Mar. 19 at 10:37 AM
$RRX Regal Rexnord announces annualized cost impact from tariffs of
$60M
Regal Rexnord, in conjunction with its participation at the Bank of America Global Industrials Conference 2025 in London, is providing the investment community with additional clarity related to estimated impacts from current and potential U.S. tariffs on imports from Canada, China, and Mexico, as well as on steel and aluminum. Based on information currently available, and excluding the potential impacts from any retaliatory tariffs, the company estimates a gross, unmitigated annualized cost impact from tariffs that are currently in place at approximately
$60M.
This estimate reflects that the vast majority of goods the company imports from Canada and Mexico are compliant with the United States-Mexico-Canada Agreement and so are currently exempt from tariffs. The company has plans in place intended to fully mitigate the impacts of tariffs in the year - at current levels and under a scenario where there is no USMCA exclusion. These mitigation plans may include supply chain realignments, production relocations, and productivity and pricing actions, and should enable the company to be at least price/cost neutral on a dollar basis.
The company expects to be neutral on a margin basis by the end of 2025 under the tariff regime currently in effect, or by the first half of 2026 under a scenario where there are no USMCA exclusions. The company is further clarifying that tariffs currently in place are expected to have a negligible impact on the company's first quarter results. The company undertakes no obligation to update the information in this press release related to the impacts of tariffs on future quarters, although it may do so from time to time as it believes is appropriate and as clarity around the tariff terms and duration, as well as progress on its mitigation efforts, becomes available.
