Regal Rexnord Corporation reported its fourth-quarter financial results for 2024, highlighting several key points. The company posted a diluted EPS of $0.62 and an adjusted diluted EPS of $2.34, marking a 2.6% increase year-over-year. Despite a 9.1% decline in total sales to $1,461.1 million, daily orders rose by 4.4%. They reduced gross debt by $205 million and achieved adjusted free cash flow of $185.3 million, a 8.4% increase.

On the full-year performance, Regal Rexnord surpassed its synergy target by $11 million, delivering $101 million in synergies. Gross margins showed significant improvement, reaching 36.3%, with adjusted gross margins of 37.8%, an increase of 210 basis points from the previous year. The company paid down $938 million in gross debt, exceeding their target, and reported a GAAP net income of $198.4 million, compared to a loss of $54.3 million in the previous year.

For 2025, the company provided guidance, expecting GAAP diluted earnings per share to range from $4.42 to $5.22, and adjusted diluted earnings per share to range from $9.60 to $10.40. CEO Louis Pinkham expressed cautious optimism for 2025, acknowledging market uncertainties but highlighting positive signs like improving orders and the potential of ongoing cost and sales synergies.