Andre Stillman Adams's questions to Rockwell Automation Inc (ROK) leadership • Q1 2025
Question
Andre Stillman Adams, on for Noah Kaye of Oppenheimer & Co. Inc., asked for a breakdown of the drivers for the Q1 margin beat and inquired about any impact from the funding pause for the IIJA loan program office.
Answer
CFO Christian Rothe attributed the Q1 margin outperformance to three roughly equal factors: favorable product mix (Software & Control over Lifecycle), strong execution on temporary cost measures, and ahead-of-schedule performance on structural cost reductions. CEO Blake Moret stated that so-called 'mega projects' remain a multi-year tailwind, with customers in areas like energy proceeding with projects based on their own ROI, irrespective of specific government program timing.