Rockwell Automation Q1 FY25 Filing

TL;DR

**ROK Q1 FY25: Automation giant Rockwell Automation reports Q1 results. Check financials.**

AI Summary

Rockwell Automation, Inc. filed its 10-Q for the period ending December 31, 2024. The filing covers the first quarter of their fiscal year 2025. Key financial data and operational details for this period are presented, reflecting the company's performance in its industrial automation and digital transformation segments.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Rockwell Automation, crucial for understanding the company's trajectory in the industrial automation sector.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks disclosed.

Key Players & Entities

• ROCKWELL AUTOMATION, INC (company) — Filer
• 2024-12-31 (date) — Reporting Period End Date
• 2025-02-10 (date) — Filing Date

FAQ

Key Financial Figures

• $1.00 — ange on which registered Common Stock ($1.00 par value) ROK New York Stock Exchange

Filing Documents

• rok-20241231.htm (10-Q) — 1104KB
• q1fy25rokex15.htm (EX-15) — 3KB
• q1fy25rokex311.htm (EX-31.1) — 8KB
• q1fy25rokex312.htm (EX-31.2) — 8KB
• q1fy25rokex321.htm (EX-32.1) — 3KB
• q1fy25rokex322.htm (EX-32.2) — 3KB
• 0001024478-25-000010.txt ( ) — 6731KB
• rok-20241231.xsd (EX-101.SCH) — 48KB
• rok-20241231_cal.xml (EX-101.CAL) — 89KB
• rok-20241231_def.xml (EX-101.DEF) — 191KB
• rok-20241231_lab.xml (EX-101.LAB) — 609KB
• rok-20241231_pre.xml (EX-101.PRE) — 409KB
• rok-20241231_htm.xml (XML) — 940KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheet 4 Consolidated Statement of Operations 5 Consolidated Statement of Comprehensive Income 6 Consolidated Statement of Cash Flows 7 Consolidated Statement of Shareowners' Equity 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34) 23

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures 36

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 37

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37

Other Information

Item 5. Other Information 38

Exhibits

Item 6. Exhibits 40

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ROCKWELL AUTOMATION, INC. CONSOLIDATED BALANCE SHEET (Unaudited) (in millions, except per share amounts) December 31, 2024 September 30, 2024 ASSETS Current assets Cash and cash equivalents $ 471 $ 471 Receivables 1,675 1,802 Inventories 1,234 1,293 Other current assets 368 315 Total current assets 3,748 3,881 Property, net of accumulated depreciation of $ 1,875 and $ 1,861 , respectively 763 777 Operating lease right-of-use assets 388 423 Goodwill 3,915 3,993 Other intangible assets, net 1,027 1,066 Deferred income taxes 533 517 Other assets 570 575 Total $ 10,944 $ 11,232 LIABILITIES AND SHAREOWNERS' EQUITY Current liabilities Short-term debt $ 743 $ 771 Current portion of long-term debt 306 307 Accounts payable 789 860 Compensation and benefits 239 259 Contract liabilities 608 584 Customer returns, rebates and incentives 335 347 Other current liabilities 456 476 Total current liabilities 3,476 3,604 Long-term debt 2,564 2,561 Retirement benefits 542 549 Operating lease liabilities 326 356 Other liabilities 480 487 Commitments and contingent liabilities (Note 13) Shareowners' equity Common stock ($ 1.00 par value, shares issued: 141.4 and 181.4 , respectively) 141 181 Additional paid-in capital 2,200 2,188 Retained earnings 5,181 9,635 Accumulated other comprehensive loss ( 872 ) ( 772 ) Common stock in treasury, at cost (shares held: 28.3 and 68.3 , respectively) ( 3,265 ) ( 7,734 ) Shareowners' equity attributable to Rockwell Automation, Inc. 3,385 3,498 Noncontrolling interests 171 177 Total shareowners' equity 3,556 3,675 Total $ 10,944 $ 11,232 See Notes to Consolidated Financial Statements. 4 Table of Contents CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (in millions, except per share amounts) Three Months Ended December 31, 2024 2023 Sales Products and solutions $ 1,639 $ 1,833 Services 242 219 1,881 2,052 Cost of sales Products and solutions ( 1,027 ) ( 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation and Accounting Policies In the opinion of management of Rockwell Automation, Inc. (Rockwell Automation or the Company), the unaudited Consolidated Financial Statements contain all adjustments necessary to present fairly the financial position, results of operations, and cash flows for the periods presented and, except as otherwise indicated, such adjustments consist only of those of a normal, recurring nature. These statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended September 30, 2024. The results of operations for the three months ended December 31, 2024, are not necessarily indicative of the results for the full year. All date references to years and quarters herein refer to our fiscal year and fiscal quarter, unless otherwise stated. Receivables We record an allowance for doubtful accounts based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Receivables are recorded net of an allowance for doubtful accounts of $ 24 million at December 31, 2024, and $ 22 million at September 30, 2024. The changes to our allowance for doubtful accounts during the three months ended December 31, 2024 and 2023, were not material and primarily consisted of current-period provisions, write-offs charged against the allowance, recoveries collected, and foreign currency translation. Earnings Per Share The following table reconciles basic and diluted earnings per share (EPS) amounts (in millions, except per share amounts): Three Months Ended December 31, 2024 2023 Net income attributable to Rockwell Automation, Inc. $ 184 $ 215 Less: Allocation to participating securities ( 1 ) ( 1 ) Net income available to common shareowners $ 183 $ 214 Basic weighted average outstanding shares 113.0 114.6 Effect of dilutive securities Stock options 0.5 0.6 Diluted weighted average

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Unaudited) Supplier Financing Arrangements The Company maintains agreements with third-party financial institutions that offer voluntary supply chain financing (SCF) programs to suppliers. The SCF programs enable suppliers, at their sole discretion, to sell their receivables to third-party financial institutions in order to receive payment on receivables earlier than the negotiated commercial terms between suppliers and the Company. Supplier sale of receivables to third-party financial institutions is on terms negotiated between the supplier and the respective third-party financial institution. The Company agrees on commercial terms for the goods and services procured from suppliers, including prices, quantities, and payment terms, regardless of whether the supplier elects to participate in the SCF programs. A supplier's voluntary participation in the SCF programs has no bearing on the Company's payment terms and the Company has no economic interest in a supplier's decision to participate in the SCF programs. The Company agrees to pay participating third-party financial institutions the stated amount of confirmed invoices from suppliers on the original maturity dates of the invoices. Amounts outstanding related to SCF programs are included in Accounts payable in the Consolidated Balance Sheet and in changes in Accounts payable on the Consolidated Statement of Cash Flows. Accounts payable included approximately $ 68 million and $ 77 million related to these agreements as of December 31, 2024, and September 30, 2024, respectively. The impact of these programs is not material to the Company's overall liquidity. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, which requires expanded interim and annual disclosures of segment information regularly provided to the chief operating decision maker (CODM), t

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Unaudited) Unfulfilled Performance Obligations As of December 31, 2024, we expect to recognize approximately $ 1,295 million of revenue in future periods from unfulfilled performance obligations from existing contracts with customers. We expect to recognize revenue of approximately $ 790 million from our remaining performance obligations over the next 12 months with the remaining balance recognized thereafter. We have applied the practical expedient to exclude the value of remaining performance obligations for (i) contracts with an original term of one year or less and (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed. The amounts above also do not include the impact of contract renewal options that are unexercised as of December 31, 2024. Disaggregation of Revenue The following table presents our revenue disaggregation by geographic region for our three operating segments (in millions). We attribute sales to the geographic regions based on the country of destination. Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Intelligent Devices Software & Control Lifecycle Services Total Intelligent Devices Software & Control Lifecycle Services Total North America $ 519 $ 365 $ 266 $ 1,150 $ 604 $ 387 $ 256 $ 1,247 Europe, Middle East, and Africa 135 73 124 332 166 100 122 388 Asia Pacific 86 55 110 251 98 79 99 276 Latin America 66 36 46 148 59 38 44 141 Total Company Sales $ 806 $ 529 $ 546 $ 1,881 $ 927 $ 604 $ 521 $ 2,052 Contract Liabilities Contract liabilities primarily relate to consideration received in advance of performance under the contract. Below is a summary of our Contract liabilities balance, the portion not expected to be recognized within twelve months is included within Other liabilities in the Consolidated Balance Sheet (in millions): December 31, 2024 December 31, 2023 Balance

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Unaudited) 3. Share-Based Compensation We recognized $ 23 million and $ 24 million of pre-tax share-based compensation expense during the three months ended December 31, 2024 and 2023, respectively. Our annual grant of share-based compensation takes place during the first quarter of each year. The number of shares granted to employees and non-employee directors and the weighted average fair value per share during the periods presented were (in thousands, except per share amounts): Three Months Ended December 31, 2024 2023 Grants Wtd. Avg. Share Fair Value Grants Wtd. Avg. Share Fair Value Stock options 190 $ 93 217 $ 86 Performance shares 58 388 79 295 Restricted stock units 86 296 235 276 Unrestricted stock 6 297 5 280 4. Inventories Inventories consist of (in millions): December 31, 2024 September 30, 2024 Finished goods $ 446 $ 475 Work in process 312 344 Raw materials 476 474 Inventories $ 1,234 $ 1,293 5. Acquisitions 2024 Acquisitions In October 2023, we acquired Clearpath Robotics, Inc., including its industrial division OTTO Motors (Clearpath), a company that specializes in autonomous robotics for industrial applications, headquartered in Ontario, Canada. We recorded assets acquired and liabilities assumed in connection with this acquisition based on their estimated fair values as of the acquisition date of October 2, 2023. The aggregate purchase price allocation is as follows (in millions): Purchase Price Allocation Receivables $ 8 Inventory 22 Goodwill 283 Intangible assets 313 All other assets 11 Total assets acquired 637 Less: Deferred tax liability ( 9 ) Less: Liabilities assumed ( 19 ) Net assets acquired $ 609 Purchase Consideration Cash consideration, net of cash acquired $ 566 Contingent consideration 43 Total purchase consideration, net of cash acquired $ 609 12 Table of Contents ROCKWELL AUTOMATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Unaudited) Intangible assets identified include $ 270 million of technology, $ 41 million of trademarks, and $ 2 million of customer relationships. We assigned the full amount of goodwill and all other assets acquired to our Intelligent Devices segment. The goodwill recorded represents intangible assets that do not qualify for separate recognition. This goodwill arises because the purchase price for Clearpath reflects a number of factors including the future earnings and cash flow potential for the business and resulting synergies from the business portfolio and industry expertise. We do not expect the goodwill to be deductible for tax purposes. The intangible assets were valued using an income approach, specifically the relief from royalty method and multi-period excess earnings method. The relief from royalty method calculates value based on hypothetical payments that would be saved by owning an asset rather than licensing it. The multi-period excess earnings method is the isolation of cash flows from a single intangible asset and measures fair value by discounting them to present value. These values are considered level 3 measurements under the U.S. GAAP fair value hierarchy. Refer to Note 9 for further information regarding levels in the fair value hierarchy. The key assumption requiring the use of judgement in the valuation of the technology asset was the obsolescence factor, where we estimated a phase out over 12 years; other assumptions included forecasted revenue growth rates and margin and the discount rate. The key assumption requiring the use of judgement in the valuation of the trademarks asset was the weighted average royalty rate of 2.05 percent; other assumptions included forecasted revenue growth rates and the discount rate. The purchase price included up to $ 50 million in contingent consideration that can be earned by sellers if Clearpath achieves revenue targets that it had established pr

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Unaudited) In November 2023, we acquired Verve Industrial Protection (Verve), a cybersecurity software and services company that focuses specifically on industrial environments. We recorded assets acquired and liabilities assumed in connection with this acquisition based on their estimated fair values as of the acquisition date of November 1, 2023. The aggregate purchase price allocation is as follows (in millions): Purchase Price Allocation Receivables $ 8 Goodwill 133 Intangible assets 47 All other assets 1 Total assets acquired 189 Less: Liabilities assumed ( 6 ) Net assets acquired $ 183 Purchase Consideration Total purchase consideration, net of cash acquired $ 183 We assigned the full amount of goodwill to our Lifecycle Services segment. We expect the goodwill to be deductible for tax purposes. The goodwill recorded represents intangible assets that do not qualify for separate recognition. Pro forma consolidated sales for the three months ended December 31, 2023, were $ 2.1 billion, and the impact on earnings was not material. The preceding pro forma consolidated financial results of operations are as if the preceding 2024 acquisitions occurred on October 1, 2023. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the transaction occurred as of that time. Total sales from all of the above 2024 acquisitions in the three months ended December 31, 2023, were $ 17 million. Total acquisition-related costs and earnings from all of the above 2024 acquisitions in the three months ended December 31, 2023, were not material. 6. Goodwill and Other Intangible Assets Changes in the carrying amount of Goodwill for the three months ended December 31, 2024, were (in millions): Intelligent Devices Software & Control Lifecycle Services Total Balance as of September 30, 2024 $ 900 $ 2,437 $ 656

View Full Filing

View this 10-Q filing on SEC EDGAR