Summary
Rockwell Automation, Inc. (ROK) reported a strong fiscal year 2022, with total sales increasing by 10.9% to $7.76 billion. The company's performance was driven by robust demand across its segments, particularly in Intelligent Devices and Software & Control, with organic sales growth of 11.3%. This growth was supported by strategic acquisitions and a focus on integrating advanced industrial automation with information technology to deliver customer value. Despite facing supply chain pressures and increased input costs, Rockwell Automation demonstrated resilience through pricing actions and cost productivity initiatives. The company highlights its strategic focus on driving organic sales growth above the automation market, expanding its recurring revenue streams, and enhancing market access through its partner network. Management provided positive outlook guidance for fiscal year 2023, anticipating continued sales growth and earnings per share improvement, supported by a record order backlog. Key risks identified include macroeconomic volatility, supply chain disruptions, and cybersecurity threats, which the company actively manages through its Enterprise Risk Management process. Investors should note the significant impact of the change in fair value of its investment in PTC Inc. on reported earnings.
Financial Highlights
57 data points| Revenue | $7.76B |
| Cost of Revenue | $4.66B |
| Gross Profit | $3.10B |
| R&D Expenses | $440.90M |
| SG&A Expenses | $1.77B |
| Interest Expense | $123.20M |
| Net Income | $932.20M |
| EPS (Basic) | $8.02 |
| EPS (Diluted) | $7.97 |
| Shares Outstanding (Basic) | 115.90M |
| Shares Outstanding (Diluted) | 116.70M |
Key Highlights
- 1Total sales increased by 10.9% to $7.76 billion in fiscal year 2022, driven by strong demand and strategic acquisitions.
- 2Organic sales grew by 11.3%, reflecting broad-based growth across operating segments, with Intelligent Devices and Software & Control showing particular strength.
- 3The company reported a record order backlog of $5.197 billion at the end of fiscal year 2022, indicating strong future demand.
- 4Segment operating earnings increased by 10.9% to $1.54 billion, with the Software & Control segment showing a significant 25.6% year-over-year increase in operating earnings.
- 5Rockwell Automation provided an optimistic fiscal year 2023 outlook, projecting reported sales growth of 7.5% - 11.5% and Adjusted EPS between $10.20 - $11.00.
- 6The company is actively managing supply chain challenges through investments in capacity, longer-term supplier agreements, and supplier diversification.
- 7Despite increased input costs and investment spend, the company effectively utilized pricing increases to offset these pressures and maintain healthy margins.