01—Abstract
Summary
Summary of the 10-K filed November 9, 2021. Cited figures are marked; the original filing is the authoritative source.
Rockwell Automation, Inc. (ROK) demonstrated a strong recovery in fiscal year 2021, with total sales increasing by 10.5% year-over-year to $6,997.4 milliona.
This growth was driven by broad-based demand across its three operating segments: Intelligent Devices, Software & Control, and Lifecycle Services. The company's strategic focus on digital transformation and industrial automation is evident in its performance, with notable acquisitions like Plex Systems and Fiix Inc. bolstering its software and connected services offerings. Despite facing supply chain challenges and inflationary pressures, Rockwell Automation's outlook for fiscal year 2022 remains positive, with guidance for reported sales growth between 16%-19% and Adjusted EPS between $10.50b-$11.10.
The company is actively managing its supply chain and investing in technology to maintain its competitive edge. Furthermore, Rockwell Automation continues to prioritize shareholder returns, evidenced by its share repurchase program and consistent dividend payments, underscoring its commitment to creating long-term shareholder value.
02—Key points
Key Highlights
- Total sales increased by 10.5% to $6,997.4 million in fiscal year 2021, indicating a robust recovery and growth.
- The company completed several strategic acquisitions in fiscal 2021, including Plex Systems and Fiix Inc., to enhance its software and digital transformation capabilities.
- Operating segments showed improved performance, with Intelligent Devices sales up 12.0% and Software & Control sales up 15.8%. Lifecycle Services saw a more modest 2.7% increase in sales.
- Record order backlog entering fiscal year 2022 provides a strong foundation for continued growth, reflecting high demand for Rockwell Automation's offerings.
- The company provided a positive outlook for fiscal year 2022, projecting reported sales growth of 16%-19% and Adjusted EPS between $10.50-$11.10.
- Rockwell Automation generated strong free cash flow of $1,140.7 million in fiscal year 2021, up from $1,006.6 million in fiscal year 2020, supporting investments and shareholder returns.
- The company repurchased approximately $301.4 million of its common stock in fiscal year 2021, demonstrating a commitment to returning capital to shareholders.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed November 9, 2021Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $7.00B$6.33B | +10.5% |
| Cost of Revenue | $4.10B$3.73B | +9.8% |
| Gross Profit | $2.90B$2.60B | +11.7% |
| R&D Expenses | $422.50M$371.50M | +13.7% |
| SG&A Expenses | $1.68B$1.48B | +13.5% |
| Interest Expense | $94.60M$103.50M | −8.6% |
| Net Income | $1.36B$1.02B | +32.7% |
| EPS (Basic) | $11.69$8.83 | +32.4% |
| EPS (Diluted) | $11.58$8.77 | +32.0% |
| Shares Outstanding (Basic) | 116.00M115.80M | +0.2% |
| Shares Outstanding (Diluted) | 117.10M116.60M | +0.4% |
05—Questions
Frequently Asked Questions
What was Rockwell Automation's financial performance in fiscal year 2021?
In fiscal year 2021, Rockwell Automation reported a significant increase in sales, up 10.5% to $6,997.4 million. This growth was driven by strong demand across its Intelligent Devices, Software & Control, and Lifecycle Services segments. The company also demonstrated improved profitability, with diluted EPS increasing to $11.58 from $8.77 in the prior year.
What are the company's key growth strategies and recent acquisitions?
Rockwell Automation's strategy focuses on driving organic sales growth, expanding market share, and increasing recurring revenue through information solutions and connected services. Key acquisitions in fiscal year 2021, such as Plex Systems and Fiix Inc., are aimed at strengthening its position in cloud-native manufacturing platforms and AI-enabled maintenance systems, aligning with the trend towards digital transformation in industrial automation.
What are the main risks and challenges facing Rockwell Automation?
The company faces several risks, including disruptions from pandemics and natural disasters, supply chain constraints affecting component availability and costs, macroeconomic cyclicality impacting customer capital spending, and intense competition. Cybersecurity threats to its products and systems, as well as the ability to attract and retain qualified talent, are also significant considerations.
How did the company manage its capital and shareholder returns during the year?
Rockwell Automation generated substantial free cash flow of $1,140.7 million in fiscal year 2021. The company actively managed its capital structure by issuing new long-term debt to fund acquisitions and continued its share repurchase program, buying back approximately $301.4 million of its common stock. Dividend payments also remained a priority.
06—Continue