REGAL REXNORD REPORTS STRONG SECOND QUARTER 2025 FINANCIAL RESULTS

, /PRNewswire/ -- Regal Rexnord Corporation (NYSE: RRX) 2Q Highlights Diluted EPS Of $1.19; Adjusted Diluted EPS* Of $2.48, Up 8.3% Versus PY Daily Orders Down 2.5% Versus PY Awarded A $35 Million Data Center Order In Early July, With Sales Expected To Start By EOY; Well Positioned To Win Significant Additional Content With This Customer Over The Next 12 Months Sales Of $1,496.1 Million, Down 3.3% Versus PY, Down 1.2% On An Organic* Basis Gross Margin Of 37.7%; Adjusted Gross Margin* Of 38.2%, Up 10.0 Basis Points Versus PY** GAAP Net Income Of $79.6 Million Versus PY Of $63.0 Million Adjusted EBITDA* Of $329.7 Million Versus PY Of $335.3 Million** Adjusted EBITDA Margin* Of 22.0% Proceeds Of $368.5 Million From New Accounts Receivables Securitization Program Used To Repay Debt Cash From Operating Activities Of $523.2 Million; Adjusted Free Cash Flow* Of $493 Million, Including Proceeds From Receivables Securitization Facility Paid Down $469.8 million Of Gross Debt; Net Debt/Adjusted EBITDA (Including Synergies)* Now ~3.3x FY 2025 Guidance Narrowing Guidance Range For Adjusted Diluted Earnings Per Share To $9.70 - $10.30 Mitigation Actions On Track To Neutralize Impact Of Current Tariffs On 2025 Adjusted EBITDA & Adjusted EPS Continue To Expect Adjusted Free Cash Flow Of $700 Million Excluding Receivables Securitization Facility Proceeds, Or Over $1.0 Billion Inclusive *Non-GAAP Financial Measurement, see reconciliation in tables below **Excludes results of the Industrial Systems operating segment, which was divested effective April 30, 2024. CEO Louis Pinkham commented, "Our team delivered strong performance in second quarter, which was modestly ahead of our expectations on sales and earnings. Our PES segment achieved 6.5% organic growth and a point of adjusted EBITDA margin expansion, aided by strong R-HVAC and C-HVAC markets. Our IPS segment also delivered over a point of adjusted EBITDA margin expansion, despite persistent end market headwinds. Our AMC segment met its sales goal for the quarter, but experienced temporary, mix-related margin pressure, primarily due to rare earth magnet availability, which is on track to improve in the back half and is expected to have an immaterial impact for the year." Mr. Pinkham concluded, "Encouragingly, strong orders in IPS and AMC demonstrates we are continuing to gain momentum, both in terms of end market recovery and our own outgrowth initiatives, and PES has continued to perform nicely above expectations. While a number of macro-economic and geopolitical uncertainties persist, we are laser-focused on accelerating growth, driven in particular, by our cross-sell synergies and doubling our new product vitality. Notably, we ended 2Q with a $300 million cross-sell opportunity funnel, and are on track to realize $170 million of cross-sell synergies this year, and $250 million by 2027." Accounts Receivable Securitization Facility On June 30, 2025, the Company entered into a $400 million accounts receivable securitization facility. This facility contributed $368.5 million of net proceeds to operating cash flows in the quarter, which were used to repay the majority of outstanding borrowings under the Company's existing bank loans. Additional details on the securitization facility will be available in the Company's Form 10-Q, which is scheduled to be filed on August 6, 2025. Guidance The Company has updated its annual guidance for GAAP diluted earnings per share to a range of $4.50 to $5.10 and narrowing its annual guidance for 2025 Adjusted Diluted Earnings per Share to a range of $9.70 to $10.30. Mitigation actions are on track to neutralize the impact of current tariffs on 2025 Adjusted EPS. Segment Performance Segment results for the second quarter of 2025 versus the second quarter of the prior year are summarized below: Automation & Motion Control net sales were $411.1 million, a decrease of 2.6%, or a decrease of 3.4% on an organic basis. The decline primarily reflects headwinds in the medical market, project timing in the data center market, and temporary challenges sourcing rare earth magnets, which impacted shipments of certain higher margin products into the defense and medical markets, but are expected to be resolved as we exit the year. These were partially offset by growth in the aerospace market. Adjusted EBITDA margin was 19.5% of net sales. Industrial Powertrain Solutions net sales were $649.8 million, a decrease of 3.8%, or a decrease of 4.4% on an organic basis. The decline primarily reflects large project timing in the metals & mining market. Adjusted EBITDA margin was 26.9% of net sales. Power Efficiency Solutions net sales were $435.2 million, an increase of 5.9%, or an increase of 6.5% on an organic basis. The results primarily reflect growth in the residential and commercial HVAC markets. Adjusted EBITDA margin was 17.1% of net sales. 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 6, 2025. 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 3362702# when prompted. A webcast replay will be available at the link above, and a telephone replay will be available at 1.877.344.7529 (U.S. callers) or +1.412.317.0088 (international callers), using a replay access code of 4250765#. 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, 2025, will be accessible before the conference call on August 6, 2025 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 ("SEC"). 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, 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, the acquisition of Altra Industrial Motion Corp. ("Altra Transaction"), and the merger with the Rexnord Process & Motion Control business (the "Rexnord PMC business") within the expected time-frames or at all and to successfully integrate Altra Industrial Motion Corp. ("Altra") and the Rexnord PMC business; 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; uncertainties regarding our ability to execute restructuring plans within expected costs and timing; 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 their ability to effectively compete in the increasingly competitive global industries and markets; our ability to develop new products based on technological innovation, such as the Internet of Things and artificial intelligence, and marketplace acceptance of new and existing products; dependence on significant customers and distributors; 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; 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; unanticipated liabilities of acquired businesses; unanticipated adverse effects or liabilities from business exits or divestitures; the Company's ability to identify and execute on future M&A opportunities, including significant M&A 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, including the One Big Beautiful Bill Act, which was signed on July 4, 2025; 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, net sales excluding Industrial, adjusted gross margin, adjusted gross margin excluding Industrial, net debt, EBITDA, adjusted EBITDA, adjusted EBITDA excluding Industrial, adjusted EBITDA (including synergies), interest coverage ratio, interest coverage ratio (including synergies), adjusted EBITDA margin, adjusted EBITDA margin excluding Industrial, gross debt/adjusted EBITDA, net debt/adjusted EBITDA, net debt/adjusted EBITDA (including synergies), adjusted cash flows from operations, adjusted 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 Ended Six Months Ended Jun 30,2025 Jun 30,2024 Jun 30,2025 Jun 30,2024 Net Sales $ 1,496.1 $ 1,547.6 $ 2,914.2 $ 3,095.3 Cost of Sales 931.4 976.6 1,821.9 1,971.2 Gross Profit 564.7 571.0 1,092.3 1,124.1 Operating Expenses 382.4 394.3 750.3 792.0 (Gain) Loss on Sale of Businesses — (17.2) — 4.3 Total Operating Expenses 382.4 377.1 750.3 796.3 Income from Operations 182.3 193.9 342.0 327.8 Interest Expense 85.3 101.7 175.5 207.1 Interest Income (5.1) (5.0) (9.3) (8.1) Other Expense, Net 0.9 0.3 1.6 0.6 Income before Taxes 101.2 96.9 174.2 128.2 Provision for Income Taxes 21.6 33.9 37.1 44.8 Net Income 79.6 63.0 137.1 83.4 Less: Net Income Attributable to Noncontrolling Interests 0.4 0.5 0.6 1.1 Net Income Attributable to Regal Rexnord Corporation $ 79.2 $ 62.5 $ 136.5 $ 82.3 Earnings Per Share Attributable to Regal Rexnord Corporation: Basic $ 1.19 $ 0.94 $ 2.06 $ 1.24 Assuming Dilution $ 1.19 $ 0.94 $ 2.05 $ 1.23 Cash Dividends Declared Per Share $ 0.35 $ 0.35 $ 0.70 $ 0.70 Weighted Average Number of Shares Outstanding: Basic 66.3 66.5 66.3 66.5 Assuming Dilution 66.5 66.8 66.5 66.8 CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (Dollars in Millions) Jun 30, 2025 Dec 31, 2024 ASSETS Current Assets: Cash and Cash Equivalents $ 320.1 $ 393.5 Trade Receivables, Less Allowances of $11.9 million and $29.9 million in 2025 and 2024, Respectively 549.9 842.8 Inventories 1,348.3 1,227.5 Prepaid Expenses and Other Current Assets 300.5 287.5 Total Current Assets 2,518.8 2,751.3 Net Property, Plant and Equipment 942.4 921.0 Operating Lease Assets 141.8 141.3 Goodwill 6,607.6 6,458.9 Intangible Assets, Net of Amortization 3,592.2 3,664.5 Deferred Income Tax Benefits 34.8 30.0 Other Noncurrent Assets 65.1 66.7 Total Assets $ 13,902.7 $ 14,033.7 LIABILITIES AND EQUITY Current Liabilities: Accounts Payable $ 615.5 $ 542.8 Dividends Payable 23.2 23.2 Accrued Compensation and Benefits 195.6 191.3 Accrued Interest 81.7 84.0 Other Accrued Expenses 301.2 333.8 Current Operating Lease Liabilities 37.7 35.6 Current Maturities of Long-Term Debt 5.2 5.0 Total Current Liabilities 1,260.1 1,215.7 Long-Term Debt 4,849.6 5,452.7 Deferred Income Taxes 801.5 815.5 Pension and Other Post Retirement Benefits 112.5 109.5 Noncurrent Operating Lease Liabilities 111.3 114.1 Other Noncurrent Liabilities 59.8 59.0 Equity: Regal Rexnord Corporation Shareholders' Equity: Common Stock, $0.01 par value, 150.0 million Shares Authorized, 66.4 million and 66.3 million Shares Issued and Outstanding for June 30, 2025 and December 31, 2024, Respectively 0.7 0.7 Additional Paid-In Capital 4,671.7 4,658.0 Retained Earnings 2,133.7 2,043.8 Accumulated Other Comprehensive Loss (106.5) (442.7) Total Regal Rexnord Corporation Shareholders' Equity 6,699.6 6,259.8 Noncontrolling Interests 8.3 7.4 Total Equity 6,707.9 6,267.2 Total Liabilities and Equity $ 13,902.7 $ 14,033.7 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW Unaudited (Dollars in Millions) Three Months Ended Six Months Ended Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 79.6 $ 63.0 $ 137.1 $ 83.4 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities (Net of Acquisitions and Divestitures): Depreciation 35.5 40.5 75.6 82.0 Amortization 86.8 86.5 172.2 173.2 (Gain) Loss on Sale of Businesses — (17.2) — 4.3 Noncash Lease Expense 10.9 10.9 21.8 22.2 Share-Based Compensation Expense 10.3 9.5 19.8 18.6 Financing Fee Expense 4.0 3.1 7.3 6.2 Gain on Sale of Assets (2.3) — (8.3) — Benefit from Deferred Income Taxes (24.6) (23.4) (43.1) (53.8) Other Non-Cash Changes 1.6 4.8 2.3 6.2 Change in Operating Assets and Liabilities, Net of Acquisitions and Divestitures Receivables 319.2 (64.5) 318.6 (16.8) Inventories (48.0) 2.0 (89.8) (45.8) Accounts Payable 15.4 10.4 57.0 24.9 Other Assets and Liabilities 34.8 32.7 (45.0) (63.2) Net Cash Provided by Operating Activities 523.2 158.3 625.5 241.4 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to Property, Plant and Equipment (30.2) (32.4) (47.0) (50.9) Proceeds Received from Sales of Property, Plant and Equipment 4.5 0.3 14.8 1.3 Proceeds Received from Sale of Businesses, Net of Cash Transferred — 374.8 3.0 374.8 Net Cash (Used in) Provided by Investing Activities (25.7) 342.7 (29.2) 325.2 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings Under Revolving Credit Facility 448.3 440.1 859.8 935.2 Repayments Under Revolving Credit Facility (487.1) (440.5) (876.8) (1,007.3) Repayments of Long-Term Borrowings (431.0) (480.5) (616.9) (546.3) Dividends Paid to Shareholders (23.4) (23.3) (46.6) (46.6) Shares Surrendered for Taxes (1.5) (0.6) (7.1) (11.3) Proceeds from the Exercise of Stock Options 1.0 0.3 1.4 3.8 Net Cash Used in Financing Activities (493.7) (504.5) (686.2) (672.5) EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS 11.0 (8.5) 16.5 (19.0) Net Decrease in Cash and Cash Equivalents 14.8 (12.0) (73.4) (124.9) Cash and Cash Equivalents at Beginning of Period 305.3 522.4 393.5 635.3 Cash and Cash Equivalents at End of Period $ 320.1 $ 510.4 $ 320.1 $ 510.4 ADJUSTED DILUTED EARNINGS PER SHARE Unaudited Three Months Ended Six Months Ended Jun 30,2025 Jun 30,2024 Jun 30,2025 Jun 30,2024 GAAP Diluted Earnings Per Share $ 1.19 $ 0.94 $ 2.05 $ 1.23 Intangible Amortization 0.99 0.98 1.96 1.96 Share-Based Compensation Expense 0.13 0.12 0.26 0.23 Restructuring and Related Costs (a) 0.12 0.20 0.30 0.39 Transaction and Integration Related Costs (b) 0.07 0.06 0.15 0.15 Operating Lease Asset Step Up — — — 0.01 Accounts Receivable Securitization Transaction Costs 0.01 — 0.01 — Impairments and Exit Related Costs — 0.01 — 0.02 (Gain) Loss on Sale of Businesses (c) — (0.26) — 0.06 Gain on Sale of Assets (0.02) — (0.09) (0.01) Discrete Tax Items (0.01) 0.24 (0.01) 0.25 Adjusted Diluted Earnings Per Share 2.48 2.29 4.63 4.29 (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 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs for the three months ended March 31, 2025 associated with the sale of the industrial motors and generators businesses. For 2024, primarily relates to (1) legal, professional service and integration costs associated with the Altra Transaction and (2) legal, professional service, and rebranding costs associated with the sale of the industrial motors and generators businesses. (c) Related to the sale of the industrial motors and generators businesses. 2025 ADJUSTED ANNUAL GUIDANCE Unaudited Minimum Maximum GAAP Diluted (Loss) Earnings Per Share $ 4.50 $ 5.10 Intangible Amortization 3.90 3.90 Restructuring and Related Costs (a) 0.58 0.58 Share-Based Compensation Expense 0.51 0.51 Transaction and Integration Related Costs (b) 0.30 0.30 Accounts Receivable Securitization Transaction Costs 0.01 0.01 Gain on Sale of Assets (0.09) (0.09) Discrete Tax Items (0.01) (0.01) Adjusted Diluted Earnings Per Share $ 9.70 $ 10.30 (a) Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. (b) 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. ORGANIC SALES GROWTH Unaudited (Dollars in Millions) Three Months Ended June 30, 2025 Automation & Motion Control Industrial PowertrainSolutions Power and Efficiency Solutions IndustrialSystems Total RegalRexnord Net Sales Three Months Ended Jun 30, 2025 $ 411.1 $ 649.8 $ 435.2 $ — $ 1,496.1 Impact from Foreign Currency Exchange Rates (3.2) (4.4) (1.0) — (8.6) Organic Sales Three Months Ended Jun 30, 2025 $ 407.9 $ 645.4 $ 434.2 $ — $ 1,487.5 Net Sales Three Months Ended Jun 30, 2024 $ 422.2 $ 675.5 $ 410.9 $ 39.0 $ 1,547.6 Net Sales from Businesses Divested — — (3.4) (39.0) (42.4) Adjusted Net Sales* Three Months Ended Jun 30, 2024 $ 422.2 $ 675.5 $ 407.5 $ — $ 1,505.2 Three Months Ended Jun 30, 2025 Net Sales Growth % (2.6) % (3.8) % 5.9 % (100.0) % (3.3) % Three Months Ended Jun 30, 2025 Foreign Currency Impact % 0.8 % 0.6 % 0.2 % — % 0.6 % Three Months Ended Jun 30, 2025 Divestitures % — % — % (0.8) % (100.0) % (2.7) % Three Months Ended Jun 30, 2025 Organic Sales Growth % (3.4) % (4.4) % 6.5 % — % (1.2) % ORGANIC SALES GROWTH Unaudited (Dollars in Millions) Six Months Ended June 30, 2025 Automation &Motion Control Industrial Powertrain Solutions Power and Efficiency Solutions Industrial Systems Total RegalRexnord Net Sales Six Months Ended Jun 30, 2025 $ 807.4 $ 1,262.5 $ 844.3 $ — $ 2,914.2 Impact from Foreign Currency Exchange Rates 2.3 4.5 2.4 — 9.2 Organic Sales Six Months Ended Jun 30, 2025 $ 809.7 $ 1,267.0 $ 846.7 $ — $ 2,923.4 Net Sales Six Months Ended Jun 30, 2024 $ 822.4 $ 1,318.9 $ 796.2 $ 157.8 $ 3,095.3 Net Sales from Businesses Divested — — (6.9) (157.8) (164.7) Adjusted Net Sales Six Months Ended Jun 30, 2024 $ 822.4 $ 1,318.9 $ 789.3 $ — $ 2,930.6 Six Months Ended Jun 30, 2025 Net Sales Growth % (1.8) % (4.3) % 6.0 % (100.0) % (5.9) % Six Months Ended Jun 30, 2025 Foreign Currency Impact % (0.3) % (0.4) % (0.4) % — % (0.4) % Six Months Ended Jun 30, 2025 Divestitures % — % — % (0.9) % (100.0) % (5.3) % Six Months Ended Jun 30, 2025 Organic Sales Growth % (1.5) % (3.9) % 7.3 % — % (0.2) % ADJUSTED EBITDA Unaudited (Dollars in Millions) Three Months Ended Automation &Motion Control IndustrialPowertrainSolutions Power andEfficiencySolutions IndustrialSystems Total RegalRexnord Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 GAAP Income from Operations $ 30.4 $ 41.8 $ 92.4 $ 89.8 $ 59.5 $ 45.1 $ — $ 17.2 $ 182.3 $ 193.9 Restructuring and Related Costs (a) 1.8 3.2 7.8 6.4 1.0 6.8 — 1.1 10.6 17.5 Transaction and Integration Related Costs (b) 1.3 1.0 4.0 2.9 1.0 1.0 — 0.8 6.3 5.7 Accounts Receivable Securitization Transaction Costs 0.3 — 0.4 — 0.3 — — — 1.0 — Operating Lease Asset Step Up — — 0.2 0.4 — — — — 0.2 0.4 Impairments and Exit Related Costs — 1.0 — — — — — — — 1.0 Gain on Sale of Businesses (c) — — — — — — — (17.2) — (17.2) Gain on Sale of Assets (2.3) — — — — — — — (2.3) — Adjusted Income from Operations $31.5 $ 47.0 $ 104.8 $ 99.5 $ 61.8 $52.9 $ — $1.9 $198.1 $201.3 Amortization $ 34.5 $ 34.2 $ 50.6 $ 50.2 $ 1.7 $ 2.1 $ — $ — $ 86.8 $ 86.5 Depreciation 10.9 11.4 15.7 20.5 8.8 9.2 — 0.1 35.4 41.2 Share-Based Compensation Expense 3.3 2.4 4.5 4.3 2.5 1.9 — 0.9 10.3 9.5 Other Expense, Net — (0.1) (0.5) (0.1) (0.4) (0.1) — — (0.9) (0.3) Adjusted EBITDA (d) $ 80.2 $ 94.9 $ 175.1 $ 174.4 $ 74.4 $ 66.0 $ — $ 2.9 $ 329.7 $ 338.2 GAAP Operating Margin % 7.4 % 9.9 % 14.2 % 13.3 % 13.7 % 11.0 % — % 44.1 % 12.2 % 12.5 % Adjusted Operating Margin* % 7.7 % 11.1 % 16.1 % 14.7 % 14.2 % 12.9 % — % 4.9 % 13.2 % 13.0 % Adjusted EBITDA Margin % 19.5 % 22.5 % 26.9 % 25.8 % 17.1 % 16.1 % — % 7.4 % 22.0 % 21.9 % (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 2025, primarily relates to integration costs associated with the Altra Transaction. For 2024, primarily relates to (1) legal, professional service and integration costs associated with the Altra Transaction and (2) legal, professional service, and rebranding costs associated with the sale of the industrial motors and generators businesses. (c) Related to the sale of the industrial motors and generators businesses. (d) Adjusted EBITDA and Adjusted EBITDA Margin % Excluding Industrial for the three months ended June 2024 is calculated as follows: Jun 30, 2024 Total Regal Rexnord Adjusted EBITDA 338.2 Less: Industrial Systems Adjusted EBITDA 2.9 Adjusted EBITDA excluding Industrial Systems 335.3 Total Regal Rexnord Net Sales 1,547.6 Less: Industrial Systems Net Sales 39.0 Net Sales excluding Industrial Systems 1,508.6 Adjusted EBITDA Margin % excluding Industrial Systems 22.2 % Six Months Ended Automation & Motion Control Industrial PowertrainSolutions Power andEfficiencySolutions Industrial Systems Total Regal Rexnord Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 GAAP Income from Operations $ 65.5 $ 82.0 $ 174.1 $ 171.9 $ 102.4 $ 73.6 $ — $ 0.3 $ 342.0 $ 327.8 Restructuring and Related Costs (a) 3.0 5.2 20.7 11.3 2.3 15.1 — 3.1 26.0 34.7 Transaction and Integration Related Costs (b) 2.7 1.3 8.1 7.3 2.4 1.5 — 3.4 13.2 13.5 Accounts Receivable Securitization Transaction Costs 0.3 — 0.4 — 0.3 — — — 1.0 — Operating Lease Asset Step Up — — 0.4 0.7 — — — — 0.4 0.7 Impairments and Exit Related Costs — 1.1 — 0.2 — 0.2 — — — 1.5 Loss on Sale of Businesses (c) — — — — — — — 4.3 — 4.3 Gain on Sale of Assets (2.3) (0.8) (6.0) — — — — — (8.3) (0.8) Adjusted Income from Operations $69.2 $ 88.8 $ 197.7 $ 191.4 $ 107.4 $90.4 $ — $11.1 $374.3 $381.7 Amortization $ 68.4 $ 68.6 $ 100.5 $ 100.2 $ 3.3 $ 4.2 $ — $ 0.2 $ 172.2 $ 173.2 Depreciation 22.5 22.9 34.3 40.7 17.7 18.7 — 0.4 74.5 82.7 Share-Based Compensation Expense 6.7 4.7 8.3 8.6 4.8 3.9 — 1.4 19.8 18.6 Other Expense, Net (0.1) (0.2) (0.8) (0.2) (0.7) (0.2) — — (1.6) (0.6) Adjusted EBITDA (d) $ 166.7 $ 184.8 $ 340.0 $ 340.7 $ 132.5 $ 117.0 $ — $ 13.1 $ 639.2 $ 655.6 GAAP Operating Margin % 8.1 % 10.0 % 13.8 % 13.0 % 12.1 % 9.2 % — % 0.2 % 11.7 % 10.6 % Adjusted Operating Margin % 8.6 % 10.8 % 15.7 % 14.5 % 12.7 % 11.4 % — % 7.0 % 12.8 % 12.3 % Adjusted EBITDA Margin % 20.6 % 22.5 % 26.9 % 25.8 % 15.7 % 14.7 % — % 8.3 % 21.9 % 21.2 % (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 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs for the three months ended March 31, 2025 associated with the sale of the industrial motors and generators businesses. For 2024, primarily relates to (1) legal, professional service and integration costs associated with the Altra Transaction and (2) legal, professional service, and rebranding costs associated with the sale of the industrial motors and generators businesses. (c) Related to the sale of the industrial motors and generators businesses. (d) Adjusted EBITDA and Adjusted EBITDA Margin % Excluding Industrial for the six months ended June 2024 is calculated as follows: Jun 30, 2024 Total Regal Rexnord Adjusted EBITDA 655.6 Less: Industrial Systems Adjusted EBITDA 13.1 Adjusted EBITDA excluding Industrial Systems 642.5 Total Regal Rexnord Net Sales 3,095.3 Less: Industrial Systems Net Sales 157.8 Net Sales excluding Industrial Systems 2,937.5 Adjusted EBITDA Margin % excluding Industrial Systems 21.9 % ADJUSTED GROSS MARGIN Unaudited (Dollars in Millions) Three Months Ended Automation & Motion Control Industrial Powertrain Solutions Power andEfficiencySolutions Industrial Systems Total RegalRexnord Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Gross Margin $ 154.6 $ 169.2 $ 280.4 $ 270.5 $ 129.7 $ 121.2 $ — $ 10.1 $ 564.7 $ 571.0 Restructuring and Related Costs (a) 1.6 1.5 4.0 5.4 0.9 6.7 — (0.5) 6.5 13.1 Operating Lease Asset Step Up — — 0.2 0.4 — — — — 0.2 0.4 Adjusted Gross Margin $ 156.2 $ 170.7 $ 284.6 $ 276.3 $ 130.6 $ 127.9 $ — $ 9.6 $ 571.4 $ 584.5 Gross Margin % 37.6 % 40.1 % 43.2 % 40.0 % 29.8 % 29.5 % — % 25.9 % 37.7 % 36.9 % Adjusted Gross Margin % (b) 38.0 % 40.4 % 43.8 % 40.9 % 30.0 % 31.1 % — % 24.6 % 38.2 % 37.8 % (a) Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. (b) The following table reflects Adjusted Gross Margin of the Company for the three months ended June 30, 2024 Excluding Industrial: Jun 30, 2024 Total Regal Rexnord Adjusted Gross Margin $ 584.5 Less: Industrial Systems Adjusted Gross Margin 9.6 Adjusted Gross Margin excluding Industrial Systems 574.9 Total Regal Rexnord Net Sales $ 1,547.6 Less: Industrial Systems Net Sales 39.0 Net Sales excluding Industrial Systems 1,508.6 Adjusted Gross Margin % excluding Industrial Systems 38.1 % ADJUSTED GROSS MARGIN Unaudited (Dollars in Millions) Six Months Ended Automation & Motion Control IndustrialPowertrainSolutions Power andEfficiencySolutions IndustrialSystems Total Regal Rexnord Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Gross Margin $ 312.7 $ 329.1 $ 537.9 $ 535.3 $ 241.7 $ 220.5 $ — $ 39.2 $ 1,092.3 $ 1,124.1 Restructuring and Related Costs (a) 2.2 2.1 12.8 7.6 1.5 14.0 — 1.1 16.5 24.8 Operating Lease Asset Step Up — — 0.4 0.7 — — — — 0.4 0.7 Adjusted Gross Margin $ 314.9 $ 331.2 $ 551.1 $ 543.6 $ 243.2 $ 234.5 $ — $ 40.3 $ 1,109.2 $ 1,149.6 Gross Margin % 38.7 % 40.0 % 42.6 % 40.6 % 28.6 % 27.7 % — % 24.8 % 37.5 % 36.3 % Adjusted Gross Margin % (b) 39.0 % 40.3 % 43.7 % 41.2 % 28.8 % 29.5 % — % 25.5 % 38.1 % 37.1 % (a) Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. (b) The following table reflects Adjusted Gross Margin of the Company for the six months ended June 30, 2024 Excluding Industrial: Jun 30, 2024 Total Regal Rexnord Adjusted Gross Margin 1,149.6 Less: Industrial Systems Adjusted Gross Margin 40.3 Adjusted Gross Margin excluding Industrial Systems 1,109.3 Total Regal Rexnord Net Sales 3,095.3 Less: Industrial Systems Net Sales 157.8 Net Sales excluding Industrial Systems 2,937.5 Adjusted Gross Margin % excluding Industrial Systems 37.8 % NET INCOME TO ADJUSTED EBITDA Unaudited (Dollars in Millions) Three Months Ended Six Months Ended Jun 30, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Net Income $ 79.6 $ 63.0 $ 137.1 $ 83.4 Plus: Income Taxes 21.6 33.9 37.1 44.8 Plus: Interest Expense 85.3 101.7 175.5 207.1 Less: Interest Income (5.1) (5.0) (9.3) (8.1) Plus: Depreciation 35.4 41.2 74.5 82.7 Plus: Amortization 86.8 86.5 172.2 173.2 EBITDA $ 303.6 $ 321.3 $ 587.1 $ 583.1 Plus: Restructuring and Related Costs (a) 10.6 17.5 26.0 34.7 Plus: Share-Based Compensation Expense 10.3 9.5 19.8 18.6 Plus: Transaction and Integration Related Costs (b) 6.3 5.7 13.2 13.5 Plus: Accounts Receivable Securitization Transaction Costs 1.0 — 1.0 — Plus: Operating Lease Asset Step Up 0.2 0.4 0.4 0.7 Plus: Impairments and Exit Related Costs — 1.0 — 1.5 Plus: (Gain) Loss on Sale of Businesses (c) — (17.2) — 4.3 Less: Gain on Sale of Assets (2.3) — (8.3) (0.8) Adjusted EBITDA $ 329.7 $ 338.2 $ 639.2 $ 655.6 (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 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs for the three months ended March 31, 2025 associated with the sale of the industrial motors and generators businesses. For 2024, primarily relates to (1) legal, professional service and integration costs associated with the Altra Transaction and (2) legal, professional service, and rebranding costs associated with the sale of the industrial motors and generators businesses. (c) Related to the sale of the industrial motors and generators businesses. DEBT TO EBITDA Unaudited (Dollars in Millions) Last Twelve Months Jun 30, 2025 Net Income $ 252.1 Plus: Income Taxes 41.9 Plus: Interest Expense 368.1 Less: Interest Income (20.0) Plus: Depreciation 156.2 Plus: Amortization 345.5 EBITDA $ 1,143.8 Plus: Restructuring and Related Costs (a) 82.9 Plus: Share-Based Compensation Expense 36.0 Plus: Transaction and Integration Related Costs (b) 33.4 Plus: Loss on Sale of Businesses (c) 4.2 Plus: Impairments and Exit Related Costs 2.5 Plus: Accounts Receivable Securitization Transaction Costs 1.0 Plus: Operating Lease Asset Step Up 0.6 Less: Gain on Sale of Assets (10.6) Adjusted EBITDA (d) $ 1,293.8 Current Maturities of Long-Term Debt 5.2 Long-Term Debt 4,849.6 Total Gross Debt $ 4,854.8 Cash and Cash Equivalents (320.1) Net Debt $ 4,534.7 Gross Debt/Adjusted EBITDA* 3.75 Net Debt/Adjusted EBITDA* (d) 3.50 Interest Coverage Ratio* (d)(e) 3.72 (a) Relates to costs associated with actions taken for employee reductions, facility consolidations and site closures, product line exits and other asset charges. (b) Primarily relates to (1) legal, professional service, and integration costs associated with the Altra Transaction and (2) legal, professional service, rebranding and IT carve-out costs associated with the sale of the industrial motors and generators businesses. (c) Related to the sale of the industrial motors and generators businesses. (d) 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 $ 1,293.8 Synergies to be Realized Within 18 Months $ 65.0 Adjusted EBITDA (including synergies)* $ 1,358.8 Net Debt/Adjusted EBITDA (including synergies) 3.34 Interest Expense 368.1 Interest Income (20.0) Net Interest Expense $ 348.1 Interest Coverage Ratio (including synergies)*(1) 3.90 (1) Computed as Adjusted EBITDA (including synergies)/Net Interest Expense (e) Computed as Adjusted EBITDA/Net Interest Expense ADJUSTED FREE CASH FLOW Unaudited (Dollars in Millions) Three Months Ended Six Months Ended Jun 30,2025 Jun 30,2024 Jun 30,2025 Jun 30,2024 Net Cash Provided by Operating Activities 523.2 158.3 625.5 241.4 Payments for Certain Costs to Sell Businesses (Net of Tax of $1.7 Million in 2024)(a) — 10.5 — 10.5 Adjusted Cash Flows from Operations 523.2 168.8 625.5 251.9 Additions to Property Plant and Equipment (30.2) (32.4) (47.0) (50.9) Adjusted Free Cash Flow $ 493.0 $ 136.4 $ 578.5 $ 201.0 (a) Reflects the payment of Regal Rexnord's advisor success fees and income taxes paid related to the sale of the industrial motors and generators businesses. ADJUSTED EFFECTIVE TAX RATE Unaudited (Dollars in Millions) Three Months Ended Six Months Ended Jun 30,2025 Jun 30,2024 Jun 30,2025 Jun 30,2024 Income before Taxes $ 101.2 $ 96.9 $ 174.2 $ 128.2 Provision for Income Taxes 21.6 33.9 37.1 44.8 Effective Tax Rate 21.3 % 35.0 % 21.3 % 34.9 % Income before Taxes $ 101.2 $ 96.9 $ 174.2 $ 128.2 Intangible Amortization 86.8 86.5 172.2 173.2 Restructuring and Related Costs (a) 10.6 17.5 26.0 34.7 Share-Based Compensation Expense 10.3 9.5 19.8 18.6 Transaction and Integration Related Costs (b) 6.3 5.7 13.2 13.5 Accounts Receivable Securitization Transaction Costs 1.0 — 1.0 — Operating Lease Asset Step Up 0.2 0.4 0.4 0.7 Impairments and Exit Related Costs — 1.0 — 1.5 (Gain) Loss on Sale of Businesses (c) — (17.2) — 4.3 Gain on Sale of Assets (2.3) — (8.3) (0.8) Adjusted Income before Taxes* $ 214.1 $ 200.3 $ 398.5 $ 373.9 Provision for Income Taxes $ 21.6 $ 33.9 $ 37.1 $ 44.8 Tax Effect of Intangible Amortization 21.2 21.1 42.1 42.1 Tax Effect of Restructuring and Related Costs 2.3 4.5 5.9 8.6 Tax Effect of Share-Based Compensation Expense 1.6 1.5 2.7 3.6 Tax Effect of Transaction and Integration Related Costs 1.7 1.3 3.3 3.2 Tax Effect of Accounts Receivable Securitization Transaction Costs 0.2 — 0.2 — Tax Effect of Operating Lease Asset Step Up 0.1 0.1 0.1 0.2 Tax Effect of Impairments and Exit Related Costs — 0.3 — 0.4 Tax Effect of Gain (Loss) on Sale of Businesses — — — — Tax Effect of Gain on Sale of Assets (0.7) — (2.1) (0.2) Discrete Tax Items 0.4 (15.7) 0.5 (16.3) Adjusted Provision for Income Taxes* $ 48.4 $ 47.0 $ 89.8 $ 86.4 Adjusted Effective Tax Rate* 22.6 % 23.5 % 22.5 % 23.1 % (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 2025, primarily relates to (1) integration costs associated with the Altra Transaction and (2) IT carve-out costs for the three months ended March 31, 2025 associated with the sale of the industrial motors and generators businesses. For 2024, primarily relates to (1) legal, professional service and integration costs associated with the Altra Transaction and (2) legal, professional service, and rebranding costs associated with the sale of the industrial motors and generators businesses. (c) Related to the sale of the industrial motors and generators businesses. SOURCE Regal Rexnord Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

REGAL REXNORD REPORTS STRONG SECOND QUARTER 2025 FINANCIAL RESULTS

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