Financial Data and Key Metrics Changes - Reported sales increased by 5% year over year, with organic sales up over 4% [9][24] - Adjusted EPS was $2.82, exceeding expectations due to higher volume and strong execution on cost reduction [14][24] - Free cash flow reached $489 million, which is $251 million higher than the previous year, with a conversion rate of 153% [25][24] Business Segment Data and Key Metrics Changes - Intelligent Devices organic sales rose by 1%, with double-digit growth in products offsetting declines in longer cycle configured to order business [10] - Software and Control organic sales grew by 22% year over year, driven by strong hardware sales [11] - Lifecycle Services organic sales declined by 6% year over year, aligning with expectations due to difficult comparisons [13] Market Data and Key Metrics Changes - Discrete sales grew by 10% year over year, driven by automotive and e-commerce sectors [14] - Hybrid industries sales increased by high single digits, with strong growth in Food and Beverage and Life Sciences [16][17] - Process Industries sales were down low single digits, affected by weak global demand and volatile commodity prices [18] Company Strategy and Development Direction - The company plans to invest over $2 billion in plants, digital infrastructure, and talent over the next five years to enhance competitiveness and expand margins [7][39] - Focus on operationalizing cost reduction and margin expansion initiatives as part of the core business strategy [38] - Emphasis on automation and digital transformation to drive efficiency and improve customer experiences [7][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to year-over-year growth and improving outlook in key verticals [45] - The company anticipates continued challenges from trade policy uncertainties and geopolitical risks [21][22] - Expectations for modest sales growth in the second half of the fiscal year, with annual recurring revenue projected to grow in the high single digits [23][22] Other Important Information - The company achieved its full-year productivity goal of $250 million a quarter earlier than anticipated [6] - The adjusted effective tax rate for Q3 was 15.2%, up from 13.3% in the prior year [24] - Share buybacks in Q3 totaled approximately 500,000 shares at a cost of $123 million, with $1 billion remaining under the repurchase authorization [33] Q&A Session Summary Question: Discussion on CapEx investments - Management clarified that the $2 billion investment is a strategic move to expand margins and enhance operational capacity, not merely a catch-up on past investments [51][54] Question: Outlook on growth and operating leverage - Management remains optimistic about year-over-year growth and expects to mitigate tax headwinds while continuing to focus on margin expansion [61][62] Question: Clarification on pull forward of sales - Management indicated that the pull forward primarily affected product orders, while project delays were more pronounced in configured order businesses [90][89]

Q3 FY25 Financial Performance - Total company Book-to-bill was approximately 10, consistent with the normal historical range[7] - Reported sales increased by 5% year-over-year, with organic sales up over 4%[7] - Total Annual Recurring Revenue (ARR) grew by 7% year-over-year[7] - GAAP pretax margin was 160% and diluted EPS was $260[7] - Segment operating margin was 212% and Adjusted EPS was $282, exceeding expectations[7] - Achieved approximately $250 million in year-over-year productivity benefits, ahead of schedule[7] - Free Cash Flow was $489 million, compared to $238 million in Q3 FY24[14] Segment Performance - Discrete segment sales increased by approximately 10% organically, with Automotive up low teens and e-Commerce & Warehouse Automation up approximately 30%[8] - Software & Control segment sales increased by 23% due to 22% organic growth[15] - Lifecycle Services segment sales decreased by 6% organically[15] Regional Performance - North America is expected to be the strongest region in FY25, with Q3 FY25 organic sales growth of 7%[10, 11] - Latin America organic sales decreased by 14%[10] Full Year Outlook - Updated reported and organic sales growth range to (2)% to 1% year-over-year[13] - Adjusted EPS range updated to $980 - $1020[13] - Expect segment margin of approximately 20%, including over $250 million benefit from cost reduction and margin expansion actions[13] - Expect Free Cash Flow conversion of approximately 100%[13]

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 • Reported sales up 5%; organic sales up over 4% • Total company Book-to-bill was ~1.0, consistent with the normal historical range • Total ARR up 7% year over year • Diluted EPS of $2.60 and Adjusted EPS $2.82; up 29% and 4% year over year, respectively • Updates fiscal 2025 reported and organic sales gr ...

So joining me now is Margaret Vanrono. She is portfolio manager at ClearBridge Investments. Great to have you here on set.Welcome. Thank you. So what what what is your take sort of on the on the broader market right now and the role that tech has been playing and whether it can continue.Yeah. Well, I mean tech tech and the AI theme is a big one. We're going to be talking about it for the next 10 years.That's an enormous theme. But what we've been spending a lot of time thinking about is what else is going t ...

Core Insights - Rockwell Automation Inc. (ROK) is set to report its third-quarter fiscal 2025 results on August 6, with earnings estimated at $2.69 per share, reflecting a 0.7% decrease year-over-year, while sales are projected to rise by 0.9% to $2.07 billion [1][5] Earnings Performance - ROK has consistently exceeded Zacks Consensus Estimates in the past four quarters, with an average earnings surprise of 15.6% [3][4] - The company reported earnings of $2.45, $1.83, $2.47, and $2.71 for the last four quarters, with respective surprises of 17.22%, 13.66%, 2.92%, and 28.44% [4] Q3 Performance Expectations - The forecast for Q3 indicates a slight dip in EPS and modest sales growth, with a projected organic sales decline of 0.2% due to lower sales volumes across all segments [5][10] - The manufacturing sector remains in contraction, impacting ROK's order levels, with the Institute for Supply Management's manufacturing index showing readings below 50% [9] Segment Analysis - The Intelligent Devices segment is expected to see a 3.3% decline in sales to $923 million, while operating profit is projected to rise by 0.7% to $194 million [12] - The Software & Control segment is anticipated to grow by 13% to $583 million, but operating profit is expected to drop by 23.7% to $149 million [13] - The Lifecycle Services segment's sales are projected to decline by 5.3% to $550 million, with operating profit expected to decrease by 24% to $85.5 million [14] Stock Performance - Over the past year, Rockwell Automation's shares have increased by 41.3%, significantly outperforming the industry average of 2.7% [15]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Rockwell Automation despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Rockwell Automation is expected to report quarterly earnings of $2.69 per share, reflecting a -0.7% change year-over-year, while revenues are projected at $2.07 billion, an increase of 0.9% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.86% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +1.66% for Rockwell Automation, suggesting a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Rockwell Automation exceeded the expected earnings of $2.09 per share by delivering $2.45, resulting in a surprise of +17.22% [13]. The company has beaten consensus EPS estimates in all of the last four quarters [14]. Additional Considerations - While an earnings beat can influence stock movement, other factors may also play a significant role in determining stock performance post-earnings release [15].

Group 1 - Autodesk has reportedly backed off from a potential acquisition of PTC, focusing instead on organic investments and smaller acquisitions [2][3] - Following the speculation of the acquisition, Autodesk's stock initially fell, while PTC's stock experienced a significant rise, typical of merger arbitrage activities [2][3] - Despite the acquisition talks being off the table, PTC remains an attractive investment due to its consistent double-digit growth in software subscriptions and the increasing adoption of digital technologies [12][13] Group 2 - PTC is seen as a highly attractive asset in the context of ongoing consolidation in the industrial software sector, with notable acquisitions by companies like Siemens and Synopsys [5][6] - A potential combination of Autodesk and PTC would create a stronger competitor against European leaders in the CAD/PLM/CAE space, enhancing their market position [8][9] - PTC's solutions are integral to modern manufacturing, with expectations of continued growth in annual recurring revenue (ARR) and free cash flow, making it a solid option for diversified growth portfolios [12][13]

Core Insights - Rockwell Automation (ROK) has a strong track record of beating earnings estimates, particularly in the last two quarters with an average surprise of 15.44% [1][5] - The company reported earnings of $2.09 per share for the most recent quarter, which was below the expected $2.45, resulting in a surprise of 17.22% [2] - For the previous quarter, Rockwell Automation exceeded expectations by reporting $1.83 per share against a consensus estimate of $1.61, achieving a surprise of 13.66% [2] Earnings Estimates - There has been a favorable change in earnings estimates for Rockwell Automation, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for an earnings beat [5][8] - The current Earnings ESP for Rockwell Automation is +1.66%, suggesting analysts are optimistic about the company's near-term earnings potential [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] Earnings Release Information - The next earnings report for Rockwell Automation is expected to be released on August 6, 2025 [8]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **US Industrial Orders** in Q2 2025, highlighting trends and expectations for the second half of the year [1][3]. Core Insights - **Q2 Margin Expectations**: Broad margin beats are anticipated for Q2, with a focus on 2H volumes as a key performance indicator (KPI) for the earnings season. Companies that can sustain pricing power amidst cost pressures will be closely monitored [3]. - **Order Rate Changes**: The sequential change in Q2 2025 order rates indicates potential for 2H volumes and pricing power. Notable leaders in order improvements include: - **Commercial Aircraft**: +70% - **Oil & Gas + Mining Machinery**: +5% - **Industrial Machinery**: +5% - **Construction Machinery**: +3% - **Lighting Equipment**: +2% - **HVAC**: +2% - Laggards include: - **Turbines + Power Transmission Equipment**: -7% - **Household Appliances**: -4% - **Measuring & Control**: -2% - **Defense**: No specific percentage mentioned [3]. Competitive Landscape - **Tariff Impacts**: The "Trump 2.0" tariffs are seen as providing competitive advantages for US industrials, particularly those compliant with USMCA, as they are less reliant on EU and Asian imports. This is expected to positively influence Q2 order rates [8]. - **Import Trends**: Mexico's imports increased by 6% year-over-year, while imports from China dropped significantly by 41% [8]. Company-Specific Insights - **Preferred Companies**: Companies with strong demand trends and excess backlog are favored, including: - **Rockwell Automation (ROK)** - **Eaton Corporation (ETN)** - **Johnson Controls (JCI)** - **Trane Technologies (TT)** - **Acuity Brands (AYI)** [7]. - **Valuation Methodology**: - **Acuity Brands (AYI)**: Price target based on ~17x blended FY26/FY27 EPS of $20.98, representing a ~20% discount to the S&P 500 [15]. - **Eaton Corporation (ETN)**: Price target of ~26.0x blended '26/'27 EPS of $14.44, justified by sustained high single-digit organic growth [16]. - **Johnson Controls (JCI)**: Price target of ~$115 based on ~23.5x blended F'26/'27 EPS of $4.91, supported by portfolio transformation [17]. - **Rockwell Automation (ROK)**: Price target of ~$350 based on ~28.0x blended FY'26/'27 EPS of $12.62, benefiting from secular tailwinds [22]. - **Trane Technologies (TT)**: Price target of ~$445 based on ~28.5x blended '26/'27 EPS of $15.50, reflecting strong demand in Data Center & Advanced Manufacturing [23]. Risks and Considerations - **Downside Risks**: Include potential inability to eliminate stranded costs post-portfolio transformation, erosion of pricing power due to supply chain normalization, and a slowdown in construction activity due to higher interest rates [19][20]. - **Upside Opportunities**: Order acceleration from mega-projects, continued margin expansion, and sustained demand in traditional commercial construction sectors [20][21]. Conclusion - The US industrial sector is showing signs of resilience with varying order trends across different categories. Companies with strong backlogs and pricing power are positioned favorably for the second half of 2025, while external factors such as tariffs and import dynamics play a crucial role in shaping the competitive landscape [3][8].

Investment Rating - The industry view is rated as Attractive [6] Core Insights - US Industrials are expected to drive broad margin upside into Q2 2025, with a forecasted sequential operating margin (OM) expansion of just 45 basis points (bps), significantly below the 105 bps average observed over the last decade, indicating a low bar due to tariff cost inflation concerns [3][9] - Companies best positioned for margin upside are those that are pushing prices early and decisively in Q2, particularly in industrial-facing categories with elevated metal content [3][4] - The report identifies several equities as attractive for Q2 margin beats, including Stanley Black & Decker (SWK), Allegion (ALLE), Trane Technologies (TT), Vertiv Holdings (VRT), and Eaton Corporation (ETN) [3][4] Summary by Sections Margin Outlook - The forecast for Q2 2025 indicates a conservative modeling of margins, with a focus on the delta between forecasted Q2 YoY margin expansion and realized Q1 YoY margins [3][13] - The report highlights that the ability to sustain pricing power and grow volumes will be critical for companies to maintain excess margins in the current cost environment [8] Pricing Power - US Industrial pricing power is viewed as an under-appreciated driver of operational durability, with companies realizing strong real EPS growth and healthy incrementals through inflationary periods [8] - The report emphasizes that the best-positioned companies for price increases include Eaton (ETN), Fastenal (FAST), Trane Technologies (TT), and others [8] Market Dynamics - The report notes that macroeconomic uncertainty is high heading into the second half of 2025, which may impact investor sentiment and company performance [3][4] - The cumulative percentage change in Producer Price Index (PPI) from May 2025 compared to February 2025 is tracked to capture tariff impacts, indicating strong pricing power in certain sectors [3][4]