01—Abstract
Summary
Summary of the 10-K filed November 8, 2023. Cited figures are marked; the original filing is the authoritative source.
Rockwell Automation, Inc. (ROK) reported strong performance in its fiscal year 2023, with total sales increasing by 16.7% to $9.06 billiona.
This growth was driven by broad-based demand across its three operating segments: Intelligent Devices, Software & Control, and Lifecycle Services. The company also saw significant growth in its annual recurring revenue (ARR), up approximately 16%. Despite a goodwill impairment charge of $157.5 millionb related to its Sensia joint venture, net income attributable to Rockwell Automation increased to $1.39 billion, and diluted Earnings Per Share (EPS) rose to $11.95, up from $7.97 in the prior year.
Adjusted EPS showed a similar upward trend, increasing by 27.7% to $12.12c. The company's strategy focuses on expanding human possibility and creating the future of industrial operations through its 'Connected Enterprise' vision, leveraging megatrends like digitization, AI, and sustainability.
Management highlighted investments in technology innovation, domain expertise, and market expansion, particularly in Asia Pacific and EMEA, as key drivers for future profitable growth. The company also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders.
02—Key points
Key Highlights
- Total sales for fiscal year 2023 reached $9.06 billion, a 16.7% increase year-over-year, driven by strong performance across all operating segments.
- Net income attributable to Rockwell Automation grew to $1.39 billion, with diluted EPS increasing to $11.95 from $7.97 in the prior year.
- Adjusted EPS rose by 27.7% to $12.12, reflecting improved operational performance.
- Annual Recurring Revenue (ARR) saw robust growth of approximately 16% year-over-year.
- The company incurred a $157.5 million goodwill impairment charge related to its Sensia joint venture.
- Rockwell Automation's strategy emphasizes leveraging technology, industry expertise, and market expansion, with a focus on digitization and sustainability.
- The company continues to return capital to shareholders through its share repurchase program and dividends.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Rockwell Automation kept $0.15.
- Revenue$9.06B100.0%
- Cost of revenue−$4.63B51.2%
- Gross profit$4.42B48.8%
- Operating costs−$2.49B27.5%
- Operating income$1.93B21.3%
- Interest, other & tax−$542.0M6.0%
- Net income$1.39B15.3%
04—Financials
Financial Highlights
Figures from 10-KFY2023filed November 8, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $9.06B$7.76B | +16.7% |
| Cost of Revenue | $4.63B$4.66B | −0.5% |
| Gross Profit | $4.42B$3.10B | +42.6% |
| R&D Expenses | $706.00M$440.90M | +60.1% |
| SG&A Expenses | $2.02B$1.77B | +14.6% |
| Operating Income | $1.93B— | — |
| Interest Expense | $135.30M$123.20M | +9.8% |
| Net Income | $1.39B$932.20M | +48.8% |
| EPS (Basic) | $12.03$8.02 | +50.0% |
| EPS (Diluted) | $11.95$7.97 | +49.9% |
| Shares Outstanding (Basic) | 114.80M115.90M | −0.9% |
| Shares Outstanding (Diluted) | 115.60M116.70M | −0.9% |
05—Questions
Frequently Asked Questions
What was Rockwell Automation's overall financial performance in fiscal year 2023?
Rockwell Automation reported a strong fiscal year 2023 with total sales of $9.06 billion, up 16.7% from the previous year. Net income attributable to Rockwell Automation increased to $1.39 billion, and diluted EPS rose to $11.95. The company's adjusted EPS also showed significant growth, up 27.7% to $12.12.
What are the key growth drivers and strategic priorities for Rockwell Automation?
The company's growth is driven by customer needs for resiliency, agility, and sustainability in manufacturing. Key strategic priorities include achieving faster growth in traditional markets, expanding market share through technology differentiation and industry focus, accelerating growth in annual recurring revenue, and making strategic acquisitions that contribute about 1% to annual growth. The company is also focused on leveraging digitization, AI, and sustainability trends.
Did Rockwell Automation experience any significant charges or impairments during the year?
Yes, Rockwell Automation recorded a goodwill impairment charge of $157.5 million in the fourth quarter of fiscal year 2023. This impairment was related to its Sensia joint venture, stemming from downward revisions in growth and profitability projections due to challenging market conditions in the Oil & Gas industry.
How is the company managing its capital and returning value to shareholders?
Rockwell Automation generated strong free cash flow of $1.21 billion in fiscal year 2023. The company continues to actively manage its capital structure, with plans for future uses including capital expenditures, acquisitions, dividends, and share repurchases. As of September 30, 2023, approximately $940.3 million remained authorized for share repurchases.
06—Continue