Rockwell Automation, Inc. (ROK)

Sector: Industrials|Industry: Specialty Industrial Machinery|Market Cap: $32.48B|Employees: 27K


Rockwell Automation is the world's largest company dedicated to industrial automation and digital transformation. They provide hardware, software, and services to help customers optimize production and build resilient, sustainable operations. The company operates in over 100 countries, serving discrete, hybrid, and process end markets.

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  2. Company Profile

Business Summary

Rockwell Automation, Inc. is the world's largest company dedicated to industrial automation and digital transformation. The company delivers solutions that combine technology and industry expertise to make customers more resilient, agile, and sustainable. Rockwell Automation's core business model focuses on providing hardware, software, and services to help customers optimize production, build resilience, empower people, become more sustainable, and accelerate transformation. The company's market position is built on its integrated control and information architecture, with Logix at its core, and a strong partner ecosystem. Rockwell Automation operates in over 100 countries, serving discrete, hybrid, and process end markets.

Key Statistics

  • Employees: 27,000 (as of September 30, 2024)
  • Geographic Footprint: More than 100 countries
  • Headquarters: Milwaukee, Wisconsin
  • Founded: 1903 (as Allen-Bradley Company)
  • Number of locations/facilities: Over 200 locations in over 50 countries
  • Revenue: $8.26 billion (FY2024)
  • Key Subsidiaries/Brands: Allen-Bradley, PlantPAx, Connected Enterprise, ControlLogix, CompactLogix, PowerFlex, FactoryTalk, Plex Systems, Fiix, Clearpath, Otto, Verve

Leadership

  • CEO: Blake D. Moret (Chairman of the Board and President and Chief Executive Officer)
  • CFO: Christian E. Rothe (Senior Vice President and Chief Financial Officer)
  • Other Key Executives:
    • Matheus De A G Viera Bulho (Senior Vice President, Software and Control)
    • Robert L. Buttermore (Senior Vice President and Chief Supply Chain Officer)
    • Matthew W. Fordenwalt (Senior Vice President, Lifecycle Services)
    • Scott A. Genereux (Senior Vice President and Chief Revenue Officer)
    • Rebecca W. House (Senior Vice President, Chief People and Legal Officer and Secretary)
    • Veena M. Lakkundi (Senior Vice President, Strategy and Corporate Development)
    • Tessa M. Myers (Senior Vice President Intelligent Devices)
    • Christopher Nardecchia (Senior Vice President and Chief Information Officer)
    • Cyril P. Perducat (Senior Vice President and Chief Technology Officer)
    • Terry L. Riesterer (Vice President and Controller)
    • Isaac R. Woods (Vice President and Treasurer)

The executive team has extensive experience in technology, industrial automation, and global business operations.

Key Financial Metrics

  • Annual Revenue: $8.26 billion (FY2024)
  • Net Income: $952.5 million (FY2024)
  • Total Assets: $11.23 billion (as of September 30, 2024)
  • Employees: 27,000 (as of September 30, 2024)
  • Key Financial Highlights:
    • Organic sales decreased 10% year-over-year.
    • Total annual recurring revenue grew approximately 16% year-over-year.
    • Diluted EPS of $8.28 and Adjusted EPS of $9.71.

Products and Services

Rockwell Automation offers a wide range of products and services:

  • Intelligent Devices: Includes drives, motion control, advanced material handling, safety, sensing, industrial components, and configured-to-order products.
  • Software & Control: Includes control and visualization software and hardware, digital twin, simulation and information software, and network and security infrastructure.
  • Lifecycle Services: Includes digital consulting, professional services, recurring services (cybersecurity, safety, remote monitoring, and asset management), and the Sensia joint venture.

Flagship offerings include the Integrated Architecture, with Logix at its core, and the Connected Enterprise.

Key Business Segments

Rockwell Automation operates through three main segments:

  • Intelligent Devices: Provides smart products that form the foundation of agile, resilient, and sustainable production systems.
  • Software & Control: Offers production automation and operations platforms, merging IT and OT.
  • Lifecycle Services: Delivers professional services and managed support contracts to maximize customer investments.

Revenue breakdown by segment is not explicitly provided in the overview, but segment operating earnings are detailed in the financial statements.

Business Strategy

Rockwell Automation's strategy is to bring the Connected Enterprise to life, helping customers optimize production, build resilience, empower people, become more sustainable, and accelerate transformation. Key strategic initiatives include:

  • Achieving faster secular growth in traditional markets.
  • Growing market share through technology differentiation and industry focus.
  • Continuing double-digit growth in annual recurring revenue.
  • Adding 1% average annual growth from acquisitions.
  • Delivering profitable growth within a disciplined financial framework.

The company is focused on converging megatrends including digitization, artificial intelligence, energy transition, and sustainability.

Industry Context

Rockwell Automation operates in the industrial automation and digital transformation industry. Key market trends include:

  • Increasing demand for resilient, agile, and sustainable production systems.
  • Growing adoption of digital transformation and artificial intelligence.
  • Focus on energy transition and sustainability.
  • Need to mitigate impacts of labor shortages.

Major competitors include Siemens AG, ABB Ltd, Schneider Electric SA, Emerson Electric Co., Mitsubishi Electric Corp., Honeywell International Inc., AVEVA Group plc, Dassault Systemes, and Aspen Technology, Inc. Market share information is not explicitly provided in the overview.

Risk Factors

  • Industry and Economic Risks: Adverse changes in macroeconomic or industry conditions, foreign currency risks, and industry volatility, particularly in Oil & Gas.
  • Operational Risks: Reliance on suppliers, potential supply chain disruptions, and cybersecurity threats to products, manufacturing, and IT systems.
  • Competitive Risks: Intense competition, technological changes, and pricing pressures.
  • Strategic and Transaction Risks: Inability to manage strategic transactions, integrate acquisitions, and achieve expected benefits.
  • Legal, Tax, and Regulatory Risks: New legislative and regulatory actions, compliance with privacy and cybersecurity laws, and potential liabilities from litigation.

Last Updated

2024-11-12

(Generated from latest 10-K filing)