Did Rockwell Automation beat or miss consensus estimates last quarter?

What factors drove the changes in Rockwell Automation's revenue and profit?

What were the key takeaways from Rockwell Automation’s earnings call?

What does Rockwell Automation do and what are its main business segments?

What is Rockwell Automation's latest dividend and current dividend yield?

What guidance did Rockwell Automation's management provide for the next earnings period?

What is the revenue and EPS growth rate for Rockwell Automation year over year?

What is the market's earnings forecast for Rockwell Automation next quarter?

- **Revenue Beat**: FY2025 ended with 1% growth, Q4 at 13% organic, driven by Software & Control (30% growth) and North America strength.
- **Margin Expansion**: 110bps segment margin improvement in FY2025, targeting >100bps in FY2026. 40%+ incremental margin in FY2026.
- **Sensia JV Dissolution**: $110M impairment charge, but +50bps margin benefit post-dissolution. Rockwell to focus on higher-margin software and digital services.
- **FY2026 Guidance**: 2-6% organic growth, $11.70 EPS midpoint, and 100%+ free cash flow conversion.
- **Strategic Investments**: $2B U.S. investment in infrastructure and talent, with Logix volumes nearing pre-COVID levels.

**【CEO Summary Section】**
- **Revenue Growth**: Fiscal 2025 ended with 1% reported and organic sales growth, driven by double-digit Q4 growth (13% organic). North America was the strongest region, with sequential sales growth in all segments.
- **Segment Performance**: 
  - **Intelligent Devices**: 14% organic growth, led by power control and Clearpath AMR wins (e.g., Africa's largest desalination plant). Sequential margin improvement in high 20s.
  - **Software & Control**: 30% organic growth, with Logix volumes nearing pre-COVID levels. New Logix L9 processor launched ahead of schedule.
  - **Lifecycle Services**: 4% decline vs. prior year, but margin expansion to 17.5% due to project execution efficiency.
- **Strategic Actions**: Dissolved Sensia JV with SLB, reducing annual revenue by ~$250M but improving margins by ~50bps. $2B+ U.S. investment in infrastructure and talent announced.
- **FY26 Outlook**: 2-6% organic growth (midpoint 4%), 11.70 EPS guidance, and 100%+ free cash flow conversion. Incremental margin >40%.

**【CFO Financial Commentary】**
- **Q4 Results**: 
  - Adjusted EPS: $3.34 (vs. $2.50 prior year), driven by 14% organic sales growth and 240bps margin expansion.
  - Gross Margin: 290bps year-over-year improvement under new reporting (engineering/R&D reclassified).
  - Free Cash Flow: $405M (114% conversion), with $1.4B annual record.
- **Sensia Impact**: $110M noncash impairment charge, but +50bps margin benefit post-dissolution. Rockwell assumes 100% ownership of process automation business.
- **FY26 Guidance**: 
  - Sales: 2-6% organic growth, 5% reported (including 1% FX tailwind).
  - Margin: 21.5% segment operating margin (vs. 20.4% in FY25).
  - EPS: $11.20-$12.20, excluding Sensia dissolution impact.
- **Cost Management**: $325M+ structural productivity savings vs. $250M target. Compensation expense at $255M for FY25.

**【Q&A Highlights】**
- **Sensia Postmortem**: JV underperformed due to COVID-era headwinds, broad scope, and evolving tech. Dissolution simplifies go-to-market, with Rockwell focusing on higher-margin software and digital services.
- **Tariffs & Pricing**: 1% underlying price and 1% tariff-based price in FY26. Tariffs neutral to EPS, with $70M pension contribution in Q4.
- **CapEx Trends**: Sequential Q1 sales decline expected, but gradual improvement through FY26. Book-to-bill ~1x in product business, withLifecycle Services facing project delays.
- **Margin Expansion**: 110bps margin improvement in FY25, targeting >100bps in FY26. 40%+ incremental margin driven by productivity, price, and mix.

ROK

ROK fundamentals

You can ask Aime