Rockwell Automation, Inc. Reports Fiscal 2024 Fourth Quarter and Full Year Results, Introduces Fiscal 2025 Guidance
Rockwell Automation, Inc. (NYSE: ROK) has released its financial results for the fiscal fourth quarter and full year ending September 30, 2024. The company also presented guidance for fiscal year 2025.
Key Financial Metrics
| Metric | Q4 FY2024 | Q4 FY2023 | % Change YoY | FY2024 | FY2023 | % Change YoY |
|---|---|---|---|---|---|---|
| Total Revenue | $2,036 million | $2,563 million | (21)% | $8,264 million | $9,058 million | (9)% |
| Diluted EPS | $2.09 | $2.61 | (20)% | $8.28 | $11.95 | (31)% |
| Adjusted EPS | $2.47 | $3.64 | (32)% | $9.71 | $12.12 | (20)% |
| Cash from Operating Activities | $432 million | $840 million | (49)% | $864 million | $1,375 million | (37)% |
| Free Cash Flow | $367 million | $776 million | (53)% | $639 million | $1,214 million | (47)% |
Rockwell Automation experienced declines in both total revenue and earnings per share (EPS) across the board. The reported figures were below the consensus estimate for revenue but exceeded expectations for EPS. Despite cost reduction efforts, the decrease in sales volume from continued market softness negatively impacted earnings and margins.
Segment Revenue Breakdown
| Segment | Q4 FY2024 Sales | Q4 FY2023 Sales | % Change YoY | FY2024 Sales | FY2023 Sales | % Change YoY |
|---|---|---|---|---|---|---|
| Intelligent Devices | $946 million | $1,171 million | (19)% | $3,804 million | $4,098 million | (7)% |
| Software & Control | $502 million | $821 million | (39)% | $2,187 million | $2,886 million | (24)% |
| Lifecycle Services | $588 million | $571 million | 3% | $2,273 million | $2,074 million | 10% |
The Lifecycle Services segment stood out with growth in both quarterly and full-year performance metrics, aided by strong project execution and digital services growth. Conversely, Intelligent Devices and Software & Control segments exhibited declines due to reduced sales volume.
Key Developments and Operational Highlights
- Total ARR grew by 16% year-over-year.
- The company repurchased approximately 450,000 shares for $118 million in Q4 FY2024 and 2.2 million shares for $594 million for FY2024.
- Cash flow from operations and free cash flow declined significantly due to lower pre-tax income paired with higher compensation, benefits payments, and tax payments.
Comments from Company Officers
Blake Moret, Chairman and CEO, remarked on the quarter’s challenges, noting lower-than-expected orders due to persistent market softness, but highlighted solid operating performance and progress in strategic areas. He underscored the significant contributions from the Lifecycle Services segment, stressing ongoing dedication to customer service and market adaptation.
Dividends and Share Repurchase Program
The company did not explicitly announce dividends in the release but continued its share repurchase program, with $1.3 billion remaining available under existing authorizations.
Forward Guidance
For fiscal year 2025, Rockwell Automation has forecasted: - Sales growth between (4)% and 2%. - Diluted EPS ranging from $7.65 to $8.85. - Adjusted EPS from $8.60 to $9.80.
Stock Price Movement
Following the earnings release, Rockwell Automation's stock exhibited a 9.21% change, reflecting market reactions to the financial disclosures and the outlook for the upcoming fiscal year.
In summary, Rockwell Automation has faced a challenging fiscal year with notable drops in revenue and EPS, yet shows strength and growth prospects in specific segments like Lifecycle Services. The company remains focused on market adaptation and operational improvements as it moves into fiscal year 2025.
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