Summary of Rockwell Automation Conference Call Company Overview - **Company**: Rockwell Automation - **Event**: Oppenheimer's 20th Annual Industrial Growth Conference Key Industry Insights - **Demand Trends**: - Strong global demand with North America outperforming other regions [3][6] - No significant evidence of demand pull forward due to tariffs; inventory levels stable or slightly down [4][9] - Double-digit sequential growth observed in food and beverage, home and personal care markets [7] - **Regional Performance**: - North America expected to remain the strongest region for the year [6] - Sequential growth noted in Europe, particularly in Italy and Germany [6] - **E-commerce and Warehouse Automation**: - E-commerce and warehouse automation markets are experiencing strong demand, driven by modernization and labor cost issues [20][22] - Growth in data centers attributed to the acquisition of Cubic, contributing positively to the business [26] Financial Performance - **Revenue Guidance**: - Full-year revenue growth guidance increased from high single digits to 45% year-over-year [27] - **Cost Management**: - $125 million in tariff cost impacts anticipated, with mitigation strategies in place [45][46] - Structural productivity improvements expected to yield $250 million in year-over-year savings [59][62] - **Margin Insights**: - Margins expected to improve sequentially, with continued productivity benefits anticipated in Q3 and Q4 [63][70] - Focus on optimizing pricing and SKU rationalization to enhance margins [57][71] Strategic Initiatives - **Supply Chain Resilience**: - Enhanced supply chain flexibility and redundancy established during the supply chain crisis [17][18] - Ongoing monitoring of pre-buy activities to prevent inventory issues [9][10] - **Technological Advancements**: - Emphasis on AI capabilities within automation systems, including partnerships with NVIDIA and Microsoft [74][79] - Introduction of generative AI tools to streamline PLC programming and reduce deployment times by up to 30% [85] - **Portfolio Evolution**: - Transition towards a more software-defined portfolio, integrating AI and cloud capabilities to enhance customer offerings [74][91] Additional Considerations - **Trade Dynamics**: - Trade tensions impacting EMEA and APAC share dynamics, but overall low cancellations observed [34][36] - Uncertainty around tariffs affecting customer CapEx decisions, particularly in automotive and energy sectors [39][42] - **Market Diversification**: - Continued diversification of end markets and technologies to enhance resilience and growth opportunities [72] This summary encapsulates the key points discussed during the conference call, highlighting Rockwell Automation's performance, strategic initiatives, and market dynamics.

Rockwell Automation, Inc. (NYSE: ROK ) reported exceptionally strong Q2 ’25 financial results as management works to mitigate any financial risks resulting from tariff policies. With the majority of manufacturing being located in the U.S., Rockwell has significant flexibilityMichael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include ...

To paraphrase Rockwell Automation’s NYSE: ROK CEO, Blake Moret, the company’s home-field advantage ideally positions it to benefit from onshoring U.S. manufacturing. Its manufacturing footprint is North American-centric, with more than 70% located within the continental US. The company is a leader in automation; its products are devices and tools to automate processes and increase efficiency, which businesses and industries need to manufacture domestically and succeed. Rockwell Automation TodayROKRockwell A ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited Consolidated Financial Statements for Rockwell Automation, Inc. for the quarterly period ended March 31, 2025, showing a year-over-year decrease in sales and net income but a significant increase in cash from operations [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2025, total assets were **$10.99 billion**, a slight decrease from **$11.23 billion** at September 30, 2024, primarily due to lower inventories and currency translation effects on goodwill, with total liabilities and shareowners' equity also showing slight changes Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $3,770 | $3,881 | | Inventories | $1,175 | $1,293 | | Goodwill | $3,938 | $3,993 | | **Total Assets** | **$10,993** | **$11,232** | | **Total Current Liabilities** | $3,584 | $3,604 | | Long-term debt | $2,568 | $2,561 | | **Total Liabilities** | $7,388 | $7,557 | | **Total Shareowners' Equity** | **$3,605** | **$3,675** | [Consolidated Statement of Operations](index=5&type=section&id=Consolidated%20Statement%20of%20Operations) For the three months ended March 31, 2025, total sales decreased to **$2.00 billion** from **$2.13 billion** in the prior-year period, with net income attributable to Rockwell Automation at **$252 million**, or **$2.22** per diluted share, reflecting a similar declining trend for the six-month results Statement of Operations Summary (in millions, except per share amounts) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Sales** | $2,001 | $2,126 | $3,882 | $4,178 | | Gross Profit | $810 | $833 | $1,532 | $1,628 | | Income before income taxes | $299 | $310 | $512 | $570 | | **Net income attributable to Rockwell** | **$252** | **$266** | **$436** | **$481** | | **Diluted EPS** | **$2.22** | **$2.31** | **$3.83** | **$4.17** | [Consolidated Statement of Cash Flows](index=7&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended March 31, 2025, cash provided by operating activities significantly increased to **$563 million** from **$153 million** in the prior-year period, primarily due to favorable changes in working capital, while cash used for investing and financing activities totaled **$122 million** and **$445 million** respectively Cash Flow Summary (in millions) | Activity | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Cash provided by operating activities** | **$563** | **$153** | | Cash used for investing activities | ($122) | ($876) | | Cash (used for) provided by financing activities | ($445) | $109 | | Decrease in cash and cash equivalents | ($21) | ($609) | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed information on accounting policies, including revenue recognition, 2024 acquisitions of Clearpath Robotics and Verve Industrial Protection, goodwill balances, debt structure, restructuring activities, and segment-level performance, with **$1.365 billion** in unfulfilled performance obligations as of March 31, 2025 - As of March 31, 2025, the company expects to recognize approximately **$1.365 billion** of revenue from unfulfilled performance obligations, with about **$805 million** expected in the next 12 months[45](index=45&type=chunk) - In fiscal 2024, the company acquired Clearpath Robotics for a net consideration of **$609 million** and Verve Industrial Protection for **$183 million**[55](index=55&type=chunk)[59](index=59&type=chunk) - In 2024, the company recorded restructuring charges of **$97 million** related to an enterprise-wide cost optimization program, primarily for severance benefits[90](index=90&type=chunk) Segment Sales (in millions) | Segment | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Intelligent Devices | $896 | $974 | $1,702 | $1,901 | | Software & Control | $568 | $569 | $1,097 | $1,173 | | Lifecycle Services | $537 | $583 | $1,083 | $1,104 | | **Total** | **$2,001** | **$2,126** | **$3,882** | **$4,178** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results, highlighting a **6%** decrease in sales for Q2 2025 driven by volume declines, an improved total segment operating margin due to cost reduction actions, and a substantial year-over-year increase in free cash flow, with expectations for sequential improvement in sales and margins through 2025 [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Total sales for Q2 2025 decreased **6%** to **$2.0 billion**, with organic sales down **4%**, primarily due to lower volumes, while total segment operating margin for Q2 improved to **20.4%** from **19.0%** year-over-year, driven by strong performance in the Software & Control segment Sales Change vs. Prior Year (Q2 2025) | Metric | Total Company | Intelligent Devices | Software & Control | Lifecycle Services | | :--- | :--- | :--- | :--- | :--- | | **Reported Sales Change** | **(6)%** | (8)% | <(1)% | (8)% | | Organic Sales Change | (4)% | (6)% | 2% | (6)% | Segment Operating Margin (Q2) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Intelligent Devices | 17.7% | 16.5% | | Software & Control | 30.1% | 25.7% | | Lifecycle Services | 14.5% | 16.6% | | **Total Segment Operating Margin** | **20.4%** | **19.0%** | - The company expects over **$250 million** of year-over-year benefits from cost reduction and margin expansion actions in 2025[118](index=118&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=36&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) The company's financial condition remains solid, with operating cash flow significantly increasing to **$563 million** and free cash flow rising sharply to **$464 million** for the first six months of fiscal 2025, while maintaining a **$1.5 billion** undrawn revolving credit facility Free Cash Flow (in millions) | Description | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $563 | $153 | | Capital expenditures | ($99) | ($119) | | **Free cash flow** | **$464** | **$34** | - In the first six months of 2025, the company repurchased approximately **0.8 million shares** for **$228 million**. As of March 31, 2025, **$1.119 billion** remained available for share repurchases under board authorizations[149](index=149&type=chunk) - The company has a **$1.5 billion** unsecured revolving credit facility expiring in June 2027, which was **not borrowed against** during the period[152](index=152&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there has been **no material change** to the information regarding its exposure to foreign currency risk and interest rate risk since its Annual Report on Form 10-K for the fiscal year ended September 30, 2024 - There has been **no material change** in the company's exposure to market risks, including foreign currency and interest rate risk, as of March 31, 2025[167](index=167&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of the end of the quarter, with **no material changes** in internal control over financial reporting during the period - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[168](index=168&type=chunk) - **No material changes** to the company's internal control over financial reporting occurred during the quarter ended March 31, 2025[169](index=169&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company reports **no material changes** to the information on its legal proceedings since its Annual Report on Form 10-K for the year ended September 30, 2024 - As of March 31, 2025, there has been **no material change** to the company's legal proceedings information[171](index=171&type=chunk) [Risk Factors](index=41&type=page&id=Item%201A.%20Risk%20Factors) The company states that there have been **no material changes** to its most significant risk factors since its last Annual Report, with the exception of an **updated** risk factor concerning the potential **adverse impact** of changes in trade policies on its cost structure and profitability - The risk factor related to trade policies has been **updated** to emphasize that changes in tariffs between the U.S., Mexico, Canada, China, or other countries could **adversely affect** the company's cost structure, supply chain, and profitability[173](index=173&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity for the three months ended March 31, 2025, with a total of **467,848** shares repurchased at an average price of **$275.35** per share, and approximately **$1.12 billion** remaining available for future repurchases Share Repurchases (Three Months Ended March 31, 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Maximum Dollar Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | Jan 2025 | 147,029 | $281.90 | $1,205,897,454 | | Feb 2025 | 119,424 | $284.80 | $1,171,979,031 | | Mar 2025 | 201,395 | $264.97 | $1,118,615,185 | | **Total** | **467,848** | **$275.35** | | [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) During the quarter ended March 31, 2025, **no director or officer adopted or terminated** a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - **No director or officer adopted or terminated** a Rule 10b5-1 trading arrangement during the quarter[175](index=175&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the letter from the independent registered public accounting firm, certifications by the CEO and CFO, and Interactive Data Files (XBRL)

Rockwell Automation Inc. (ROK) has reported adjusted earnings per share (EPS) of $2.45 in second-quarter fiscal 2025 (ended March 31, 2025), surpassing the Zacks Consensus Estimate of $2.09. The bottom line declined 2% year over year due to lower sales volume.Including one-time items, earnings were $2.22 per share compared with $2.31 in the year-ago quarter.Total sales were $2.00 billion, down 5.9% from the prior-year quarter. The top line beat the Zacks Consensus Estimate of $1.96 billion. Organic sales mo ...

Core Insights - Rockwell Automation reported $2 billion in revenue for the quarter ended March 2025, reflecting a year-over-year decline of 5.9% and an EPS of $2.45 compared to $2.50 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $1.96 billion by +1.85%, while the EPS surpassed the consensus estimate of $2.09 by +17.22% [1] Financial Performance Metrics - Organic Sales showed a total growth of -4%, better than the -6.3% average estimate from four analysts [4] - Sales in Intelligent Devices reached $896 million, exceeding the average estimate of $849.78 million, but represented an 8% decline year over year [4] - Lifecycle Services sales were $537 million, below the average estimate of $573.37 million, marking a 7.8% year-over-year decline [4] - Software & Control sales were $568 million, surpassing the average estimate of $537.17 million, with a minimal year-over-year decline of -0.4% [4] Operating Earnings - Operating earnings for Intelligent Devices were $159 million, exceeding the average estimate of $134.45 million from four analysts [4] - Operating earnings for Lifecycle Services were $78 million, slightly below the average estimate of $83.93 million [4] - Operating earnings for Software & Control reached $171 million, significantly above the average estimate of $134.75 million [4] Stock Performance - Rockwell Automation shares returned +15.6% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Reported sales decreased by 6% year-over-year, with organic sales down 4% due to challenging comparisons from the previous year [26][8] - Segment operating margin improved to 20.4%, up from 19% a year ago, driven by cost reduction and margin expansion actions [26][14] - Adjusted EPS was $2.45, exceeding expectations primarily due to better segment operating margins [26][14] Business Line Data and Key Metrics Changes - Intelligent Devices segment saw organic sales decline by 6% year-over-year but experienced double-digit sequential growth across key product lines [9][11] - Software and Control segment's organic sales increased by 2% year-over-year, with margins rising to 30.1% [11][29] - Lifecycle Services organic sales decreased by 6% year-over-year, with a solid book-to-bill ratio of 1.07 [12][13] Market Data and Key Metrics Changes - North America was the best-performing region, expected to remain the strongest market for fiscal year 2025 [21] - E-commerce and warehouse automation sales grew over 45% year-over-year, significantly exceeding expectations [15][16] - The automotive sector faced challenges due to ongoing tariff and policy uncertainties, leading to project deferrals [15][16] Company Strategy and Development Direction - The company is focused on enhancing operational resilience and flexibility in response to supply chain challenges and tariff impacts [6][5] - Investments in new technologies and production capabilities are aimed at improving margins and expanding market share [25][52] - The company plans to offset tariff costs through pricing strategies and supply chain adjustments [47][48] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding customer demand, noting that many projects are delayed rather than canceled [86][85] - The company anticipates a return to year-over-year sales growth in Q3, with a full-year organic sales growth expectation of 2% to -4% [24][22] - Ongoing uncertainties related to tariffs and customer CapEx investments remain a concern for future performance [23][22] Other Important Information - The company has increased its full-year segment margin target to 20% and adjusted EPS guidance to approximately $9.7 at the midpoint [25][38] - Free cash flow for the quarter was $171 million, significantly higher than the previous year [28] - The company is no longer providing dollar value of orders, returning to a normal book-to-bill ratio of around one [42] Q&A Session Summary Question: What is driving the robust recovery in e-commerce and warehouse automation? - The growth is attributed to increased efficiency needs in consumer-facing industries and new fulfillment centers being built by e-commerce players [60][59] Question: Why has growth slowed in Lifecycle Services? - Delays in CapEx intensive projects and lower commodity prices have impacted spending in this segment [64][63] Question: How are customers viewing reshoring and macroeconomic concerns? - Customers maintain a generally optimistic long-term view, but concerns about cost certainty and demand volatility are causing project delays [72][71] Question: What is the expectation for orders and book-to-bill ratio? - The expectation is for a book-to-bill ratio around one for the full year, with improvements in orders anticipated as backlog builds [104][103] Question: What are the long-term margin potentials? - The company is optimistic about future margin expansion opportunities, particularly as volume increases and cost reduction programs continue [102][101]

Core Insights - Rockwell Automation reported quarterly earnings of $2.45 per share, exceeding the Zacks Consensus Estimate of $2.09 per share, but down from $2.50 per share a year ago, representing an earnings surprise of 17.22% [1] - The company achieved revenues of $2 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.85%, although this is a decrease from year-ago revenues of $2.13 billion [2] - Rockwell Automation has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The future performance of Rockwell Automation's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.59 on revenues of $2.05 billion, and for the current fiscal year, it is $9.21 on revenues of $7.99 billion [7] Industry Context - The Electronics - Miscellaneous Products industry, to which Rockwell Automation belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Q2 Fiscal 2025 Earnings Presentation May 7, 2025 PUBLIC PUBLIC | Copyright ©2025 Rockwell Automation, Inc. | 1 1 This presentation includes statements related to the expected future results of the company and are therefore forward-looking statements. Actual results may differ materially from those projections due to a wide range of risks and uncertainties, including those that are listed in our SEC filings. This presentation also contains non-GAAP financial information and reconciliations to GAAP are includ ...

Exhibit 99 1201 S. Second Street Milwaukee, WI 53204 USA News Release Contact Ed Moreland Media Relations Rockwell Automation 571.296.0391 Aijana Zellner Investor Relations Rockwell Automation 414.382.8510 Rockwell Automation Reports Second Quarter 2025 Results MILWAUKEE (May 7, 2025) — Rockwell Automation, Inc. (NYSE: ROK) today reported second quarter fiscal 2025 results. "Rockwell delivered another quarter of strong operating performance with sales, margins, and EPS all above our expectations. We saw a h ...