Q2 2024 Regal Rexnord Corp Earnings Call Transcript
Key Points
- Regal Rexnord Corp (RRX) delivered a strong second quarter with outperformance on nearly every metric, especially strong margin outperformance in IPS.
- Adjusted gross margin came in at a record 38.1%, excluding industrial systems.
- The company achieved $25 million of synergies in the second quarter and remains on track to achieve $90 million of synergies this year.
- Regal Rexnord Corp (RRX) delivered approximately $136 million of adjusted free cash flow in the quarter, enabling significant debt repayment.
- The Power Systems business has been experiencing very strong growth, posting a 25% compounded annual growth rate over the last three years.
- Sales in the second quarter were down 7% on an organic basis, excluding industrial systems.
- Performance in the quarter continued to be impacted by weak end market demand and destocking in North America.
- Residential HVAC weakness and pressure in discrete factory automation were notable challenges.
- The company reduced its sales outlook by approximately $45 million for 2024.
- Adjusted EBITDA margin outlook for 2024 is roughly a half point below prior expectations due to lower sales volumes.
Please stand by for streaming text.
Good day and welcome to the Regal Rexnord Second Quarter 2024 earnings call. All participants will be in listen-only mode. You need assistance, please signal a conference specialist by pressing the star key followed by zero.
After today's presentation, there will be an opportunity to ask questions to ask a question may press star then one on your telephone keypad. Each of your question, please press star then two. Please note, this event is being recorded. I would add to the current coverage over rubber very Vice President, Investor Relations. Please go ahead.
Great. Thank you, operator, and good morning, and welcome to Regal Rexnord Second Quarter 2021 Earnings Conference Call. Joining me today are Louis Pinkham, our Chief Executive Officer, and Rob Rehard, our Chief Financial Officer of. Before we begin a new regarding the slide presentation due to a the minor technical issue at our webcasting. For those
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