Vivek Shri's questions to Regal Rexnord Corp (RRX) leadership • Q4 2024
Question
Vivek Shri of Goldman Sachs questioned the rationale for the Q1 organic sales decline in IPS, given positive orders and prior-quarter pushouts. He also sought confirmation on the steep Q4 2025 margin expansion and its primary drivers.
Answer
CEO Louis Pinkham reiterated that the Q1 IPS forecast is based on the current shippable backlog and book-ship assumptions, which show pressure despite underlying momentum and share gains. CFO Rob Rehard confirmed the target of exiting 2025 near a 25% EBITDA margin is correct, with the significant year-over-year expansion in Q4 driven primarily by favorable sales mix in the higher-margin AMC and IPS segments.