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Dec 31, 2021

Rockwell Automation Q1 2022 Earnings Report

Rockwell Automation reported excellent first quarter results for fiscal year 2022, with significant growth in sales and orders.

Key Takeaways

Rockwell Automation reported strong Q1 2022 results with sales up 18.7% and record orders of $2.5 billion, up over 40% year-over-year. Diluted EPS was $2.05 and Adjusted EPS was $2.14. The company reaffirms its fiscal 2022 sales and earnings guidance.

Record quarterly orders of $2.5 billion, up over 40% year over year.

Reported sales up 18.7% year over year; organic sales up 16.8%.

Total ARR up over 50% with recent Plex acquisition; Organic ARR up double digits.

Q1 Diluted EPS of $2.05 and Adjusted EPS of $2.14.

Total Revenue
$1.86B
Previous year: $1.57B
+18.6%
EPS
$2.14
Previous year: $2.38
-10.1%
Pre-Tax Margin
15.2%
Previous year: 44.8%
-66.1%
Segment Operating Margin
19.1%
Previous year: 19.8%
-3.5%
Effective Tax Rate
15.4%
Previous year: 15.8%
-2.5%
Gross Profit
$749M
Previous year: $647M
+15.9%
Cash and Equivalents
$540M
Previous year: $730M
-26.1%
Free Cash Flow
-$49.1M
Previous year: $319M
-115.4%
Total Assets
$10.7B
Previous year: $8.17B
+31.5%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Segment

Rockwell Automation Revenue by Geographic Location

Forward Guidance

Rockwell Automation reaffirms fiscal 2022 reported sales growth guidance of 16% - 19% and organic sales growth of 14% - 17%. Updates fiscal 2022 Diluted EPS guidance from $9.91 - $10.51 to $10.01 - $10.61. Reaffirms fiscal 2022 Adjusted EPS guidance of $10.50 - $11.10.

Positive Outlook

  • Expect very strong growth this year, with total sales up 17.5% at the midpoint of our guidance range.
  • Guidance reflects strong demand as well as record backlog.
  • Reaffirms fiscal 2022 reported sales growth guidance of 16% - 19%.
  • Reaffirms fiscal 2022 organic sales growth of 14% - 17%.
  • Reaffirms fiscal 2022 Adjusted EPS guidance of $10.50 - $11.10.

Challenges Ahead

  • Supply chain challenges remain dynamic.
  • Projections assume gradual improvement over the course of the year.
  • Updates fiscal 2022 Diluted EPS guidance from $9.91 - $10.51 to $10.01 - $10.61 due to changes in purchase accounting amortization and the Q1 impact of the change in fair value of our investments, primarily PTC.
  • First quarter of fiscal 2021 included a non-recurring legal settlement gain of $0.45.
  • Adjusted EPS was down 10.1% compared to $2.38 in the first quarter of fiscal 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income