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Sep 30, 2024

Rockwell Automation Q4 2024 Earnings Report

Rockwell Automation's Q4 2024 performance was marked by lower-than-expected orders, reflecting continued softness in end markets, while operating performance remained solid with good sales conversion, margin, and EPS.

Key Takeaways

Rockwell Automation reported a decrease in Q4 sales by (21)% year over year, with diluted EPS down (20)% to $2.09, including a restructuring charge. Adjusted EPS decreased (32)% to $2.47. The company's total ARR grew 16% year over year. Fiscal 2025 guidance includes reported and organic sales growth of (4)% to 2% and diluted EPS of $7.65 - $8.85.

Fourth quarter reported and organic sales decreased (21)% year over year.

Fourth quarter diluted EPS was $2.09, down (20)% year over year, including a restructuring charge of $0.18; adjusted EPS was $2.47, down (32)% year over year.

Full year reported sales decreased (9)% year over year; organic sales decreased (10)% year over year.

Total ARR grew 16% year over year.

Total Revenue
$2.04B
Previous year: $2.56B
-20.6%
EPS
$2.47
Previous year: $3.64
-32.1%
Pre-Tax Margin
13.5%
Previous year: 12.4%
+8.9%
Segment Operating Margin
20.1%
Previous year: 22.3%
-9.9%
Effective Tax Rate
13.1%
Previous year: 35.2%
-62.8%
Gross Profit
$771M
Previous year: $1.06B
-27.0%
Cash and Equivalents
$471M
Previous year: $1.07B
-56.1%
Free Cash Flow
$367M
Previous year: $776M
-52.7%
Total Assets
$11.2B
Previous year: $11.3B
-0.6%

Rockwell Automation

Rockwell Automation

Rockwell Automation Revenue by Segment

Rockwell Automation Revenue by Geographic Location

Forward Guidance

Rockwell Automation anticipates Q1 sales to be down from Q4 levels, followed by gradual sequential improvement through the year, amidst uncertainty in the macroeconomic environment.

Positive Outlook

  • Continue to fuel high-growth areas.
  • Drive margin expansion projects that increase business resilience.
  • Strong market position given our portfolio.
  • Leadership in North America.
  • North America continues to be the best-performing market.

Challenges Ahead

  • Uncertainty in the current macroeconomic environment.
  • Typical seasonality in our longer cycle business.
  • Expecting our fiscal Q1 sales to be down from Q4 levels.
  • Orders for the quarter came in lower than expected.
  • Reflecting continued softness in many of our end markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income