Regal Rexnord (RRX) investor relations material

Strategic positioning and business evolution

• Gross margin improved from 26% to 38% over seven years, targeting 40% through acquisitions, divestitures, and operational efficiency.

• Shift toward system solution sales, integrating products for differentiated offerings, with notable growth in data center and powertrain solutions.

• Orders growth of 8.5% in Q1 and an 18% year-over-year increase in the sales funnel, aiming to meet 2027 sales objectives by 2026.

• Competitive advantage in scale and scope, especially in industrial powertrain, with a focus on technology-driven differentiation in fragmented markets.

Organizational structure and operational approach

• Adopted 'smart decentralization,' balancing centralized and decentralized operations based on business needs.

• IPS operates with centralized global sales, PES is regionally focused, and AMC runs as six independent divisions.

• Strategic sourcing centralized to leverage $3 billion in purchasing power.

Financial organization and technology

• Finance function is 75% through transformation, embedding strong talent and decentralized P&L responsibility.

• New consolidation system with AI capabilities launched, improving data-driven decision-making and visibility.

• Enhanced cadence and rigor in financial reviews, supporting leadership transitions and strategic deployments.