REGAL REXNORD CORPORATION HOSTS 2022 INVESTOR CONFERENCE, REAFFIRMS 2022 GUIDANCE, INTRODUCES NEW THREE YEAR FINANCIAL TARGETS AND NET ZERO GOALS

BELOIT, Wis., Sept. 13, 2022 /PRNewswire/ — Regal Rexnord Corporation ( NYSE: RRX) is internet hosting its 2022 Investor Day at present at The New York Stock Exchange starting at 8:00AM ET. The occasion will likely be webcast stay on the Company’s investor relations web site at traders.regalrexnord.com.

CEO Louis Pinkham, CFO Rob Rehard, and different members of the chief management workforce will talk about the Company’s strategic development aims, together with plans to speed up worthwhile natural gross sales development, proceed to broaden adjusted gross margins and adjusted EBITDA margins, develop free money stream, and drive vital potential worth creation by means of varied capital deployment initiatives.

In conjunction with at present’s occasion, the Company is reaffirming its annual 2022 steerage, together with natural income development at a excessive single digit price, to roughly $5.2 billion, GAAP earnings per share in a variety of $7.01 to $7.61, and adjusted earnings per share* in a variety of $10.20 to $10.80.

The Company can also be introducing the next monetary targets for the 2023 to 2025 interval:

• Organic web gross sales development at a CAGR of 4% to six%
• Adjusted EBITDA margin growth of ~300 foundation factors
• Adjusted earnings per share development at a low double digit CAGR
• Annual free money stream conversion of a minimum of 100%

The Company additionally introduced at present plans to realize carbon emission neutrality on scopes 1 and a couple of by 2032, and targets web zero throughout scopes 1, 2 and 3 by 2050.

Commenting on the brand new Net Zero targets, CEO Louis Pinkham mentioned: “We are proud to be setting more aggressive environmental impact goals, which are aligned with our Regal Rexnord values. Our teams have been working diligently to improve the integrity of our environmental data, to develop the skills and tools needed to aggressively make our operations more environmentally friendly, and to establish relevant metrics, plus a governance structure, to ensure we progress towards our net zero goals.”    

About Regal Rexnord

Regal Rexnord Corporation is a world chief within the engineering and manufacturing of commercial powertrain options, energy transmission elements, electrical motors and digital controls, air transferring merchandise and specialty electrical elements and programs, serving prospects world wide. Through longstanding expertise management and an intentional deal with producing extra energy-efficient merchandise and programs, Regal Rexnord helps create a greater tomorrow – for its prospects and for the planet.

Regal Rexnord is comprised of 4 segments: Motion Control Solutions, Climate Solutions, Commercial Systems and Industrial Systems. Regal Rexnord is headquartered in Beloit, Wisconsin and has manufacturing, gross sales, and repair services worldwide. For extra info, go to RegalRexnord.com.

* Non-GAAP Financial Measurement, See Appendix for Reconciliation

Forward Looking Statements

This press launch incorporates forward-looking statements, inside the which means of Section 21E of the Securities Exchange Act of 1934, as amended, which mirror Regal Rexnord’s present estimates, expectations and projections about Regal Rexnord’s future outcomes, efficiency, prospects and alternatives. Forward-looking statements embrace statements that aren’t historic info and could be recognized by forward-looking phrases comparable to “anticipate,” “believe,” “confident,” “estimate,” “expect,” “intend,” “plan,” “may,” “will,” “project,” “forecast,” “would,” “could,” “should,” and related expressions. These forward-looking statements are based mostly upon info at present obtainable to Regal Rexnord and are topic to quite a few dangers, uncertainties, and different components that might trigger precise outcomes, efficiency, prospects or alternatives to vary materially from these expressed in, or implied by, these forward-looking statements. Important components that might trigger precise outcomes to vary materially from the outcomes referred to within the forward-looking statements Regal Rexnord makes on this launch embrace: dependence on key suppliers and the potential results of provide disruptions; fluctuations in commodity costs and uncooked materials prices; any unexpected adjustments to or the results on liabilities, future capital expenditures, income, bills, synergies, indebtedness, monetary situation, losses and future prospects; the likelihood that Regal Rexnord could also be unable to realize anticipated synergies and working efficiencies in reference to the merger with the Rexnord Process & Motion Control business (the “Rexnord PMC business”) and the acquisition of Arrowhead Systems, LLC (“Arrowhead”) (along with the merger with the Rexnord PMC business, the “Transactions”) inside the anticipated time-frames or in any respect and to efficiently combine the Rexnord PMC business and Arrowhead; Regal Rexnord’s potential to establish and execute on future M&A alternatives, together with vital M&A transactions; the influence of any such M&A transactions on Regal Rexnord’s outcomes, operations and monetary situation, together with the influence from prices to execute and finance any such transactions; anticipated or focused future monetary and working efficiency and outcomes; working prices, buyer loss and business disruption (together with, with out limitation, difficulties in sustaining relationships with workers, prospects, shoppers or suppliers) being higher than anticipated following the Transactions; Regal Rexnord’s potential to retain key executives and workers; the continued monetary and operational impacts of and uncertainties referring to the COVID-19 pandemic on prospects and suppliers and the geographies wherein they function; uncertainties concerning the flexibility to execute restructuring plans inside anticipated prices and timing; challenges to the tax remedy that was elected with respect to the acquisition of the Rexnord PMC business and associated transactions; necessities to abide by probably vital restrictions with respect to the tax remedy of the Rexnord PMC business which might restrict Regal Rexnord’s potential to undertake sure company actions that in any other case might be advantageous; actions taken by opponents and their potential to successfully compete within the more and more aggressive international electrical motor, drives and controls, energy era and energy transmission industries; the flexibility to develop new merchandise based mostly on technological innovation, such because the Internet of Things, and market acceptance of recent and present merchandise, together with merchandise associated to expertise not but adopted or utilized in geographic areas wherein Regal Rexnord does business; dependence on vital prospects; seasonal influence on gross sales of merchandise into HVAC programs and different residential functions; dangers related to international manufacturing, together with public well being crises and political, societal or financial instability, together with instability brought on by the battle between Russia and Ukraine; points and prices arising from the mixing of acquired firms and companies and the timing and influence of buy accounting changes; Regal Rexnord’s total debt ranges and its potential to repay principal and curiosity on its excellent debt; extended declines in a number of markets, comparable to heating, air flow, air-con, refrigeration, energy era, oil and gasoline, unit materials dealing with, water heating and aerospace; financial adjustments in international markets, comparable to diminished demand for merchandise, foreign money change charges, inflation charges, rates of interest, recession, authorities insurance policies, together with coverage adjustments affecting taxation, commerce, tariffs, immigration, customs, border actions and the like, and different exterior components that Regal Rexnord can not management; product legal responsibility, asbestos and different litigation, or claims by finish customers, authorities businesses or others that merchandise or prospects’ functions didn’t carry out as anticipated, notably in excessive quantity functions or the place such failures are alleged to be the reason for property or casualty claims; unanticipated liabilities of acquired companies; unanticipated hostile results or liabilities from business exits or divestitures; unanticipated prices or bills that could be incurred associated to product guarantee points; infringement of mental property by third events, challenges to mental property, and claims of infringement on third occasion applied sciences; results on earnings of any vital impairment of goodwill; losses from failures, breaches, assaults or disclosures involving info expertise infrastructure and knowledge; cyclical downturns affecting the worldwide marketplace for capital items; and different dangers and uncertainties together with, however not restricted, to these described within the part entitled “Risk Factors” in Regal Rexnord’s Annual Report on Form 10-Okay on file with the SEC and every now and then in different filed reviews together with Regal Rexnord’s Quarterly Reports on Form 10-Q. For a extra detailed description of the danger components related to Regal Rexnord, please discuss with Part I, Item 1A within the Regal Rexnord Annual Report on Form 10-Okay for the fiscal yr ended January 1, 2022 on file with the SEC and subsequent SEC filings. Shareholders, potential traders, and different readers are urged to contemplate these components in evaluating the forward-looking statements and are cautioned to not place undue reliance on such forward-looking statements. The forward-looking statements included on this launch are made solely as of the date of this launch, and Regal Rexnord undertakes no obligation to replace any forward-looking info contained on this launch or with respect to the bulletins described herein to mirror subsequent occasions or circumstances.

Non-GAAP Measures (Unaudited)

(Dollars in Millions, Except per Share Data)

We put together monetary statements in accordance with accounting ideas typically accepted in the United States of America (“GAAP”). We additionally periodically disclose sure monetary measures in our quarterly earnings releases, on investor convention calls, and in investor shows and related occasions that could be thought-about “non-GAAP” monetary measures. This extra info will not be meant to be thought-about in isolation or as an alternative choice to our outcomes of operations ready and introduced in accordance with GAAP.

In this press launch, we disclose adjusted earnings per share, and we reconcile this measure within the desk beneath to essentially the most immediately comparable GAAP monetary measure. We imagine that this non-GAAP monetary measure is beneficial for offering traders with extra info concerning our outcomes of operations and for serving to traders perceive and evaluate our working outcomes throughout accounting intervals and in comparison with our friends. Our administration makes use of this measure to assist us consider our business and forecast our future outcomes. Accordingly, we imagine disclosing and reconciling this measure helps traders consider our business in the identical method as administration.

SOURCE Regal Rexnord Corporation