2024-06-16 05:40:23 ET
Summary
- Regal Rexnord has become a more diversified and better positioned business, among others active in power transmission.
- Despite this transformation, I have concerns remain about high leverage and softer organic performance, leading to a cautious outlook on the company.
- Recent financial results show a decline in organic sales and adjusted earnings, with continued weakness seen, while deleveraging is desired here.
In the fall of last year, I called shares of Regal Rexnord ( RRX ) appealing, but uncertain at the same time. The company has been seeing tougher times as of recent, with organic sales declines weighing on profitability here, limiting the potential to deleverage....
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Regal Rexnord: Leverage Overhang As Organic Performance Slows