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BAIRD GLOBAL INDUSTRIAL CONFERENCE NOVEMBER 12, 2025
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Forward Looking Statements And Non-GAAP Financial Measures 2 All statements in this presentation, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as “anticipate,” “believe,” “confident,” “estimate,” “expect,” “intend,” “plan,” “may,” “will,” “project,” “forecast,” “would,” “could,” “should,” “opportunity,” and similar expressions, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Forward-looking statements include, but are not limited to, statements about expected market or macroeconomic trends, future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements in these presentations include, without limitation: the possibility that the Company may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the sale of the Industrial Motors and Generators businesses, the acquisition of Altra Industrial Motion Corp. ("Altra Transaction"), and the merger with the Rexnord Process & Motion Control business (the “Rexnord PMC business”) within the expected time-frames or at all and to successfully integrate Altra Industrial Motion Corp. ("Altra") and the Rexnord PMC business; the Company's substantial indebtedness as a result of the Altra Transaction and the effects of such indebtedness on the Company's financial flexibility; the Company'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; unanticipated operating costs, customer loss and business disruption; the Company's ability to retain key executives and employees; uncertainties regarding our ability to execute restructuring plans within expected costs and timing; challenges to the tax treatment that was elected with respect to the merger with the Rexnord PMC business and related transactions; 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; our ability to develop new products based on technological innovation, such as the Internet of Things and artificial intelligence, and marketplace acceptance of new and existing products; dependence on significant customers and distributors; risks associated with climate change and uncertainty regarding our ability to deliver on our sustainability commitments and/or to meet related investor, customer and other third party expectations relating to our sustainability efforts; risks associated with global manufacturing, including risks associated with public health crises and political, societal or economic instability, including instability caused by ongoing geopolitical conflicts; issues and costs arising from the integration of acquired companies and businesses; prolonged declines in one or more markets; risks associated with excess or obsolete inventory charges including related write-offs or write-downs; 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 the Company 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; unanticipated liabilities of acquired businesses; unanticipated adverse effects or liabilities from business exits or divestitures; the Company'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 the Company's results, operations and financial condition, including the impact from costs to execute and finance any such transactions; 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; costs and unanticipated liabilities arising from rapidly evolving laws and regulations; and other factors that can be found in our filings with the SEC, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of these presentations and we disclaim any obligation to update or revise any forward looking statement, whether as a result of new information, future events or otherwise, except as required by law. In this presentation, we reference adjusted results which exclude certain items and we disclose certain non-GAAP financial measures. We reconcile these measures in the appendix to this presentation to the most directly comparable GAAP financial measures; non-GAAP financial measures may include measures such as: adjusted diluted earnings per share, adjusted income from operations, adjusted net sales, adjusted net sales, net sales from businesses acquired, net sales from businesses divested, adjusted gross margin, net debt, EBITDA, adjusted EBITDA, adjusted EBITDA margin, net debt/adjusted EBITDA, adjusted cash flows from operations and adjusted free cash flow. This presentation also includes non-GAAP forward-looking information. The Company believes that a quantitative reconciliation of this forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of non-GAAP financial measures would require the Company to predict the timing and likelihood of future restructurings and other charges. Neither these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measure is not provided. 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” 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
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General Commercial, 46% R-HVAC, 33% C-HVAC, 21% ~$5.9B Total Revenue ~38% Adj. Gross Margin* ~22% Adj. EBITDA Margin* ~30,000 Associates Regal Rexnord Snapshot1 (NYSE: RRX) 3 ~$2.6B Sales | ~42% Adj. GM* | ~26% Adj. EBITDA Margin* ~$1.6B Sales | ~40% Adj. GM* | ~22% Adj. EBITDA Margin* POWER MOTION TRANSMIT MOTION CONTROL MOTION POWER EFFICIENCY SOLUTIONS (PES) High Efficiency Electric Motors & Air Moving Solutions INDUSTRIAL POWERTRAIN SOLUTIONS (IPS) Power Transmission Components & Solutions AUTOMATION & MOTION CONTROL (AMC) High Precision Servo Motors, Actuators, Drives Premium Efficiency Motors Premium Efficiency Air Moving Systems Industrial Powertrains Bearings Servo Drives & Systems Servo Motors Linear Actuators ~$1.6B Sales | ~30% Adj. GM* | ~16% Adj. EBITDA Margin* Primary Markets Metals & Mining, 25% G.I., 42% Energy, 17% Discrete 10% C-HVAC 6% Automation, 25% Food & Bev., 22% Aero, 20% G.I., 15% Medical, 11% Data Center, 7% Primary Markets Primary Markets Gearing Couplings Clutches & Brakes 1 2024 data, giving effect to the sale of Industrial Systems * Non-GAAP financial measure. For reconciliation, see appendix to September 17, 2024 investor day materials available at https://investors.regalrexnord.com.
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1 Percent of 2024 Sales giving effect to the sale of the Industrial Systems businesses Making Targeted, High-Potential Growth Investments 4 Directing New Product, Channel & Sales Force Investments To High-Growth Verticals Discrete Automation - Labor Shortages - Labor Inflation - Robotics Proliferation ~20% of sales1 - Emissions Reduction - Electrification - eVTOL Fleet Emergence ~6% Aerospace Medical - Robotic Surgery Adoption - High-Precision Tool Adoption - Lab Automation Demand ~3% Sales By End Market General Industrial 25% Metals & Mining 11% HVAC 18% Energy 8% Other 6% Discrete Automation 20% Aerospace 6% Data Center 3% Data Center - AI Growth - Computing Power Gains - Cloud Services Expansion ~3% 1 Key Growth Verticals Medical 3%
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Pursuing Strategic Opportunities In Robotics Enabling Precision Motion Control Across A Range Of Robotics Applications 5 Humanoids Collaborative/”Cobots” Transport/AGV Surgical Precision motion in robotic appendages Frameless Direct Drive Motors Humanoids & Cobots Electromagnetic Brakes & Clutches Compact designs for precision robotic joint manipulation Precise robot motion control Medical / Surgical Miniature Precision Motors Precision Screws & Linear Guides Reliable, high-precision motion in operating room furniture & consoles High precision gears for robotic joints High-Precision Gearing Key RRX Products In Robotics Strategic Applications Joint control in humanoids Actuator Solutions
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Strong Position In Humanoids Micro Motors Components Miniature Brakes Precision Bearings Frameless Motors Solutions W H Y R R X I S W I N N I N G Scalable global manufacturing Extension of OEM engineering teams Quality leader in precision motion control Deep domain expertise • Market growth forecasts with 10Y CAGRs >50% • RRX has line of sight (next 3 years) to opportunities on all critical joints on the robot • RRX content addressing 30-50 axes of motion • Recent wins worth ~$30M, backlog growing • Opportunity Funnel Worth ~$100M G R O W T H O P P O R T U N I T Y Other Applications Agriculture, Education, Medical, Assisted Living, Public Safety Actuator System Ability to provide integrated solutions RRX Offering Target Applications Warehouse Manufacturing 6
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Aerospace - Electric Aircraft Solutions Partnership with Honeywell 7 Moving Up The Value Chain By Providing Integrated Solutions Why We Won • Aerospace heritage and pedigree • Depth and breadth of portfolio, supported by trusted brands • Qualified subject-matter expertise; Trusted advisor with an engineering focus • Ability to manufacture high precision, high quality solutions, at scale Market Growth Outlook • 2,000 Advanced Air Mobility (AAM) aircraft per year by 20301 • $220k ship set potential per plane Ball-Screws, Acme Screws Output Position Sensors Rod End Bearings Commutation Sensors Stepper Motors Gearbox: Bearings, Seals & Gears Electric Brakes RRX Electro-Mechanical Actuator 1 Aviation Week Intelligence Network Forecast https://aviationweek.com/system/files/market_briefings/aam/aam_07_24_2024.pdf
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Gaining Momentum In Data Center R E G A L R E X N O R D C A PA B I L I T I E S K E Y S U C C E S S F A C T O R S P R O D U C T S Quality Global Service Lead Times Enterprise Scale Ability To Flex Capacity P O W E R E F F I C I E N C Y S O L U T I O N S HVAC Chiller Components A U T O M AT I O N & M O T I O N C O N T R O L Switchgear Enabling standby & backup power in hyperscale data centers Fleet margins Begin shipping in 1Q 2026 $80M ORDER^ Engineered to support best in class energy efficiency Fleet margins Begin shipping in 1H 2026 N O TA B L E R E C E N T W I N S IPS COUPLINGS PES HERMETIC MOTORS AMC TRANSFER SWITCHES AMC SWITCHGEAR & TRANSFER SWITCHES IPS POWERTRAIN COOLING TOWER $20M ORDER^ PES AIR MOVING SOLUTIONS AMC POWER DISTRIBUTION UNIT $35M ORDER* ^ Announced 10/31/25 * Announced 8/5/25 ** Received in 4Q25 ~$1B Bid Pipeline ~$100M Bid Pipeline Customization $60M ORDER** 8
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Investing To Support Further Data Center Growth 9 ~$10 Billion market – with sizable potential growth serving Hyperscale, Colocation, and Edge data centers Regal Rexnord Modular Electrical Pod - Schematic Illustrative Example Of Future Modular Electrical Pod E-POD bid pipeline >$400 Million...and growing RRX content: switchgear, transfer switches, PDUs, air moving solutions + a single source for E-POD content Third party content typically includes the enclosure, UPS, batteries, and ancillary support equipment Customers order one SKU from RRX – a custom E-POD RRX's customizable modular Electrical Pods (E-PODs) provide scalable turnkey power management solutions New Facility in Dallas, Texas Square footage: ~100K ft2 First shipments: Mid-2026
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Well Positioned In Medical & Lab Automation RRX Products Can Support The Complete Suite Of Lab Automation Applications 10 Lab Automation Suite Digital Imaging Lab Automation Test Unit Tabletop Diagnostics AMC IPS Key RRX Products In Medical Strategic Applications Miniature Precision Motors Instrument control in surgical tools Motion Systems Servo & stepper motors enable smooth motion in surgical equipment Precision Ball & Lead Screws, Linear Guides Reliable, precise, quiet motion in compact designs Electromagnetic Brakes & Clutches Miniature Precision Belts & Gears Designed for robotic arms, surgical tools Miniature Precision Couplings Provide exceptional positional accuracy Compact solutions meet unique demands of medical applications
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Why Invest In RRX 11 We Believe RRX Is An Under-Valued Asset With Catalysts For Revaluation A High Quality Enterprise High Secular Exposures Technology Differentiated Solutions Strong Brands & Channel Positions Robust Aftermarket Sales Unrivaled Global Scale & Scope Highly Cash Generative • Organic Growth Poised To Accelerate • Significant Margin Progress & More To Come ….Much Of It Self-Help Driven • Strong… And Accelerating Free Cash Flow + A Path To Low/Mid-Teens FCF Margins • Significant Near-Term Equity Opportunity From Debt Paydown • Longer-Term Value Creation Opportunity From Bolt-On M&A & Stock Repurchases • Trading At A FCF Yield Of ~7%