Regal Rexnord reported third‑quarter 2025 results with net sales of $1,497.0 million, up 1.3% year‑over‑year, and adjusted diluted earnings per share of $2.51, a 1.2% increase from the $2.49 reported in Q3 2024.
The company’s data‑center segment generated $135 million in orders during the quarter, with an additional $60 million of orders booked for Q4. The bid pipeline now exceeds $1 billion, and cross‑sell initiatives in the Industrial Powertrain Solutions (IPS) segment delivered 1.6% organic sales growth, the fifth consecutive quarter of positive growth.
Segment performance was as follows: Automation & Motion Control (AMC) net sales $402.0 million, 1.0% organic decline; IPS net sales $662.3 million, 1.6% organic growth; Power Efficiency Solutions (PES) net sales $432.7 million, 0.8% organic growth. Adjusted EBITDA margins were 20.5% for AMC, 26.4% for IPS, and 19.0% for PES.
Management revised full‑year 2025 guidance, lowering GAAP diluted EPS to $4.26–$4.56 and adjusted diluted EPS to $9.50–$9.80, citing net tariff impacts and rare‑earth magnet supply challenges that compressed gross margins by 80 basis points year‑over‑year. The company also confirmed it has paid down all variable‑rate debt and is on track to achieve a net leverage ratio of approximately 2.5× by year‑end.
Regal Rexnord highlighted ongoing investments, including a new 100,000‑square‑foot assembly facility in Texas to support data‑center demand, expected to be operational by mid‑2026. The company’s sustainability report for 2024 noted a 13% reduction in Scope 1 & 2 emissions year‑over‑year and industry‑leading safety metrics.
The company’s focus on debt reduction, high‑margin data‑center order growth, and strategic investments positions it to sustain earnings growth despite macro‑economic headwinds and supply‑chain challenges.
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