Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

93730c551a6ebe282a8592d3ae7f64637d93dd6552a8c3b759b4cc3899e1490c

Rockwell Automation, Inc. is the world's largest company dedicated to industrial automation and digital transformation, operating through three main segments: Intelligent Devices, Software & Control, and Lifecycle Services. The company sells a range of products and services, including industrial components, control and visualization software, and digital consulting, primarily through independent distributors and a direct sales force **[0001024478-24-000107_rok-20240930.htm:4]** **[0001024478-24-000107_rok-20240930.htm:62]**. Revenue is generated from product sales recognized at a point in time and solutions and services recognized over time **[0001024478-24-000008_rok-20231231.htm:7]**.

1. **Intelligent Devices** - Offers products such as drives, motion, advanced material handling, safety, sensing, industrial components, and configured-to-order products.
2. **Software & Control** - Provides control and visualization software and hardware, digital twin, simulation and information software, and network and security infrastructure.
3. **Lifecycle Services** - Delivers digital consulting, professional services including engineered-to-order solutions, recurring services like cybersecurity, safety, remote monitoring, and asset management, and includes the Sensia joint venture.

cd676e7151281bf65cc0b8cad07313d8d88a201715fa1dd08708c0a4dab09e8d

| Geographical Segment | Q1 2023  **[0001024478-23-000010_rok-20221231.htm:25]**  | Q2 2023  **[0001024478-23-000044_rok-20230331.htm:6]**  | Q3 2023  **[0001024478-23-000090_rok-20230630.htm:7]**  | Q4 2023  **[0001024478-23-000126_rok-20230930.htm:69]** **[0001024478-23-000126_rok-20230930.htm:34]**  | Q1 2024  **[0001024478-24-000008_rok-20231231.htm:7]**  | Q2 2024  **[0001024478-24-000052_rok-20240331.htm:9]**  | Q3 2024  **[0001024478-24-000088_rok-20240630.htm:9]**  | Q4 2024  **[0001024478-24-000107_rok-20240930.htm:66]**  |
|----------------------|---------------|---------------|---------------|---------------------|---------------|---------------|---------------|---------------|
| North America (USD million) | **1,178.9** | **1,310.6** | **1,260.9** | **5,224.0** (FY) | **1,247.1** | **1,293.6** | **1,268.4** | **5,052.8** (FY) |
| EMEA (USD million)   | **372.8**     | **486.5**     | **494.4**     | **1,870.6** (FY)   | **388.3**     | **398.9**     | **355.3**     | **1,504.5** (FY) |
| Asia Pacific (USD million) | **296.5**     | **334.2**     | **343.5**     | **1,358.0** (FY)   | **275.6**     | **269.9**     | **260.9**     | **1,072.8** (FY) |
| Latin America (USD million) | **132.8**     | **144.1**     | **139.9**     | **605.4** (FY)     | **141.1**     | **163.6**     | **166.0**     | **634.1** (FY) |

31f2098cb68436f837dd10a9479c1eb0e1db4b80014ab3c83ce205301eb4949d

2a5ffedb3a6365b1d468ba8a8420621027d10785d4e8150cb91045537be9ce53

1. Your organic sales CAGR has recently been negative mid-single-digit, far below your mid- to high single-digit target; how do you plan to return to positive growth without heavier investment, and are you confident you can achieve this?  **[ROK_3406457_18]** 
2. With the significant sequential revenue decline expected in Intelligent Devices from Q4 to Q1, much larger than past declines, can you elaborate on the specific drivers of this step down and its implications for future performance?  **[ROK_3406457_20]** 
3. Given the shift in capital expenditure towards electronic components like chips and larger electrical equipment, is the content for automation industries lower in these products, and how is Rockwell positioned to compete effectively in these new verticals?  **[ROK_3406457_17]** 
4. Despite winning new capacity projects, it appears that the mega projects are slow to convert into orders; what is causing these delays, and how confident are you in your expectation of increased orders during fiscal year 2025?  **[ROK_3406457_8]** **[ROK_3406457_17]** 
5. As competition intensifies in the U.S. market, especially with competitors expanding their footprint, what strategies are you implementing to defend your market share in the Americas and ensure continued growth?  **[ROK_3406457_16]** 

250382287a11d31e4e88e88e2dfc475a23d36272ed8853a02d69c619fcff3a51

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

70eb550587b9fbdadff9e0829328b257d646699ee9aedbd3b6e6f8703d91fe68

f5155f1a444c16a176083c007b41d017399b87245a25ef6c540f2938b4d75fcc

| Program Details           | Program 1                  | Program 2                  |
|---------------------------|----------------------------|----------------------------|
| Approval Date             | May 2, 2022  **[0001024478-24-000107_rok-20240930.htm:40]**             | September 11, 2024  **[0001024478-24-000107_rok-20240930.htm:40]**      |
| End Date/Duration         | N/A                        | N/A                        |
| Total Additional Amount   | $1.0 billion  **[0001024478-24-000107_rok-20240930.htm:40]**            | $1.0 billion  **[0001024478-24-000107_rok-20240930.htm:40]**            |
| Remaining Authorization   | $346.1 million  **[0001024478-24-000107_rok-20240930.htm:40]**          | $1.0 billion  **[0001024478-24-000107_rok-20240930.htm:40]**            |
| Details                   | Discretionary repurchase  **[0001024478-24-000107_rok-20240930.htm:24]**  | Discretionary repurchase  **[0001024478-24-000107_rok-20240930.htm:24]**  |

d3e0bad2c7219cd68a7e8c533a465f28e521f701c46964ccb42459df1b14c2b9

- Siemens AG
- ABB Ltd
- Schneider Electric SA
- Emerson Electric Co.
- Mitsubishi Electric Corp.
- Honeywell International Inc.
- AVEVA Group plc
- Dassault Systemes
- Aspen Technology, Inc.  **[0001024478-24-000107_rok-20240930.htm:5]** 

2826dd9f738711da299543bb98978562bf38ecd23a1a5515039c7e02f329450e

Architecture & Software

Control Products & Solutions

- Products

- Solutions & Services

Intelligent Devices

Software & Control

Lifecycle Services

Products and Solutions

Services

Total Revenue

d7391924c875f038fbfedc3d9f09d34376a0ac281964a21f0b4b0465789c5e9f

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Sales Growth**: Projected sales growth in the range of **positive 2% to negative 4%**  **[ROK_3406457_4]** .
  2. **Annual Recurring Revenue (ARR)**: Expected to grow about **10%**  **[ROK_3406457_4]** .
  3. **Segment Margin**: Projected to be **down slightly** versus the prior year, with a full-year segment margin expected to be just under **19%**  **[ROK_3406457_4]** **[ROK_3406457_6]** .
  4. **Adjusted EPS**: Expected to be **$9.20** at the midpoint, with a range of **$8.60 to $9.80**  **[ROK_3406457_4]** **[ROK_3406457_6]** .
  5. **Free Cash Flow Conversion**: Expected to return to **100%** in fiscal year 2025  **[ROK_3406457_4]** .
  6. **Tax Rate**: Full-year adjusted effective tax rate expected to be around **17%**  **[ROK_3406457_6]** .
  7. **Corporate and Other Expenses**: Expected to be around **$130 million**  **[ROK_3406457_6]** .
  8. **Net Interest Expense**: Expected to be about **$145 million**  **[ROK_3406457_6]** .
  9. **Average Diluted Shares Outstanding**: Assumed to be **113.1 million shares**  **[ROK_3406457_6]** .
  10. **Share Repurchases**: Targeting **$300 million** of share repurchases during the year  **[ROK_3406457_6]** .
  11. **Q1 Sales**: Expected to be down **high single digits** sequentially  **[ROK_3406457_7]** .
  12. **Q1 Margins**: Expected to be in the **low to mid-teens**  **[ROK_3406457_7]** .
  13. **Intelligent Devices Sales**: Expected to be down **low teens** sequentially in Q1  **[ROK_3406457_7]** .
  14. **Software & Control Margin**: Expected to be in the **low 20s** on flat sequential sales growth in Q1  **[ROK_3406457_7]** .
  15. **Lifecycle Services Sales**: Expected to be down **low single digits** sequentially in Q1  **[ROK_3406457_7]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EPS**: Lowered to **$9.60**, down **21% year-over-year**  **[ROK_3396962_6]** .
  2. **Inventory Days**: Expected to end fiscal year 2024 with **160 days of inventory**  **[ROK_3396962_6]** .
  3. **Free Cash Flow Conversion**: Expected to be about **60% of adjusted income**  **[ROK_3396962_6]** .
  4. **Sales**: Expected to decline **10% for the year**  **[ROK_3396962_3]** .
  5. **Acquisitions Contribution**: Expected to contribute about **1.5 points of growth**  **[ROK_3396962_3]** .
  6. **Currency Impact**: Expected to be about **neutral for the year**  **[ROK_3396962_3]** .
  7. **Total ARR Growth**: Expected to grow about **15%** and exceed **10% of total sales**  **[ROK_3396962_3]** .
  8. **Segment Margin**: Expected to be slightly over **19% for the year**, representing about a **200 basis point decrease** versus last year  **[ROK_3396962_3]** .
  9. **Corporate and Other Expense**: Expected to be around **$130 million**  **[ROK_3396962_6]** .
  10. **Average Diluted Shares Outstanding**: Assumed to be **114.5 million shares**  **[ROK_3396962_6]** .
  11. **Share Repurchases**: Expected to deploy between **$600 million and $800 million** during the year  **[ROK_3396962_6]** .
  12. **Net Interest Expense**: Expected to be **$140 million** for fiscal 2024  **[ROK_3396962_6]** .
  13. **Adjusted Effective Tax Rate**: Expected to be around **16%** for the full year  **[ROK_3396962_5]** .
  14. **Cost Savings**: Expected to deliver **$100 million** of savings in the second half of the fiscal year and **$120 million** of incremental savings in fiscal year 2025  **[ROK_3396962_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Sales**:
     - Reported sales are expected to decline in the range of **negative 6% to negative 4%**.
     - Organic sales are expected to decline in the range of **negative 8% to negative 6%**  **[ROK_3386759_6]** .
  2. **Acquisitions and Currency**:
     - Acquisitions are expected to add **150 basis points** to growth  **[ROK_3386759_6]** .
     - Currency is expected to contribute about **50 basis points** to growth  **[ROK_3386759_6]** .
  3. **Adjusted EPS**: Adjusted EPS guidance is lowered to a range of **$10 to $11**  **[ROK_3386759_6]** .
  4. **Free Cash Flow Conversion**: Expected to be about **80%** of adjusted income  **[ROK_3386759_6]** .
  5. **Tax Rate**: Full year adjusted effective tax rate is expected to be around **17%**  **[ROK_3386759_6]** .
  6. **Inventory**: Inventory days on hand are expected to drop to **125 days** by the end of fiscal year '24  **[ROK_3386759_6]** .
  7. **Order Growth**: Mid-single-digit sequential order growth is expected in Q3 and high teens sequential order growth in Q4  **[ROK_3386759_6]** .
  8. **Margins**: Segment margin is expected to be lower in Q3 compared to Q2, with Q4 expected to be the highest revenue dollar and margin quarter of the year  **[ROK_3386759_6]** .
  9. **Investment Spending**: Full year investment spending is expected to be down approximately **$50 million** versus the prior year  **[ROK_3386759_6]** .
  10. **Share Repurchases**: Expected to deploy between **$600 million and $800 million** to share repurchases during the year  **[ROK_3386759_7]** .
  11. **Net Interest Expense**: Expected to be about **$135 million** for fiscal '24  **[ROK_3386759_7]** .
  12. **Corporate and Other Expense**: Expected to be around **$130 million**  **[ROK_3386759_7]** .
  13. **Diluted Shares Outstanding**: Assuming average diluted shares outstanding of **114.3 million shares**  **[ROK_3386759_7]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Sales Growth**:
     - Reported sales growth is expected to be between **0.5% to 6.5%**.
     - Organic sales growth is projected in the range of **negative 2% to positive 4%**  **[ROK_3371352_5]** .
  2. **Acquisitions**: Acquisitions are expected to add **150 basis points** to growth, up from the previous guidance of 100 basis points  **[ROK_3371352_5]** .
  3. **Currency Impact**: A full-year currency tailwind of **100 basis points** is expected, down from the prior guidance of 150 basis points  **[ROK_3371352_5]** .
  4. **Adjusted EPS**: Adjusted EPS is guided to be in the range of **$12 to $13.50**  **[ROK_3371352_5]** .
  5. **Free Cash Flow Conversion**: Full-year fiscal 2024 free cash flow conversion is expected to be about **100%** of adjusted income  **[ROK_3371352_5]** .
  6. **Inventory Days**: Inventory days on hand are expected to drop to approximately **125 days** by the end of fiscal year 2024, compared to 140 days at the end of fiscal year 2023  **[ROK_3371352_5]** .
  7. **Adjusted Effective Tax Rate**: The full-year adjusted effective tax rate is expected to be around **17%**  **[ROK_3371352_5]** .
  8. **Segment Margin**: Segment margin is expected to increase slightly versus the prior year, with significant increases in the second half due to increased product volume, spending discipline, and productivity initiatives  **[ROK_3371352_3]** .
  9. **Annual Recurring Revenue (ARR)**: ARR is expected to grow about **15%**  **[ROK_3371352_3]** .
  10. **Net Interest Expense**: Net interest expense for fiscal 2024 is expected to be about **$120 million**  **[ROK_3371352_6]** .
  11. **Corporate and Other Expense**: Corporate and other expense is expected to be around **$125 million**  **[ROK_3371352_6]** .
  12. **Share Repurchases**: The company expects to deploy between **$300 million and $500 million** for share repurchases during the year  **[ROK_3371352_6]** .
  13. **Order Growth**: Full-year orders are expected to grow low single digits versus the prior year, with strong sequential growth through the balance of the fiscal year  **[ROK_3371352_3]** .

c7357a775ed5377e3e65b356961942a86d9aa153794d3b14e7d71b60885bb4b2

| Name                      | Position                                                      | Start Date          | Short Bio                                                                                                                                                                                                 |
|---------------------------|---------------------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Blake D. Moret            | Chairman of the Board, President and Chief Executive Officer  | July 1, 2016        | Blake D. Moret has been serving as the Chairman of the Board since January 1, 2018, and as the President and CEO since July 1, 2016. He began his career with the company as a sales trainee in 1985  **[0001024478-23-000126_rok-20230930.htm:21]** **[0001024478-24-000107_rok-20240930.htm:22]** .                                    |
| Matheus De A G Viera Bulho| Senior Vice President, Software and Control                   | April 1, 2024       | Matheus De A G Viera Bulho has been in this role since April 1, 2024. He previously served as Vice President and General Manager, Production Automation from April 2021 to April 2024  **[0001024478-24-000107_rok-20240930.htm:22]** .                                                      |
| Robert L. Buttermore      | Senior Vice President and Chief Supply Chain Officer          | February 13, 2023   | Robert L. Buttermore has been serving in this role since February 13, 2023. He was previously the Vice President and General Manager of the Power Control Business from July 2018 to February 2023  **[0001024478-23-000126_rok-20230930.htm:21]** **[0001024478-24-000107_rok-20240930.htm:22]** .                                       |
| Matthew W. Fordenwalt     | Senior Vice President, Lifecycle Services                     | June 1, 2023        | Matthew W. Fordenwalt has held this position since June 1, 2023. He was previously Vice President and General Manager of the Systems and Solutions Business from April 2019 to June 2023  **[0001024478-23-000126_rok-20230930.htm:21]** **[0001024478-24-000107_rok-20240930.htm:22]** .                                                |
| Scott A. Genereux         | Senior Vice President and Chief Revenue Officer               | February 1, 2021    | Scott A. Genereux has been serving in this role since February 1, 2021. Before joining Rockwell Automation, he was the Executive Vice President of Worldwide Field Operations at Veritas from 2017 to 2020  **[0001024478-24-000107_rok-20240930.htm:22]** **[0001024478-22-000093_rok-20220930.htm:23]** .                               |
| Rebecca W. House          | Senior Vice President, Chief People and Legal Officer, Secretary | January 3, 2017 | Rebecca W. House has been serving in this role since January 3, 2017, and took on the additional role of Chief People Officer in July 2020  **[0001024478-23-000126_rok-20230930.htm:21]** **[0001024478-24-000107_rok-20240930.htm:22]** .                                                                                               |
| Veena M. Lakkundi         | Senior Vice President, Strategy and Corporate Development     | November 1, 2021    | Veena M. Lakkundi has been serving in this role since November 1, 2021. She previously held various positions at 3M Company, including Senior Vice President, Strategy & Business Development  **[0001024478-24-000107_rok-20240930.htm:22]** **[0001024478-23-000126_rok-20230930.htm:21]** **[0001024478-22-000093_rok-20220930.htm:23]** .                                         |
| John M. Miller            | Vice President and Chief Intellectual Property Counsel        | November 1, 2022    | John M. Miller has held this position since at least November 1, 2022. His age as of November 1, 2024, is 57  **[0001024478-24-000107_rok-20240930.htm:22]** **[0001024478-22-000093_rok-20220930.htm:23]** .                                                                                                                            |
| Tessa M. Myers            | Senior Vice President of Intelligent Devices                  | June 6, 2022        | Tessa M. Myers has held this position since June 6, 2022. She previously served as Vice President and General Manager of Production Operations Management from April 2021 to June 2022  **[0001024478-24-000107_rok-20240930.htm:22]** .                                                     |
| Christopher Nardecchia    | Senior Vice President and Chief Information Officer           | November 1, 2017    | Christopher Nardecchia has held this position since November 1, 2017  **[0001024478-22-000093_rok-20220930.htm:23]** .                                                                                                                                                                       |
| Cyril P. Perducat         | Senior Vice President and Chief Technology Officer            | July 1, 2021        | Cyril P. Perducat has been serving in this role since July 1, 2021. He was previously the Executive Vice President at Schneider Electric  **[0001024478-24-000107_rok-20240930.htm:22]** .                                                                                                   |
| Terry L. Riesterer        | Vice President and Controller                                 | November 29, 2019   | Terry L. Riesterer has been serving in this role since November 29, 2019. He was previously the Vice President of Corporate Financial Planning and Analysis and Corporate Development from August 2016 to November 2019  **[0001024478-24-000107_rok-20240930.htm:22]** .                     |
| Christian E. Rothe        | Senior Vice President and Chief Financial Officer             | August 19, 2024     | Christian E. Rothe began his role on August 19, 2024. Prior to joining Rockwell Automation, he served as President of the Global Industrial Division at Graco Inc.  **[0001024478-24-000107_rok-20240930.htm:22]** **[0001024478-24-000092_xslF345X02/wk-form3_1724107198.xml:0]** .                                                                      |
| Isaac R. Woods            | Vice President and Treasurer                                  | October 1, 2020     | Isaac R. Woods has been serving in this role since October 1, 2020. He was previously the Director of Finance for the Power Control Business from March 2019 to October 2020  **[0001024478-24-000107_rok-20240930.htm:22]** **[0001024478-22-000093_rok-20220930.htm:23]** .                                                            |

8c02fb0e730f4bb80c8ecaab11e929f31a67bafe7281a52e519b41a1f4cd8ebd

North America

- United States

- Canada

Europe, Middle East, Africa

Asia Pacific

Latin America

145536b1d79bbff2cfb02bb9b01e098ff19c2525717a93cefce38f3fefcdfbe1

**Quarterly guidance for Q1 2025:**
- **Q1 Sales**: down high single digits  **[ROK_3406457_7]**  (no prior guidance)  
- **Q1 Margins**: low to mid-teens  **[ROK_3406457_7]**  (no prior guidance)  
- **Intelligent Devices Sales**: down low teens  **[ROK_3406457_7]**  (no prior guidance)  
- **Software & Control Margin**: low 20s  **[ROK_3406457_7]**  (no prior guidance)  
- **Lifecycle Services Sales**: down low single digits  **[ROK_3406457_7]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Sales Growth**: +2% to -4%  **[ROK_3406457_4]**  (raised from -10%  **[ROK_3396962_3]** )  
- **Annual Recurring Revenue (ARR)**: 10%  **[ROK_3406457_4]**  (lowered from 15%  **[ROK_3396962_3]** )  
- **Segment Margin**: just under 19%  **[ROK_3406457_4]**  (lowered from slightly over 19%  **[ROK_3396962_3]** )  
- **Adjusted EPS**: $8.60–$9.80  **[ROK_3406457_4]**  (lowered from $9.60  **[ROK_3396962_6]** )  
- **Free Cash Flow Conversion**: 100%  **[ROK_3406457_4]**  (raised from 60%  **[ROK_3396962_6]** )  
- **Tax Rate**: 17%  **[ROK_3406457_6]**  (raised from 16%  **[ROK_3396962_5]** )  
- **Corporate and Other Expenses**: $130 million  **[ROK_3406457_6]**  (no change from prior guidance  **[ROK_3396962_6]** )  
- **Net Interest Expense**: $145 million  **[ROK_3406457_6]**  (raised from $140 million  **[ROK_3396962_6]** )  
- **Average Diluted Shares Outstanding**: 113.1 million  **[ROK_3406457_6]**  (lowered from 114.5 million  **[ROK_3396962_6]** )  
- **Share Repurchases**: $300 million  **[ROK_3406457_6]**  (lowered from $600–$800 million  **[ROK_3396962_6]** )

2df1fa7fb109b7e355f0e45e19aa4a7dd2797995d74ff18ee244588bfe423c9f

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1967       | Present  | Current auditor   |  **[0001024478-24-000107_rok-20240930.htm:99]**  |

b4760fe994bf7da15905562e85afaec21fbd5f54c9754718062f0e3b79fe2512

59b4212fe799871d8d3172e565fd475074e094a42207a1469632036f8ff728dc

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $2,035.5 million (-21% YoY)  **[0001024478-24-000107_rok-20240930.htm:95]** **[0001024478-23-000126_rok-20230930.htm:33]**   
- Intelligent Devices: $946 million (-19% YoY)  **[0001024478-24-000107_rok-20240930.htm:95]** **[0001024478-23-000126_rok-20230930.htm:33]**   
- Software & Control: $501.7 million (**-39%** YoY)  **[0001024478-24-000107_rok-20240930.htm:95]** **[0001024478-23-000126_rok-20230930.htm:33]**   
- North America: $1,243.7 million (-16% YoY)  **[0001024478-24-000107_rok-20240930.htm:66]** **[0001024478-23-000126_rok-20230930.htm:69]**   
- EMEA: $362 million (-30% YoY)  **[0001024478-24-000107_rok-20240930.htm:66]** **[0001024478-23-000126_rok-20230930.htm:69]**   
- Asia Pacific: $266.4 million (-31% YoY)  **[0001024478-24-000107_rok-20240930.htm:66]** **[0001024478-23-000126_rok-20230930.htm:69]**   
- Latin America: $163.4 million (-13% YoY)  **[0001024478-24-000107_rok-20240930.htm:66]** **[0001024478-23-000126_rok-20230930.htm:69]**   
- Net Income: $238.2 million (-23% YoY)  **[0001024478-24-000107_rok-20240930.htm:51]** **[0001024478-23-000126_rok-20230930.htm:52]**   

28ec849c57bd3f2c53c03cf121a2942319d9fdd4a4b5b98d5650787e23cbf0e5

68a939240abda6a905c16e9b2e95f906201b4c86e01ff6b2fb3998988b80affa

8716f5ac3d7174acbe9df7706fd4174abf47db816f74d8d0712d2d0ff791dac4

- **Margins are expected to remain low in the first half of the fiscal year due to supply chain constraints and unfavorable product mix**, with margins in Q2 similar to Q1 (~17%) and increasing to mid-20% only in Q3 and Q4.  **[ROK_3371352_18]** **[ROK_3371352_5]**
- **Supply chain challenges are pushing shipments into the second half of the year**, with delays leading to revenue being more weighted towards the second half, and an impact of **$50 million to $70 million in sales deferred** from Q1 to later in the year.  **[ROK_3371352_19]** **[ROK_3371352_5]**
- **The Intelligent Devices segment is facing operational difficulties**, including choppy deliveries and a shift from backlog shipments to a book-and-bill environment, particularly affecting products like variable speed drives and motion control, which may impact profitability.  **[ROK_3371352_16]**

bf19b4690d03410788f1e31f38a03d353aa6dda84ce330700c430767ba7fe602

- **Rockwell Automation has lowered its fiscal 2024 sales guidance**, now expecting reported sales to decline between **negative 6% to negative 4%** and organic sales to decline between **negative 8% to negative 6%** due to slower than expected ramp-up in new orders and high inventory levels at machine builders.  **[ROK_3386759_6]**
- The company's reliance on a significant increase in sales volume in the fourth quarter to meet earnings targets exposes it to risk if demand does not materialize as expected: "**The sales dynamic is the single biggest contributor to the increase in EPS from Q3 to Q4**."  **[ROK_3386759_17]** ,  **[ROK_3386759_6]** ,  **[ROK_3386759_15]**
- Weakness in key end markets such as automotive and food and beverage, along with slower recovery in regions like China, raises concerns about future growth prospects: "**We are seeing pushouts of certain production start dates**" in automotive, and "**we expect a combination of weaker market conditions and slower distributor destocking to continue to impact our China performance** through the balance of this fiscal year."  **[ROK_3386759_2]** ,  **[ROK_3386759_9]**

e8b6fa808d8f80f9e3c2af719c28bfad562522204f51139fcb458eaeb333b003

- **Significant margin expansion** is expected in the second half of fiscal year 2024, driven by increased volume (accounting for **75% of the margin expansion**), improved factory utilization, and continued progress in Lifecycle Services margins.  **[ROK_3371352_18]**
- **Double-digit sequential order growth** is occurring and expected to continue throughout fiscal year 2024, indicating strong underlying demand across key industries, including automotive, food and beverage, and process industries.  **[ROK_3371352_26]** **[ROK_3371352_8]**
- **Distributor inventories are normalizing**, with excess inventory reductions expected to be completed by Q2, leading to equilibrium levels and potentially stronger sales in the second half.  **[ROK_3371352_26]** **[ROK_3371352_22]** **[ROK_3371352_8]**

47b8646e8b209da255b05149e0255cb15f6b0f68c2bebd7d048477da077ee89f

- **Rockwell Automation is confident in resuming its 5%-8% organic growth trajectory**, fueled by **market share gains** in key areas like Logix controllers and motor control centers, and **strong growth from new offerings** such as autonomous mobile robots from the **Clearpath acquisition**, which taps into a **$5-$6 billion market growing much faster than general automation**.  **[ROK_3386759_9]**
- The company anticipates a **significant pickup in orders in the fourth quarter**, driven by **normalization of distributor and OEM inventories**, especially at **packaging machine builders**, and the **impact of mega projects**, setting a foundation for future growth.  **[ROK_3386759_18]** **[ROK_3386759_22]**
- **Margins are expected to improve substantially in Q4**, with **volume increases**, **cost-saving initiatives**, and a **favorable revenue mix**, particularly in the **Software & Control segment**, positioning the company for stronger profitability.  **[ROK_3386759_15]**

5b9cff052a8af0a45911153a63039549f7b1521824fd2db165d8537c7731d69e

1. **FY'25 Margin Outlook**  
   **Q:** Will cost savings offset bonus and merit increases in FY'25?  
   **A:** Yes, the **$250 million** in cost and margin benefits are expected to largely offset the bonus expense of **$160–170 million** and anticipated merit increases in FY'25.  **[ROK_3396962_8]** 

2. **Incremental Margins in FY'25**  
   **Q:** Will incremental margins improve in FY'25 due to cost actions?  
   **A:** Management aims to increase incremental conversion on revenue beyond historical levels, targeting **35%** conversion without relying on mid-single-digit top-line growth.  **[ROK_3396962_9]** 

3. **Sequential Order Growth**  
   **Q:** What drives confidence in sequential order growth into next year?  
   **A:** Despite manufacturers pausing capacity additions, management expects gradual recovery due to depleting inventories at distributors and machine builders, with less inventory impact in Q1 FY'25 than in Q1 FY'24.  **[ROK_3396962_10]** 

4. **End-Market Demand Weakness**  
   **Q:** Are end markets weakening, affecting orders?  
   **A:** Weaker conditions in automotive, food and beverage, and semiconductors are tempering demand, with consumers slowing EV adoption and opting for lower-priced goods.  **[ROK_3396962_10]** 

5. **Q4 Margins Outlook**  
   **Q:** Why is Q4 margin lower despite cost savings?  
   **A:** Mix benefits in Q3 won't repeat; Software & Control margins will remain similar; Intelligent Devices and Lifecycle Services expect sequential declines due to mix changes.  **[ROK_3396962_11]** 

6. **Inventory Destocking Impact**  
   **Q:** How significant is the destocking headwind for revenues?  
   **A:** Inventory destocking at distributors and machine builders represents a revenue headwind of **hundreds of millions of dollars**, surpassing some investments in North America.  **[ROK_3396962_20]** 

7. **Visibility into China Inventory**  
   **Q:** Is destocking completed in regions outside North America?  
   **A:** Inventory in China remains stubborn due to weaker end-market demand; it's taking longer to reduce distributor stocks there.  **[ROK_3396962_14]** 

8. **Lifecycle Services Margins**  
   **Q:** Will Lifecycle Services margins improve with added volumes?  
   **A:** Margins have more than doubled over FY'23; improvements come from better profitability in the Sensia JV, structural productivity, and better project execution, expected to continue into FY'25.  **[ROK_3396962_15]** 

9. **Company Inventory Levels**  
   **Q:** Why haven't company inventories decreased like customers'?  
   **A:** Anticipated demand increase didn't materialize as expected, leaving higher inventory levels; inventory reduction is expected to accelerate in FY'25.  **[ROK_3396962_18]** 

10. **CapEx Reductions at Customers**  
    **Q:** When did customer CapEx cuts become evident?  
    **A:** Signs of weaker CapEx spend, especially in food and beverage and auto, emerged last quarter; customers are delaying projects due to consumer demand, interest rates, and policy uncertainty.  **[ROK_3396962_19]** 

11. **Margins Headwinds and Tailwinds**  
    **Q:** What are the headwinds and tailwinds for margins in FY'25?  
    **A:** Headwinds include bonus and merit increases and continued investments; tailwinds are the **$250 million** cost actions, positive price cost, and margin improvements from recent acquisitions.  **[ROK_3396962_16]** 

12. **M&A Contribution Variability**  
    **Q:** Why was M&A contribution lighter this quarter?  
    **A:** The largest M&A contributor, Clearpath's mobile robots, is project-based with lumpy sales, leading to variability quarter to quarter.  **[ROK_3396962_17]** 

13. **Intelligent Devices Revenue Outlook**  
    **Q:** Will Intelligent Devices revenue see typical seasonal uptick in Q4?  
    **A:** No, revenue is expected to remain approximately the same sequentially between Q3 and Q4, without the usual seasonal increase.  **[ROK_3396962_25]** 

14. **Structural vs. Temporary Cost Savings**  
    **Q:** Are the cost savings mostly structural?  
    **A:** Yes, cost reductions are primarily structural, involving headcount reductions and efficiencies in manufacturing and SG&A, providing persistent benefits regardless of top-line growth.  **[ROK_3396962_27]** 

15. **Demand Expectations**  
    **Q:** Have end-market expectations worsened recently?  
    **A:** Conditions aren't worsening but are improving more gradually than expected; sequential order growth continues but at a slower pace.  **[ROK_3396962_27]** 

ce4aba31c7d3c89d333283ebffcb66b77e6ceeef4183ecf721a28775bf813ea4

- **Rockwell Automation is experiencing negative mid-single-digit Compound Annual Growth Rates (CAGR) for fiscal '24 and the guide for '25**, falling short of their prior expectation of **mid- to high single-digit organic sales growth**, indicating challenges in reversing declining sales trends.  **[ROK_3406457_18]**
- **Management's guidance of up to +2% sales growth for fiscal '25 relies on better-than-expected sequential improvement and earlier recovery in end markets**, which may be challenging given current market conditions, suggesting potential risk in achieving growth targets.  **[ROK_3406457_15]**
- Despite having a strong market share in the Americas, **increased competition from rivals aiming to expand their footprint in the U.S. could intensify**, potentially impacting Rockwell's market position and growth prospects in its key region.  **[ROK_3406457_16]**

17b030605728ad233d53281025e671d0a8532ffc46025c0165f71e54e63b3cb5

- **Continued investment in R&D and customer-facing resources**, with R&D in Software & Control at **double digits** percentage of sales, positioning the company for future growth.  **[ROK_3406457_18]**
- **Strong position in the Americas**, the best-performing region, with the **largest share**, **best channel**, **largest installed base**, and **deepest relationships**, expecting **more orders from mega projects in '25** than in '24.  **[ROK_3406457_16]**
- **Tracking thousands of projects** across both new verticals (e.g., **semiconductor**) and traditional ones (e.g., **food and beverage, automotive, life sciences**), each side representing **hundreds of billions of dollars of CapEx**, with the **biggest amount of these projects still to come over the next few years**, offering significant growth opportunities.  **[ROK_3406457_17]**

ab93b30c81e5cd0359b67a83013c29ffa0ff9992c07a9332c579b88510d1885c

- **Customers in key markets like automotive and food and beverage are continuing to invest in resilience and efficiency**, and Rockwell Automation is well-positioned to address their needs. Blake Moret stated, "I'm very confident with our position."  **[ROK_3396962_25]**
- The Clearpath acquisition, focusing on **mobile robots**, is showing **very strong year-over-year growth**, and the company remains optimistic about this business. Blake Moret noted, "We're seeing very strong year-over-year growth overall for that business."  **[ROK_3396962_17]**
- Rockwell Automation is implementing **structural cost-saving measures** expected to yield significant **margin improvement**. These actions are "primarily structural" and "the savings that we're making, the cost that we're reducing persist regardless of what the top line growth is going to be."  **[ROK_3396962_27]**

4abe34040915133631f38a2e995f3a9db1a211e03fca58412405c6f167cf2552

| Year  | Amount Due (in millions) | Debt Type          | Interest Rate | % of Total Debt                     |
|-------|---------------------------|--------------------|---------------|--------------------------------------|
| 2024  | $657.0                   | Commercial Paper   | 5.14%         | 22.9% = (657.0 / 2,868.7) * 100  **[0001024478-24-000107_rok-20240930.htm:73]**   **[0001024478-24-000107_rok-20240930.htm:49]**  |
| 2024  | $70.0                    | Line of Credit     | 6.17%         | 2.4% = (70.0 / 2,868.7) * 100  **[0001024478-24-000107_rok-20240930.htm:73]**   **[0001024478-24-000107_rok-20240930.htm:49]**  |
| 2025  | $301.9                   | 2.875% Notes       | 2.875%        | 10.5% = (301.9 / 2,868.7) * 100 **[0001024478-24-000107_rok-20240930.htm:73]** |
| 2025  | $23.5                    | SLB Loan           | N/A           | 0.8% = (23.5 / 2,868.7) * 100  **[0001024478-24-000107_rok-20240930.htm:73]**   **[0001024478-24-000107_rok-20240930.htm:49]**  |
| 2025  | $18.8                    | SLB Loan (Extended)| N/A           | 0.7% = (18.8 / 2,868.7) * 100  **[0001024478-24-000107_rok-20240930.htm:73]**   **[0001024478-24-000107_rok-20240930.htm:49]**  |
| 2028  | $250.0                   | 6.70% Debentures   | 6.70%         | 8.7% = (250.0 / 2,868.7) * 100 **[0001024478-24-000107_rok-20240930.htm:73]** |
| 2029  | $425.0                   | 3.50% Notes        | 3.50%         | 14.8% = (425.0 / 2,868.7) * 100 **[0001024478-24-000107_rok-20240930.htm:73]** |
| 2031  | $450.0                   | 1.75% Notes        | 1.75%         | 15.7% = (450.0 / 2,868.7) * 100 **[0001024478-24-000107_rok-20240930.htm:73]** |
| 2037  | $250.0                   | 6.25% Debentures   | 6.25%         | 8.7% = (250.0 / 2,868.7) * 100 **[0001024478-24-000107_rok-20240930.htm:73]** |
| 2049  | $575.0                   | 4.20% Notes        | 4.20%         | 20.0% = (575.0 / 2,868.7) * 100 **[0001024478-24-000107_rok-20240930.htm:73]** |
| 2061  | $450.0                   | 2.80% Notes        | 2.80%         | 15.7% = (450.0 / 2,868.7) * 100 **[0001024478-24-000107_rok-20240930.htm:73]** |
| 2098  | $200.0                   | 5.20% Debentures   | 5.20%         | 7.0% = (200.0 / 2,868.7) * 100 **[0001024478-24-000107_rok-20240930.htm:73]** |

38eefe83950c6c883fd0c31541369dbe09689ea60d1787362062711ba581f4c9

1. **2025 Growth Guidance**  
   **Q:** How can you achieve +2% growth in 2025 given the slow start?  
   **A:** Achieving a 2% growth in 2025 depends on better sequential improvements and earlier recovery in end markets that would turn Intelligent Devices and Software & Control products to positive shipments for the year. If growth picks up earlier and builds sequentially, we'll see the pickup. Products will be the swing factor, while Lifecycle Services, with its longer lead times and exposure to process markets, is less likely to change dramatically.  **[ROK_3406457_15]** 

2. **Q1 Guidance and Margins**  
   **Q:** Is Q1 EPS expected to be significantly below $2 due to headwinds?  
   **A:** Yes, Q1 EPS will be significantly below **$2**. We face headwinds from non-recurring earn-out adjustments, compensation inflation, and volume reduction, all contributing to real decrementals as we enter Q1.  **[ROK_3406457_14]** **[ROK_3406457_19]** 

3. **Demand Recovery Timing**  
   **Q:** When will demand bottom and start to recover?  
   **A:** We expect a very gradual sequential growth in orders after Q1, based on insights from various industries. Recovery in end markets will influence the turnaround, especially for products. We're not anticipating a sharp snapback but expect gradual improvement.  **[ROK_3406457_11]** **[ROK_3406457_12]** **[ROK_3406457_15]** 

4. **Impact of Destocking**  
   **Q:** How does destocking affect orders and shipments?  
   **A:** Destocking has caused shipments to outpace incoming orders during 2024. While there's still some stock left in the channel, its movement depends on end user demand. The biggest impact is on product-centric verticals like automotive and food and beverage.  **[ROK_3406457_11]** **[ROK_3406457_20]** **[ROK_3406457_21]** 

5. **Americas Market and Share Gains**  
   **Q:** How is Rockwell performing in the Americas market?  
   **A:** The Americas was our best-performing region in '24 and is expected to continue in '25. We have the largest share, best channel, largest installed base, and deep relationships. We're seeing modest share gains and expect more orders from mega projects in '25 than in '24.  **[ROK_3406457_16]** 

6. **Investment in R&D and Growth**  
   **Q:** Are you confident in returning to mid-single-digit growth without heavier investment?  
   **A:** Yes, we've preserved spending in customer-facing resources and R&D for new product introductions. We're launching new products across our portfolio, and we continue to uphold our framework for top-line and margin expectations. We've made surgical cuts to align costs but are not compromising future growth acceleration.  **[ROK_3406457_18]** 

7. **European Machine Builders**  
   **Q:** What's happening with European machine builders?  
   **A:** We're seeing increased engagement from European machine builders, which is encouraging. Coming off a year with overstock conditions leading to declines, we expect Europe to perform well after the Americas in '25 as overstock conditions dissipate and normal order patterns return.  **[ROK_3406457_13]** 

8. **Shift in CapEx and Positioning**  
   **Q:** How is Rockwell positioned as CapEx shifts to new industries?  
   **A:** Our project funnel is split between industries where we have less penetration, like semiconductor, and those where we have strong share, like food and beverage, automotive, and life sciences. Both sides present substantial opportunities, each representing hundreds of billions of dollars in CapEx. We're still in the early stages of these projects being awarded, with the biggest amounts yet to come over the next few years.  **[ROK_3406457_17]** 

9. **Non-R&D Investments**  
   **Q:** Can you provide more color on non-R&D investments and OpEx versus CapEx?  
   **A:** Our investments include a mix of OpEx and CapEx. We're expanding facilities like Cubic to manage strong growth in the data center business, adding a new facility in India for resilience in Asia, and enhancing digital infrastructure within IT to boost productivity internally and with partners.  **[ROK_3406457_22]** 

10. **Tariffs Impact**  
    **Q:** How have tariffs affected customer behavior?  
    **A:** We didn't see significant changes in customer behavior due to tariffs. We showed agility in reflecting tariffs in our pricing to customers and didn't observe purchases being brought forward. Investment continues in the U.S. to complement labor with technology, which aligns with our strengths.  **[ROK_3406457_9]** 

9ae7b3642c861ffd9079452b1dbb0c1feb4de5f590948b6144b4a67fd5db5bcd

1. **Order Growth and Guidance**  
   **Q:** What's driving your order growth expectations for Q3 and Q4?  
   **A:** We expect **mid-single-digit sequential order growth in Q3**, following **low double-digit sequential growth in Q2**. In Q4, we anticipate **high teens sequential orders growth**. This is based on clearing inventory levels in distribution and machine builders by the end of Q3 in most regions, except China, where it may take longer. We're tracking these inventory levels closely and have a better view now than earlier in the year.  **[ROK_3386759_8]** 

2. **Cost Savings and Headcount Reductions**  
   **Q:** Tell us about the $100 million cost savings and impact on next year.  
   **A:** The **$100 million** in savings for the second half is separate from incentive compensation adjustments and includes a **reduction in force of approximately 3%**. These are structural cost reductions, not temporary, and will provide an incremental benefit of an additional **$120 million** into fiscal year 2025.  **[ROK_3386759_11]** 

3. **EPS Guidance and Cost Impacts**  
   **Q:** How will incentive comp and cost savings affect next year's EPS?  
   **A:** Incentive compensation, which is near zero this year, will likely return next year, representing a headwind of around **$160 to $170 million**. However, the structural cost savings actions we're taking will more than offset this, providing a **$120 million** tailwind into fiscal 2025. Investment spend does not reverse, so overall we expect these actions to benefit next year's EPS.  **[ROK_3386759_12]**   **[ROK_3386759_21]** 

4. **Inventory Levels and Customer Demand**  
   **Q:** With stable inventories, how confident are you about customer demand?  
   **A:** As of the end of Q2, our product backlog is back to normal, and we expect orders and sales to align closely going forward. In Q2, we benefited from drawing down backlog, which won't continue in the second half. We're confident customer inventories are coming down based on our close tracking, and we expect distributor inventories to normalize by the end of Q3, except in China.  **[ROK_3386759_13]** 

5. **Margin Improvement in Q4**  
   **Q:** What will drive the expected margin improvement in Q4?  
   **A:** The biggest contributor to margin improvement in Q4 will be **higher volume**, particularly in **Software & Control**, followed by the **structural and temporary cost savings** we're implementing. Additionally, a more favorable **revenue mix** will benefit margins.  **[ROK_3386759_15]** 

6. **Investment in R&D and Core Technology**  
   **Q:** Are cost savings affecting your core technology investments?  
   **A:** Our **R&D expenses remain consistent at 6% of revenue**, unchanged from last year. We continue to invest robustly in new product introductions and technology development. We're finding efficiencies by reducing costs that built up over recent years without compromising our core technology investments.  **[ROK_3386759_16]**   **[ROK_3386759_17]** 

7. **Mega Projects and Future Growth**  
   **Q:** Where are you seeing opportunities in mega projects?  
   **A:** While some EV projects have been pushed out, we're not seeing cancellations, and EV remains over **one-third of our automotive business**. We're playing major roles in **semiconductor fabs** under construction globally, leveraging our experience in facilities management and control systems. We're also seeing growth in **renewables**, particularly **solar and wind** with our Cubic acquisition, and in **warehouse automation** with our autonomous mobile robots from the Clearpath acquisition.  **[ROK_3386759_20]** 

8. **Resuming Organic Growth and Market Share Gains**  
   **Q:** How confident are you in returning to 5-8% organic growth?  
   **A:** We're confident in achieving these growth ranges based on our strong portfolio, particularly in North America. We're gaining market share in key areas like **Logix controllers** and **motor control centers**. Our new offerings, such as the Cubic acquisition and **autonomous mobile robots** from Clearpath, position us well in fast-growing markets like the **$5 to $6 billion** AMR market.  **[ROK_3386759_9]** 

9. **Packaging and OEM Demand Recovery**  
   **Q:** When do you expect packaging and OEM demand to recover?  
   **A:** We anticipate a significant reduction in **packaging machine builder inventory** as we move through Q3 into Q4. Approximately **60%** of our consumer packaged goods business comes from OEMs, and we expect the suppressed demand due to high inventory levels to dissipate over the coming quarters.  **[ROK_3386759_18]**   **[ROK_3386759_22]** 

10. **Incrementals and Decrementals**  
    **Q:** Will you see better incrementals when headwinds reverse?  
    **A:** Excluding items like incentive compensation and investment spend, many parts of our portfolio have incrementals and decrementals in the **60% range**. As volume returns, especially in high-margin products like **Logix**, which has seen a significant correction after last year's growth, we expect higher incrementals due to the profitability of the hardware.  **[ROK_3386759_23]** 

fa7d50d2d39ebc53fb03133c4aae18bdfa73a67f40ee7f9e1add8ea830c4426c

- **Slower-than-expected order growth across nearly every end market**, with management acknowledging that end-user demand is **not as robust as previously anticipated**, leading to a reduced sales outlook and lower growth expectations.  **[ROK_3396962_16]**
- **Elevated inventory levels not declining as fast as expected**, suggesting potential overproduction and weaker demand, which could impact future margins and cash flow. The company stated that inventories are "just not coming down as fast as we thought."  **[ROK_3396962_26]**
- The company is implementing **significant cost reduction measures, including headcount reductions**, to offset weaker demand and operational inefficiencies, indicating underlying challenges in the business.  **[ROK_3396962_27]**

27ce9416fb34c3c0fc45c9eaced0fda6caa1e4937601ed33074fa571cdbe281d

1. **Order Growth and Backlog**  
   **Q:** Are orders turning up, and which markets are strongest?  
   **A:** Orders are inflecting up from the Q4 trough, with **double-digit sequential growth in Q1** and expected to continue into Q2.  **[ROK_3371352_8]** **[ROK_3371352_14]**  The backlog decreased by high single-digit percent from the **$4.1 billion** at the end of last year.  **[ROK_3371352_8]** **[ROK_3371352_14]**  Distributor inventory is coming down as expected, and the order recovery is broad-based across industries, including auto and food and beverage.  **[ROK_3371352_8]** 

2. **Margin Outlook**  
   **Q:** How confident are you in margin improvement in Q3?  
   **A:** We expect margins to expand significantly in the second half due to increased volume.  **[ROK_3371352_9]**  About **75% of the margin expansion** is from volume increase while holding investment spending flat.  **[ROK_3371352_18]**  The rest comes from improved factory utilization and better Lifecycle Services margins.  **[ROK_3371352_18]** 

3. **Supply Chain Constraints**  
   **Q:** What caused the shipment delays this quarter?  
   **A:** The shift from reducing backlog to a normal book-and-bill process caused some challenges.  **[ROK_3371352_10]**  Lingering past-due backlog items, component challenges, and building safety stock impacted shipments in Q1.  **[ROK_3371352_10]**  We expect to be substantially complete with this transition in Q2.  **[ROK_3371352_10]** 

4. **Earnings Guidance**  
   **Q:** Does a slow EPS start suggest modest full-year growth?  
   **A:** We are reaffirming our EPS guidance of **$12 to $13.50**, expecting significant EPS increase in the second half driven by volume.  **[ROK_3371352_9]** **[ROK_3371352_17]**  The first half under-reflects end-demand as excess inventory is being worked through.  **[ROK_3371352_17]** 

5. **Distributors’ Inventory Levels**  
   **Q:** When will distributor inventories normalize?  
   **A:** Distributors are reducing excess inventory and expect to reach equilibrium sometime during Q2.  **[ROK_3371352_26]**  We are seeing sequential order increases, and inventory levels are coming down as expected.  **[ROK_3371352_26]** 

6. **End-Market Outlook**  
   **Q:** Are there any changes in end-market demand timing?  
   **A:** We continue to see strong activity in process industries like oil and gas, specialty chemicals, and mining.  **[ROK_3371352_24]**  Some slowdown in certain EV projects, but these are continuing, and we see no major changes in vertical end-market demand.  **[ROK_3371352_24]** 

7. **Capacity to Meet Future Demand**  
   **Q:** How are you ensuring you can deliver future volumes?  
   **A:** We have over **$10.5 billion** in shipping capacity and adequate labor.  **[ROK_3371352_12]**  We are investing in efficiency and resilience, including redundancy across plants and suppliers.  **[ROK_3371352_12]**  We expect to exit FY24 with encouraging margins and volumes supporting growth in FY25 and beyond.  **[ROK_3371352_12]** 

8. **Inventory Management**  
   **Q:** How are inventories impacting production and sales?  
   **A:** We aim to reduce inventory days from **140 to 125**.  **[ROK_3371352_20]**  Finished goods inventory will not decline due to the need for safety stock, but reductions will come from raw materials and work in progress.  **[ROK_3371352_20]** 

9. **Gross Margin Compression**  
   **Q:** What drove the 240 basis point gross margin decline?  
   **A:** About one-third is from increased investment spending year-over-year.  **[ROK_3371352_15]**  Acquisitions contributed **30 basis points**, and the rest is due to mix and underutilization of our supply chain in Q1.  **[ROK_3371352_15]** 

10. **Packaging and Mining Markets**  
    **Q:** What are you seeing in packaging and mining markets?  
    **A:** Packaging machine builders are working through inventory but underlying demand remains strong.  **[ROK_3371352_13]**  In mining, we are seeing relative strength and expect **low single-digit growth**.  **[ROK_3371352_13]** 

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Rockwell Automation Inc (ROK)

Financials