Rockwell Automation, Inc. (ROK) Bundle
A Brief History of Rockwell Automation
Company Overview
Rockwell Automation, Inc. (NYSE: ROK) is a leading global provider of industrial automation and digital transformation solutions. As of 2024, the company is headquartered in Milwaukee, Wisconsin, employing approximately 27,000 people across more than 100 countries.
Financial Performance
For the fiscal year ending September 30, 2024, Rockwell Automation reported total sales of $8,264 million, a decrease of 9% from $9,058 million in fiscal 2023. The organic sales decreased by 10%, while acquisitions contributed to a 1% increase in sales.
| Financial Metrics | FY 2024 | FY 2023 |
|---|---|---|
| Total Sales | $8,264 million | $9,058 million |
| Net Income | $953 million | $1,387 million |
| EPS (Diluted) | $8.28 | $11.95 |
| Adjusted EPS | $9.71 | $12.12 |
| Pre-tax Margin | 13.3% | 17.8% |
| Free Cash Flow | $639 million | $1,214 million |
Quarterly Highlights
In the fourth quarter of fiscal 2024, Rockwell Automation reported sales of $2,036 million, a decrease of 21% compared to $2,563 million in the same quarter of fiscal 2023. The net income for the fourth quarter was $239 million, or $2.09 per share, down from $303 million, or $2.61 per share, in the prior year.
| Quarterly Metrics | Q4 FY 2024 | Q4 FY 2023 |
|---|---|---|
| Sales | $2,036 million | $2,563 million |
| Net Income | $239 million | $303 million |
| EPS (Diluted) | $2.09 | $2.61 |
| Adjusted EPS | $2.47 | $3.64 |
| Cash Flow from Operations | $432 million | $840 million |
| Free Cash Flow | $367 million | $776 million |
Segment Performance
Rockwell operates through three primary segments: Intelligent Devices, Software & Control, and Lifecycle Services. In fiscal 2024, the Intelligent Devices segment generated $3,804 million in sales, down 7% from $4,098 million in fiscal 2023. The Software & Control segment reported sales of $2,187 million, a decline of 24% from $2,886 million. The Lifecycle Services segment, however, saw growth, with sales increasing by 10% to $2,273 million.
| Segment Sales | FY 2024 | FY 2023 |
|---|---|---|
| Intelligent Devices | $3,804 million | $4,098 million |
| Software & Control | $2,187 million | $2,886 million |
| Lifecycle Services | $2,273 million | $2,074 million |
Market Trends and Challenges
The company faced significant challenges in fiscal 2024, including lower sales volumes across most segments due to economic headwinds and market softness. The effective tax rate for the fiscal year was 13.8%, a decrease from 20.5% in fiscal 2023, primarily due to valuation allowances established in the prior year.
Shareholder Returns
During the fiscal year, Rockwell Automation repurchased approximately 2.2 million shares at a cost of $594 million. As of September 30, 2024, there remains $1.3 billion available under existing share repurchase authorizations.
| Share Repurchase Metrics | FY 2024 |
|---|---|
| Shares Repurchased | 2.2 million |
| Cost of Repurchases | $594 million |
| Remaining Authorization | $1.3 billion |
Outlook
Looking ahead to fiscal 2025, Rockwell Automation is forecasting reported sales growth of -4% to 2% and diluted EPS guidance of $7.65 to $8.85. The company aims to continue focusing on high-growth areas and margin expansion projects to enhance business resilience.
A Who Owns Rockwell Automation, Inc. (ROK)
Shareholder Composition
As of 2024, Rockwell Automation, Inc. has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The largest shareholders include:
| Shareholder Type | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 83.5% | 95.4 million |
| Mutual Funds | 50.2% | 57.4 million |
| Individual Shareholders | 10.2% | 11.7 million |
| Company Insiders | 6.3% | 7.3 million |
Major Institutional Investors
Among the institutional investors, the most significant include:
| Institution | Ownership Percentage | Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 8.5% | 9.8 million |
| BlackRock, Inc. | 7.2% | 8.3 million |
| State Street Corporation | 6.8% | 7.9 million |
| Fidelity Investments | 5.0% | 5.8 million |
Insider Ownership
The company’s executives and board members also hold a stake in Rockwell Automation:
| Name | Position | Shares Owned |
|---|---|---|
| Blake Moret | Chairman & CEO | 1.2 million |
| Kurt B. M. Kuehn | Director | 0.8 million |
| Michael E. McGarry | Director | 0.5 million |
| Rebecca W. McCready | Director | 0.4 million |
Stock Performance
As of the end of fiscal year 2024, Rockwell Automation's stock performance metrics are as follows:
| Metric | Value |
|---|---|
| Stock Price (as of Sept 30, 2024) | $220.50 |
| Market Capitalization | $25.0 billion |
| 52-Week High | $280.00 |
| 52-Week Low | $190.00 |
| Dividend Yield | 1.5% |
Financial Overview
For fiscal year 2024, Rockwell Automation reported the following financial highlights:
| Financial Metric | Value |
|---|---|
| Total Revenue | $8.26 billion |
| Net Income | $953 million |
| EPS (Earnings Per Share) | $8.28 |
| Adjusted EPS | $9.71 |
| Operating Cash Flow | $864 million |
| Free Cash Flow | $639 million |
Future Guidance
Looking ahead, Rockwell Automation provided guidance for fiscal year 2025:
| Guidance Metric | Value |
|---|---|
| Reported Sales Growth | (4)% to 2% |
| Diluted EPS Guidance | $7.65 - $8.85 |
| Adjusted EPS Guidance | $8.60 - $9.80 |
Rockwell Automation, Inc. (ROK) Mission Statement
Rockwell Automation, Inc. is committed to delivering innovative solutions that connect the imaginations of people with the potential of technology, making the world more productive and sustainable. The company's mission emphasizes the importance of industrial automation and digital transformation.
Financial Overview
As of fiscal year 2024, Rockwell Automation reported significant financial metrics that reflect its operational performance:
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Sales | $2,036 million | $2,563 million | $8,264 million | $9,058 million |
| Net Income | $239 million | $303 million | $953 million | $1,387 million |
| EPS (Diluted) | $2.09 | $2.61 | $8.28 | $11.95 |
| Adjusted EPS | $2.47 | $3.64 | $9.71 | $12.12 |
| Free Cash Flow | $367 million | $776 million | $639 million | $1,214 million |
| Operating Margin | 20.1% | 22.3% | 19.3% | 21.3% |
Segment Performance
The performance across different business segments for fiscal year 2024 is as follows:
| Segment | Q4 2024 Sales | Q4 2023 Sales | FY 2024 Sales | FY 2023 Sales | Operating Margin |
|---|---|---|---|---|---|
| Intelligent Devices | $946 million | $1,171 million | $3,804 million | $4,098 million | 18.4% |
| Software & Control | $502 million | $821 million | $2,187 million | $2,886 million | 24.2% |
| Lifecycle Services | $588 million | $571 million | $2,273 million | $2,074 million | 16.1% |
Guidance for Fiscal Year 2025
Looking ahead, Rockwell Automation has provided guidance for fiscal year 2025:
| Metric | Guidance Range |
|---|---|
| Reported Sales Growth | (4)% to 2% |
| Adjusted EPS | $8.60 - $9.80 |
| Diluted EPS | $7.65 - $8.85 |
Return on Invested Capital (ROIC)
The return on invested capital for fiscal year 2024 was:
| Metric | FY 2024 | FY 2023 |
|---|---|---|
| ROIC | 15.2% | 20.9% |
Rockwell Automation continues to focus on innovation and operational efficiency as it navigates market challenges and seeks to enhance its leadership position in the automation industry.
How Rockwell Automation, Inc. (ROK) Works
Company Overview
Rockwell Automation, Inc. (NYSE: ROK) is a leader in industrial automation and digital transformation. The company operates in over 100 countries and employs approximately 27,000 people as of fiscal year-end 2024.
Financial Performance
For the fiscal year 2024, Rockwell Automation reported the following financial results:
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Sales (in millions) | $2,036 | $2,563 | $8,264 | $9,058 |
| Net Income (in millions) | $239 | $303 | $953 | $1,387 |
| EPS | $2.09 | $2.61 | $8.28 | $11.95 |
| Adjusted EPS | $2.47 | $3.64 | $9.71 | $12.12 |
| Pre-tax Margin | 13.5% | 12.4% | 13.3% | 17.8% |
| Operating Cash Flow (in millions) | $432 | $840 | $864 | $1,375 |
| Free Cash Flow (in millions) | $367 | $776 | $639 | $1,214 |
Segment Performance
Rockwell Automation's business is divided into three main segments: Intelligent Devices, Software & Control, and Lifecycle Services. The performance of each segment for FY 2024 is summarized below:
| Segment | Sales (in millions) | Operating Earnings (in millions) | Operating Margin |
|---|---|---|---|
| Intelligent Devices | $3,804 | $700 | 18.4% |
| Software & Control | $2,187 | $530 | 24.2% |
| Lifecycle Services | $2,273 | $366 | 16.1% |
Market and Geographic Performance
Rockwell Automation's sales performance by geographic region for FY 2024 is detailed below:
| Region | Sales (in millions) | Organic Growth |
|---|---|---|
| North America | $5,052 | (5)% |
| EMEA | $1,505 | (21)% |
| Asia Pacific | $1,073 | (20)% |
| Latin America | $634 | 4% |
Outlook for FY 2025
Rockwell Automation has provided guidance for fiscal year 2025, with expectations for reported sales growth between (4)% to 2% and diluted EPS projected between $7.65 and $8.85.
| Metric | FY 2025 Guidance |
|---|---|
| Reported Sales Growth | (4)% to 2% |
| Diluted EPS | $7.65 - $8.85 |
| Adjusted EPS | $8.60 - $9.80 |
Balance Sheet Overview
As of September 30, 2024, Rockwell Automation's balance sheet is as follows:
| Assets (in millions) | 2024 | 2023 |
|---|---|---|
| Cash and Cash Equivalents | $471 | $1,072 |
| Receivables | $1,802 | $2,167 |
| Inventories | $1,293 | $1,405 |
| Goodwill and Intangibles | $5,060 | $4,382 |
| Total Assets | $11,232 | $11,304 |
| Liabilities and Shareowners’ Equity (in millions) | 2024 | 2023 |
|---|---|---|
| Short-term Debt | $1,078 | $103 |
| Long-term Debt | $2,561 | $2,863 |
| Total Liabilities | $4,696 | $5,450 |
| Shareowners' Equity | $3,498 | $3,562 |
| Total Liabilities and Equity | $11,232 | $11,304 |
Cash Flow Summary
For the fiscal year ending September 30, 2024, Rockwell Automation's cash flow summary is as follows:
| Cash Flow (in millions) | FY 2024 | FY 2023 |
|---|---|---|
| Operating Cash Flow | $864 | $1,375 |
| Capital Expenditures | ($225) | ($161) |
| Free Cash Flow | $639 | $1,214 |
How Rockwell Automation, Inc. (ROK) Makes Money
Revenue Streams
Rockwell Automation generates revenue through three primary business segments: Intelligent Devices, Software & Control, and Lifecycle Services.
| Segment | Fiscal 2024 Sales (in millions) | Fiscal 2023 Sales (in millions) | Sales Growth (%) | Segment Operating Earnings (in millions) | Operating Margin (%) |
|---|---|---|---|---|---|
| Intelligent Devices | $3,804.1 | $4,098.2 | (7)% | $700.0 | 18.4% |
| Software & Control | $2,187.4 | $2,886.0 | (24)% | $529.7 | 24.2% |
| Lifecycle Services | $2,272.7 | $2,073.8 | 10% | $365.6 | 16.1% |
| Total | $8,264.2 | $9,058.0 | (9)% | $1,595.3 | 19.3% |
Intelligent Devices
The Intelligent Devices segment includes a range of industrial automation products such as sensors, drives, and control systems. In fiscal 2024, this segment accounted for approximately 46% of total sales, generating $3,804.1 million, a decrease of 7% from 2023. Segment operating earnings were $700 million, with an operating margin of 18.4%.
Software & Control
This segment offers software solutions that enhance the productivity and performance of manufacturing operations. Fiscal 2024 sales in this category were $2,187.4 million, reflecting a 24% decrease compared to the previous year. Operating earnings for Software & Control amounted to $529.7 million, resulting in an operating margin of 24.2%.
Lifecycle Services
Lifecycle Services provides ongoing support, maintenance, and consulting for automation systems. This segment reported sales of $2,272.7 million in fiscal 2024, marking a 10% increase from fiscal 2023. Operating earnings for this segment were $365.6 million, with an operating margin of 16.1%.
Overall Financial Performance
For fiscal 2024, Rockwell Automation's total sales were $8,264.2 million, down 9% from $9,058.0 million in fiscal 2023. Net income attributable to Rockwell Automation was $952.5 million, or $8.28 per share, compared to $1,387.4 million, or $11.95 per share, in the prior year. The adjusted EPS for fiscal 2024 was $9.71, down 20% from $12.12 in fiscal 2023.
| Key Financial Metrics | Fiscal 2024 | Fiscal 2023 |
|---|---|---|
| Net Income (in millions) | $952.5 | $1,387.4 |
| Adjusted EPS | $9.71 | $12.12 |
| Cash Flow from Operating Activities (in millions) | $864.0 | $1,375.0 |
| Free Cash Flow (in millions) | $639.0 | $1,214.0 |
| Return on Invested Capital (ROIC) | 15.2% | 20.9% |
Market Trends and Challenges
Rockwell Automation's performance in fiscal 2024 was impacted by lower sales volume and unfavorable product mix, particularly in the Intelligent Devices and Software & Control segments. The company faced challenges in its end markets, leading to decreased orders and lower organic sales growth.
Despite these challenges, Rockwell's Lifecycle Services segment showed resilience with a strong year-over-year growth rate of 10%, indicating a shift towards digital services and ongoing support in the automation industry.
Guidance for Fiscal 2025
Looking ahead, Rockwell Automation has provided guidance for fiscal 2025, anticipating reported and organic sales growth between (4)% to 2% and diluted EPS in the range of $7.65 to $8.85. The adjusted EPS is expected to be between $8.60 and $9.80.
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Resources:
- Rockwell Automation, Inc. (ROK) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Rockwell Automation, Inc. (ROK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Rockwell Automation, Inc. (ROK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.