Regal Rexnord Corporation (NYSE:RRX) Q3 2023 Earnings Conference Call November 2, 2023 10:00 AM ET
Company Participants
Robert Barry – Vice President-Investor Relations
Louis Pinkham – Chief Executive Officer
Rob Rehard – Chief Financial Officer
Conference Call Participants
Mike Halloran – Baird
Julian Mitchell – Barclays
Jeff Hammond – KeyBanc Capital Markets
Nigel Coe – Wolfe Research
Christopher Glynn – Oppenheimer
Operator
Good morning, and welcome to the Regal Rexnord Third Quarter 2023 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.
I would like now to turn the conference over to Robert Barry, Vice President, Investor Relations. Please go ahead.
Robert Barry
Great. Thank you, Alan. Good morning, and welcome to Regal Rexnord’s third quarter 2023 earnings conference call. Joining me today are Louis Pinkham, our Chief Executive Officer; and Rob Rehard, our Chief Financial Officer.
I’d like to remind you that during today’s call, you may hear forward-looking statements related to our future financial results, plans and business operations. Our actual results may differ materially from those projected or implied due to a variety of factors, which we described in greater detail in today’s press release and in our reports filed with the SEC which are available on the regalrexnord.com website.
On Slide 3, we state that we are presenting certain non-GAAP financial measures that we believe are useful to our investors, and have included reconciliations between the non-GAAP financial information and the GAAP equivalent in the press release and in the presentation materials.
Turning to Slide 4. Let me briefly review the agenda for today’s call. Louis will lead off with his opening comments and an overview of our 3Q performance. Rob Rehard will then provide our third quarter financial results in more detail and provide an update to our guidance. We will then move to Q&A, after which, Louis will have some closing remarks.
And with that, I’ll turn the call over to Louis.
Louis Pinkham
Great. Thanks, Rob, and good morning, everyone. Thanks for joining us to discuss our third quarter earnings to get an update on our business and for your continued interest in Regal Rexnord.
Our third quarter can be characterized by strong controllable execution against an end market backdrop that became weaker than we expected in the quarter, causing us to fall short of our sales and earning expectations for the quarter and for the year. Our strong execution is most evident in our cash flow performance. We generated $162 million of free cash flow in the quarter, keeping us firmly on track to hit our target of at least $650 million for 2023, even with the lower sales and EBITDA expectations.