Rockwell Automation Reports Fourth Quarter and Full Year 2024 Results; Introduces Fiscal 2025 Guidance
Rockwell Automation reported Q4 2024 and full year results, highlighting significant declines. Q4 reported and organic sales were down 21% year-over-year, with diluted EPS at $2.09 (down 20%) and adjusted EPS at $2.47 (down 32%). Full year reported sales decreased 9% and organic sales were down 10%. Full year diluted EPS was $8.28 (down 31%), and adjusted EPS was $9.71 (down 20%). Cash flow from operations was $864 million (down 37%) and free cash flow was $639 million (down 47%).
Fiscal 2025 guidance projects reported and organic sales growth between (4)% to 2%, with diluted EPS ranging from $7.65 to $8.85 and adjusted EPS from $8.60 to $9.80. Despite lower-than-expected orders, there was solid operating performance, particularly in the Lifecycle Services segment, which saw a 3% increase in Q4 sales and a 17.4% operating margin.
Rockwell Automation ha riportato i risultati del Q4 2024 e dell'anno intero, evidenziando significative flessioni. Le vendite riportate e organiche nel Q4 sono diminuite del 21% rispetto all'anno precedente, con un EPS diluito di $2.09 (in calo del 20%) e un EPS rettificato di $2.47 (in calo del 32%). Le vendite riportate per l'anno intero sono diminuite del 9% e le vendite organiche sono scese del 10%. L'EPS diluito annuale era di $8.28 (in calo del 31%), mentre l'EPS rettificato era di $9.71 (in calo del 20%). Il flusso di cassa dalle operazioni è stato di $864 milioni (in calo del 37%) e il flusso di cassa libero è stato di $639 milioni (in calo del 47%).
Le previsioni per il fiscal 2025 prevedono una crescita delle vendite riportate e organiche tra (-4)% e 2%, con un EPS diluito compreso tra $7.65 e $8.85 e un EPS rettificato tra $8.60 e $9.80. Nonostante ordini inferiori alle aspettative, è stata registrata una solida performance operativa, in particolare nel segmento Lifecycle Services, che ha visto un aumento delle vendite del 3% nel Q4 e un margine operativo del 17.4%.
Rockwell Automation reportó los resultados del Q4 2024 y del año completo, destacando descensos significativos. Las ventas reportadas y orgánicas en Q4 cayeron un 21% interanual, con un EPS diluido de $2.09 (bajo un 20%) y un EPS ajustado de $2.47 (bajo un 32%). Las ventas reportadas para el año completo disminuyeron un 9% y las ventas orgánicas bajaron un 10%. El EPS diluido del año completo fue de $8.28 (bajo un 31%), y el EPS ajustado fue de $9.71 (bajo un 20%). El flujo de efectivo de las operaciones fue de $864 millones (bajo un 37%) y el flujo de efectivo libre fue de $639 millones (bajo un 47%).
Las proyecciones para el fiscal 2025 prevén un crecimiento de ventas reportadas y orgánicas entre (-4)% y 2%, con un EPS diluido que oscila entre $7.65 y $8.85 y un EPS ajustado entre $8.60 y $9.80. A pesar de recibir menos órdenes de las esperadas, se ha registrado un sólido rendimiento operativo, especialmente en el segmento de Lifecycle Services, que experimentó un aumento del 3% en ventas en el Q4 y un margen operativo del 17.4%.
록웰 자동화는 2024년 4분기 및 연간 결과를 발표하며 의미 있는 감소를 강조했습니다. 4분기의 보고된 판매와 유기적 판매는 전년 대비 21% 감소했으며, 희석 주당순이익(EPS)은 $2.09 (하락 20%)으로 조정된 EPS는 $2.47 (하락 32%)였습니다. 연간 보고된 판매는 9% 감소하였고 유기적 판매는 10% 감소하였습니다. 연간 희석 EPS는 $8.28 (하락 31%)였으며, 조정된 EPS는 $9.71 (하락 20%)이었습니다. 운영에서의 현금흐름은 $864 million (하락 37%)이었고, 자유 현금흐름은 $639 million (하락 47%)이었습니다.
2025 회계연도 가이드는 보고된 및 유기적 판매 성장률이 (-4)%에서 2% 사이로 예측되며, 희석 EPS는 $7.65에서 $8.85, 조정 EPS는 $8.60에서 $9.80 범위로 예상됩니다. 예상보다 적은 주문에도 불구하고, 특히 라이프사이클 서비스 부문에서의 운영 성과는 양호하여 4분기 매출이 3% 증가하고 운영 마진은 17.4%에 달했습니다.
Rockwell Automation a rapporté les résultats de Q4 2024 et de l'année complète, mettant en évidence des baisses significatives. Les ventes rapportées et organiques au Q4 ont diminué de 21% par rapport à l'année précédente, avec un BPA dilué de $2.09 (en baisse de 20%) et un BPA ajusté de $2.47 (en baisse de 32%). Les ventes reportées pour l'année complète ont diminué de 9% et les ventes organiques ont baissé de 10%. Le BPA dilué annuel était de $8.28 (en baisse de 31%), et le BPA ajusté était de $9.71 (en baisse de 20%). Le flux de trésorerie provenant des opérations s'élevait à $864 millions (en baisse de 37%) et le flux de trésorerie libre était de $639 millions (en baisse de 47%).
Les prévisions pour l'exercice 2025 prévoient une croissance des ventes rapportées et organiques entre (-4)% et 2%, avec un BPA dilué compris entre $7.65 et $8.85 et un BPA ajusté entre $8.60 et $9.80. Malgré des commandes inférieures aux attentes, une performance opérationnelle solide a été enregistrée, en particulier dans le segment Services de Cycle de Vie, qui a connu une augmentation des ventes de 3% au Q4 et une marge opérationnelle de 17.4%.
Rockwell Automation berichtete über die Ergebnisse des Q4 2024 und des Gesamtjahres, wobei signifikante Rückgänge hervorgehoben wurden. Die im Q4 gemeldeten und organischen Verkäufe gingen im Jahresvergleich um 21% zurück, mit einem verwässerten EPS von $2.09 (ein Rückgang von 20%) und einem bereinigten EPS von $2.47 (ein Rückgang von 32%). Die im Gesamtjahr gemeldeten Verkäufe sanken um 9% und die organischen Verkäufe gingen um 10% zurück. Das verwässerte EPS für das Gesamtjahr betrug $8.28 (ein Rückgang von 31%), und das bereinigte EPS betrug $9.71 (ein Rückgang von 20%). Der Cashflow aus der Betriebstätigkeit betrug $864 Millionen (ein Rückgang von 37%) und der freie Cashflow betrug $639 Millionen (ein Rückgang von 47%).
Die Prognosen für das Geschäftsjahr 2025 rechnen mit einem Wachstum der berichteten und organischen Verkäufe zwischen (-4)% und 2%, mit einem verwässerten EPS von $7.65 bis $8.85 und einem bereinigten EPS von $8.60 bis $9.80. Trotz niedriger als erwarteter Aufträge gab es eine solide operative Leistung, insbesondere im Segment Lifecycle Services, das im Q4 einen Anstieg der Verkäufe um 3% und eine operative Marge von 17.4% verzeichnete.
- Total ARR grew 16% year over year.
- Lifecycle Services segment Q4 sales increased 3% and operating margin improved to 17.4%.
- Fiscal 2025 guidance includes potential sales growth up to 2%.
- Q4 2024 reported sales down 21% year over year.
- Q4 2024 diluted EPS down 20%, adjusted EPS down 32%.
- Full year 2024 reported sales down 9%, organic sales down 10%.
- Full year diluted EPS down 31%, adjusted EPS down 20%.
- Full year 2024 cash from operations down 37%, free cash flow down 47%.
Insights
Rockwell Automation's Q4 and full-year 2024 results reveal significant challenges, with concerning metrics across the board.
The weak performance is primarily driven by softening end markets and lower sales volumes. While Lifecycle Services showed resilience with
The bright spot is the
The industrial automation sector is facing significant headwinds, as evidenced by ROK's results. The
North American market leadership remains a strategic advantage, but global market conditions are creating pressure. The restructuring charges of
- Fourth quarter reported and organic sales down (21)% year over year
-
Fourth quarter diluted EPS of
down (20)% year over year, includes a restructuring charge of$2.09 ; adjusted EPS of$0.18 down (32)% year over year$2.47 - Full year reported sales down (9)% year over year; organic sales down (10)% year over year
-
Total ARR grew
16% year over year -
Full year fiscal 2024 diluted EPS of
down (31)% year over year, includes restructuring charges of$8.28 ; adjusted EPS of$0.64 down (20)% year over year$9.71 -
Full year fiscal 2024 cash provided by operating activities of
and free cash flow of$864 million ; down ($639 million 37% ) and (47% ) year over year, respectively -
Fiscal 2025 guidance:
-
Reported and organic sales growth of (4)% to
2% -
Diluted EPS
-$7.65 ; Adjusted EPS$8.85 -$8.60 $9.80
-
Reported and organic sales growth of (4)% to
"Orders for the quarter came in lower than expected, reflecting continued softness in many of our end markets. Operating performance was solid, with good sales conversion, margin, and EPS. The performance of our Lifecycle Services segment stands out, with its higher exposure to process end markets, growth in digital services, and continued margin expansion. Reflecting on the full year, our people around the world have demonstrated remarkable dedication to serve our customers and bring new innovation to market, and to make the changes necessary to position us for market-beating growth and profit,” said Blake Moret, Chairman and CEO.
Fiscal Q4 2024 Financial Results
Fiscal 2024 fourth quarter sales were
Fiscal 2024 fourth quarter net income attributable to Rockwell Automation was
Pre-tax margin was
Total segment operating earnings were
Cash flow generated by operating activities in the fourth quarter of fiscal 2024 was
Fiscal 2024 Full Year Financial Results
Sales were
Fiscal 2024 net income attributable to Rockwell Automation was
Pre-tax margin was
Total segment operating earnings were
Cash flow generated by operating activities in fiscal year 2024 was
Fiscal Year 2025 Outlook
The table below provides guidance for sales growth and earnings per share for fiscal 2025.
Sales Growth Guidance |
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EPS Guidance |
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Reported sales growth |
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(4)% to |
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Diluted EPS |
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Organic sales growth(1) |
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(4)% to |
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Adjusted EPS (1) |
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|
Inorganic sales growth |
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~ |
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|
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Currency translation |
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~ |
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(1) Organic sales growth and Adjusted EPS are non-GAAP measures. See Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation for more information on these non-GAAP measures. |
“Given the uncertainty in the current macroeconomic environment and the typical seasonality in our longer cycle business, we are expecting our fiscal Q1 sales to be down from Q4 levels, followed by a gradual sequential improvement through the year. We will continue to fuel high-growth areas and drive margin expansion projects that increase our business resilience. Our market position remains strong given our portfolio and our leadership in
Following is a discussion of quarter and full year results for our business segments.
Intelligent Devices
Intelligent Devices fiscal 2024 fourth quarter sales were
Intelligent Devices fiscal 2024 sales were
Software & Control
Software & Control fiscal 2024 fourth quarter total and organic sales were
Software & Control fiscal 2024 total and organic sales were
Lifecycle Services
Lifecycle Services fiscal 2024 fourth quarter sales were
Lifecycle Services fiscal 2024 sales were
Supplemental Information
ARR - Total ARR grew
Corporate and Other - Fiscal 2024 fourth quarter corporate and other expense of
Purchase accounting depreciation and amortization, and impairment - Fiscal 2024 fourth quarter purchase accounting depreciation and amortization, and impairment expense was
Restructuring charges - Fiscal 2024 fourth quarter and full year restructuring charges were
Tax - On a GAAP basis, the effective tax rate in the fourth quarter of fiscal 2024 was
Share Repurchases - The Company repurchased approximately 450 thousand shares of its common stock at a cost of
Return on Invested Capital (ROIC) - ROIC was
Definitions
Non-GAAP Measures - Organic sales, total segment operating earnings, total segment operating margin, adjusted income, adjusted EPS, adjusted effective tax rate, free cash flow, free cash flow conversion, and ROIC are non-GAAP measures that are reconciled to GAAP measures in the attachments to this release.
Total ARR - Annual recurring revenue (ARR) is a key metric that enables measurement of progress in growing our recurring revenue business. It represents the annual contract value of all active recurring revenue contracts at any point in time. Recurring revenue is defined as a revenue stream that is contractual, typically for a period of 12 months or more, and has a high probability of renewal. The probability of renewal is based on historical renewal experience of the individual revenue streams, or management's best estimates if historical renewal experience is not available. Total ARR growth is calculated as the dollar change in ARR, adjusted to exclude the effects of currency, divided by ARR as of the prior period. The effects of currency translation are excluded by calculating Total ARR on a constant currency basis. Total ARR includes acquisitions even if there was no comparable ARR in the prior period. We believe that Total ARR provides useful information to investors because it reflects our recurring revenue performance period over period including the effect of acquisitions. Our measure of ARR may be different from measures used by other companies. Because ARR is based on annual contract value, it does not represent revenue recognized during a particular reporting period or revenue to be recognized in future reporting periods and is not intended to be a substitute for revenue, contract liabilities, or backlog.
Organic ARR - Organic ARR growth is calculated as the dollar change in ARR, adjusted to exclude the effects of currency translation and acquisitions, divided by ARR as of the prior period. The effects of currency translation are excluded by calculating Organic ARR on a constant currency basis. When we acquire businesses, we exclude the effect of ARR in the current period for which there was no comparable ARR in the prior period. We believe that Organic ARR provides useful information to investors because it reflects our recurring revenue performance period over period without the effect of acquisitions and changes in currency exchange rates. Organic ARR growth is also used as a financial measure of performance for our annual incentive compensation.
Conference Call
A conference call to discuss our financial results will take place at 8:30 a.m. Eastern Time on Thursday, November 7, 2024. The call will be an audio webcast and accessible on the Rockwell Automation website (https://ir.rockwellautomation.com/investors/). Presentation materials will also be available on the website prior to the call.
Interested parties can access the conference by using the following numbers: (888) 330-2022 in the
Both the presentation materials and a replay of the call will be available on the Investor Relations section of the Rockwell Automation website through December 7, 2024.
This news release contains statements (including certain projections and business trends) that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Words such as “believe”, “estimate”, “project”, “plan”, “expect”, “anticipate”, “will”, “intend”, and other similar expressions may identify forward-looking statements. Actual results may differ materially from those projected as a result of certain risks and uncertainties, many of which are beyond our control, including but not limited to:
- macroeconomic factors, including inflation, global and regional business conditions (including adverse impacts in certain markets, such as Oil & Gas), commodity prices, currency exchange rates, the cyclical nature of our customers’ capital spending, and sovereign debt concerns;
- the severity and duration of disruptions to our business due to natural disasters (including those as a result of climate change), pandemics, acts of war, strikes, terrorism, social unrest or other causes;
- the availability and price of components and materials;
- the availability, effectiveness, and security of our information technology systems;
- our ability to manage and mitigate the risk related to security vulnerabilities and breaches of our hardware and software products, solutions, and services;
- the successful execution of our cost productivity and margin expansion initiatives;
- our ability to attract, develop, and retain qualified employees;
- the successful integration and management of strategic transactions and achievement of the expected benefits of these transactions;
- laws, regulations, and governmental policies affecting our activities in the countries where we do business, including those related to tariffs, taxation, trade controls, cybersecurity, and climate change;
- the successful development of advanced technologies and demand for and market acceptance of new and existing hardware and software products;
- our ability to manage and mitigate the risks associated with our solutions and services businesses;
- competitive hardware and software products, solutions, and services, pricing pressures, and our ability to provide high quality products, solutions, and services;
- the availability and cost of capital;
- disruptions to our distribution channels or the failure of distributors to develop and maintain capabilities to sell our products;
- intellectual property infringement claims by others and the ability to protect our intellectual property;
- the uncertainty of claims by taxing authorities in the various jurisdictions where we do business;
- the uncertainties of litigation, including liabilities related to the safety and security of the hardware and software products, solutions, and services we sell;
- our ability to manage costs related to employee retirement and health care benefits; and
- other risks and uncertainties, including but not limited to those detailed from time to time in our Securities and Exchange Commission (SEC) filings.
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in
ROCKWELL AUTOMATION, INC. |
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CONDENSED STATEMENT OF OPERATIONS INFORMATION |
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(in millions, except percentages) |
||||||||||||||||
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Sales (a) |
|
$ |
2,035.5 |
|
|
$ |
2,562.9 |
|
|
$ |
8,264.2 |
|
|
$ |
9,058.0 |
|
Cost of sales (1) |
|
|
(1,264.9 |
) |
|
|
(1,507.4 |
) |
|
|
(5,070.8 |
) |
|
|
(5,341.0 |
) |
Gross profit (b) |
|
|
770.6 |
|
|
|
1,055.5 |
|
|
|
3,193.4 |
|
|
|
3,717.0 |
|
Selling, general and administrative expenses (2) (c) |
|
|
(486.9 |
) |
|
|
(551.6 |
) |
|
|
(2,002.6 |
) |
|
|
(2,023.7 |
) |
Change in fair value of investments (3) |
|
|
(0.8 |
) |
|
|
(10.0 |
) |
|
|
0.1 |
|
|
|
279.3 |
|
Other income (expense) |
|
|
32.3 |
|
|
|
12.0 |
|
|
|
62.8 |
|
|
|
(71.3 |
) |
Goodwill impairment |
|
|
— |
|
|
|
(157.5 |
) |
|
|
— |
|
|
|
(157.5 |
) |
Interest expense |
|
|
(41.1 |
) |
|
|
(31.0 |
) |
|
|
(154.6 |
) |
|
|
(135.3 |
) |
Income before income taxes |
|
|
274.1 |
|
|
|
317.4 |
|
|
|
1,099.1 |
|
|
|
1,608.5 |
|
Income tax provision |
|
|
(35.9 |
) |
|
|
(111.7 |
) |
|
|
(151.8 |
) |
|
|
(330.5 |
) |
Net income |
|
|
238.2 |
|
|
|
205.7 |
|
|
|
947.3 |
|
|
|
1,278.0 |
|
Net loss attributable to noncontrolling interests |
|
|
(0.9 |
) |
|
|
(97.2 |
) |
|
|
(5.2 |
) |
|
|
(109.4 |
) |
Net income attributable to Rockwell Automation, Inc. |
|
$ |
239.1 |
|
|
$ |
302.9 |
|
|
$ |
952.5 |
|
|
$ |
1,387.4 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross profit as percent of sales (b/a) |
|
|
37.9 |
% |
|
|
41.2 |
% |
|
|
38.6 |
% |
|
|
41.0 |
% |
SG&A as percent of sales (c/a) |
|
|
23.9 |
% |
|
|
21.5 |
% |
|
|
24.2 |
% |
|
|
22.3 |
% |
(1) Cost of sales in the three and twelve months ended September 30, 2024, includes |
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(2) Selling, general and administrative expenses in the three and twelve months ended September 30, 2024, includes of |
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(3) Primarily relates to the change in fair value of our previous investment in PTC. |
ROCKWELL AUTOMATION, INC. |
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SALES AND EARNINGS INFORMATION |
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(in millions, except per share amounts and percentages) |
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|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Sales |
|
|
|
|
|
|
|
|
||||||||
Intelligent Devices (a) |
|
$ |
946.0 |
|
|
$ |
1,170.7 |
|
|
$ |
3,804.1 |
|
|
$ |
4,098.2 |
|
Software & Control (b) |
|
|
501.7 |
|
|
|
821.0 |
|
|
|
2,187.4 |
|
|
|
2,886.0 |
|
Lifecycle Services (c) |
|
|
587.8 |
|
|
|
571.2 |
|
|
|
2,272.7 |
|
|
|
2,073.8 |
|
Total sales (d) |
|
$ |
2,035.5 |
|
|
$ |
2,562.9 |
|
|
$ |
8,264.2 |
|
|
$ |
9,058.0 |
|
Segment operating earnings |
|
|
|
|
|
|
|
|
||||||||
Intelligent Devices (e) |
|
$ |
195.3 |
|
|
$ |
248.8 |
|
|
$ |
700.0 |
|
|
$ |
828.2 |
|
Software & Control (f) |
|
|
111.8 |
|
|
|
275.1 |
|
|
|
529.7 |
|
|
|
953.2 |
|
Lifecycle Services (g) |
|
|
102.0 |
|
|
|
47.8 |
|
|
|
365.6 |
|
|
|
148.4 |
|
Total segment operating earnings (1) (h) |
|
|
409.1 |
|
|
|
571.7 |
|
|
|
1,595.3 |
|
|
|
1,929.8 |
|
Purchase accounting depreciation and amortization, and impairment |
|
|
(35.6 |
) |
|
|
(184.6 |
) |
|
|
(143.9 |
) |
|
|
(264.4 |
) |
Corporate and other |
|
|
(39.0 |
) |
|
|
(39.1 |
) |
|
|
(135.8 |
) |
|
|
(127.9 |
) |
Non-operating pension and postretirement benefit credit (cost) |
|
|
5.1 |
|
|
|
4.8 |
|
|
|
19.8 |
|
|
|
(82.7 |
) |
Change in fair value of investments |
|
|
(0.8 |
) |
|
|
(10.0 |
) |
|
|
0.1 |
|
|
|
279.3 |
|
Restructuring charges |
|
|
(27.6 |
) |
|
|
— |
|
|
|
(97.4 |
) |
|
|
— |
|
Interest expense, net |
|
|
(37.1 |
) |
|
|
(25.4 |
) |
|
|
(139.0 |
) |
|
|
(125.6 |
) |
Income before income taxes (i) |
|
|
274.1 |
|
|
|
317.4 |
|
|
|
1,099.1 |
|
|
|
1,608.5 |
|
Income tax provision |
|
|
(35.9 |
) |
|
|
(111.7 |
) |
|
|
(151.8 |
) |
|
|
(330.5 |
) |
Net income |
|
|
238.2 |
|
|
|
205.7 |
|
|
|
947.3 |
|
|
|
1,278.0 |
|
Net loss attributable to noncontrolling interests |
|
|
(0.9 |
) |
|
|
(97.2 |
) |
|
|
(5.2 |
) |
|
|
(109.4 |
) |
Net income attributable to Rockwell Automation, Inc. |
|
$ |
239.1 |
|
|
$ |
302.9 |
|
|
$ |
952.5 |
|
|
$ |
1,387.4 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS |
|
$ |
2.09 |
|
|
$ |
2.61 |
|
|
$ |
8.28 |
|
|
$ |
11.95 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EPS (2) |
|
$ |
2.47 |
|
|
$ |
3.64 |
|
|
$ |
9.71 |
|
|
$ |
12.12 |
|
|
|
|
|
|
|
|
|
|
||||||||
Average diluted shares for diluted EPS |
|
|
113.7 |
|
|
|
115.6 |
|
|
|
114.5 |
|
|
|
115.6 |
|
|
|
|
|
|
|
|
|
|
||||||||
Pre-tax margin (i/d) |
|
|
13.5 |
% |
|
|
12.4 |
% |
|
|
13.3 |
% |
|
|
17.8 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Segment operating margin |
|
|
|
|
|
|
|
|
||||||||
Intelligent Devices (e/a) |
|
|
20.6 |
% |
|
|
21.3 |
% |
|
|
18.4 |
% |
|
|
20.2 |
% |
Software & Control (f/b) |
|
|
22.3 |
% |
|
|
33.5 |
% |
|
|
24.2 |
% |
|
|
33.0 |
% |
Lifecycle Services (g/c) |
|
|
17.4 |
% |
|
|
8.4 |
% |
|
|
16.1 |
% |
|
|
7.2 |
% |
Total segment operating margin (1) (h/d) |
|
|
20.1 |
% |
|
|
22.3 |
% |
|
|
19.3 |
% |
|
|
21.3 |
% |
(1) Total segment operating earnings and total segment operating margin are non-GAAP financial measures. We exclude purchase accounting depreciation and amortization, impairment, corporate and other, non-operating pension and postretirement benefit credit (cost), change in fair value of investments, restructuring charges aligned with enterprise-wide strategic initiatives, interest expense, net, and income tax provision because we do not consider these items to be directly related to the operating performance of our segments. We believe total segment operating earnings and total segment operating margin are useful to investors as measures of operating performance. We use these measures to monitor and evaluate the profitability of our operating segments. Our measures of total segment operating earnings and total segment operating margin may be different from measures used by other companies. |
||||||||||||||||
(2) Adjusted EPS is a non-GAAP earnings measure that excludes purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation, non-operating pension and postretirement benefit credit (cost), change in fair value of investments, restructuring charges aligned with enterprise-wide strategic initiatives, and net loss attributable to noncontrolling interests, including their respective tax effects and related valuation allowances. See "Other Supplemental Information - Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate" section for more information regarding non-operating pension and postretirement benefit credit (cost) and a reconciliation to GAAP measures. |
ROCKWELL AUTOMATION, INC. |
||||||
CONDENSED BALANCE SHEET INFORMATION |
||||||
(in millions) |
||||||
|
|
September 30,
|
|
September 30,
|
||
Assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
471.0 |
|
$ |
1,071.8 |
Receivables |
|
|
1,802.0 |
|
|
2,167.4 |
Inventories |
|
|
1,293.1 |
|
|
1,404.9 |
Property, net |
|
|
776.7 |
|
|
684.2 |
Operating lease right-of-use assets |
|
|
422.6 |
|
|
349.4 |
Goodwill and intangibles |
|
|
5,059.6 |
|
|
4,381.6 |
Long-term investments |
|
|
168.7 |
|
|
157.1 |
Other assets |
|
|
1,238.4 |
|
|
1,087.6 |
Total |
|
$ |
11,232.1 |
|
$ |
11,304.0 |
Liabilities and Shareowners’ Equity |
|
|
|
|
||
Short-term debt |
|
$ |
1,078.2 |
|
$ |
103.3 |
Accounts payable |
|
|
860.4 |
|
|
1,150.2 |
Long-term debt |
|
|
2,561.3 |
|
|
2,862.9 |
Operating lease liabilities |
|
|
355.6 |
|
|
285.3 |
Other liabilities |
|
|
2,701.4 |
|
|
3,158.9 |
Shareowners’ equity attributable to Rockwell Automation, Inc. |
|
|
3,498.3 |
|
|
3,561.6 |
Noncontrolling interests |
|
|
176.9 |
|
|
181.8 |
Total |
|
$ |
11,232.1 |
|
$ |
11,304.0 |
ROCKWELL AUTOMATION, INC. |
||||||||
CONDENSED CASH FLOW INFORMATION |
||||||||
(in millions) |
||||||||
|
|
Twelve Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
Operating activities: |
|
|
|
|
||||
Net income |
|
$ |
947.3 |
|
|
$ |
1,278.0 |
|
Depreciation and amortization |
|
|
317.4 |
|
|
|
250.4 |
|
Change in fair value of investments (1) |
|
|
(0.1 |
) |
|
|
(279.3 |
) |
Retirement benefits expense |
|
|
17.9 |
|
|
|
125.3 |
|
Pension contributions |
|
|
(28.3 |
) |
|
|
(25.9 |
) |
Impairment of goodwill |
|
|
— |
|
|
|
157.5 |
|
Receivables/inventories/payables |
|
|
246.0 |
|
|
|
(594.4 |
) |
Contract liabilities |
|
|
(7.4 |
) |
|
|
106.8 |
|
Compensation and benefits |
|
|
(254.9 |
) |
|
|
209.1 |
|
Income taxes |
|
|
(304.7 |
) |
|
|
4.0 |
|
Other operating activities |
|
|
(69.4 |
) |
|
|
143.1 |
|
Cash provided by operating activities |
|
|
863.8 |
|
|
|
1,374.6 |
|
Investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(224.7 |
) |
|
|
(160.5 |
) |
Acquisition of businesses, net of cash acquired |
|
|
(749.2 |
) |
|
|
(168.4 |
) |
Purchases of investments |
|
|
(10.0 |
) |
|
|
(27.1 |
) |
Proceeds from sales and maturities of investments |
|
|
0.2 |
|
|
|
1,210.4 |
|
Other investing activities |
|
|
1.2 |
|
|
|
(0.1 |
) |
Cash (used for) provided by investing activities |
|
|
(982.5 |
) |
|
|
854.3 |
|
Financing activities: |
|
|
|
|
||||
Net issuance (repayments) of short-term debt |
|
|
655.2 |
|
|
|
(256.9 |
) |
Issuance of debt, net of discount and issuance costs |
|
|
18.8 |
|
|
|
— |
|
Repayment of debt |
|
|
— |
|
|
|
(618.6 |
) |
Cash dividends |
|
|
(571.0 |
) |
|
|
(542.4 |
) |
Purchases of treasury stock |
|
|
(594.9 |
) |
|
|
(311.5 |
) |
Proceeds from the exercise of stock options |
|
|
39.4 |
|
|
|
88.5 |
|
Other financing activities |
|
|
(50.3 |
) |
|
|
(34.7 |
) |
Cash used for financing activities |
|
|
(502.8 |
) |
|
|
(1,675.6 |
) |
Effect of exchange rate changes on cash |
|
|
12.1 |
|
|
|
19.2 |
|
(Decrease) increase in cash, cash equivalents, and restricted cash (2) |
|
$ |
(609.4 |
) |
|
$ |
572.5 |
|
(1) Primarily relates to the change in fair value of our previous investment in PTC. |
||||||||
(2) Cash, cash equivalents, and restricted cash at September 30, 2023 includes restricted cash of |
ROCKWELL AUTOMATION, INC.
OTHER SUPPLEMENTAL INFORMATION
(in millions, except percentages)
Organic Sales
We translate sales of subsidiaries operating outside of
The following is a reconciliation of reported sales to organic sales for the three and twelve months ended September 30, 2024, compared to sales for the three and twelve months ended September 30, 2023:
|
|
Three Months Ended September 30, |
||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||
|
|
Reported Sales |
|
Less: Effect
|
|
Effect of
|
|
Organic
|
|
Reported Sales |
||||||
|
|
$ |
1,243.7 |
|
$ |
22.2 |
|
$ |
(1.7 |
) |
|
$ |
1,223.2 |
|
$ |
1,473.6 |
EMEA |
|
|
362.0 |
|
|
0.5 |
|
|
4.2 |
|
|
|
357.3 |
|
|
516.9 |
|
|
|
266.4 |
|
|
0.3 |
|
|
0.1 |
|
|
|
266.0 |
|
|
383.8 |
|
|
|
163.4 |
|
|
0.1 |
|
|
(11.8 |
) |
|
|
175.1 |
|
|
188.6 |
Total |
|
$ |
2,035.5 |
|
$ |
23.1 |
|
$ |
(9.2 |
) |
|
$ |
2,021.6 |
|
$ |
2,562.9 |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Twelve Months Ended September 30, |
||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||
|
|
Reported Sales |
|
Less: Effect
|
|
Effect of
|
|
Organic
|
|
Reported Sales |
||||||
|
|
$ |
5,052.8 |
|
$ |
81.8 |
|
$ |
(3.4 |
) |
|
$ |
4,974.4 |
|
$ |
5,224.0 |
EMEA |
|
|
1,504.5 |
|
|
9.0 |
|
|
21.6 |
|
|
|
1,473.9 |
|
|
1,870.6 |
|
|
|
1,072.8 |
|
|
4.8 |
|
|
(18.2 |
) |
|
|
1,086.2 |
|
|
1,358.0 |
|
|
|
634.1 |
|
|
0.4 |
|
|
4.5 |
|
|
|
629.2 |
|
|
605.4 |
Total |
|
$ |
8,264.2 |
|
$ |
96.0 |
|
$ |
4.5 |
|
|
$ |
8,163.7 |
|
$ |
9,058.0 |
The following is a reconciliation of reported sales to organic sales for our operating segments for the three and twelve months ended September 30, 2024, compared to sales for the three and twelve months ended September 30, 2023:
|
|
Three Months Ended September 30, |
||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||
|
|
Reported Sales |
|
Less: Effect
|
|
Effect of
|
|
Organic
|
|
Reported Sales |
||||||
Intelligent Devices |
|
$ |
946.0 |
|
$ |
16.9 |
|
$ |
(4.5 |
) |
|
$ |
933.6 |
|
$ |
1,170.7 |
Software & Control |
|
|
501.7 |
|
|
— |
|
|
(2.7 |
) |
|
|
504.4 |
|
|
821.0 |
Lifecycle Services |
|
|
587.8 |
|
|
6.2 |
|
|
(2.0 |
) |
|
|
583.6 |
|
|
571.2 |
Total |
|
$ |
2,035.5 |
|
$ |
23.1 |
|
$ |
(9.2 |
) |
|
$ |
2,021.6 |
|
$ |
2,562.9 |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Twelve Months Ended September 30, |
||||||||||||||
|
|
2024 |
|
2023 |
||||||||||||
|
|
Reported Sales |
|
Less: Effect
|
|
Effect of
|
|
Organic
|
|
Reported Sales |
||||||
Intelligent Devices |
|
$ |
3,804.1 |
|
$ |
68.5 |
|
$ |
3.7 |
|
|
$ |
3,731.9 |
|
$ |
4,098.2 |
Software & Control |
|
|
2,187.4 |
|
|
— |
|
|
2.2 |
|
|
|
2,185.2 |
|
|
2,886.0 |
Lifecycle Services |
|
|
2,272.7 |
|
|
27.5 |
|
|
(1.4 |
) |
|
|
2,246.6 |
|
|
2,073.8 |
Total |
|
$ |
8,264.2 |
|
$ |
96.0 |
|
$ |
4.5 |
|
|
$ |
8,163.7 |
|
$ |
9,058.0 |
The following is a reconciliation of reported sales growth to organic sales growth for the three and twelve months ended September 30, 2024, compared to sales for the three and twelve months ended September 30, 2023:
|
|
Three Months Ended September 30, 2024 |
||||||||||
|
|
Reported Sales
|
|
Less: Effect
|
|
Effect of
|
|
Organic Sales
|
||||
|
|
(16 |
)% |
|
2 |
% |
|
(1 |
)% |
|
(17 |
)% |
EMEA |
|
(30 |
)% |
|
— |
% |
|
1 |
% |
|
(31 |
)% |
|
|
(31 |
)% |
|
— |
% |
|
— |
% |
|
(31 |
)% |
|
|
(13 |
)% |
|
— |
% |
|
(6 |
)% |
|
(7 |
)% |
Total |
|
(21 |
)% |
|
1 |
% |
|
(1 |
)% |
|
(21 |
)% |
|
|
Twelve Months Ended September 30, 2024 |
||||||||||
|
|
Reported Sales
|
|
Less: Effect
|
|
Effect of
|
|
Organic Sales
|
||||
|
|
(3 |
)% |
|
2 |
% |
|
— |
% |
|
(5 |
)% |
EMEA |
|
(20 |
)% |
|
— |
% |
|
1 |
% |
|
(21 |
)% |
|
|
(21 |
)% |
|
— |
% |
|
(1 |
)% |
|
(20 |
)% |
|
|
5 |
% |
|
— |
% |
|
1 |
% |
|
4 |
% |
Total |
|
(9 |
)% |
|
1 |
% |
|
— |
% |
|
(10 |
)% |
The following is a reconciliation of reported sales growth to organic sales growth for our operating segments for the three and twelve months ended September 30, 2024, compared to sales for the three and twelve months ended September 30, 2023:
|
|
Three Months Ended September 30, 2024 |
||||||||||
|
|
Reported Sales
|
|
Less: Effect
|
|
Effect of
|
|
Organic Sales
|
||||
Intelligent Devices |
|
(19 |
)% |
|
1 |
% |
|
— |
% |
|
(20 |
)% |
Software & Control |
|
(39 |
)% |
|
— |
% |
|
— |
% |
|
(39 |
)% |
Lifecycle Services |
|
3 |
% |
|
1 |
% |
|
— |
% |
|
2 |
% |
Total |
|
(21 |
)% |
|
1 |
% |
|
(1 |
)% |
|
(21 |
)% |
|
|
Twelve Months Ended September 30, 2024 |
||||||||||
|
|
Reported Sales
|
|
Less: Effect
|
|
Effect of
|
|
Organic Sales
|
||||
Intelligent Devices |
|
(7 |
)% |
|
2 |
% |
|
— |
% |
|
(9 |
)% |
Software & Control |
|
(24 |
)% |
|
— |
% |
|
— |
% |
|
(24 |
)% |
Lifecycle Services |
|
10 |
% |
|
2 |
% |
|
— |
% |
|
8 |
% |
Total |
|
(9 |
)% |
|
1 |
% |
|
— |
% |
|
(10 |
)% |
ROCKWELL AUTOMATION, INC.
OTHER SUPPLEMENTAL INFORMATION
(in millions, except per share amounts and percentages)
Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate
Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate are non-GAAP earnings measures that exclude non-operating pension and postretirement benefit (credit) cost, purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation, change in fair value of investments, restructuring charges aligned with enterprise-wide strategic initiatives, and Net loss attributable to noncontrolling interests, including their respective tax effects and related valuation allowances. In 2024, we updated the definition of our non-GAAP earnings measures to exclude significant restructuring charges aligned with enterprise-wide strategic initiatives. In the year ended September 30, 2024, we recognized these restructuring charges in conjunction with an enterprise-wide comprehensive program to optimize cost structure and expand margins. We believe the change to our definition provides a more useful presentation of our operating performance to investors as these restructuring charges are significant and enterprise-wide severance actions and not reflective of our ongoing operations. We did not revise prior years because there were no similar restructuring actions with significant costs.
Purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation includes an accounting charge related to goodwill impairment for our Sensia joint venture in the three and twelve months ended September 30, 2023. The tax effect of the purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation includes the tax effects on the Sensia joint venture goodwill impairment and related Sensia tax asset valuation allowances. Non-operating pension and postretirement benefit (credit) cost is defined as all components of our net periodic pension and postretirement benefit cost except for service cost.
We believe that Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate provide useful information to our investors about our operating performance and allow management and investors to compare our operating performance period over period. Adjusted EPS is also used as a financial measure of performance for our annual incentive compensation. Our measures of Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate may be different from measures used by other companies. These non-GAAP measures should not be considered a substitute for Net income attributable to Rockwell Automation, diluted EPS, and effective tax rate.
The following are the components of operating and non-operating pension and postretirement benefit cost (credit) for the three and twelve months ended September 30, 2024 and 2023 (in millions):
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Service cost |
$ |
9.5 |
|
|
$ |
11.6 |
|
|
$ |
37.7 |
|
|
$ |
42.6 |
|
Operating pension and postretirement benefit cost |
|
9.5 |
|
|
|
11.6 |
|
|
|
37.7 |
|
|
|
42.6 |
|
|
|
|
|
|
|
|
|
||||||||
Interest cost |
|
37.3 |
|
|
|
36.2 |
|
|
|
149.1 |
|
|
|
151.9 |
|
Expected return on plan assets |
|
(42.6 |
) |
|
|
(43.6 |
) |
|
|
(169.5 |
) |
|
|
(190.6 |
) |
Amortization of prior service cost |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Amortization of net actuarial loss (gain) |
|
0.1 |
|
|
|
(0.7 |
) |
|
|
0.5 |
|
|
|
(2.1 |
) |
Settlement charges |
|
0.1 |
|
|
|
3.3 |
|
|
|
0.1 |
|
|
|
123.4 |
|
Non-operating pension and postretirement benefit (credit) cost |
|
(5.1 |
) |
|
|
(4.8 |
) |
|
|
(19.8 |
) |
|
|
82.7 |
|
|
|
|
|
|
|
|
|
||||||||
Net periodic pension and postretirement benefit cost |
$ |
4.4 |
|
|
$ |
6.8 |
|
|
$ |
17.9 |
|
|
$ |
125.3 |
|
The components of net periodic pension and postretirement benefit cost other than the service cost component are included in Other income (expense) in the Condensed Statement of Operations.
The following are reconciliations of Net income attributable to Rockwell Automation, diluted EPS, and effective tax rate to adjusted income, adjusted EPS, and adjusted effective tax rate, respectively:
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income attributable to Rockwell Automation |
$ |
239.1 |
|
|
$ |
302.9 |
|
|
$ |
952.5 |
|
|
$ |
1,387.4 |
|
Non-operating pension and postretirement benefit (credit) cost |
|
(5.1 |
) |
|
|
(4.8 |
) |
|
|
(19.8 |
) |
|
|
82.7 |
|
Tax effect of non-operating pension and postretirement benefit (credit) cost |
|
1.0 |
|
|
|
1.0 |
|
|
|
4.0 |
|
|
|
(20.6 |
) |
Purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation (1) |
|
32.9 |
|
|
|
107.6 |
|
|
|
132.8 |
|
|
|
178.3 |
|
Tax effect of purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation (1) |
|
(7.5 |
) |
|
|
7.9 |
|
|
|
(24.6 |
) |
|
|
(9.4 |
) |
Change in fair value of investments (2) |
|
0.8 |
|
|
|
10.0 |
|
|
|
(0.1 |
) |
|
|
(279.3 |
) |
Tax effect of change in fair value of investments (2) |
|
(0.2 |
) |
|
|
(2.4 |
) |
|
|
(0.7 |
) |
|
|
67.6 |
|
Restructuring charges (3) |
|
27.6 |
|
|
|
— |
|
|
|
97.4 |
|
|
|
— |
|
Tax effects of restructuring charges (3) |
|
(6.7 |
) |
|
|
— |
|
|
|
(24.3 |
) |
|
|
— |
|
Adjusted Income |
$ |
281.9 |
|
|
$ |
422.2 |
|
|
$ |
1,117.2 |
|
|
$ |
1,406.7 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS |
$ |
2.09 |
|
|
$ |
2.61 |
|
|
$ |
8.28 |
|
|
$ |
11.95 |
|
Non-operating pension and postretirement benefit (credit) cost |
|
(0.04 |
) |
|
|
(0.04 |
) |
|
|
(0.17 |
) |
|
|
0.72 |
|
Tax effect of non-operating pension and postretirement benefit (credit) cost |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
(0.18 |
) |
Purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation |
|
0.29 |
|
|
|
0.93 |
|
|
|
1.16 |
|
|
|
1.54 |
|
Tax effect of purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation |
|
(0.07 |
) |
|
|
0.07 |
|
|
|
(0.22 |
) |
|
|
(0.08 |
) |
Change in fair value of investments (2) |
|
0.01 |
|
|
|
0.09 |
|
|
|
— |
|
|
|
(2.42 |
) |
Tax effect of change in fair value of investments (2) |
|
— |
|
|
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
0.59 |
|
Restructuring charges |
|
0.24 |
|
|
|
— |
|
|
|
0.85 |
|
|
|
— |
|
Tax effects of restructuring charges |
|
(0.06 |
) |
|
|
— |
|
|
|
(0.21 |
) |
|
|
— |
|
Adjusted EPS |
$ |
2.47 |
|
|
$ |
3.64 |
|
|
$ |
9.71 |
|
|
$ |
12.12 |
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate |
|
13.1 |
% |
|
|
35.2 |
% |
|
|
13.8 |
% |
|
|
20.5 |
% |
Tax effect of non-operating pension and postretirement benefit (credit) cost |
|
(0.2 |
)% |
|
|
0.2 |
% |
|
|
(0.1 |
)% |
|
|
0.3 |
% |
Tax effect of purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation |
|
0.9 |
% |
|
|
(18.0 |
)% |
|
|
0.4 |
% |
|
|
(3.7 |
)% |
Tax effect of change in fair value of investments (2) |
|
0.1 |
% |
|
|
(0.4 |
)% |
|
|
0.1 |
% |
|
|
(0.7 |
)% |
Tax effects of restructuring charges |
|
1.0 |
% |
|
|
— |
% |
|
|
0.9 |
% |
|
|
— |
% |
Adjusted Effective Tax Rate |
|
14.9 |
% |
|
|
17.0 |
% |
|
|
15.1 |
% |
|
|
16.4 |
% |
(1) Three and twelve months ended September 30, 2023 includes |
|||||||||||||||
(2) Primarily relates to the change in fair value of our previous investment in PTC. |
|||||||||||||||
(3) Restructuring charges include |
Fiscal 2025 Guidance
|
|
Fiscal 2025
|
|
Diluted EPS |
|
|
|
Non-operating pension and postretirement benefit cost (credit) |
|
— |
|
Tax effect of non-operating pension and postretirement benefit cost (credit) |
|
— |
|
Purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation |
|
1.15 |
|
Tax effect of purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation |
|
(0.20) |
|
Change in fair value of investments (1) |
|
— |
|
Tax effect of change in fair value of investments (1) |
|
— |
|
Adjusted EPS (2) |
|
|
|
|
|
|
|
Effective tax rate |
|
~ |
|
Tax effect of non-operating pension and postretirement benefit cost |
|
~ —% |
|
Tax effect of purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation |
|
~ |
|
Tax effect of change in fair value of investments (1) |
|
~ —% |
|
Adjusted effective tax rate |
|
|
|
(1) Fiscal 2025 guidance excludes estimates of changes in fair value of investments on a forward-looking basis due to variability, complexity, and limited visibility of these items. |
|||
(2) Fiscal 2025 guidance based on Adjusted Income attributable to Rockwell, which includes an adjustment for SLB's non-controlling interest in Sensia. |
|||
Note: Guidance as of November 7, 2024. |
ROCKWELL AUTOMATION, INC.
OTHER SUPPLEMENTAL INFORMATION
(in millions, except percentages)
Free Cash Flow
Our definition of free cash flow, which is a non-GAAP financial measure, takes into consideration capital investments required to maintain the operations of our businesses and execute our strategy. In our opinion, free cash flow provides useful information to investors regarding our ability to generate cash from business operations that is available for acquisitions and other investments, service of debt principal, dividends, and share repurchases. We use free cash flow, as defined, as one measure to monitor and evaluate our performance, including as a financial measure for our annual incentive compensation. Our definition of free cash flow may be different from definitions used by other companies.
The following table summarizes free cash flow by quarter:
|
Quarter Ended |
||||||||||||||||||||||||||||||
|
Dec. 31,
|
|
Mar. 31,
|
|
Jun. 30,
|
|
Sep. 30,
|
|
Dec. 31,
|
|
Mar. 31,
|
|
Jun. 30,
|
|
Sep. 30,
|
||||||||||||||||
Cash provided by operating activities |
$ |
66.3 |
|
|
$ |
187.1 |
|
|
$ |
281.7 |
|
|
$ |
839.5 |
|
|
$ |
32.6 |
|
|
$ |
119.8 |
|
|
$ |
279.1 |
|
|
$ |
432.3 |
|
Capital expenditures |
|
(24.2 |
) |
|
|
(31.5 |
) |
|
|
(41.6 |
) |
|
|
(63.2 |
) |
|
|
(67.9 |
) |
|
|
(51.2 |
) |
|
|
(40.7 |
) |
|
|
(64.9 |
) |
Free cash flow |
$ |
42.1 |
|
|
$ |
155.6 |
|
|
$ |
240.1 |
|
|
$ |
776.3 |
|
|
$ |
(35.3 |
) |
|
$ |
68.6 |
|
|
$ |
238.4 |
|
|
$ |
367.4 |
|
Free cash flow conversion (free cash flow as a percentage of adjusted income) is a non-GAAP financial measure, which reflects our ability to generate cash from the operations of our business while considering the capital investments required to maintain operations and execute our strategy as a ratio of our operating performance. We believe free cash flow conversion provides useful information to investors about our ability to convert operating performance into cash generation. Our measure of free cash flow conversion may be different from measures used by other companies.
The table below provides the calculation of free cash flow and free cash flow conversion for fiscal years 2024 and 2023:
|
|
Year Ended |
||||||
|
|
Sep. 30, 2024 |
|
Sep. 30, 2023 |
||||
Cash provided by operating activities |
|
$ |
863.8 |
|
|
$ |
1,374.6 |
|
Capital expenditures |
|
|
(224.7 |
) |
|
|
(160.5 |
) |
Free cash flow (a) |
|
|
639.1 |
|
|
|
1,214.1 |
|
Adjusted Income (b) |
|
|
1,117.2 |
|
|
|
1,406.7 |
|
Free cash flow conversion (a/b) |
|
|
57 |
% |
|
|
86 |
% |
Return On Invested Capital
Our press release contains information regarding ROIC, which is a non-GAAP financial measure. We believe that ROIC is useful to investors as a measure of performance and of the effectiveness of the use of capital in our operations. We use ROIC as one measure to monitor and evaluate our performance. Our measure of ROIC may be different from that used by other companies. We define ROIC as the percentage resulting from the following calculation:
(a) Net income, before Interest expense, Income tax provision, and Purchase accounting depreciation and amortization, and impairment, divided by;
(b) average invested capital for the year, calculated as a five quarter rolling average using the sum of Short-term debt, Long-term debt, Shareowners’ equity, and Accumulated amortization of goodwill and other intangible assets, minus Cash and cash equivalents, short-term investments, and long-term investments (fixed income securities), multiplied by;
(c) one minus the effective tax rate for the period.
ROIC is calculated as follows (in millions, except percentages):
|
|
Twelve Months Ended |
||||||
|
|
September 30, |
||||||
|
|
2024 |
|
2023 |
||||
(a) Return |
|
|
|
|
||||
Net income |
|
$ |
947.3 |
|
|
$ |
1,278.0 |
|
Interest expense |
|
|
154.6 |
|
|
|
135.3 |
|
Income tax provision |
|
|
151.8 |
|
|
|
330.5 |
|
Purchase accounting depreciation and amortization, and impairment |
|
|
143.9 |
|
|
|
264.4 |
|
Return |
|
$ |
1,397.6 |
|
|
$ |
2,008.2 |
|
(b) Average invested capital |
|
|
|
|
||||
Short-term debt |
|
$ |
778.8 |
|
|
$ |
847.6 |
|
Long-term debt |
|
|
2,686.2 |
|
|
|
2,866.5 |
|
Shareowners’ equity |
|
|
3,686.2 |
|
|
|
3,401.2 |
|
Accumulated amortization of goodwill and intangibles |
|
|
1,359.9 |
|
|
|
1,107.1 |
|
Cash and cash equivalents |
|
|
(571.9 |
) |
|
|
(584.4 |
) |
Short-term and long-term investments |
|
|
(0.4 |
) |
|
|
(5.4 |
) |
Average invested capital |
|
$ |
7,938.8 |
|
|
$ |
7,632.6 |
|
(c) Effective tax rate |
|
|
|
|
||||
Income tax provision |
|
$ |
151.8 |
|
|
$ |
330.5 |
|
Income before income taxes |
|
|
1,099.1 |
|
|
|
1,608.5 |
|
Effective tax rate |
|
|
13.8 |
% |
|
|
20.5 |
% |
(a) / (b) * (1-c) Return On Invested Capital |
|
|
15.2 |
% |
|
|
20.9 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107490197/en/
Ed Moreland
Media Relations
Rockwell Automation
571.296.0391
Aijana Zellner
Investor Relations
Rockwell Automation
414.382.8510
Source: Rockwell Automation, Inc.
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