10-KPeriod: FY2024

ROCKWELL AUTOMATION, INC Annual Report, Year Ended Sep 30, 2024

Filed November 12, 2024For Securities:ROK

Summary

Rockwell Automation, Inc. (ROK) reported a decrease in sales for the fiscal year ended September 30, 2024, with total sales declining by 9% compared to the previous year. This downturn was driven by a significant 24% decrease in the Software & Control segment and a 7% decrease in the Intelligent Devices segment, partially offset by a 10% increase in the Lifecycle Services segment. Despite the sales challenges, the company continued to focus on its long-term strategy of industrial automation and digital transformation, aiming to enhance customer resilience, agility, and sustainability. The company's financial performance was impacted by macroeconomic factors and a shift in customer spending. While the company executed cost-optimization initiatives, including restructuring charges, the overall profitability decreased. Adjusted EPS fell to $9.71 from $12.12 in the prior year. However, Rockwell Automation maintained a strong commitment to returning capital to shareholders, with significant share repurchases during the period. The company also highlighted its ongoing investments in technology innovation and its strong talent management practices as key drivers for future growth.

Financial Highlights

55 data points
Beta

Revenue

$8.26B

46.6% Gross Margin

Net Income

$953.00M

11.5% Net Margin

EPS (Diluted)

$8.28

Total Assets

$11.23B

Cash & Equivalents

$471.00M

Free Cash Flow

$864.00M

Financial Statements
Beta
Revenue$8.26B
Cost of Revenue$4.41B
Gross Profit$3.85B
R&D Expenses$658.00M
SG&A Expenses$2.00B
Operating Income$1.59B
Net Income$953.00M
EPS (Basic)$8.32
EPS (Diluted)$8.28
Shares Outstanding (Basic)114.00M
Shares Outstanding (Diluted)114.50M

Key Highlights

  • 1Sales for the fiscal year ended September 30, 2024, decreased by 9% to $8.26 billion, compared to $9.06 billion in fiscal year 2023.
  • 2The Software & Control segment experienced a significant sales decline of 24%, while the Intelligent Devices segment saw a 7% decrease in sales.
  • 3Lifecycle Services segment sales increased by 10%, demonstrating resilience in that area.
  • 4Total segment operating margin decreased to 19.3% from 21.3% in the prior year, reflecting lower sales volumes and unfavorable mix.
  • 5Adjusted Earnings Per Share (EPS) declined by 20% to $9.71 from $12.12 in fiscal year 2023.
  • 6The company repurchased approximately $594.2 million of its common stock during fiscal year 2024.
  • 7Annual Recurring Revenue (ARR) showed strong growth, with total ARR increasing by approximately 16%.

Frequently Asked Questions

Rockwell Automation's sales in fiscal year 2024 decreased by 9% due to a slowdown in customer spending, particularly in the Software & Control and Intelligent Devices segments. Macroeconomic factors and a shift in customer capital expenditure priorities contributed to this decline. However, the Lifecycle Services segment showed positive growth, indicating a more stable demand in that area.

The company implemented cost productivity and margin expansion initiatives, including enterprise-wide restructuring charges of $97.4 million to optimize its cost structure. Despite these efforts, profitability was impacted by lower sales volumes and an unfavorable mix, leading to a decrease in Adjusted EPS to $9.71 from $12.12 in the prior year. The total segment operating margin also compressed.

Rockwell Automation's long-term strategy focuses on accelerating growth through technology differentiation, industry specialization, and expanding its market presence. The company aims to capitalize on megatrends like digitization, artificial intelligence, energy transition, and the need for increased resiliency in industrial operations. Growth in Annual Recurring Revenue (ARR) is a key priority, with a target of double-digit growth. The company also continues to invest in acquisitions and partnerships to enhance its offerings and market reach.

Rockwell Automation has a comprehensive cybersecurity risk management program led by a Chief Information Security Officer. This program focuses on risk and threat identification, protection, detection, response, and recovery. It includes employee training, robust security measures for systems and data, and a risk-based approach to third-party vendor management. The company stated that it has not experienced cybersecurity risks that have materially affected its business or financial condition but remains vigilant.