Regal Rexnord (RRX) Investor presentation summary

Strategic transformation and growth trajectory

• Enterprise value grew from ~$4B in 2018 to ~$19B in 2025, with EV/EBITDA multiple rising from 7-9x to ~14x.

• Adjusted net sales increased from $3.6B to ~$5.9B, with gross margin improving from ~27% to ~38%.

• EBITDA margin expanded from ~15% to ~22%, and free cash flow margin from ~8% to ~9%.

• Customer concentration reduced from 28% to 11% of sales from top 10 OEMs.

Portfolio and market positioning

• Operates across Power Efficiency Solutions, Industrial Powertrain Solutions, and Automation & Motion Control.

• Serves diverse markets: general commercial, HVAC, energy, automation, aerospace, medical, and data centers.

• Holds top 3 positions in premium efficiency motors, bearings, couplings, clutches, brakes, and digital/IOT solutions.

Growth drivers and end-market exposure

• Organic growth targets: AMC 5-7%, IPS 3-5%, PES 2-4%, overall ~4%.

• Key growth drivers include innovation, digital investments, regulatory tailwinds, and new products.

• Over 50% of sales are into secular markets such as automation, aerospace, defense, data centers, and medical.