8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________

FORM 8-K

_______________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):    October 31, 2022

_______________________

              Regal Rexnord Corporation             

(Exact name of registrant as specified in its charter)

Wisconsin	1-7283	39-0875718
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

          200 State Street, Beloit, Wisconsin 53511-6254           

(Address of Principal Executive Offices, Including Zip Code)

Registrant's Telephone Number: (608) 364-8800

_______________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

_______________________

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock	RRX	New York Stock Exchange

Item 2.02    Results of Operations and Financial Condition.

On October 31, 2022, Regal Rexnord Corporation (the "Company") issued a news release reporting the financial results of the Company for its third quarter ended September 30, 2022. A copy of the Company's news release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01    Regulation FD Disclosure.

        The Company will hold a conference call at 9:00 a.m. CT on November 1, 2022 to discuss its financial results for its third quarter ended September 30, 2022 and will provide a presentation in connection therewith. A copy of the Company's conference call presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

Item 9.01.    Financial Statements and Exhibits.

(a)    Not Applicable

(b)    Not Applicable

(c)    Not Applicable

(d)    Exhibits. The following exhibits are being furnished herewith:

Exhibit Index

Exhibit Number	Exhibit Description
99.1	News Release of Regal Rexnord Corporation dated October 31, 2022.
99.2	Regal Rexnord Corporation Presentation of November 1, 2022.
104.1	Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

REGAL REXNORD CORPORATION

Date: November 1, 2022          By: /s/ Thomas E. Valentyn                

Thomas E. Valentyn

Vice President, General Counsel and Secretary

EX-99.1

FOR RELEASE ON: October 31, 2022        

CONTACT:    Robert Barry, VP - Investor Relations

        608-361-7530                    

        robert.barry@regalrexnord.com

REGAL REXNORD CORPORATION REPORTS STRONG THIRD QUARTER 2022 FINANCIAL RESULTS

BELOIT, WI - Regal Rexnord Corporation (NYSE: RRX)

Third Quarter Highlights

•Sales Up 48% Versus PY And Up 8% On An Organic Basis*

•Daily Orders Down 3.6% In 3Q Versus PY On A Pro Forma, Constant Currency Basis

•Backlog Up Nearly 70% Versus Beginning of 2021; Book-To-Bill Ratio Above 1.00 For Prior 7 Quarters, Averaging 1.10 In 2021 and 1.01 YTD In 2022

•Adjusted EBITDA Margin* Up 120 Basis Points Versus PY To 20.9%; Price/Cost Remained Positive

•Adjusted Diluted EPS* Of $2.66 Versus $2.88 In PY; GAAP Diluted EPS Of $1.80 Versus $1.95 In PY

•Free Cash Flow Conversion* Of 93%

•Net Debt To Adjusted EBITDA Of 1.4x

•Raising Guidance Mid-Point By Revising 2022 Annual Guidance For Adjusted EPS To A Range Of $10.35 To $10.75 From $10.20 To $10.80 And Revising GAAP EPS Guidance To A Range Of $7.15 To $7.55 From $7.01 To $7.61

•M&A Synergies Remain Ahead Of Plan

CEO Louis Pinkham commented, “I am extremely pleased with our 3Q performance. Our Regal Rexnord team continued to focus on executing what’s under our control, while navigating against headwinds posed by ongoing supply chain challenges and high inflation. By leveraging an 80/20 mindset and acting with urgency to serve our customers, the team delivered 8% organic sales growth, which includes strong price realization plus share gains. As we highlighted at our September investor day, we’re gaining traction with our many outgrowth initiatives, including starting to deliver a robust pipeline of mix-positive new products focused on improving energy-efficiency, plus raising service levels, and making significant digital and e-commerce investments. I am also proud of our team's performance continuing to raise our adjusted EBITDA margin, aided by 80/20, lean, and our acquisition synergies.”

Mr. Pinkham concluded, “In summing up our third quarter results, the Regal Rexnord team continues to perform. While the global macro outlook is uncertain, our team remains focused on controllable execution, and the many self-help opportunities in front of us related to improving outgrowth, expanding our margins, and improving cash flow, especially around lowering working capital. And finally, the integration of MCS continues to be well ahead of our expectations. With so many value creation levers under our control, along with our portfolio-transforming Altra Industrial Motion announcement last week, Regal Rexnord's future continues to be extremely bright.”

Guidance Update

The Company continues to expect organic revenue growth at a high single digit rate for 2022.

The Company is raising its guidance mid-point by revising its 2022 annual guidance for adjusted earnings per share to a range of $10.35 to $10.75, from $10.20 to $10.80 previously, and revising its GAAP earnings per share guidance to a range of $7.15 to $7.55 from $7.01 to $7.61.

The Company’s guidance does not take into account any costs, expenses or other effects of the previously announced transaction whereby the Company will acquire all of the outstanding shares of Altra Industrial Motion Corp. (Nasdaq: AIMC).

*Non-GAAP Financial Measurement, See Appendix for Reconciliation

Segment Performance

Third quarter 2022 segment results versus the prior year:

•Motion Control Solutions segment net sales were $592.7 million, an increase of 185.5%, or 3.6% on an organic basis. Primary drivers included the merger with Rexnord PMC and the acquisition of Arrowhead and, on an organic basis, broad-based strength, particularly in global industrial markets, and price, partially offset by weakness in the China wind market. Adjusted EBITDA margin was 27.2% of adjusted net sales*.

•Climate Solutions net sales were $279.2 million, an increase of 4.0%, or 4.9% on an organic basis. Primary drivers include strong price realization and share gains, partially offset by weakness in Europe. Adjusted EBITDA margin was 16.4% of adjusted net sales, down due to weaker mix and higher non-metals inflation. We expect segment margins to improve in the fourth quarter, with further, more significant improvements in 2023.

•Commercial Systems net sales were $289.9 million, an increase of 7.9%, or 11.5% on an organic basis. Primary drivers included strong price realization and share gains, with particular strength in the North America commercial HVAC and general industrial markets. Adjusted EBITDA margin was 16.7% of adjusted net sales.

•Industrial Systems net sales were $163.5 million, an increase of 10.5%, or 14.7% on an organic basis. Primary drivers included strong price realization and outgrowth, particularly in the North America general industrial market, partially offset by weakness in China. Adjusted EBITDA margin was 13.2% of adjusted 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 Tuesday, November 1, 2022. 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 1.888.317.6003 (U.S. callers) or +1.412.317.6061 (international callers) and enter 7593094# 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 4687383#. Both replays will be accessible for three months after the earnings call.

About Regal Rexnord

Regal Rexnord Corporation is a global leader in the engineering and manufacturing of industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products and specialty electrical components and systems, serving customers around the world. Through longstanding technology leadership and an intentional focus on producing more energy-efficient products and systems, Regal Rexnord helps create a better tomorrow – for its customers and for the planet.

Regal Rexnord is comprised of four segments: Motion Control Solutions, Climate Solutions, Commercial Systems and Industrial Systems. Regal Rexnord is headquartered in Beloit, Wisconsin and has manufacturing, sales and service facilities worldwide. For more information, visit RegalRexnord.com.

Forward Looking Statements

This release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which reflect Regal Rexnord’s current estimates, expectations and projections about Regal Rexnord’s future results, performance, prospects and opportunities. Forward-looking statements include statements that are not historical facts and can be identified by forward-looking words such as “anticipate,” “believe,” “confident,” “estimate,” “expect,” “intend,” “plan,” “target,” “may,” “will,” “project,” “forecast,” “would,” “could,” “should,” and similar expressions. These forward-looking statements are based upon information currently available to Regal Rexnord and are subject to a number of risks, uncertainties, and other factors that could cause actual results,

performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Important factors that could cause Regal Rexnord’s actual results to differ materially from the results referred to in the forward-looking statements Regal Rexnord makes in this release include: the possibility that the conditions to the consummation of the proposed acquisition of Altra Industrial Motion Corp. (the “Proposed Acquisition”) will not be satisfied on the terms or timeline expected, or at all; failure to obtain, or delays in obtaining, or adverse conditions related to obtaining shareholder or regulatory approvals sought in connection with the Proposed Acquisition; failure to achieve the proposed debt financing necessary for the Proposed Acquisition on the desired terms, or at all; Regal Rexnord’s substantial indebtedness as a result of the Proposed Acquisition and the effects of such indebtedness on the combined company’s financial flexibility after the Proposed Acquisition; Regal Rexnord’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; the possibility that Regal Rexnord may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the Proposed Acquisition, the merger with Rexnord Process & Motion Control business (the “Rexnord PMC business”) and the acquisition of Arrowhead Systems, LLC (“Arrowhead”) (together with the Proposed Acquisition and the merger with the Rexnord PMC business, the “Transactions”) within the expected time-frames or at all and to successfully integrate Altra, the Rexnord PMC business and Arrowhead; Regal Rexnord’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 Regal Rexnord’s results, operations and financial condition, including the impact from costs to execute and finance any such transactions; expected or targeted future financial and operating performance and results; operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) being greater than expected following the Transactions; Regal Rexnord’s ability to retain key executives and employees; the continued financial and operational impacts of and uncertainties relating to the COVID-19 pandemic on customers and suppliers and the geographies in which they operate; uncertainties regarding the ability to execute restructuring plans within expected costs and timing; challenges to the tax treatment that was elected with respect to the acquisition of the Rexnord PMC business and related transactions; requirements to abide by potentially significant restrictions with respect to the tax treatment of the Rexnord PMC business which could limit Regal Rexnord’s ability to undertake certain corporate actions that otherwise could be advantageous; actions taken by competitors and their ability to effectively compete in the increasingly competitive global electric motor, drives and controls, power generation and power transmission industries; the ability to develop new products based on technological innovation, such as the Internet of Things, and marketplace acceptance of new and existing products, including products related to technology not yet adopted or utilized in geographic locations in which Regal Rexnord does business; dependence on significant customers; seasonal impact on sales of products into HVAC systems and other residential applications; risks associated with global manufacturing, including public health crises and political, societal or economic instability, including instability caused by the conflict between Russia and Ukraine; issues and costs arising from the integration of acquired companies and businesses and the timing and impact of purchase accounting adjustments; Regal Rexnord’s overall debt levels and its ability to repay principal and interest on its outstanding debt; prolonged declines in one or more markets, such as heating, ventilation, air conditioning, refrigeration, power generation, oil and gas, unit material handling, water heating and aerospace; 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, immigration, customs, border actions and the like, and other external factors that Regal Rexnord 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, particularly in high volume applications or where such failures are alleged to be the cause of property or casualty claims; unanticipated liabilities of acquired businesses; unanticipated adverse effects or liabilities from business exits or divestitures; 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; effects on earnings of any significant impairment of goodwill; losses from failures, breaches, attacks or disclosures involving information technology infrastructure and data; cyclical downturns affecting the global market for capital goods; and other risks and uncertainties including, but not limited, to those described in the section entitled “Risk Factors” in Regal Rexnord’s Annual Report on Form 10-K on file with the SEC and from time to time in other filed reports including Regal Rexnord’s Quarterly Reports on Form 10-Q. For a more detailed description of the risk factors associated with Regal Rexnord, please refer to Part I, Item 1A in the Regal Rexnord Annual Report on Form 10-K for the fiscal year ended January 1, 2022 on file with the SEC and subsequent SEC filings. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-

looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are made only as of the date of this release and Regal Rexnord undertakes no obligation to update any forward-looking information contained in this release or with respect to the announcements described herein to reflect subsequent events or circumstances.

Non-GAAP Measures

(Unaudited)

(Dollars in Millions, Except per Share Data)

We prepare 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 earnings 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 debt, adjusted EBITDA, adjusted EBITDA margin, adjusted bank EBITDA, adjusted net income attributable to Regal Rexnord Corporation, free cash flow, free cash flow as a percentage of adjusted net income attributable to Regal Rexnord Corporation, 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, adjusted operating income, and adjusted operating margin to help us manage and evaluate our business and make operating decisions, while adjusted diluted earnings per share, net debt, adjusted EBITDA, adjusted EBITDA margin, adjusted net sales, adjusted net income attributable to Regal Rexnord Corporation, free cash flow, free cash flow as a percentage of adjusted net income attributable to Regal Rexnord Corporation, adjusted income before taxes, adjusted provision for income taxes and adjusted effective tax rate 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.

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” to 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				Nine Months Ended
	Sep 30, 2022		Oct 2, 2021		Sep 30, 2022		Oct 2, 2021
Net Sales	$	1,325.3	$	892.7	$	3,973.2	$	2,593.7
Cost of Sales	917.6		624.6		2,710.1		1,818.1
Gross Profit	407.7		268.1		1,263.1		775.6
Operating Expenses	233.8		144.4		724.4		432.9
Asset Impairments	—		2.8		—		5.1
Total Operating Expenses	233.8		147.2		724.4		438.0
Income from Operations	173.9		120.9		538.7		337.6
Other Income, Net	(1.3)		(1.2)		(4.1)		(3.6)
Interest Expense	21.4		22.0		43.8		46.1
Interest Income	1.3		2.3		3.2		5.5
Income before Taxes	155.1		102.4		502.2		300.6
Provision for Income Taxes	33.2		21.0		110.0		62.9
Net Income	121.9		81.4		392.2		237.7
Less: Net Income Attributable to Noncontrolling Interests	2.1		1.6		4.8		4.6
Net Income Attributable to Regal Rexnord Corporation	$	119.8	$	79.8	$	387.4	$	233.1
Earnings Per Share Attributable to Regal Rexnord Corporation:
Basic	$	1.81	$	1.96	$	5.80	$	5.73
Assuming Dilution	$	1.80	$	1.95	$	5.76	$	5.69
Cash Dividends Declared Per Share	$	0.35	$	0.33	$	1.03	$	0.96
Weighted Average Number of Shares Outstanding:
Basic	66.3		40.7		66.8		40.7
Assuming Dilution	66.7		41.0		67.2		41.0

CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(Dollars in Millions)
	Sep 30, 2022		Jan 1, 2022
ASSETS
Current Assets:
Cash and Cash Equivalents	$	723.6	$	672.8
Trade Receivables, less Allowances  of $29.2 million in 2022 and $18.7 million in 2021	816.0		785.8
Inventories	1,361.5		1,192.4
Prepaid Expenses and Other Current Assets	145.0		157.6
Total Current Assets	3,046.1		2,808.6
Net Property, Plant, Equipment and Noncurrent Assets	7,202.9		7,558.8
Total Assets	$	10,249.0	$	10,367.4
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable	$	548.2	$	643.8
Other Accrued Expenses	473.9		446.6
Current Maturities of Debt	30.7		4.9
Total Current Liabilities	1,052.8		1,095.3
Long-Term Debt	2,165.2		1,913.6
Other Noncurrent Liabilities	859.2		950.3
Equity:
Total Regal Rexnord Corporation Shareholders' Equity	6,139.9		6,370.0
Noncontrolling Interests	31.9		38.2
Total Equity	6,171.8		6,408.2
Total Liabilities and Equity	$	10,249.0	$	10,367.4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
Unaudited
(Dollars in Millions)
	Three Months Ended				Nine Months Ended
	Sep 30, 2022		Oct 2, 2021		Sep 30, 2022		Oct 2, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	121.9	$	81.4	$	392.2	$	237.7
Adjustments to Reconcile Net Income and Changes in Assets and Liabilities (Net of Acquisitions and Divestitures) to Net Cash (Used in) Provided by Operating Activities:
Depreciation and Amortization	74.1		30.5		230.4		92.8
Noncash Lease Expense	8.0		5.9		24.3		18.3
Loss (Gain) on Disposal of Assets	2.5		(1.6)		0.8		(1.1)
Loss on Businesses Divested and Assets to be Exited	—		2.8		—		5.1
Share-Based Compensation Expense	5.8		3.7		17.0		11.5
Financing Fees Amortization	0.4		3.9		1.8		12.5
Early Debt Extinguishment Charge	—		12.7		—		12.7
Change in Operating Assets and Liabilities	(79.6)		(17.8)		(428.5)		(131.4)
Net Cash Provided by Operating Activities	133.1		121.5		238.0		258.1
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant and Equipment	(22.0)		(13.2)		(54.6)		(37.5)
Proceeds Received from Sales of Property, Plant and Equipment	—		2.3		5.5		4.1
Business Acquisitions, Net of Cash Acquired	—		(0.3)		(35.0)		(4.1)
Net Cash Used in Investing Activities	(22.0)		(11.2)		(84.1)		(37.5)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Borrowings (Repayments) Under Revolving Credit Facility	40.0		27.8		(136.7)		27.8
Net Borrowings (Repayments) of Short-Term Borrowings	—		0.1		(2.0)		0.1
Proceeds from Long-Term Borrowings	—		—		1,536.8		—
Repayments of Long-Term Borrowings	(7.5)		(400.1)		(1,115.9)		(450.3)
Dividends Paid to Shareholders	(23.6)		(13.4)		(67.9)		(37.8)
Proceeds from the Exercise of Stock Options	1.4		—		4.8		0.1
Early Debt Extinguishment Payments	—		(12.7)		—		(12.7)
Repurchase of Common Stock	(55.2)		—		(239.2)		—
Distributions to Noncontrolling Interest	(6.2)		—		(6.2)		(4.5)
Shares Surrendered for Taxes	(0.5)		(0.4)		(8.6)		(6.5)
Financing Fees Paid	—		—		(6.5)		(17.0)
Net Cash Used in Financing Activities	(51.6)		(398.7)		(41.4)		(500.8)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	(38.4)		(1.5)		(61.7)		(2.5)
Net Increase (Decrease) in Cash and Cash Equivalents	21.1		(289.9)		50.8		(282.7)
Cash and Cash Equivalents at Beginning of Period	702.5		618.5		672.8		611.3
Cash and Cash Equivalents at End of Period	$	723.6	$	328.6	$	723.6	$	328.6

SEGMENT INFORMATION
Unaudited
(Dollars in Millions)
	Three Months Ended
	Commercial Systems						Industrial Systems						Climate Solutions						Motion Control Solutions						Total Regal Rexnord
	Sep 30, 2022			Oct 2, 2021			Sep 30, 2022			Oct 2, 2021			Sep 30, 2022			Oct 2, 2021			Sep 30, 2022			Oct 2, 2021			Sep 30, 2022			Oct 2, 2021
Net Sales	$	289.9		$	268.7		$	163.5		$	148.0		$	279.2		$	268.4		$	592.7		$	207.6		$	1,325.3		$	892.7
Adjusted Net Sales*	$	289.9		$	268.7		$	163.5		$	148.0		$	279.2		$	268.4		$	592.7		$	207.6		$	1,325.3		$	892.7
GAAP Operating Margin	13.6		%	13.2		%	9.6		%	6.0		%	11.2		%	20.7		%	14.7		%	10.1		%	13.1		%	13.5		%
Adjusted Operating Margin*	13.8		%	13.4		%	10.9		%	5.1		%	14.3		%	20.8		%	16.6		%	20.0		%	14.8		%	15.8		%
Adjusted EBITDA Margin %	16.7		%	16.5		%	13.2		%	9.5		%	16.4		%	23.1		%	27.2		%	26.9		%	20.9		%	19.7		%
Components of Net Sales:
Organic Sales Growth*	11.5		%	20.9		%	14.7		%	3.6		%	4.9		%	14.2		%	3.6		%	23.7		%	8.2		%	16.3		%
Acquisitions	—		%	—		%	—		%	—		%	—		%	—		%	184.1		%	—		%	42.8		%	—		%
Foreign Currency Impact	(3.6)		%	2.1		%	(4.2)		%	3.0		%	(0.9)		%	0.5		%	(2.2)		%	0.7		%	(2.5)		%	1.4		%
SEGMENT INFORMATION
Unaudited
(Dollars in Millions)
	Nine Months Ended
	Commercial Systems						Industrial Systems						Climate Solutions						Motion Control Solutions						Total Regal Rexnord
	Sep 30, 2022			Oct 2, 2021			Sep 30, 2022			Oct 2, 2021			Sep 30, 2022			Oct 2, 2021			Sep 30, 2022			Oct 2, 2021			Sep 30, 2022			Oct 2, 2021
Net Sales	$	885.1		$	775.0		$	462.9		$	429.6		$	846.6		$	764.8		$	1,778.6		$	624.3		$	3,973.2		$	2,593.7
Adjusted Net Sales*	$	885.1		$	775.0		$	462.9		$	429.6		$	846.6		$	764.8		$	1,778.6		$	624.3		$	3,973.2		$	2,593.7
GAAP Operating Margin	15.2		%	11.8		%	9.7		%	4.2		%	15.0		%	19.4		%	13.1		%	12.8		%	13.6		%	13.0		%
Adjusted Operating Margin*	15.2		%	12.7		%	10.2		%	4.1		%	16.1		%	19.5		%	15.1		%	19.7		%	14.8		%	15.0		%
Adjusted EBITDA Margin %	18.1		%	16.1		%	12.7		%	8.7		%	18.2		%	21.8		%	26.2		%	26.7		%	21.1		%	19.1		%
Components of Net Sales:
Organic Sales Growth	16.6		%	27.3		%	10.5		%	5.7		%	11.3		%	22.4		%	6.6		%	18.1		%	11.6		%	19.7		%
Acquisitions	—		%	—		%	—		%	—		%	—		%	—		%	180.0		%	—		%	43.3		%	—		%
Foreign Currency Impact	(2.4)		%	3.2		%	(2.7)		%	4.7		%	(0.6)		%	0.5		%	(1.7)		%	1.6		%	(1.8)		%	2.3		%

ADJUSTED DILUTED EARNINGS PER SHARE	Three Months Ended				Nine Months Ended
	Sep 30, 2022		Oct 2, 2021		Sep 30, 2022		Oct 2, 2021
GAAP Diluted Earnings Per Share	$	1.80	$	1.95	$	5.76	$	5.69
Restructuring and Related Costs	0.29		0.05		0.47		0.19
Transaction and Related Costs	—		0.59		0.05		1.14
Inventory Step Up Adjustment	(0.04)		—		0.06		—
Intangible Amortization	0.51		0.20		1.56		0.61
Share-Based Compensation Expense	0.08		0.07		0.22		0.21
Gain on Sale of Assets	—		(0.03)		(0.04)		(0.04)
Loss on Businesses Divested and Assets to be Exited	—		0.05		—		0.09
Discrete Tax Items	0.02		—		0.02		—
Adjusted Diluted Earnings Per Share	$	2.66	$	2.88	$	8.10	$	7.89

2022 ADJUSTED ANNUAL GUIDANCE	Minimum		Maximum
2022 Diluted EPS Annual Guidance	$	7.15	$	7.55
Restructuring and Related Costs	0.72		0.72
Intangible Amortization	2.08		2.08
Share-Based Compensation Expense	0.30		0.30
Transaction and Related Costs	0.06		0.06
Inventory Step Up Adjustment	0.06		0.06
Gain on Sales of Assets	(0.04)		(0.04)
Discrete Tax Items	0.02		0.02
2022 Adjusted Diluted EPS Annual Guidance	$	10.35	$	10.75

	Three Months Ended
ADJUSTED EBITDA	Commercial Systems				Industrial Systems				Climate Solutions				Motion Control Solutions				Total Regal Rexnord
(Dollars in Millions)	Sep 30, 2022		Oct 2, 2021		Sep 30, 2022		Oct 2, 2021		Sep 30, 2022		Oct 2, 2021		Sep 30, 2022		Oct 2, 2021		Sep 30, 2022		Oct 2, 2021
GAAP Income from Operations	$	39.5	$	35.4	$	15.7	$	8.9	$	31.4	$	55.6	$	87.3	$	21.0	$	173.9	$	120.9
Restructuring and Related Costs	0.4		0.3		2.2		0.8		8.4		0.1		14.7		1.6		25.7		2.8
Transaction and Related Costs	—		—		—		—		—		—		—		16.1		—		16.1
Inventory Step Up Adjustment	—		—		—		—		—		—		(3.5)		—		(3.5)		—
Loss on Businesses Divested and Assets to be Exited	—		—		—		—		—		—		—		2.8		—		2.8
Loss (Gain) on Sale of Assets	—		0.2		—		(2.1)		—		—		—		—		—		(1.9)
Adjusted Income from Operations	$	39.9	$	35.9	$	17.9	$	7.6	$	39.8	$	55.7	$	98.5	$	41.5	$	196.1	$	140.7
Depreciation	$	5.6	$	5.7	$	3.1	$	5.6	$	3.9	$	3.5	$	15.9	$	5.2	$	28.5	$	20.0
Amortization	1.6		1.5		0.2		0.2		0.5		0.9		43.3		7.9		45.6		10.5
Other Income, Net	0.3		0.3		—		0.2		0.3		0.4		0.7		0.3		1.3		1.2
Adjusted Bank EBITDA	$	47.4	$	43.4	$	21.2	$	13.6	$	44.5	$	60.5	$	158.4	$	54.9	$	271.5	$	172.4
Share-Based Compensation Expense	$	1.1	$	0.9	$	0.4	$	0.4	$	1.3	$	1.4	$	3.0	$	1.0	$	5.8	$	3.7
Adjusted EBITDA	$	48.5	$	44.3	$	21.6	$	14.0	$	45.8	$	61.9	$	161.4	$	55.9	$	277.3	$	176.1
GAAP Operating Margin %	13.6%		13.2%		9.6%		6.0%		11.2%		20.7%		14.7%		10.1%		13.1%		13.5%
Adjusted Operating Margin %	13.8%		13.4%		10.9%		5.1%		14.3%		20.8%		16.6%		20.0%		14.8%		15.8%
Adjusted EBITDA Margin %	16.7%		16.5%		13.2%		9.5%		16.4%		23.1%		27.2%		26.9%		20.9%		19.7%

	Nine Months Ended
ADJUSTED EBITDA	Commercial Systems				Industrial Systems				Climate Solutions				Motion Control Solutions				Total Regal Rexnord
(Dollars in Millions)	Sep 30, 2022		Oct 2, 2021		Sep 30, 2022		Oct 2, 2021		Sep 30, 2022		Oct 2, 2021		Sep 30, 2022		Oct 2, 2021		Sep 30, 2022		Oct 2, 2021
GAAP Income from Operations	$	134.1	$	91.6	$	44.8	$	18.1	$	127.2	$	148.3	$	232.6	$	79.6	$	538.7	$	337.6
Restructuring and Related Costs	1.0		4.6		2.5		1.6		9.1		0.7		29.0		3.2		41.6		10.1
Transaction and Related Costs	—		—		—		—		—		—		4.3		37.9		4.3		37.9
Inventory Step Up Adjustment	—		—		—		—		—		—		5.5		—		5.5		—
Loss on Businesses Divested and Assets to be Exited	—		1.8		—		—		—		0.5		—		2.8		—		5.1
(Gain) Loss on Sale of Assets	(0.7)		0.2		—		(2.2)		—		—		(2.6)		(0.5)		(3.3)		(2.5)
Adjusted Income from Operations	$	134.4	$	98.2	$	47.3	$	17.5	$	136.3	$	149.5	$	268.8	$	123.0	$	586.8	$	388.2
Depreciation	$	17.3	$	17.6	$	9.7	$	16.6	$	11.8	$	9.6	$	52.2	$	16.2	$	91.0	$	60.0
Amortization	5.0		5.2		0.6		0.8		1.4		2.9		132.4		23.9		139.4		32.8
Other Income, Net	0.9		0.9		0.4		0.6		0.9		1.2		1.9		0.9		4.1		3.6
Adjusted Bank EBITDA	$	157.6	$	121.9	$	58.0	$	35.5	$	150.4	$	163.2	$	455.3	$	164.0	$	821.3	$	484.6
Share-Based Compensation Expense	$	2.8	$	2.9	$	0.8	$	1.9	$	3.5	$	3.7	$	9.9	$	3.0	$	17.0	$	11.5
Adjusted EBITDA	$	160.4	$	124.8	$	58.8	$	37.4	$	153.9	$	166.9	$	465.2	$	167.0	$	838.3	$	496.1
GAAP Operating Margin %	15.2%		11.8%		9.7%		4.2%		15.0%		19.4%		13.1%		12.8%		13.6%		13.0%
Adjusted Operating Margin %	15.2%		12.7%		10.2%		4.1%		16.1%		19.5%		15.1%		19.7%		14.8%		15.0%
Adjusted EBITDA Margin %	18.1%		16.1%		12.7%		8.7%		18.2%		21.8%		26.2%		26.7%		21.1%		19.1%

DEBT TO EBITDA	Last Twelve Months
	Sep 30, 2022		Jan 1, 2022
Net Income	$	390.3	$	235.8
Interest Expense	58.1		60.4
Interest Income	(5.1)		(7.4)
Taxes	121.8		74.7
Depreciation and Amortization	308.2		170.6
EBITDA	$	873.3	$	534.1
Restructuring and Related Costs	53.5		22.0
Transaction and Related Costs	55.5		89.1
Impairments and Exit Related Costs	0.5		5.6
Goodwill Impairment	33.0		33.0
Inventory Step Up	29.8		24.3
Gain on Sale of Assets	(3.3)		(2.5)
Adjusted Bank EBITDA	$	1,042.3	$	705.6
Current Maturities of Long-Term Debt	$	30.7	$	4.9
Long-Term Debt	2,165.2		1,913.6
Total Gross Debt	$	2,195.9	$	1,918.5
Cash	(723.6)		(672.8)
Net Debt	$	1,472.3	$	1,245.7
Gross Debt/EBITDA	2.5		3.6
Gross Debt/Adjusted Bank EBITDA	2.1		2.7
Net Debt/EBITDA	1.7		2.3
Net Debt/Adjusted Bank EBITDA	1.4		1.8

FREE CASH FLOW	Three Months Ended						Nine Months Ended
	Sep 30, 2022			Oct 2, 2021			Sep 30, 2022			Oct 2, 2021
Net Cash Provided by Operating Activities	$	133.1		$	121.5		$	238.0		$	258.1
Additions to Property Plant and Equipment	(22.0)			(13.2)			(54.6)			(37.5)
Free Cash Flow	$	111.1		$	108.3		$	183.4		$	220.6
GAAP Net Income Attributable to Regal Rexnord Corporation	$	119.8		$	79.8		$	387.4		$	233.1
Early Debt Termination Charge	—			12.7			—			12.7
Loss on Businesses Divested and Impairments	—			2.8			—			5.1
Tax Effect from Loss on Businesses Divested and Impairments	—			(3.8)			—			(4.3)
Adjusted Net Income Attributable to Regal Rexnord Corporation	$	119.8		$	91.5		$	387.4		$	246.6
Free Cash Flow as a Percentage of Adjusted Net Income Attributable to Regal Rexnord Corporation	92.7		%	118.4		%	47.3		%	89.5		%

ADJUSTED EFFECTIVE TAX RATE	Three Months Ended						Nine Months Ended
	Sep 30, 2022			Oct 2, 2021			Sep 30, 2022			Oct 2, 2021
Income before Taxes	$	155.1		$	102.4		$	502.2		$	300.6
Provision for Income Taxes	33.2			21.0			110.0			62.9
Effective Tax Rate	21.4		%	20.5		%	21.9		%	20.9		%
Income before Taxes	$	155.1		$	102.4		$	502.2		$	300.6
Restructuring and Related Costs	25.7			2.8			41.6			10.1
Transaction and Related Costs	—			32.2			4.3			61.7
Inventory Step Up Adjustment	(3.5)			—			5.5			—
Intangible Amortization	45.6			10.5			139.4			32.8
Share-Based Compensation Expense	5.8			3.7			17.0			11.5
Gain on Sales of Assets	—			(1.9)			(3.3)			(2.5)
Loss on Businesses Divested and Assets to be Exited	—			2.8			—			5.1
Adjusted Income before Taxes	$	228.7		$	152.5		$	706.7		$	419.3
Provision for Income Taxes	$	33.2		$	21.0		$	110.0		$	62.9
Tax Effect from Restructuring and Related Costs	6.3			0.7			10.3			2.4
Tax Effect of Transaction and Related Costs	—			7.8			1.0			14.9
Tax Effect of Inventory Step Up Adjustment	(0.8)			—			1.3			—
Tax Effect of Intangible Amortization	11.2			2.5			34.2			7.9
Tax Effect of Share-Based Compensation Expense	0.8			0.9			2.3			2.8
Tax Effect of Gain on Sales of Assets	—			(0.5)			(0.8)			(0.6)
Tax Effect from Loss on Businesses Divested and Assets to be Exited	—			0.7			—			1.2
Discrete Tax Items	(1.4)			—			(1.4)			—
Adjusted Provision for Income Taxes	$	49.3		$	33.1		$	156.9		$	91.5
Adjusted Effective Tax Rate	21.6		%	21.7		%	22.2		%	21.8		%

ORGANIC SALES GROWTH	Three Months Ended
	September 30, 2022
	Commercial Systems			Industrial Systems			Climate Solutions			Motion Control Solutions			Total Regal Rexnord
Net Sales Three Months Ended Sep 30, 2022	$	289.9		$	163.5		$	279.2		$	592.7		$	1,325.3
Net Sales from Businesses Acquired	—			—			—			(382.1)			(382.1)
Impact from Foreign Currency Exchange Rates	9.7			6.2			2.4			4.5			22.8
Organic Sales Three Months Ended Sep 30, 2022	$	299.6		$	169.7		$	281.6		$	215.1		$	966.0
Net Sales Three Months Ended Oct 2, 2021	$	268.7		$	148.0		$	268.4		$	207.6		$	892.7
Adjusted Net Sales Three Months Ended Oct 2, 2021	$	268.7		$	148.0		$	268.4		$	207.6		$	892.7
Three Months Ended Sep 30, 2022 Organic Sales Growth %	11.5		%	14.7		%	4.9		%	3.6		%	8.2		%
Three Months Ended Sep 30, 2022 Net Sales Growth %	7.9		%	10.5		%	4.0		%	185.5		%	48.5		%
ORGANIC SALES GROWTH	Nine Months Ended
	September 30, 2022
	Commercial Systems			Industrial Systems			Climate Solutions			Motion Control Solutions			Total Regal Rexnord
Net Sales Nine Months Ended Sep 30, 2022	$	885.1		$	462.9		$	846.6		$	1,778.6		$	3,973.2
Net Sales from Businesses Acquired	—			—			—			(1,123.7)			(1,123.7)
Impact from Foreign Currency Exchange Rates	18.9			11.8			5.0			10.5			46.2
Organic Sales Nine Months Ended Sep 30, 2022	$	904.0		$	474.7		$	851.6		$	665.4		$	2,895.7
Net Sales Nine Months Ended Oct 2, 2021	$	775.0		$	429.6		$	764.8		$	624.3		$	2,593.7
Adjusted Net Sales Nine Months Ended Oct 2, 2021	$	775.0		$	429.6		$	764.8		$	624.3		$	2,593.7
Nine Months Ended Sep 30, 2022 Organic Sales Growth %	16.6		%	10.5		%	11.3		%	6.6		%	11.6		%
Nine Months Ended Sep 30, 2022 Net Sales Growth %	14.2		%	7.8		%	10.7		%	184.9		%	53.2		%

EX-99.2

Creating a better tomorrow™… Third Quarter 2022 Earnings November 1, 2022 Louis Pinkham, Chief Executive Officer Rob Rehard, Vice President, Chief Financial Officer

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… 3Q 2022 FORWARD LOOKING STATEMENTS 2 This presentation contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which reflect Regal Rexnord’s current estimates, expectations and projections about Regal Rexnord’s future results, performance, prospects and opportunities. Forward-looking statements include statements that are not historical facts and can be identified by forward-looking words such as “anticipate,” “believe,” “confident,” “estimate,” “expect,” “intend,” “plan,” “target,” “may,” “will,” “project,” “forecast,” “would,” “could,” “should,” and similar expressions. These forward-looking statements are based upon information currently available to Regal Rexnord and are subject to a number of risks, uncertainties, and other factors that could cause actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Important factors that could cause Regal Rexnord’s actual results to differ materially from the results referred to in the forward-looking statements Regal Rexnord makes in this release include: the possibility that the conditions to the consummation of the proposed acquisition of Altra Industrial Motion Corp. (the “Proposed Acquisition”) will not be satisfied on the terms or timeline expected, or at all; failure to obtain, or delays in obtaining, or adverse conditions related to obtaining shareholder or regulatory approvals sought in connection with the Proposed Acquisition; failure to achieve the proposed debt financing necessary for the Proposed Acquisition on the desired terms, or at all; Regal Rexnord’s substantial indebtedness as a result of the Proposed Acquisition and the effects of such indebtedness on the combined company’s financial flexibility after the Proposed Acquisition; Regal Rexnord’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; the possibility that Regal Rexnord may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the Proposed Acquisition, the merger with Rexnord Process & Motion Control business (the “Rexnord PMC business”) and the acquisition of Arrowhead Systems, LLC (“Arrowhead”) (together with the Proposed Acquisition and the merger with the Rexnord PMC business, the “Transactions”) within the expected time-frames or at all and to successfully integrate Altra, the Rexnord PMC business and Arrowhead; Regal Rexnord’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 Regal Rexnord’s results, operations and financial condition, including the impact from costs to execute and finance any such transactions; expected or targeted future financial and operating performance and results; operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) being greater than expected following the Transactions; Regal Rexnord’s ability to retain key executives and employees; the continued financial and operational impacts of and uncertainties relating to the COVID-19 pandemic on customers and suppliers and the geographies in which they operate; uncertainties regarding the ability to execute restructuring plans within expected costs and timing; challenges to the tax treatment that was elected with respect to the acquisition of the Rexnord PMC business and related transactions; requirements to abide by potentially significant restrictions with respect to the tax treatment of the Rexnord PMC business which could limit Regal Rexnord’s ability to undertake certain corporate actions that otherwise could be advantageous; actions taken by competitors and their ability to effectively compete in the increasingly competitive global electric motor, drives and controls, power generation and power transmission industries; the ability to develop new products based on technological innovation, such as the Internet of Things, and marketplace acceptance of new and existing products, including products related to technology not yet adopted or utilized in geographic locations in which Regal Rexnord does business; dependence on significant customers; seasonal impact on sales of products into HVAC systems and other residential applications; risks associated with global manufacturing, including public health crises and political, societal or economic instability, including instability caused by the conflict between Russia and Ukraine; issues and costs arising from the integration of acquired companies and businesses and the timing and impact of purchase accounting adjustments; Regal Rexnord’s overall debt levels and its ability to repay principal and interest on its outstanding debt; prolonged declines in one or more markets, such as heating, ventilation, air conditioning, refrigeration, power generation, oil and gas, unit material handling, water heating and aerospace; 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, immigration, customs, border actions and the like, and other external factors that Regal Rexnord 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, particularly in high volume applications or where such failures are alleged to be the cause of property or casualty claims; unanticipated liabilities of acquired businesses; unanticipated adverse effects or liabilities from business exits or divestitures; 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; effects on earnings of any significant impairment of goodwill; losses from failures, breaches, attacks or disclosures involving information technology infrastructure and data; cyclical downturns affecting the global market for capital goods; and other risks and uncertainties including, but not limited, to those described in the section entitled “Risk Factors” in Regal Rexnord’s Annual Report on Form 10-K on file with the SEC and from time to time in other filed reports including Regal Rexnord’s Quarterly Reports on Form 10-Q. For a more detailed description of the risk factors associated with Regal Rexnord, please refer to Part I, Item 1A in the Regal Rexnord Annual Report on Form 10-K for the fiscal year ended January 1, 2022 on file with the SEC and subsequent SEC filings. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this presentation are made only as of the date of this presentation and Regal Rexnord undertakes no obligation to update any forward-looking information contained in this presentation or with respect to the announcements described herein to reflect subsequent events or circumstances.

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… NON-GAAP FINANCIAL MEASURES 3 3Q 2022 We prepare 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 presentation, 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 debt, adjusted EBITDA, adjusted EBITDA margin, adjusted bank EBITDA, adjusted net income attributable to Regal Rexnord Corporation, free cash flow, free cash flow as a percentage of adjusted net income attributable to Regal Rexnord Corporation, 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, adjusted operating income, and adjusted operating margin to help us manage and evaluate our business and make operating decisions, while adjusted diluted earnings per share, net debt, adjusted EBITDA, adjusted EBITDA margin, adjusted bank EBITDA, adjusted net sales, adjusted net income attributable to Regal Rexnord Corporation, free cash flow, free cash flow as a percentage of adjusted net income attributable to Regal Rexnord Corporation, adjusted income before taxes, adjusted provision for income taxes and adjusted effective tax rate 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. For forward-looking non-GAAP measures (as used in this presentation, net leverage), we are unable to provide a reconciliation to the most comparable GAAP financial measure because the information needed to reconcile these measures is dependent on future events, many of which are outside of management’s control as described under the heading “Forward Looking Statements” elsewhere in this presentation. Additionally, estimating such GAAP measures and providing a meaningful reconciliation consistent with our accounting policies for future periods is extremely difficult and requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort. Forward- looking non-GAAP measures are estimated with the relevant definitions and assumptions, except as otherwise noted. 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” to 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.

Creating a better tomorrow™… Opening Comments & Overview LOUIS PINKHAM, CEO 3Q 2022 Results, 2022 Outlook ROB REHARD, CFO Altra Acquisition LOUIS PINKHAM, CEO Questions & Answers Closing Remarks LOUIS PINKHAM, CEO 4Q 2021

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… • Strong Organic Sales Growth, Positive Price/Cost, EBITDA Margin Expansion • Free Cash Flow Conversion (1) Improving, 3Q At 93% • Order Moderation As Expected o Up Double Digits Vs. 3Q 2019 And 3Q 2020 o Book-To-Bill Remains Strong • Large Backlog Bolsters Top Line Outlook • M&A Synergies Driving Margin Gains In MCS o Solid Powertrain & Cross-Sell Momentum • Focused On Controllable Execution * Non-GAAP Financial Measurement, See Appendix for Reconciliation. OPENING COMMENTS ($ in millions, except per share data) 3Q 2021 3Q 2022 Adjusted Net Sales* $892.7 $1,325.3 Adjusted EBITDA* $176.1 $277.3 Adjusted EBITDA Margin* 19.7% 20.9% Adjusted Diluted EPS* $2.88 $2.66 Free Cash Flow* $108.3 111.1 5 3Q 2022 (1) Represents free cash flow as a percentage of adjusted net income attributable to Regal Rexnord Corporation. See Appendix for Reconciliation.

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… INDUSTRIAL POWERTRAIN MOMENTUM 3Q 2022 6Delivering Optimized Powertrains That Are More Efficient & Improve Productivity Powertrain Solution Win Evidences Differentiated Value-Added In An Attractive End Market Customer Problem A grain processing customer involved in the production of ethanol, renewable diesel, and biodiesels was looking for an integrated solution that delivered higher efficiency and improved productivity in its facility’s bucket elevators. Regal Rexnord Solution • Our industry engineering team leveraged its application knowledge to design and build a complete solution, which included a Marathon motor, our Falk gearbox and couplings, and Rexnord bearings. • The Regal Rexnord design is optimized by power balancing the solution’s various engineered components. Regal Rexnord / Customer Win-Win RRX’s optimized Powertrain solution reduced the customer’s operational complexity, which also reduced installation time. The integrated, optimized components increased energy efficiency and raised reliability. We estimate the customer will see significant cost reductions tied to uptime and energy costs.

Creating a better tomorrow™… 4Q 2021 Opening Comments & Overview LOUIS PINKHAM, CEO 3Q 2022 Results, 2022 Outlook ROB REHARD, CFO Altra Acquisition LOUIS PINKHAM, CEO Questions & Answers Closing Remarks LOUIS PINKHAM, CEO

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… MOTION CONTROL SOLUTIONS * Non-GAAP Financial Measurement, See Appendix for Reconciliation. Margin Momentum Accelerates, Aided By Merger Synergies Sales • Organic Sales* Up 3.6% • Key Drivers • General Industrial • Aerospace • Alt. Energy (-) Adjusted EBITDA Margin* • 27.2% of Adj. Net Sales $21.3 $39.0 8 $189.8 Adjusted EBITDA* ($ Millions) Adjusted Net Sales* ($ Millions) 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… Adjusted Net Sales* ($ Millions) Sales • Organic Sales* Up 4.9% • Key Drivers • N.A. Resi HVAC • General Industrial • Europe (-) Adjusted EBITDA Margin* • 16.4% of Adj. Net Sales CLIMATE SOLUTIONS * Non-GAAP Financial Measurement, See Appendix for Reconciliation. Share Gains & Price Supporting Top Line Gains $268.4 $166.9 166.9$268.4 9 Adjusted EBITDA* ($ Millions) 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… Adjusted Net Sales* ($ Millions) Sales • Organic Sales* Up 11.5% • Key Drivers • C-HVAC • N.A. General Industrial • Pool Pump (-) Adjusted EBITDA Margin* • 16.7% of Adj. Net Sales COMMERCIAL SYSTEMS * Non-GAAP Financial Measurement, See Appendix for Reconciliation. Strong Outgrowth, Price Realization Delivering Differentiated Top Line Performance 10 Adjusted EBITDA* ($ Millions) 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… Sales • Organic Sales* Up 14.7% • Key Drivers • U.S. General Industrial • China (-) Adjusted EBITDA Margin* • 13.2% of Adj. Net Sales INDUSTRIAL SYSTEMS * Non-GAAP Financial Measurement, See Appendix for Reconciliation. Operating Improvements Supporting Top Line Strength, Sizable Y/Y Margin Gains 11 Adjusted Net Sales* ($ Millions) Adjusted EBITDA* ($ Millions) 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… Capital Expenditures • $22.0 Million in 3Q 2022 Effective Tax Rate (ETR) • 21.6% Adj. ETR* in 3Q 2022 Restructuring & Related Costs • $25.7 Million in 3Q 2022 KEY FINANCIAL METRICS & OTHER UPDATES Balance Sheet at September 30, 2022 • Total Debt of $2,195.9 Million • Net Debt of $1,472.3 Million • Net Debt/Adj. Bank EBITDA* of 1.4 Free Cash Flow* • $111.1 Million in 3Q 2022 • Expect FCF Conversion of ~95% in 2022 * Non-GAAP Financial Measurement, See Appendix for Reconciliation. 12 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… Raising Guidance Mid-Point • Revising Adjusted Diluted Earnings per Share* Guidance to a Range of $10.35 to $10.75 from $10.20 to $10.80. o Mid-Point Rises $0.05 to $10.55 • Continue to Expect Organic Revenue Growth at a High Single Digit Rate. Modeling Items • Stock-Based Compensation of $23M • Depreciation of $125M • Amortization of $187M • Interest Expense, net of $66M • Adjusted Tax Rate of 22.5% • Noncontrolling Interest of $5M • Diluted Shares of 67.2M • Capital Expenditures of $125M • FCF % of Net Income ~95% UPDATING 2022 OUTLOOK * Adjusted EPS is a non-GAAP financial measures; see Appendix for reconciliations. 13 3Q 2022

Creating a better tomorrow™… 4Q 2021 Opening Comments & Overview LOUIS PINKHAM, CEO 3Q 2022 Results, 2022 Outlook ROB REHARD, CFO Altra Acquisition LOUIS PINKHAM, CEO Questions & Answers Closing Remarks LOUIS PINKHAM, CEO

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… A Unique Opportunity For Significant Long Term Value Creation • Clear Strategic Logic: Transforms RRX’s Automation Capability & Enhances Powertrain Offering • Strong Financial Returns Expected: Accretive Y1, DD Accretion Thereafter, ROIC>10% by Y5, Path to 40% GM, Sizable Revenue & Cost Synergies • Compelling Valuation: 13.6x LTM EBITDA, 9.5x w/ Cost Synergies • Manageable Leverage: Strong FCF, Expect Rapid De-Levering – Even in Conservative Sensitivity Scenarios • Transaction Timing: Thoroughly Factored Actionability and Certainty, as well as Macro Considerations ALTRA ACQUISITION * LTM Sep. 30, 2022 ** Estimated; Assumes 50% run-rate cost synergies 15 3Q 2022 Power Transmission Technologies Automation & Specialty Gear Drives & Gear Motors Couplings & Joints Clutches & Brakes Precision Motors & Automation Linear Systems Miniature Motors ~$1.9B* Net Sales ~$1B* Backlog ~19.5%* Adj. EBITDA Margin >35%* Gross Margin ~$40 ~$100 ~$140 ~$160 2023E 2024E 2025E 2026E COGS SG&A Cost Synergies ($M) ~3.9x 2.5x – 3.0x 2.0x – 2.5x At Close** 2024E LT Target Pro Forma Net Leverage

Creating a better tomorrow™… 4Q 2021 Opening Comments & Overview LOUIS PINKHAM, CEO 3Q 2022 Results, 2022 Outlook ROB REHARD, CFO Altra Acquisition LOUIS PINKHAM, CEO Questions & Answers Closing Remarks LOUIS PINKHAM, CEO

Creating a better tomorrow™… 4Q 2021 Opening Comments & Overview LOUIS PINKHAM, CEO 3Q 2022 Results, 2022 Outlook ROB REHARD, CFO Altra Acquisition LOUIS PINKHAM, CEO Questions & Answers Closing Remarks LOUIS PINKHAM, CEO

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… APPENDIX 18 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… APPENDIX 19 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… APPENDIX 20 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… APPENDIX 21 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… APPENDIX 22 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… APPENDIX 23 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… APPENDIX 24 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… APPENDIX 25 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… APPENDIX 26 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… APPENDIX 27 3Q 2022

©2022 Regal Rexnord Corporation, Proprietary and Confidential Creating a better tomorrow™… APPENDIX 28 3Q 2022

XML

Cover Page Document	Oct. 31, 2022
Cover [Abstract]
Title of 12(b) Security	Common Stock
Entity Incorporation, State or Country Code	WI
Entity Central Index Key	0000082811
Document Type	8-K
Amendment Flag	false
Entity File Number	1-7283
Entity Tax Identification Number	39-0875718
Trading Symbol	RRX
Security Exchange Name	NYSE
Document Period End Date	Oct. 31, 2022
Entity Registrant Name	Regal Rexnord Corp
Entity Address, Address Line One	200 State Street
Entity Address, City or Town	Beloit
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53511-6254
City Area Code	608
Local Phone Number	364-8800
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false