Regal Rexnord reported solid third-quarter results with a 2% increase in sales and a robust 10% rise in orders, driven by a strong performance in data center and automation sectors, while navigating challenges from tariffs and supply chain constraints.

• Adjusted earnings per share rose to $2.51, reflecting strong operational execution despite external pressures.
• Free cash flow reached $174 million, used primarily for debt reduction, maintaining a healthy financial position with no variable rate debt.
• Backlog increased by 6% YoY, with notable order strength in the data center segment, booking $135 million in the quarter and an additional $16 million in October.
• Gross margin adjusted to 37.6%, impacted by tariffs and rare earth magnet availability, with EBITDA margin remaining steady at 22.7%.
• Transition in leadership announced, with the CEO role to be filled as the company maintains its growth trajectory and strategic focus.