds Received from Sales of Property, Plant and Equipment2.8 4.5 2.8 14.8 
Proceeds Received from Sale of Businesses, Net of Cash Transferred— — — 3.0 
Net Cash Used in Investing Activities(19.7)(25.7)(37.1)(29.2)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings Under Revolving Credit Facility625.6 448.3 1,184.0 859.8 
Repayments Under Revolving Credit Facility(720.9)(487.1)(1,111.5)(876.8)
Proceeds from Long-Term Borrowings— — 850.0 — 
Repayments of Long-Term Borrowings(1.3)(431.0)(1,102.6)(616.9)
Dividends Paid to Shareholders(23.2)(23.4)(46.6)(46.6)
Shares Surrendered for Taxes(0.5)(1.5)(15.4)(7.1)
Proceeds from the Exercise of Stock Options0.3 1.0 6.7 1.4 
Net Cash Used in Financing Activities(120.0)(493.7)(235.4)(686.2)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS3.6 11.0 0.8 16.5 
Net Decrease in Cash and Cash Equivalents40.5 14.8 (80.1)(73.4)
Cash and Cash Equivalents at Beginning of Period401.1 305.3 521.7 393.5 
Cash and Cash Equivalents at End of Period$441.6 $320.1 $441.6 $320.1 

















ADJUSTED DILUTED EARNINGS PER SHARE
Unaudited
Three Months EndedSix Months Ended
Jun 30,
2026		Jun 30,
2025		Jun 30,
2026		Jun 30,
2025
GAAP Diluted Earnings Per Share(a)
$1.74 $1.19 $2.71 $2.05 
Intangible Amortization0.98 0.99 1.95 1.96 
Restructuring and Related Costs(b)
0.110.120.230.30
Transaction and Integration Related Costs(c)
0.060.070.120.15
Share-Based Compensation Expense0.040.130.080.26
Loss (Gain) on Sale of Assets0.03 (0.02)0.03 (0.09)
CEO Transition Costs0.02 — 0.02 —
Accounts Receivable Securitization Transaction Costs0.01 0.01 0.01 0.01
Discrete Tax Items— (0.01)— (0.01)
Adjusted Diluted Earnings Per Share(a)
$2.99 $2.48 $5.15 $4.63 

(a) Includes $0.39 of benefit related to IEEPA tariff refunds for the three and six months ended June 30, 2026.
(b)Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(c)For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with the sale of the industrial motors and generators businesses.
        

2026 ADJUSTED ANNUAL GUIDANCE
Unaudited
MinimumMaximum
GAAP Diluted Earnings Per Share(a)
$5.42 $5.92 
Intangible Amortization3.92 3.92 
Restructuring and Related Costs(b)
0.40 0.40 
Share-Based Compensation Expense0.32 0.32 
Transaction and Integration Related Costs(c)
0.21 0.21 
Loss on Sale of Assets0.03 0.03 
CEO Transition Costs0.03 0.03 
Accounts Receivable Securitization Transaction Costs0.01 0.01 
Operating Lease Asset Step Up0.01 0.01 
Adjusted Diluted Earnings Per Share(a)
$10.35 $10.85 

(a) Includes $0.57 of benefit related to IEEPA tariff refunds.
(b)Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(c)Primarily relates to integration costs associated with the Altra Transaction.




ORGANIC SALES GROWTH
Unaudited
(Dollars in Millions)
Three Months Ended
June 30, 2026
Automation & Motion ControlIndustrial Powertrain SolutionsPower Efficiency SolutionsTotal Regal Rexnord
Net Sales Three Months Ended Jun 30, 2026$477.7 $669.4 $411.3 $1,558.4 
Impact from Foreign Currency Exchange Rates(2.4)(7.5)(4.8)(14.7)
Organic Sales Three Months Ended Jun 30, 2026$475.3 $661.9 $406.5 $1,543.7 
Net Sales Three Months Ended Jun 30, 2025$411.1 $649.8 $435.2 $1,496.1 
Net Sales from Businesses Divested— (0.9)— (0.9)
Adjusted Net Sales Three Months Ended Jun 30, 2025$411.1 $648.9 $435.2 $1,495.2 
Three Months Ended Jun 30, 2026 Net Sales Growth %16.2 %3.0 %(5.5)%4.2 %
Three Months Ended Jun 30, 2026 Foreign Currency Impact %0.6 %1.1 %1.1 %1.0 %
Three Months Ended Jun 30, 2026 Divestitures %— %(0.1)%— %(0.1)%
Three Months Ended Jun 30, 2026 Organic Sales Growth %15.6 %2.0 %(6.6)%3.3 %
ORGANIC SALES GROWTH
Unaudited
(Dollars in Millions)
Six Months Ended
June 30, 2026
Automation & Motion ControlIndustrial Powertrain SolutionsPower Efficiency SolutionsTotal Regal Rexnord
Net Sales Six Months Ended Jun 30, 2026$934.8 $1,317.7 $785.0 $3,037.5 
Impact from Foreign Currency Exchange Rates(15.2)(26.7)(11.7)(53.6)
Organic Sales Six Months Ended Jun 30, 2026$919.6 $1,291.0 $773.3 $2,983.9 
Net Sales Six Months Ended Jun 30, 2025$807.4 $1,262.5 $844.3 $2,914.2 
Net Sales from Businesses Divested— (1.5)— (1.5)
Adjusted Net Sales Six Months Ended Jun 30, 2025$807.4 $1,261.0 $844.3 $2,912.7 
Six Months Ended Jun 30, 2026 Net Sales Growth %15.8 %4.4 %(7.0)%4.2 %
Six Months Ended Jun 30, 2026 Foreign Currency Impact %1.9 %2.1 %1.4 %1.8 %
Six Months Ended Jun 30, 2026 Divestitures %— %(0.1)%— %(0.1)%
Six Months Ended Jun 30, 2026 Organic Sales Growth %13.9 %2.4 %(8.4)%2.5 %






ADJUSTED EBITDA
Unaudited
(Dollars in Millions)
Three Months Ended
Automation & Motion ControlIndustrial Powertrain SolutionsPower Efficiency SolutionsTotal Regal Rexnord
Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025
GAAP Income from Operations(a)
$48.5 $30.4 $97.6 $92.4 $69.1 $59.5 $215.2 $182.3 
Restructuring and Related Costs(b)
0.7 1.8 6.2 7.8 2.5 1.0 9.4 10.6 
Transaction and Integration Related Costs(c)
1.1 1.3 3.4 4.0 0.9 1.0 5.4 6.3 
CEO Transition Costs0.7 — 1.0 — 0.5 — 2.2 — 
Loss on Sale of Accounts Receivable(d)
1.2 — 1.8 — 0.9 — 3.9 — 
Accounts Receivable Securitization Transaction Costs0.2 0.3 0.3 0.4 0.2 0.3 0.7 1.0 
Operating Lease Asset Step Up— — 0.2 0.2 — — 0.2 0.2 
(Gain) Loss on Sale of Assets— (2.3)2.4 — — — 2.4 (2.3)
Adjusted Income from Operations$52.4 $31.5 $112.9 $104.8 $74.1 $61.8 $239.4 $198.1 
Amortization$34.6 $34.5 $51.2 $50.6 $0.6 $1.7 $86.4 $86.8 
Depreciation13.1 10.9 16.3 15.7 9.1 8.8 38.5 35.4 
Amortization of Internal Use Software0.1 — 0.1 — 0.1 — 0.3 — 
Share-Based Compensation Expense0.7 3.3 0.7 4.5 0.9 2.5 2.3 10.3 
Other (Expense) Income, Net(0.1)— 0.2 (0.5)(0.4)(0.4)(0.3)(0.9)
Adjusted EBITDA(a)
$100.8 $80.2 $181.4 $175.1 $84.4 $74.4 $366.6 $329.7 
GAAP Operating Margin %10.1%7.4%14.6%14.2%16.8%13.7%13.8%12.2%
Adjusted Operating Margin %11.0%7.7%16.9%16.1%18.0%14.2%15.4%13.2%
Adjusted EBITDA Margin %21.1%19.5%27.1%26.9%20.5%17.1%23.5%22.0%
    
(a)
Includes benefits of $5.9 million, $8.3 million, $17.8 million and $32.0 million for AMC, IPS, PES and total Regal Rexnord, respectively, related to IEEPA tariff refunds for the three months ended June 30, 2026.
(b)Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(c)Primarily relates to integration costs associated with the Altra Transaction.
(d)Represents charges associated with the Securitization Facility.




ADJUSTED EBITDA
Unaudited
(Dollars in Millions)
Six Months Ended
Automation & Motion ControlIndustrial Powertrain SolutionsPower Efficiency SolutionsTotal Regal Rexnord
Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025
GAAP Income from Operations(a)
$80.0$65.5$176.8$174.1$111.0$102.4$367.8$342.0
Restructuring and Related Costs(b)
1.93.012.020.75.92.319.826.0
Transaction and Integration Related Costs(c)
2.22.76.78.11.52.410.413.2
CEO Transition Costs0.7—1.0—0.5—2.2—
Loss on Sale of Accounts Receivable(d)
2.1—3.2—2.3—7.6—
Accounts Receivable Securitization Transaction Costs0.20.30.40.40.20.30.81.0
Operating Lease Asset Step Up——0.40.4——0.40.4
(Gain) Loss on Sale of Assets—(2.3)2.4(6.0)0.5—2.9(8.3)
Adjusted Income from Operations$87.1$69.2$202.9$197.7$121.9$107.4$411.9$374.3
Amortization$69.3$68.4$102.4$100.5$1.3$3.3$173.0$172.2
Depreciation24.522.533.334.318.017.775.874.5
Amortization of Internal Use Software0.1—0.2———0.3—
Share-Based Compensation Expense3.26.74.58.32.74.810.419.8
Other (Expense) Income, Net(0.2)(0.1)0.2(0.8)(0.5)(0.7)(0.5)(1.6)
Adjusted EBITDA(a)
$184.0$166.7$343.5$340.0$143.4$132.5$670.9$639.2
GAAP Operating Margin %8.6 %8.1 %13.4 %13.8 %14.1 %12.1 %12.1 %11.7 %
Adjusted Operating Margin %9.3 %8.6 %15.4 %15.7 %15.5 %12.7 %13.6 %12.8 %
Adjusted EBITDA Margin %19.7 %20.6 %26.1 %26.9 %18.3 %15.7 %22.1 %21.9 %
    
(a)
Includes benefits of $5.9 million, $8.3 million, $17.8 million and $32.0 million for AMC, IPS, PES and total Regal Rexnord, respectively, related to IEEPA tariff refunds for the six months ended June 30, 2026.
(b)Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(c)For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with the sale of the industrial motors and generators businesses.
(d)Represents charges associated with the Securitization Facility.

ADJUSTED GROSS MARGIN
Unaudited
(Dollars in Millions)
Three Months Ended
Automation & Motion ControlIndustrial Powertrain SolutionsPower Efficiency SolutionsTotal Regal Rexnord
Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025
Gross Margin(a)
$183.3$154.6$286.9$280.4$141.4$129.7$611.6$564.7
Restructuring and Related Costs(b)
0.61.64.34.01.70.96.66.5
Operating Lease Asset Step Up——0.20.2——0.20.2
Loss on Sale of Assets——2.4———2.4—
Adjusted Gross Margin(a)
$183.9$156.2$293.8$284.6$143.1$130.6$620.8$571.4
Gross Margin %38.4 %37.6 %42.9 %43.2 %34.4 %29.8 %39.2 %37.7 %
Adjusted Gross Margin %38.5 %38.0 %43.9 %43.8 %34.8 %30.0 %39.8 %38.2 %

(a)
Includes benefits of $5.9 million, $8.3 million, $17.8 million and $32.0 million for AMC, IPS, PES and total Regal Rexnord, respectively, related to IEEPA tariff refunds for the three months ended June 30, 2026.
(b)Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.




ADJUSTED GROSS MARGIN
Unaudited
(Dollars in Millions)
Six Months Ended
Automation & Motion ControlIndustrial Powertrain SolutionsPower Efficiency SolutionsTotal Regal Rexnord
Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025Jun 30, 2026Jun 30, 2025
Gross Margin(a)
$345.1$312.7$561.6$537.9$254.8$241.7$1,161.5$1,092.3
Restructuring and Related Costs(b)
0.82.28.512.84.91.514.216.5
Operating Lease Asset Step Up——0.40.4——0.40.4
Loss on Sale of Assets——2.4———2.4—
Adjusted Gross Margin(a)
$345.9$314.9$572.9$551.1$259.7$243.2$1,178.5$1,109.2
Gross Margin %36.9 %38.7 %42.6 %42.6 %32.5 %28.6 %38.2 %37.5 %
Adjusted Gross Margin %37.0 %39.0 %43.5 %43.7 %33.1 %28.8 %38.8 %38.1 %

(a)
Includes benefits of $5.9 million, $8.3 million, $17.8 million and $32.0 million for AMC, IPS, PES and total Regal Rexnord, respectively, related to IEEPA tariff refunds for the six months ended June 30, 2026.
(b)Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.


NET INCOME TO ADJUSTED EBITDA
Unaudited
(Dollars in Millions)
Three Months EndedSix Months Ended
Jun 30,
2026		Jun 30,
2025		Jun 30,
2026		Jun 30,
2025
Net Income$116.8 $79.6 $181.2 $137.1 
Plus: Income Taxes26.921.639.037.1
Plus: Interest Expense77.485.3158.0175.5
Less: Interest Income(6.2)(5.1)(10.9)(9.3)
Plus: Depreciation38.535.475.874.5
Plus: Amortization86.486.8173.0172.2
EBITDA(a)
$339.8 $303.6 $616.1 $587.1 
Plus: Restructuring and Related Costs(b)
9.410.619.826.0
Plus: Share-Based Compensation Expense2.310.310.419.8
Plus: Transaction and Integration Related Costs(c)
5.46.310.413.2
Plus: CEO Transition Costs2.2—2.2—
Plus: Loss on Sale of Accounts Receivable(d)
3.9—7.6—
Plus: Accounts Receivable Securitization Transaction Costs0.71.00.81.0
Plus: Operating Lease Asset Step Up0.20.20.40.4
Plus: Amortization of Internal Use Software0.3—0.3—
Plus: Loss (Gain) on Sale of Assets2.4(2.3)2.9(8.3)
Adjusted EBITDA(a)
$366.6 $329.7 $670.9 $639.2 

(a)
Includes a benefit of $32.0 million related to IEEPA tariff refunds for the three and six months ended June 30, 2026.
(b)Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(c)For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with the sale of the industrial motors and generators businesses.
(d)Represents charges associated with the Securitization Facility.


DEBT TO EBITDA
Unaudited
(Dollars in Millions)
Last Twelve Months
Jun 30, 2026
Net Income$324.9 
Plus: Income Taxes73.7 
Plus: Interest Expense331.6 
Less: Interest Income(25.2)
Plus: Depreciation154.7 
Plus: Amortization346.9 
EBITDA(a)
$1,206.6 
Plus: Restructuring and Related Costs(b)
40.6 
Plus: Share-Based Compensation Expense27.9 
Plus: Transaction and Integration Related Costs(c)
22.1 
Plus: Loss on Sale of Accounts Receivable(d)
17.2 
Plus: Accounts Receivable Securitization Transaction Costs0.9 
Plus: CEO Transition Costs9.2 
Plus: Operating Lease Asset Step Up0.8 
Plus: Amortization of Internal Use Software0.5 
Plus: Loss on Sale of Businesses4.5 
Plus: Loss on Sale of Assets8.6 
Adjusted EBITDA(a)(e)
$1,338.9 
Current Maturities of Long-Term Debt24.2 
Long-Term Debt4,587.6 
Total Gross Debt$4,611.8 
Cash and Cash Equivalents(441.6)
Net Debt$4,170.2 
Gross Debt/Adjusted EBITDA3.44 
Net Debt/Adjusted EBITDA(e)
3.11 
Interest Coverage Ratio(e)(f)
4.37 



(a)
Includes a benefit of $32.0 million related to IEEPA tariff refunds.
(b)Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(c)Primarily relates to integration costs associated with the Altra Transaction.
(d)Represents charges associated with the Securitization Facility.
(e)Synergies expected to be realized in the future are included in the calculation of EBITDA that serves as the basis for financial covenant compliance for certain of the Company's debt. The impact of the synergies the Company expects to realize within 18 months is as follows:
Adjusted EBITDA$1,338.9 
Synergies to be Realized Within 18 Months25.0 
Adjusted EBITDA (including synergies)$1,363.9 
Net Debt/Adjusted EBITDA (including synergies)3.06
Interest Expense$331.6 
Interest Income(25.2)
Net Interest Expense$306.4 
Interest Coverage Ratio (including synergies)(1)
4.45
(1) Computed as Adjusted EBITDA (including synergies)/Net Interest Expense
(f)Computed as Adjusted EBITDA/Net Interest Expense
    
FREE CASH FLOW
Unaudited
(Dollars in Millions)
Three Months EndedSix Months Ended
Jun 30,
2026		Jun 30,
2025		Jun 30,
2026		Jun 30,
2025
Net Cash Provided by Operating Activities$176.6 $523.2 $191.6 $625.5 
Additions to Property, Plant and Equipment(22.5)(30.2)(39.9)(47.0)
Free Cash Flow$154.1 $493.0 $151.7 $578.5 




ADJUSTED EFFECTIVE TAX RATE
Unaudited
(Dollars in Millions)
Three Months EndedSix Months Ended
Jun 30,
2026		Jun 30,
2025		Jun 30,
2026		Jun 30,
2025
Income before Taxes$143.7 $101.2 $220.2 $174.2 
Provision for Income Taxes26.9 21.6 39.0 37.1 
Effective Tax Rate18.7 %21.3 %17.7 %21.3 %
Income before Taxes$143.7 $101.2 $220.2 $174.2 
Intangible Amortization86.4 86.8 173.0 172.2 
Restructuring and Related Costs(a)
9.4 10.6 19.8 26.0 
Share-Based Compensation Expense2.3 10.3 10.4 19.8 
Transaction and Integration Related Costs(b)
5.4 6.3 10.4 13.2 
CEO Transition Costs2.2 — 2.2 — 
Accounts Receivable Securitization Transaction Costs0.7 1.0 0.8 1.0 
Operating Lease Asset Step Up0.2 0.2 0.4 0.4 
Loss (Gain) on Sale of Assets2.4 (2.3)2.9 (8.3)
Adjusted Income before Taxes$252.7 $214.1 $440.1 $398.5 
Provision for Income Taxes$26.9 $21.6 $39.0 $37.1 
Tax Effect of Intangible Amortization21.1 21.2 42.3 42.1 
Tax Effect of Restructuring and Related Costs2.2 2.3 4.8 5.9 
Tax Effect of Share-Based Compensation Expense— 1.6 5.3 2.7 
Tax Effect of Transaction and Integration Related Costs1.3 1.7 2.5 3.3 
Tax Effect of CEO Transition Costs0.5 — 0.5 — 
Tax Effect of Accounts Receivable Securitization Transaction Costs0.2 0.2 0.2 0.2 
Tax Effect of Operating Lease Asset Step Up— 0.1 0.1 0.1 
Tax Effect of Loss (Gain) on Sale of Assets0.6 (0.7)0.7 (2.1)
Discrete Tax Items(0.1)0.4 (0.2)0.5 
Adjusted Provision for Income Taxes$52.7 $48.4 $95.2 $89.8 
Adjusted Effective Tax Rate20.8 %22.6 %21.7 %22.5 %

(a) Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges.
(b)For 2026, primarily relates to integration costs associated with the Altra Transaction. For 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs associated with the sale of the industrial motors and generators businesses.








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