Core Insights - Rockwell Automation Inc. (ROK) reported adjusted earnings per share (EPS) of $2.75 for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of $2.54 and up from $1.85 in the prior-year quarter [1][2] - Total revenues reached $2.11 billion, an increase of 11.9% year over year, surpassing the Zacks Consensus Estimate of $2.09 billion, with organic sales growing by 10% [2][8] Financial Performance - Including one-time items, ROK's earnings were $2.69 per share, compared to $1.61 in the prior-year quarter [2] - The cost of sales increased by 8.6% year over year to $1.09 billion, while gross profit grew by 15.7% to $1.02 billion [3] - Selling, general and administrative expenses rose by 0.4% year over year to $478 million [3] Margin Analysis - Consolidated segment operating income totaled $435 million, up 36% from the prior-year quarter, with a total segment operating margin of 20.7%, an increase from 17.1% [4] - The margin improvement was driven by higher sales volume, positive pricing, and a favorable mix, partially offset by increased compensation costs [4] Segment Performance - **Intelligent Devices**: Net sales were $953 million, up 18% year over year, but below the estimate of $968 million. Operating earnings increased to $165 million from $120 million, with an operating margin of 17.3% [5] - **Software & Control**: Net sales grew by 19% to $629 million, exceeding the estimate of $568 million. Operating earnings rose by 47.4% to $196 million, with an operating margin of 31.2% [6] - **Lifecycle Services**: Net sales decreased by 4% to $523 million, slightly above the projected $521 million. Operating earnings totaled $74 million, up from $68 million, with an operating margin of 14.1% [7] Cash Position and Shareholder Returns - At the end of Q1 fiscal 2026, cash and cash equivalents were $444 million, down from $468 million at the end of fiscal 2025. Long-term debt was $2.57 billion, reduced from $2.61 billion [8][9] - Cash flow from operations was $234 million, down from $364 million in the prior-year quarter. The return on invested capital was 16.3% [9] Guidance - The company expects reported sales growth of 3-7% for fiscal 2026, with organic sales growth projected between 2% and 6%. Adjusted EPS guidance has been updated to $11.40-$12.20 for fiscal 2026 [10] Stock Performance - ROK shares have increased by 62.5% over the past year, outperforming the industry growth of 32.4% [13]

Sales Performance - Total sales for the three months ended December 31, 2025, were $2,105 million, a 12% increase year over year from $1,881 million in the same period of 2024[120] - Organic sales increased by 10% year over year, with currency translation contributing an additional 2% to total sales growth[122] - The Intelligent Devices segment saw sales rise to $953 million, up from $806 million, reflecting a significant increase in operating earnings[120] - The Software & Control segment reported sales of $629 million, an increase from $529 million, with operating earnings also improving[120] - Lifecycle Services sales decreased slightly to $523 million from $546 million, but operating earnings increased to $74 million from $68 million[120] - North America accounted for $1,339 million in sales, a 16% increase year over year, while Latin America sales decreased by 6%[123] - Intelligent Devices sales rose 18% year over year in Q1 2026, with organic sales increasing by 16% and currency translation effects contributing an additional 2%[129] - Software & Control sales increased by 19% year over year in Q1 2026, with organic sales up 17% and currency translation effects also adding 2%[131] - Lifecycle Services sales decreased by 4% year over year in Q1 2026, with organic sales down 6% but currency translation effects contributing 2%[133] - The company reported total sales of $2,105 million for the three months ended December 31, 2025, reflecting an organic sales growth compared to $1,881 million in the same period of 2024[157] - North America sales were reported at $1,339 million for the three months ended December 31, 2025, up from $1,150 million in the prior year[157] Profitability - The net income attributable to Rockwell Automation for the quarter was $305 million, compared to $184 million in the prior year, resulting in a diluted EPS of $2.69[120] - The total segment operating margin improved to 20.7% from 17.1% year over year, indicating enhanced profitability across segments[120] - Income before income taxes increased to $342 million in Q1 2026, up from $213 million in Q1 2025, with a pre-tax margin of 16.2% compared to 11.3%[125] - Net income attributable to Rockwell Automation was $305 million or $2.69 per share in Q1 2026, compared to $184 million or $1.61 per share in Q1 2025, reflecting a 49% increase in adjusted EPS to $2.75[128] - Segment operating margin for Intelligent Devices increased to 17.3% in Q1 2026 from 14.9% in Q1 2025, driven by higher sales volume[130] - Segment operating margin for Software & Control rose to 31.2% in Q1 2026 from 25.1% in Q1 2025, also due to higher sales volume[132] Investments and Future Plans - The company plans to invest $2 billion over the next five years in plants, digital infrastructure, and talent to enhance growth and resilience[118] - A new greenfield manufacturing site is planned in Southeastern Wisconsin, which could become the largest manufacturing campus globally for the company[118] - The company expects future cash uses to include capital expenditures, working capital, dividends, stock repurchases, debt repayments, retirement plan contributions, and acquisitions[145] Cash Flow and Financial Position - Free cash flow was $170 million in Q1 2026, down from $293 million in Q1 2025, attributed to incentive compensation payouts and increases in working capital[141] - As of December 31, 2025, the company had approximately $1.5 billion in an unsecured revolving credit facility, which can be increased by up to $750 million with bank consent[147] - The company maintained compliance with all covenants under its credit facilities as of December 31, 2025[149] - The company has access to approximately $276 million in short-term unsecured credit facilities for non-U.S. subsidiaries as of December 31, 2025[149] Tax and Currency Management - The effective tax rate for Q1 2026 was 11.7%, down from 16.4% in Q1 2025, primarily due to higher discrete tax benefits[126] - The company expects approximately $9 million of pre-tax net unrealized losses on cash flow hedges to be reclassified into earnings over the next 12 months[153] - The company uses foreign currency forward exchange contracts to hedge against foreign currency risks associated with expected future cash flows[152] - The company’s credit ratings as of February 5, 2026, include a short-term rating of A-2 and a long-term rating of A from Standard & Poor's, both with a stable outlook[150] Share Repurchase - The company repurchased approximately 0.4 million shares for $154 million in Q1 2026, with $773 million remaining for future share repurchases under board authorization[144]

Group 1 - Rockwell Automation forecasted annual profits below expectations, leading to an 8.1% decline in its stock price [1]

Financial Data and Key Metrics Changes - The company reported a 12% year-over-year increase in sales for Q1, with approximately 2 points of growth attributed to currency and 3 points from organic growth driven by price [17][20] - Adjusted EPS for Q1 was $2.75, exceeding expectations, with a favorable tax rate contributing to this performance [10][19] - Gross margins expanded year-over-year due to positive price, cost, and productivity factors, with SG&A spending remaining flat [18][20] Business Segment Performance Changes - Intelligent Devices segment saw organic sales growth of 16% year-over-year, with strong performance in drives and motion [8][21] - Software and Control segment experienced a 17% increase in organic sales, with North American sales of Logix up over 25% [9][21] - Lifecycle Services segment's organic sales declined by 6% year-over-year, but margins improved to 14.1% [10][21] Market Data and Key Metrics Changes - Discrete sales were up low double digits year-over-year, driven by e-commerce and warehouse automation, with automotive sales growing mid-single digits [11][12] - E-commerce and warehouse automation sales grew over 60% in the quarter, reflecting strong demand in North America [11] - Process industries sales increased by 10% year-over-year, with notable growth in chemicals, water, and energy sectors [14][15] Company Strategy and Development Direction - The company aims to deliver solid top-line performance while increasing productivity and expanding margins, focusing on automation and digital transformation [4][5] - Plans for a new manufacturing facility in Wisconsin align with investments in plants, talent, and digital infrastructure, emphasizing commitment to the U.S. market [16] - The company is maintaining its organic sales growth outlook of 2%-6% for fiscal 2026, with expectations for margin expansion [16][25] Management's Comments on Operating Environment and Future Outlook - The macro environment remains fluid with geopolitical uncertainties impacting capital spending, but long-term trends in automation and digital transformation are strong [5][28] - Management expressed cautious optimism regarding capital expenditure budgets, noting that while there is positive sentiment, orders need to materialize for a more favorable outlook [36][96] - The company anticipates continued growth in recurring revenue and expects full-year segment margin expansion of over 100 basis points [16][25] Other Important Information - The company is on track to close the Sensia joint venture by April 1, with expectations of no significant impact on adjusted EPS [10][25] - Free cash flow in Q1 was $170 million, generally in line with expectations, but lower than the previous year due to changes in working capital [20][86] Q&A Session Summary Question: Can you reconcile cautious comments with CapEx budgets being slightly higher? - Management noted optimism in certain areas but emphasized the need for a broader release of orders before adjusting guidance [34][35] Question: How do you see margin drivers playing out across segments? - Slight sequential improvement in sales and modest margin expansion is expected across segments, with Lifecycle Services maintaining around 14% margin [44][45] Question: What is the outlook for Logix and hybrid industries? - Logix is expected to continue strong growth, with hybrid industries also showing positive trends, particularly in food and beverage [50][51] Question: Can you provide insights on semiconductor opportunities? - The semiconductor market remains volatile, but there are positive signs in industrial semiconductors, with ongoing investments in AI and environmental controls [66][67] Question: What is the outlook for process markets? - Process markets performed well in Q1, particularly in energy and specialty chemicals, with cautious optimism for continued growth [92][93]

Financial Data and Key Metrics Changes - The company reported a 12% year-over-year increase in sales for Q1, with approximately 2 points of growth attributed to currency and 3 points from organic growth driven by price increases [17][18] - Adjusted EPS for Q1 was $2.75, exceeding expectations, with a favorable tax rate contributing to this performance [10][19] - Total company segment margin was 20.7%, reflecting improvements driven by higher volume, favorable mix, and strong productivity [10][18] Business Segment Performance Changes - Intelligent Devices segment saw organic sales growth of 16% year-over-year, with strong performance in drives and motion [8][21] - Software and Control segment experienced a 17% increase in organic sales, with North American sales of Logix up over 25% year-over-year [9][21] - Lifecycle Services segment organic sales declined by 6% year-over-year, consistent with expectations, but margins improved to 14.1% [10][21] Market Data and Key Metrics Changes - Discrete sales were up low double digits year-over-year, driven by strong demand in e-commerce and warehouse automation, which grew over 60% [11][12] - The process industries segment reported a 10% increase in sales, with notable growth in chemicals, water, and energy [14][15] - Life sciences sales declined low single digits year-over-year, primarily due to project delays, but the pipeline remains strong [14] Company Strategy and Development Direction - The company aims to expand margins while maintaining solid top-line performance, focusing on productivity and structural efficiency [4][5] - Investments in new manufacturing facilities and digital infrastructure underscore the company's commitment to the U.S. market [16] - The company is well-positioned to lead in automation and digital transformation as customers accelerate their Factory of the Future initiatives [5] Management's Comments on Operating Environment and Future Outlook - The macro environment remains fluid with geopolitical uncertainties impacting capital spending, but there are positive signals in certain sectors [5][28] - The company maintains an organic sales growth outlook of 2%-6% for fiscal 2026, with expectations for gradual improvement throughout the year [16][24] - Management expressed cautious optimism regarding capital expenditures, noting that while there are positive indicators, a broad-based release of orders is still needed [36][96] Other Important Information - The company plans to close the Sensia joint venture on April 1, which is expected to have no significant impact on adjusted EPS but will reduce annualized sales by approximately $250 million [25] - Free cash flow in Q1 was $170 million, which was lower than the previous year due to changes in working capital and incentive compensation payments [20][86] Q&A Session Summary Question: CapEx budgets and spending behavior - Management noted that while there is optimism in certain areas, a broad-based release of orders is needed before adjusting guidance higher [36][37] Question: Margin drivers and segment performance - Management expects slight sequential improvement in margins across segments, with Lifecycle Services maintaining around 14% margin [44][45] Question: Demand trends and project orders - Management indicated good demand for modernizations and new capacity, but orders are not coming through at the expected speed [71][73] Question: Semiconductor market opportunities - Management acknowledged a tough comp in Q1 for semiconductors but noted ongoing opportunities in industrial applications and AI-related investments [66][68] Question: Process market outlook - Management highlighted strong performance in the process segment, particularly in energy and specialty chemicals, while remaining cautious about capital spending in oil and gas [91][92]

Financial Data and Key Metrics Changes - First quarter reported sales increased by 12% year-over-year, with approximately 2 percentage points of growth attributed to currency and 3 percentage points from organic growth driven by price [17][18] - Adjusted EPS for Q1 was $2.75, exceeding expectations, with gross margins expanding year-over-year due to positive price, cost, and productivity factors [10][18] - Free cash flow in Q1 was $170 million, which was $123 million lower than the prior year due to changes in working capital and incentive compensation payments [19][20] Business Segment Performance Changes - Intelligent Devices segment saw organic sales growth of 16% year-over-year, with strong performance in drives and motion [7][20] - Software and Control segment experienced organic sales growth of 17%, with North American sales of Logix up over 25% year-over-year [9][20] - Lifecycle Services segment's organic sales declined by 6% year-over-year, with a book-to-bill ratio of 1.16 [10][20] Market Data and Key Metrics Changes - E-commerce and warehouse automation sales grew over 60% year-over-year, driven by strong demand in North America [11][12] - Sales in the discrete market were up low double digits year-over-year, with automotive sales growing mid-single digits [11][12] - Process industries sales increased by 10% year-over-year, with strong growth in chemicals, water, and energy [13][14] Company Strategy and Development Direction - The company is focused on delivering solid top-line performance while increasing productivity and expanding margins, with a strong emphasis on automation and digital transformation [4][5] - Plans for a new manufacturing facility in southeastern Wisconsin were announced, reinforcing the company's commitment to the U.S. market [16] - The company aims to maintain organic sales growth outlook of 2%-6% for fiscal 2026, with expectations for segment margin expansion of over 100 basis points [16][25] Management's Comments on Operating Environment and Future Outlook - The macro environment remains fluid with geopolitical uncertainties impacting capital spending, but long-term trends driving automation and digital transformation are strong [5][28] - Management expressed cautious optimism regarding capital expenditure budgets, noting that while there is some positive sentiment, a broad-based release of orders is still needed [36][95] - The company expects to see mid-single-digit sales growth in Q2, with modest margin expansion anticipated [26][74] Other Important Information - The company is on track to end the Sensia joint venture, with the return of the profitable process automation business to full Rockwell control expected by April 1 [10][25] - The adjusted effective tax rate for Q1 was about 17%, lower than expected due to discrete tax items, which is anticipated to improve the full-year tax rate guidance [19][20] Q&A Session Summary Question: CapEx budgets and spending behavior - Management noted that while there is optimism in certain areas, a broad-based release of orders is needed before adjusting guidance higher [36] Question: Margin drivers and sequential improvement - Management expects slight sequential improvement in margins across segments, with Lifecycle Services maintaining around 14% margin [42][44] Question: Demand trends and project orders - Management indicated good demand for modernizations and investment in brownfields, with new capacity business contributing positively [71][72] Question: Semiconductor market opportunities - Management acknowledged a tough comp in Q1 for semiconductors but noted ongoing opportunities in industrial semiconductors and AI-related applications [64][66] Question: Process market outlook - Management highlighted strong performance in the process segment, particularly in energy and specialty chemicals, while remaining cautious about capital spending in oil and gas [90][92]

分组1 - Rockwell Automation reported quarterly earnings of $2.75 per share, exceeding the Zacks Consensus Estimate of $2.54 per share, and showing a significant increase from $1.83 per share a year ago, resulting in an earnings surprise of +8.45% [1] - The company achieved revenues of $2.11 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.83% and increasing from $1.88 billion year-over-year [2] - Rockwell Automation has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong financial performance [2] 分组2 - The stock has gained approximately 10.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.5% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at $2.91 for the coming quarter and $12.12 for the current fiscal year [7] - The Electronics - Miscellaneous Products industry, to which Rockwell Automation belongs, is currently ranked in the top 22% of Zacks industries, suggesting a favorable environment for the company's performance [8]

Q1 Fiscal 2026 Earnings Presentation February 5, 2026 PUBLIC 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 included in the appendix. All information should be read ...

Core Viewpoint - Rockwell Automation has raised its full-year guidance due to increased demand leading to higher profits in the fiscal first quarter [1] Group 1 - The company reported a significant rise in profits attributed to strong demand [1] - Full-year guidance has been lifted, indicating positive expectations for future performance [1]

Financial Performance - Reported sales for Q1 2026 were $2,105 million, up 12% from $1,881 million in Q1 2025, with organic sales increasing by 10%[5] - Diluted EPS for Q1 2026 was $2.69, a 67% increase year over year, while Adjusted EPS was $2.75, up 49% from $1.85 in Q1 2025[4][7] - Total Annual Recurring Revenue (ARR) grew by 7% year over year[4][17] - Total sales for the three months ended December 31, 2025, reached $2,105 million, a 12% increase from $1,881 million in the same period of 2024[35] - Net income attributable to Rockwell Automation, Inc. for the three months ended December 31, 2025, was $305 million, compared to $184 million in 2024, reflecting a 65% year-over-year increase[35] - Diluted EPS for the three months ended December 31, 2025, was $2.69, up from $1.61 in the prior year, representing a 67% increase[35] - Adjusted EPS for the same period was $2.75, up from $1.85 in 2024, reflecting a 48.6% growth[51] Segment Performance - Intelligent Devices segment sales increased by 18% to $953 million, with an operating margin of 17.3%[13] - Software & Control segment sales rose by 19% to $629 million, achieving an operating margin of 31.2%[14] - Lifecycle Services segment sales decreased by 4% to $523 million, with an operating margin of 14.1%[15] - The Intelligent Devices segment reported sales of $953 million, an 18% increase from $806 million in the same period last year[43] - The Software & Control segment achieved sales of $629 million, a 19% increase from $529 million in the previous year[43] - Lifecycle Services segment sales decreased by 4% to $523 million from $546 million in the prior year[43] - Total segment operating earnings for the three months ended December 31, 2025, were $435 million, up from $321 million in 2024, marking a 36% increase[35] Cash Flow and Capital Expenditures - Cash flow from operating activities was $234 million, down from $364 million in Q1 2025, primarily due to incentive compensation payouts[8] - Cash provided by operating activities was $234 million for the three months ended December 31, 2025, down from $364 million in 2024[40] - Total cash and cash equivalents at the end of the period were $444 million, a decrease from $471 million at the end of the previous year[40] - Free cash flow for the quarter ended December 31, 2025, was $170 million, down from $293 million in 2024, resulting in a free cash flow conversion rate of 55% compared to 139% in the previous year[57] - Capital expenditures for the quarter ended December 31, 2025, totaled $64 million, compared to $71 million in 2024[56] Guidance and Projections - The company reaffirmed its fiscal 2026 reported sales growth guidance of 3% - 7% and organic sales growth guidance of 2% - 6%[4][10] - Updated diluted EPS guidance for fiscal 2026 is now $10.75 - $11.55, reflecting an increase due to a revised full-year tax rate[4][10] - Fiscal 2026 guidance for diluted EPS is projected to be between $10.75 and $11.55, with adjusted EPS guidance ranging from $11.40 to $12.20[52] - The anticipated effective tax rate for fiscal 2026 is approximately 18.5%, with an adjusted effective tax rate of around 19.5%[52] Return on Invested Capital - Return on Invested Capital (ROIC) improved to 16.3% for the twelve months ended December 31, 2025, compared to 14.5% for the prior year[19] - Return on Invested Capital (ROIC) for the twelve months ended December 31, 2025, was 16.3%, compared to 14.5% in 2024[59] Margins - The pre-tax margin improved to 16.2% for the three months ended December 31, 2025, compared to 11.3% in the same period of 2024[35] - Adjusted EBITDA for the three months ended December 31, 2025, was $447 million, up from $329 million in 2024, leading to an adjusted EBITDA margin of 21.2% compared to 17.5% in the previous year[61]