![]() | ![]() | ||||
| CONTACT: | Robert Barry | ||||
VP - Investor Relations | |||||
608-361-7530 | |||||
robert.barry@regalrexnord.com | |||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||
| (Dollars in Millions, Except per Share Data) | ||||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | |||||||||||||||||||||||
| Net Sales | $ | 1,523.2 | $ | 1,461.1 | $ | 5,934.5 | $ | 6,033.8 | ||||||||||||||||||
| Cost of Sales | 952.0 | 950.5 | 3,716.7 | 3,842.8 | ||||||||||||||||||||||
| Gross Profit | 571.2 | 510.6 | 2,217.8 | 2,191.0 | ||||||||||||||||||||||
| Operating Expenses | 402.2 | 378.3 | 1,532.5 | 1,552.5 | ||||||||||||||||||||||
| Loss on Sale of Businesses | 4.5 | 4.2 | 4.5 | 8.5 | ||||||||||||||||||||||
| Total Operating Expenses | 406.7 | 382.5 | 1,537.0 | 1,561.0 | ||||||||||||||||||||||
| Income from Operations | 164.5 | 128.1 | 680.8 | 630.0 | ||||||||||||||||||||||
| Interest Expense | 86.7 | 94.6 | 349.2 | 399.7 | ||||||||||||||||||||||
| Interest Income | (9.1) | (5.6) | (23.7) | (18.8) | ||||||||||||||||||||||
| Other Expense, Net | 0.4 | 0.7 | 2.8 | 1.1 | ||||||||||||||||||||||
| Income before Taxes | 86.5 | 38.4 | 352.5 | 248.0 | ||||||||||||||||||||||
| Provision (Benefit) for Income Taxes | 22.7 | (3.6) | 71.7 | 49.6 | ||||||||||||||||||||||
| Net Income | 63.8 | 42.0 | 280.8 | 198.4 | ||||||||||||||||||||||
| Less: Net Income Attributable to Noncontrolling Interests | 0.3 | 0.8 | 1.3 | 2.2 | ||||||||||||||||||||||
| Net Income Attributable to Regal Rexnord Corporation | $ | 63.5 | $ | 41.2 | $ | 279.5 | $ | 196.2 | ||||||||||||||||||
| Earnings Per Share Attributable to Regal Rexnord Corporation: | ||||||||||||||||||||||||||
| Basic | $ | 0.96 | $ | 0.62 | $ | 4.22 | $ | 2.96 | ||||||||||||||||||
| Assuming Dilution | $ | 0.95 | $ | 0.62 | $ | 4.20 | $ | 2.94 | ||||||||||||||||||
| Cash Dividends Declared Per Share | $ | 0.35 | $ | 0.35 | $ | 1.40 | $ | 1.40 | ||||||||||||||||||
| Weighted Average Number of Shares Outstanding: | ||||||||||||||||||||||||||
| Basic | 66.4 | 66.2 | 66.3 | 66.4 | ||||||||||||||||||||||
| Assuming Dilution | 66.6 | 66.6 | 66.6 | 66.7 | ||||||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| Unaudited | ||||||||||||||
| (Dollars in Millions) | ||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | |||||||||||||
| ASSETS | ||||||||||||||
| Current Assets: | ||||||||||||||
| Cash and Cash Equivalents | $ | 521.7 | $ | 393.5 | ||||||||||
Trade Receivables, Less Allowances of $10.5 million and $29.9 million in 2025 and 2024, Respectively | 524.2 | 842.8 | ||||||||||||
| Inventories | 1,321.7 | 1,227.5 | ||||||||||||
| Prepaid Expenses and Other Current Assets | 344.7 | 287.5 | ||||||||||||
| Total Current Assets | 2,712.3 | 2,751.3 | ||||||||||||
| Net Property, Plant and Equipment | 911.8 | 921.0 | ||||||||||||
| Operating Lease Assets | 145.2 | 141.3 | ||||||||||||
| Goodwill | 6,611.3 | 6,458.9 | ||||||||||||
| Intangible Assets, Net of Amortization | 3,418.4 | 3,664.5 | ||||||||||||
| Deferred Income Tax Benefits | 36.2 | 30.0 | ||||||||||||
| Other Noncurrent Assets | 85.8 | 66.7 | ||||||||||||
| Total Assets | $ | 13,921.0 | $ | 14,033.7 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Current Liabilities: | ||||||||||||||
| Accounts Payable | $ | 607.3 | $ | 542.8 | ||||||||||
| Dividends Payable | 23.2 | 23.2 | ||||||||||||
| Accrued Compensation and Benefits | 205.5 | 191.3 | ||||||||||||
| Accrued Interest | 84.0 | 84.0 | ||||||||||||
| Other Accrued Expenses | 281.7 | 333.8 | ||||||||||||
| Current Operating Lease Liabilities | 38.5 | 35.6 | ||||||||||||
| Current Maturities of Debt | 24.1 | 5.0 | ||||||||||||
| Total Current Liabilities | 1,264.3 | 1,215.7 | ||||||||||||
| Long-term Debt | 4,764.6 | 5,452.7 | ||||||||||||
| Deferred Income Taxes | 752.6 | 815.5 | ||||||||||||
| Pension and Other Post Retirement Benefits | 106.0 | 109.5 | ||||||||||||
| Noncurrent Operating Lease Liabilities | 114.0 | 114.1 | ||||||||||||
| Other Noncurrent Liabilities | 66.2 | 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 December 31, 2025 and December 31, 2024, Respectively | 0.7 | 0.7 | ||||||||||||
| Additional Paid-In Capital | 4,688.5 | 4,658.0 | ||||||||||||
| Retained Earnings | 2,230.3 | 2,043.8 | ||||||||||||
| Accumulated Other Comprehensive Income (Loss) | (75.4) | (442.7) | ||||||||||||
| Total Regal Rexnord Corporation Shareholders' Equity | 6,844.1 | 6,259.8 | ||||||||||||
| Noncontrolling Interests | 9.2 | 7.4 | ||||||||||||
| Total Equity | 6,853.3 | 6,267.2 | ||||||||||||
| Total Liabilities and Equity | $ | 13,921.0 | $ | 14,033.7 | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW | |||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||
| (Dollars in Millions) | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | ||||||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||||
| Net income | $ | 63.8 | $ | 42.0 | $ | 280.8 | $ | 198.4 | |||||||||||||||
Adjustments to Reconcile Net income to Net Cash Provided by Operating Activities (Net of Acquisitions and Divestitures): | |||||||||||||||||||||||
| Depreciation | 37.0 | 42.7 | 154.5 | 165.3 | |||||||||||||||||||
| Amortization | 86.6 | 86.5 | 346.1 | 346.5 | |||||||||||||||||||
| Asset Impairments | — | 2.5 | — | 4.0 | |||||||||||||||||||
| Noncash Lease Expense | 10.8 | 10.5 | 43.3 | 43.5 | |||||||||||||||||||
| Share-Based Compensation Expense | 8.2 | 7.9 | 37.3 | 34.8 | |||||||||||||||||||
| Financing Fee Expense | 3.6 | 3.7 | 14.0 | 13.1 | |||||||||||||||||||
| Loss on Sale of Businesses | 4.5 | 4.2 | 4.5 | 8.5 | |||||||||||||||||||
| Gain on Sale of Assets | 3.6 | (2.3) | (2.6) | (3.1) | |||||||||||||||||||
| Benefit from Deferred Income Taxes | (24.0) | (63.3) | (97.2) | (152.3) | |||||||||||||||||||
| Other Non-Cash Changes | 1.3 | 1.6 | 5.6 | 8.9 | |||||||||||||||||||
| Change in Operating Assets and Liabilities, Net of Acquisitions and Divestitures | |||||||||||||||||||||||
| Receivables | (14.3) | (4.3) | 345.0 | 23.0 | |||||||||||||||||||
| Inventories | 44.7 | 78.2 | (62.7) | 23.9 | |||||||||||||||||||
| Accounts Payable | 6.4 | (1.1) | 45.1 | (0.4) | |||||||||||||||||||
| Other Assets and Liabilities | (64.4) | 4.4 | (122.9) | (104.7) | |||||||||||||||||||
| Net Cash Provided by Operating Activities | 167.8 | 213.2 | 990.8 | 609.4 | |||||||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||
| Additions to Property, Plant and Equipment | (27.2) | (29.3) | (97.7) | (109.5) | |||||||||||||||||||
| Proceeds Received from Sales of Property, Plant and Equipment | 8.3 | 3.6 | 23.7 | 4.9 | |||||||||||||||||||
| Proceeds Received from Sale of Businesses, Net of Cash Transferred | — | 5.2 | 3.0 | 380.0 | |||||||||||||||||||
| Net Cash (Used in) Provided by Investing Activities | (18.9) | (20.5) | (71.0) | 275.4 | |||||||||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||
| Borrowings Under Revolving Credit Facility | 371.2 | 310.5 | 1,514.5 | 1,626.7 | |||||||||||||||||||
| Repayments Under Revolving Credit Facility | (371.2) | (304.3) | (1,554.5) | (1,684.8) | |||||||||||||||||||
| Repayments of Long-Term Borrowings | (1.0) | (211.8) | (669.4) | (880.2) | |||||||||||||||||||
| Dividends Paid to Shareholders | (23.3) | (23.1) | (93.0) | (93.0) | |||||||||||||||||||
| Shares Surrendered for Taxes | (0.4) | (3.4) | (8.4) | (15.8) | |||||||||||||||||||
| Proceeds from the Exercise of Stock Options | 0.4 | 0.8 | 2.0 | 4.9 | |||||||||||||||||||
| Financing Fees Paid | (5.3) | (0.3) | (5.3) | (0.3) | |||||||||||||||||||
| Repurchase of Common Stock | — | — | — | (50.0) | |||||||||||||||||||
| Distributions to Noncontrolling Interests | — | (3.3) | — | (3.3) | |||||||||||||||||||
| Net Cash Used in Financing Activities | (29.6) | (234.9) | (814.1) | (1,095.8) | |||||||||||||||||||
| EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 2.4 | (24.7) | 22.5 | (30.8) | |||||||||||||||||||
| Net Increase (Decrease) in Cash and Cash Equivalents | 121.7 | (66.9) | 128.2 | (241.8) | |||||||||||||||||||
| Cash and Cash Equivalents at Beginning of Period | 400.0 | 460.4 | 393.5 | 635.3 | |||||||||||||||||||
| Cash and Cash Equivalents at End of Period | $ | 521.7 | $ | 393.5 | $ | 521.7 | $ | 393.5 | |||||||||||||||
| ADJUSTED DILUTED EARNINGS PER SHARE | ||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | |||||||||||||||||||||||
| GAAP Diluted Earnings Per Share | $ | 0.95 | $ | 0.62 | $ | 4.20 | $ | 2.94 | ||||||||||||||||||
| Intangible Amortization | 0.98 | 0.98 | 3.93 | 3.92 | ||||||||||||||||||||||
| Share-Based Compensation Expense | 0.11 | 0.11 | 0.50 | 0.45 | ||||||||||||||||||||||
Restructuring and Related Costs (a) | 0.09 | 0.44 | 0.54 | 1.05 | ||||||||||||||||||||||
| CEO Transition Costs | 0.08 | — | 0.08 | — | ||||||||||||||||||||||
Transaction and Integration Related Costs (b) | 0.07 | 0.14 | 0.28 | 0.38 | ||||||||||||||||||||||
Loss on Sale of Business (c) | 0.05 | 0.06 | 0.05 | 0.13 | ||||||||||||||||||||||
| Loss (Gain) on Sale of Assets | 0.04 | (0.02) | (0.03) | (0.03) | ||||||||||||||||||||||
| Operating Lease Asset Step Up | — | — | 0.01 | 0.01 | ||||||||||||||||||||||
| Accounts Receivable Securitization Transaction Costs | — | — | 0.01 | — | ||||||||||||||||||||||
| Impairments and Exit Related Costs | — | 0.03 | — | 0.04 | ||||||||||||||||||||||
| Discrete Tax Items | 0.14 | (0.02) | 0.08 | 0.23 | ||||||||||||||||||||||
| Adjusted Diluted Earnings Per Share | 2.51 | 2.34 | 9.65 | 9.12 | ||||||||||||||||||||||
| (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, rebranding and IT carve-out costs associated with the sale of the industrial motors and generators businesses. | ||||||||||||||||
| (c) | Primarily related to the sale of the industrial motors and generators businesses. | ||||||||||||||||
| 2026 ADJUSTED ANNUAL GUIDANCE | ||||||||||||||
| Unaudited | ||||||||||||||
| Minimum | Maximum | |||||||||||||
| GAAP Diluted Earnings Per Share | $ | 5.29 | $ | 6.09 | ||||||||||
| Intangible Amortization | 3.92 | 3.92 | ||||||||||||
| Share-Based Compensation Expense | 0.46 | 0.46 | ||||||||||||
Restructuring and Related Costs (a) | 0.32 | 0.32 | ||||||||||||
Transaction and Integration Related Costs (b) | 0.21 | 0.21 | ||||||||||||
| Adjusted Diluted Earnings Per Share | $ | 10.20 | $ | 11.00 | ||||||||||
| (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 integration costs associated with the Altra Transaction. | ||||
| ORGANIC SALES GROWTH | ||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||
| Automation & Motion Control | Industrial Powertrain Solutions | Power and Efficiency Solutions | Total Regal Rexnord | |||||||||||||||||||||||
| Net Sales Three Months Ended Dec 31, 2025 | $ | 480.4 | $ | 669.3 | $ | 373.5 | $ | 1,523.2 | ||||||||||||||||||
| Impact from Foreign Currency Exchange Rates | (8.2) | (11.5) | (3.3) | (23.0) | ||||||||||||||||||||||
| Organic Sales Three Months Ended Dec 31, 2025 | $ | 472.2 | $ | 657.8 | $ | 370.2 | $ | 1,500.2 | ||||||||||||||||||
| Net Sales Three Months Ended Dec 31, 2024 | $ | 409.8 | $ | 635.0 | $ | 416.3 | $ | 1,461.1 | ||||||||||||||||||
| Net Sales from Businesses Divested | — | (0.8) | (1.8) | (2.6) | ||||||||||||||||||||||
| Adjusted Net Sales Three Months Ended Dec 31, 2024 | $ | 409.8 | $ | 634.2 | $ | 414.5 | $ | 1,458.5 | ||||||||||||||||||
| Three Months Ended Dec 31, 2025 Net Sales Growth % | 17.2 | % | 5.4 | % | (10.3) | % | 4.3 | % | ||||||||||||||||||
| Three Months Ended Dec 31, 2025 Foreign Currency Impact % | 2.0 | % | 1.8 | % | 0.8 | % | 1.6 | % | ||||||||||||||||||
| Three Months Ended Dec 31, 2025 Divestitures % | — | % | (0.1) | % | (0.4) | % | (0.2) | % | ||||||||||||||||||
| Three Months Ended Dec 31, 2025 Organic Sales Growth % | 15.2 | % | 3.7 | % | (10.7) | % | 2.9 | % | ||||||||||||||||||
| ORGANIC SALES GROWTH | ||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||||||||||
| Year Ended | ||||||||||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||||||||
| Automation & Motion Control | Industrial Powertrain Solutions | Power and Efficiency Solutions | Industrial Systems | Total Regal Rexnord | ||||||||||||||||||||||||||||
| Net Sales Year Ended Dec 31, 2025 | $ | 1,689.8 | $ | 2,594.1 | $ | 1,650.6 | $ | — | $ | 5,934.5 | ||||||||||||||||||||||
| Impact from Foreign Currency Exchange Rates | (10.2) | (14.4) | (3.1) | — | (27.7) | |||||||||||||||||||||||||||
| Organic Sales Year Ended Dec 31, 2025 | $ | 1,679.6 | $ | 2,579.7 | $ | 1,647.5 | $ | — | $ | 5,906.8 | ||||||||||||||||||||||
| Net Sales Year Ended Dec 31, 2024 | $ | 1,633.8 | $ | 2,598.1 | $ | 1,644.1 | $ | 157.8 | $ | 6,033.8 | ||||||||||||||||||||||
| Net Sales from Businesses Divested | — | (0.8) | (13.3) | (157.8) | (171.9) | |||||||||||||||||||||||||||
| Adjusted Net Sales Year Ended Dec 31, 2024 | $ | 1,633.8 | $ | 2,597.3 | $ | 1,630.8 | $ | — | $ | 5,861.9 | ||||||||||||||||||||||
| Year Ended Dec 31, 2025 Net Sales Growth % | 3.4 | % | (0.2) | % | 0.4 | % | (100.0) | % | (1.6) | % | ||||||||||||||||||||||
| Year Ended Dec 31, 2025 Foreign Currency Impact % | 0.6 | % | 0.5 | % | 0.2 | % | — | % | 0.4 | % | ||||||||||||||||||||||
| Year Ended Dec 31, 2025 Divestitures % | — | % | — | % | (0.8) | % | (100.0) | % | (2.8) | % | ||||||||||||||||||||||
| Year Ended Dec 31, 2025 Organic Sales Growth % | 2.8 | % | (0.7) | % | 1.0 | % | — | % | 0.8 | % | ||||||||||||||||||||||
| ADJUSTED EBITDA | |||||||||||||||||||||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| Automation & Motion Control | Industrial Powertrain Solutions | Power and Efficiency Solutions | Total Regal Rexnord | ||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
| GAAP Income from Operations | $ | 45.7 | $ | 31.4 | $ | 77.3 | $ | 66.3 | $ | 41.5 | $ | 30.4 | $ | 164.5 | $ | 128.1 | |||||||||||||||||||||||||||||||
Restructuring and Related Costs (a) | 0.3 | 3.0 | 5.6 | 20.2 | 1.2 | 14.6 | 7.1 | 37.8 | |||||||||||||||||||||||||||||||||||||||
Transaction and Integration Related Costs (b) | 0.9 | 2.2 | 3.9 | 6.8 | 0.9 | 3.5 | 5.7 | 12.5 | |||||||||||||||||||||||||||||||||||||||
Loss on Sale of Accounts Receivable (c) | 0.9 | — | 2.0 | — | 1.6 | — | 4.5 | — | |||||||||||||||||||||||||||||||||||||||
| CEO Transition Costs | 2.0 | — | 3.1 | — | 1.9 | — | 7.0 | — | |||||||||||||||||||||||||||||||||||||||
| Operating Lease Asset Step Up | — | — | 0.2 | — | — | — | 0.2 | — | |||||||||||||||||||||||||||||||||||||||
| Impairments and Exit Related Costs | — | 0.7 | — | 0.9 | — | 0.9 | — | 2.5 | |||||||||||||||||||||||||||||||||||||||
| Loss on Sale of Businesses | — | 1.1 | 4.5 | 1.7 | — | 1.4 | 4.5 | 4.2 | |||||||||||||||||||||||||||||||||||||||
| (Gain) Loss on Sale of Assets | (0.1) | (0.8) | 4.3 | (1.2) | (0.6) | (0.3) | 3.6 | (2.3) | |||||||||||||||||||||||||||||||||||||||
| Adjusted Income from Operations | $ | 49.7 | $ | 37.6 | $ | 100.9 | $ | 94.7 | $ | 46.5 | $50.5 | $ | 197.1 | $182.8 | |||||||||||||||||||||||||||||||||
| Amortization | $ | 34.6 | $ | 34.6 | $ | 51.1 | $ | 50.4 | $ | 0.9 | $ | 1.5 | $ | 86.6 | $ | 86.5 | |||||||||||||||||||||||||||||||
| Depreciation | 11.4 | 12.0 | 16.5 | 19.5 | 9.1 | 9.6 | 37.0 | 41.1 | |||||||||||||||||||||||||||||||||||||||
| Share-Based Compensation Expense | 2.9 | 4.1 | 3.4 | 1.6 | 1.9 | 2.2 | 8.2 | 7.9 | |||||||||||||||||||||||||||||||||||||||
| Other Income (Expense), Net | — | 0.2 | (0.2) | (0.9) | (0.2) | — | (0.4) | (0.7) | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 98.6 | $ | 88.5 | $ | 171.7 | $ | 165.3 | $ | 58.2 | $ | 63.8 | $ | 328.5 | $ | 317.6 | |||||||||||||||||||||||||||||||
| GAAP Operating Margin % | 9.5 | % | 7.7% | 11.5 | % | 10.4% | 11.1 | % | 7.3% | 10.8 | % | 8.8% | |||||||||||||||||||||||||||||||||||
| Adjusted Operating Margin* % | 10.3 | % | 9.2% | 15.1 | % | 14.9% | 12.4 | % | 12.1% | 12.9 | % | 12.5% | |||||||||||||||||||||||||||||||||||
| Adjusted EBITDA Margin % | 20.5 | % | 21.6% | 25.7 | % | 26.0% | 15.6 | % | 15.3% | 21.6 | % | 21.7% | |||||||||||||||||||||||||||||||||||
| (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, rebranding and IT carve-out costs associated with the sale of the industrial motors and generators businesses. | ||||||||||
| (c) | Represents charges associated with the Securitization Facility. | ||||||||||
| ADJUSTED EBITDA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Automation & Motion Control | Industrial Powertrain Solutions | Power and Efficiency Solutions | Industrial Systems | Total Regal Rexnord | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP Income from Operations | $ | 133.9 | $ | 144.4 | $ | 337.5 | $ | 322.7 | $ | 209.4 | $ | 162.6 | $ | — | $ | 0.3 | $ | 680.8 | $ | 630.0 | ||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs (a) | 5.8 | 14.8 | 35.9 | 40.5 | 5.2 | 33.2 | — | 3.1 | 46.9 | 91.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Transaction and Integration Related Costs (b) | 4.9 | 4.5 | 15.9 | 19.3 | 4.2 | 6.5 | — | 3.4 | 25.0 | 33.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on Sale of Accounts Receivable (c) | 1.9 | — | 4.2 | — | 3.3 | — | — | — | 9.4 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable Securitization Transaction Costs | 0.3 | — | 0.5 | — | 0.3 | — | — | — | 1.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| CEO Transition Costs | 2.0 | — | 3.1 | — | 1.9 | — | — | — | 7.0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Lease Asset Step Up | — | — | 0.8 | 0.9 | — | — | — | — | 0.8 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impairments and Exit Related Costs | — | 1.8 | — | 1.1 | — | 1.1 | — | — | — | 4.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on Sale of Businesses (d) | — | 1.1 | 4.5 | 1.7 | — | 1.4 | — | 4.3 | 4.5 | 8.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on Sale of Assets | (0.3) | (1.6) | (1.7) | (1.2) | (0.6) | (0.3) | — | — | (2.6) | (3.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted Income from Operations | $148.5 | $ | 165.0 | $ | 400.7 | $ | 385.0 | $ | 223.7 | $204.5 | $ | — | $11.1 | $772.9 | $765.6 | |||||||||||||||||||||||||||||||||||||||||||||||
| Amortization | $ | 137.6 | $ | 137.1 | $ | 202.7 | $ | 201.5 | $ | 5.8 | $ | 7.7 | $ | — | $ | 0.2 | $ | 346.1 | $ | 346.5 | ||||||||||||||||||||||||||||||||||||||||||
| Depreciation | 48.7 | 47.2 | 68.9 | 79.1 | 36.0 | 37.7 | — | 0.4 | 153.6 | 164.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Compensation Expense | 13.2 | 11.4 | 15.7 | 14.2 | 8.4 | 7.8 | — | 1.4 | 37.3 | 34.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Income (Expense), Net | (0.1) | 0.1 | (1.5) | (1.1) | (1.2) | (0.1) | — | — | (2.8) | (1.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA (e) | $ | 347.9 | $ | 360.8 | $ | 686.5 | $ | 678.7 | $ | 272.7 | $ | 257.6 | $ | — | $ | 13.1 | $ | 1,307.1 | $ | 1,310.2 | ||||||||||||||||||||||||||||||||||||||||||
| GAAP Operating Margin % | 7.9 | % | 8.8 | % | 13.0 | % | 12.4 | % | 12.7 | % | 9.9 | % | — | % | 0.2 | % | 11.5 | % | 10.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted Operating Margin % | 8.8 | % | 10.1 | % | 15.4 | % | 14.8 | % | 13.6 | % | 12.4 | % | — | % | 7.0 | % | 13.0 | % | 12.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA Margin % | 20.6 | % | 22.1 | % | 26.5 | % | 26.1 | % | 16.5 | % | 15.7 | % | — | % | 8.3 | % | 22.0 | % | 21.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| (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, rebranding and IT carve-out costs associated with the sale of the industrial motors and generators businesses. | ||||||||||
| (c) | Represents charges associated with the Securitization Facility. | ||||||||||
| (d) | Primarily related to the sale of the industrial motors and generators businesses. | ||||||||||
| (e) | Adjusted EBITDA and Adjusted EBITDA Margin % Excluding Industrial for the twelve months ended December 2024 is calculated as follows: | ||||||||||
| Dec 31, 2024 | |||||||||||
| Total Regal Rexnord Adjusted EBITDA | 1,310.2 | ||||||||||
| Less: Industrial Systems Adjusted EBITDA | 13.1 | ||||||||||
| Adjusted EBITDA excluding Industrial Systems | 1,297.1 | ||||||||||
| Total Regal Rexnord Net Sales | 6,033.8 | ||||||||||
| Less: Industrial Systems Net Sales | 157.8 | ||||||||||
| Net Sales excluding Industrial Systems | 5,876.0 | ||||||||||
| Adjusted EBITDA Margin % excluding Industrial Systems | 22.1 | % | |||||||||
| ADJUSTED GROSS MARGIN | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Automation & Motion Control | Industrial Powertrain Solutions | Power and Efficiency Solutions | Total Regal Rexnord | |||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||
| Gross Margin | $ | 177.5 | $ | 156.0 | $ | 281.5 | $ | 248.2 | $ | 112.2 | $ | 106.4 | $ | 571.2 | $ | 510.6 | ||||||||||||||||||||||||||||||||||
Restructuring and Related Costs (a) | — | 1.6 | 1.3 | 14.3 | 0.6 | 15.2 | 1.9 | 31.1 | ||||||||||||||||||||||||||||||||||||||||||
| Operating Lease Asset Step Up | — | — | 0.2 | — | — | — | 0.2 | — | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted Gross Margin | $ | 177.5 | $ | 157.6 | $ | 283.0 | $ | 262.5 | $ | 112.8 | $ | 121.6 | $ | 573.3 | $ | 541.7 | ||||||||||||||||||||||||||||||||||
| Gross Margin % | 36.9 | % | 38.1 | % | 42.1 | % | 39.1 | % | 30.0 | % | 25.6 | % | 37.5 | % | 34.9 | % | ||||||||||||||||||||||||||||||||||
| Adjusted Gross Margin % | 36.9 | % | 38.5 | % | 42.3 | % | 41.3 | % | 30.2 | % | 29.2 | % | 37.6 | % | 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. | ||||||||||
| ADJUSTED GROSS MARGIN | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Automation & Motion Control | Industrial Powertrain Solutions | Power and Efficiency Solutions | Industrial Systems | Total Regal Rexnord | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross Margin | $ | 638.9 | $ | 641.6 | $ | 1,093.4 | $ | 1,051.5 | $ | 485.5 | $ | 458.7 | $ | — | $ | 39.2 | $ | 2,217.8 | $ | 2,191.0 | ||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs (a) | 3.7 | 7.3 | 19.4 | 26.1 | 3.7 | 32.1 | — | 1.1 | 26.8 | 66.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Lease Asset Step Up | — | — | 0.8 | 0.9 | — | — | — | — | 0.8 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted Gross Margin | $ | 642.6 | $ | 648.9 | $ | 1,113.6 | $ | 1,078.5 | $ | 489.2 | $ | 490.8 | $ | — | $ | 40.3 | $ | 2,245.4 | $ | 2,258.5 | ||||||||||||||||||||||||||||||||||||||||||
| Gross Margin % | 37.8 | % | 39.3 | % | 42.1 | % | 40.5 | % | 29.4 | % | 27.9 | % | — | % | 24.8 | % | 37.4 | % | 36.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Adjusted Gross Margin % (b) | 38.0 | % | 39.7 | % | 42.9 | % | 41.5 | % | 29.6 | % | 29.9 | % | — | % | 25.5 | % | 37.8 | % | 37.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| (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 twelve months ended December 31, 2024 Excluding Industrial: | ||||||||||
| Dec 31, 2024 | |||||||||||
| Total Regal Rexnord Adjusted Gross Margin | 2,258.5 | ||||||||||
| Less: Industrial Systems Adjusted Gross Margin | 40.3 | ||||||||||
| Adjusted Gross Margin excluding Industrial Systems | 2,218.2 | ||||||||||
| Total Regal Rexnord Net Sales | 6,033.8 | ||||||||||
| Less: Industrial Systems Net Sales | 157.8 | ||||||||||
| Net Sales excluding Industrial Systems | 5,876.0 | ||||||||||
| Adjusted Gross Margin % excluding Industrial Systems | 37.8 | % | |||||||||
| NET INCOME TO ADJUSTED EBITDA | ||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | |||||||||||||||||||||||
| Net Income | $ | 63.8 | $ | 42.0 | $ | 280.8 | $ | 198.4 | ||||||||||||||||||
| Plus: Income Taxes | 22.7 | (3.6) | 71.7 | 49.6 | ||||||||||||||||||||||
| Plus: Interest Expense | 86.7 | 94.6 | 349.2 | 399.7 | ||||||||||||||||||||||
| Less: Interest Income | (9.1) | (5.6) | (23.7) | (18.8) | ||||||||||||||||||||||
| Plus: Depreciation | 37.0 | 41.1 | 153.6 | 164.4 | ||||||||||||||||||||||
| Plus: Amortization | 86.6 | 86.5 | 346.1 | 346.5 | ||||||||||||||||||||||
| EBITDA | $ | 287.7 | $ | 255.0 | $ | 1,177.7 | $ | 1,139.8 | ||||||||||||||||||
Plus: Restructuring and Related Costs (a) | 7.1 | 37.8 | 46.9 | 91.6 | ||||||||||||||||||||||
| Plus: Share-Based Compensation Expense | 8.2 | 7.9 | 37.3 | 34.8 | ||||||||||||||||||||||
Plus: Transaction and Integration Related Costs (b) | 5.7 | 12.5 | 25.0 | 33.7 | ||||||||||||||||||||||
Plus: Loss on Sale of Accounts Receivable (c) | 4.5 | — | 9.4 | — | ||||||||||||||||||||||
| Plus: Accounts Receivable Securitization Transaction Costs | — | — | 1.1 | — | ||||||||||||||||||||||
| Plus: CEO Transition Costs | 7.0 | — | 7.0 | — | ||||||||||||||||||||||
| Plus: Operating Lease Asset Step Up | 0.2 | — | 0.8 | 0.9 | ||||||||||||||||||||||
| Plus: Impairments and Exit Related Costs | — | 2.5 | — | 4.0 | ||||||||||||||||||||||
Plus: Loss on Sale of Businesses (d) | 4.5 | 4.2 | 4.5 | 8.5 | ||||||||||||||||||||||
| Plus: Loss (Gain) on Sale of Assets | 3.6 | (2.3) | (2.6) | (3.1) | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 328.5 | $ | 317.6 | $ | 1,307.1 | $ | 1,310.2 | ||||||||||||||||||
| (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, rebranding and IT carve-out costs associated with the sale of the industrial motors and generators businesses. | ||||
| (c) | Represents charges associated with the Securitization Facility. | ||||
| (d) | Primarily related to the sale of the industrial motors and generators businesses. | ||||
| DEBT TO EBITDA | ||||||||
| Unaudited | ||||||||
| (Dollars in Millions) | ||||||||
| Last Twelve Months | ||||||||
| Dec 31, 2025 | ||||||||
| Net Income | $ | 280.8 | ||||||
| Plus: Income Taxes | 71.7 | |||||||
| Plus: Interest Expense | 349.2 | |||||||
| Less: Interest Income | (23.7) | |||||||
| Plus: Depreciation | 153.6 | |||||||
| Plus: Amortization | 346.1 | |||||||
| EBITDA | $ | 1,177.7 | ||||||
Plus: Restructuring and Related Costs (a) | 46.9 | |||||||
| Plus: Share-Based Compensation Expense | 37.3 | |||||||
Plus: Transaction and Integration Related Costs (b) | 25.0 | |||||||
| Plus: Loss on Sale of Businesses | 4.5 | |||||||
Plus: Loss on Sale of Accounts Receivable (c) | 9.4 | |||||||
| Plus: Accounts Receivable Securitization Transaction Costs | 1.1 | |||||||
| Plus: CEO Transition Costs | 7.0 | |||||||
| Plus: Operating Lease Asset Step Up | 0.8 | |||||||
| Less: Gain on Sale of Assets | (2.6) | |||||||
Adjusted EBITDA (d) | $ | 1,307.1 | ||||||
| Current Maturities of Long-Term Debt | 24.1 | |||||||
| Long-Term Debt | 4,764.6 | |||||||
| Total Gross Debt | $ | 4,788.7 | ||||||
| Cash and Cash Equivalents | (521.7) | |||||||
| Net Debt | $ | 4,267.0 | ||||||
| Gross Debt/Adjusted EBITDA* | 3.66 | |||||||
Net Debt/Adjusted EBITDA* (d) | 3.26 | |||||||
Interest Coverage Ratio* (d)(e) | 4.02 | |||||||
| (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 for the three months ended March 31, 2025 associated with the sale of the industrial motors and generators businesses. | |||||||
| (c) | Represents charges associated with the Securitization Facility. | |||||||
| (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 | $ | 1,307.1 | ||||||
| Synergies to be Realized Within 18 Months | $ | 50.0 | ||||||
Adjusted EBITDA (including synergies)* | $ | 1,357.1 | ||||||
| Net Debt/Adjusted EBITDA (including synergies)* | 3.14 | |||||||
| Interest Expense | 349.2 | |||||||
| Interest Income | (23.7) | |||||||
| Net Interest Expense | $ | 325.5 | ||||||
Interest Coverage Ratio (including synergies)*(1) | 4.17 | |||||||
| (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 | Year Ended | |||||||||||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | |||||||||||||||||||||||
| Net Cash Provided by Operating Activities | 167.8 | 213.2 | 990.8 | 609.4 | ||||||||||||||||||||||
Payments for Certain Costs to Sell Businesses (Net of Tax of $1.7 Million in 2024)(a) | — | 1.4 | — | 11.9 | ||||||||||||||||||||||
| Adjusted Cash Flows from Operations | 167.8 | 214.6 | 990.8 | 621.3 | ||||||||||||||||||||||
| Additions to Property Plant and Equipment | (27.2) | (29.3) | (97.7) | (109.5) | ||||||||||||||||||||||
| Adjusted Free Cash Flow | $ | 140.6 | $ | 185.3 | $ | 893.1 | $ | 511.8 | ||||||||||||||||||
| (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 | Year Ended | ||||||||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | ||||||||||||||||||||
| Income before Taxes | $ | 86.5 | $ | 38.4 | $ | 352.5 | $ | 248.0 | |||||||||||||||
| Provision (Benefit) for Income Taxes | 22.7 | (3.6) | 71.7 | 49.6 | |||||||||||||||||||
| Effective Tax Rate | 26.2 | % | (9.4) | % | 20.3 | % | 20.0 | % | |||||||||||||||
| Income before Taxes | 86.5 | 38.4 | 352.5 | 248.0 | |||||||||||||||||||
| Intangible Amortization | 86.6 | 86.5 | 346.1 | 346.5 | |||||||||||||||||||
Restructuring and Related Costs (a) | 7.1 | 37.8 | 46.9 | 91.6 | |||||||||||||||||||
| Share-Based Compensation Expense | 8.2 | 7.9 | 37.3 | 34.8 | |||||||||||||||||||
Transaction and Integration Related Costs (b) | 5.7 | 12.5 | 25.0 | 33.7 | |||||||||||||||||||
| Accounts Receivable Securitization Transaction Costs | — | — | 1.1 | — | |||||||||||||||||||
| CEO Transition Costs | 7.0 | — | 7.0 | — | |||||||||||||||||||
| Operating Lease Asset Step Up | 0.2 | — | 0.8 | 0.9 | |||||||||||||||||||
| Impairments and Exit Related Costs | — | 2.5 | — | 4.0 | |||||||||||||||||||
Loss on Sale of Businesses (c) | 4.5 | 4.2 | 4.5 | 8.5 | |||||||||||||||||||
| Loss (Gain) on Sale of Assets | 3.6 | (2.3) | (2.6) | (3.1) | |||||||||||||||||||
| Adjusted Income before Taxes* | $ | 209.4 | $ | 187.5 | $ | 818.6 | $ | 764.9 | |||||||||||||||
| Provision (Benefit) for Income Taxes | $ | 22.7 | $ | (3.6) | $ | 71.7 | $ | 49.6 | |||||||||||||||
| Tax Effect of Intangible Amortization | 21.1 | 21.5 | 84.4 | 84.7 | |||||||||||||||||||
| Tax Effect of Restructuring and Related Costs | 1.5 | 8.7 | 11.0 | 21.9 | |||||||||||||||||||
| Tax Effect of Share-Based Compensation Expense | 0.7 | 0.2 | 4.2 | 4.8 | |||||||||||||||||||
| Tax Effect of Transaction and Integration Related Costs | 1.2 | 3.1 | 5.9 | 8.1 | |||||||||||||||||||
| Tax Effect of Accounts Receivable Securitization Transaction Costs | — | — | 0.3 | — | |||||||||||||||||||
| Tax Effect of CEO Transition Costs | 1.7 | — | 1.7 | — | |||||||||||||||||||
| Tax Effect of Operating Lease Asset Step Up | 0.1 | — | 0.2 | 0.2 | |||||||||||||||||||
| Tax Effect of Impairments and Exit Related Costs | — | 0.6 | — | 1.0 | |||||||||||||||||||
| Tax Effect of Loss on Sale of Businesses | 1.3 | — | 1.3 | — | |||||||||||||||||||
| Tax Effect of Loss (Gain) on Sale of Assets | 0.9 | (0.6) | (0.6) | (0.8) | |||||||||||||||||||
| Discrete Tax Items | (9.4) | 1.0 | (5.2) | (15.3) | |||||||||||||||||||
Adjusted Provision for Income Taxes* | $ | 41.8 | $ | 30.9 | $ | 174.9 | $ | 154.2 | |||||||||||||||
Adjusted Effective Tax Rate* | 20.0 | % | 16.5 | % | 21.4 | % | 20.2 | % | |||||||||||||||
| (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, rebranding and IT carve-out costs associated with the sale of the industrial motors and generators businesses. | ||||
| (c) | Primarily related to the sale of the industrial motors and generators businesses. | ||||