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What changed in Rockwell Automation's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Rockwell Automation's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+221 added−182 removedSource: 10-K (2025-11-12) vs 10-K (2024-11-12)

Top changes in Rockwell Automation's 2025 10-K

221 paragraphs added · 182 removed · 145 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeMajor 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. 3 Table of Contents Distribution See Item 7. MD&A for information on our market access strategy, including distributor concentrations. Employees See Item 7.
Biggest changeMajor competitors include Siemens AG, ABB Ltd, Schneider Electric SA, Emerson Electric Co., Mitsubishi Electric Corp., Honeywell International Inc., and Dassault Systemes. 2 Table of Contents Distribution See Item 7. MD&A for information on our market access strategy, including distributor concentrations. Employees See Item 7.
Geographic Information We do business in more than 100 countries around the world. The largest sales outside the United States on a country of destination basis are in Canada, China, Mexico, Italy, and the United Kingdom. See Item 1A. Risk Factors for a discussion of risks associated with our global operations.
Geographic Information We do business in more than 100 countries around the world. The largest sales outside the United States on a country of destination basis are in Canada, China, Italy, the United Kingdom, and Mexico. See Item 1A. Risk Factors for a discussion of risks associated with our global operations.
Information included in this Annual Report on Form 10-K refers to our continuing businesses unless otherwise indicated. Whenever an Item of this Annual Report on Form 10-K refers to information in our Proxy Statement for our Annual Meeting of Shareowners to be held on February 4, 2025 (the Proxy Statement), or to information under specific captions in Item 7.
Information included in this Annual Report on Form 10-K refers to our continuing businesses unless otherwise indicated. Whenever an Item of this Annual Report on Form 10-K refers to information in our Proxy Statement for our Annual Meeting of Shareowners to be held on February 10, 2026 (the Proxy Statement), or to information under specific captions in Item 7.
The information contained on and linked from our website is not incorporated by reference into this Annual Report on Form 10-K. 4 Table of Contents
The information contained on and linked from our website is not incorporated by reference into this Annual Report on Form 10-K. 3 Table of Contents

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeDemand for our hardware and software products, solutions, and services is sensitive to industry volatility and risks including those related to commodity prices, supply and demand dynamics, production costs, geological and political activities, and environmental regulations including those intended to reduce the impact of climate change. 5 Table of Contents We face the potential harms of natural disasters, including those as a result of climate change, pandemics, acts of war, terrorism, international conflicts, or other disruptions to our operations, the duration and severity of which are highly uncertain and difficult to predict.
Biggest changeWe face the potential harms of natural disasters, including those as a result of climate change, pandemics, acts of war, terrorism, international conflicts, or other disruptions to our operations, the duration and severity of which are highly uncertain and difficult to predict. Our business depends on the movement of people and goods around the world.
Our business requires that we buy equipment, components, and services including finished products, electronic components, and commodities.
Our business requires that we buy equipment, components, services including finished products, electronic components, and commodities.
In October 2021, the Organization for Economic Cooperation and Development (OECD) and G20 Finance Ministers reached an agreement, known as Base Erosion and Profit Shifting (BEPS) Pillar Two, that, among other things, ensures that income earned in each jurisdiction that qualifying multinational enterprises operate in is subject to a minimum corporate income tax rate of at least 15%.
In October 2021, the Organization for Economic Cooperation and Development (OECD) and G20 Finance Ministers reached an agreement, known as Base Erosion and Profit Shifting (BEPS) Pillar Two, that, among other things, ensures that income earned in each jurisdiction that qualifying multinational enterprises operate in is subject to a minimum corporate income tax rate of at least 15 percent.
Even if we successfully identify and complete such transactions, we may not achieve the expected benefits of such transactions and we may not be able to successfully address risks and uncertainties inherent in such transactions, including: • difficulties in integrating the purchased or new operations, technologies, products or services, retaining customers, and achieving the expected benefits of the transaction, such as sales increases, access to technologies, cost savings, and increases in geographic or product presence, in the desired time frames; • loss of key employees or difficulties integrating personnel; • legal and compliance issues; • unknown or undisclosed and unmitigated cybersecurity risks to purchased systems, products, and services; • difficulties implementing and maintaining consistent standards, financial systems, internal and other controls, procedures, policies, and information systems; • difficulties maintaining relationships with our joint venture and other strategic partners (including as a result of such joint venture and other strategic partners having differing business objectives) and managing disputes with such joint venture and other strategic partners that may arise in connection with our relationships with them; and • difficulties in yielding the desired strategic or financial benefit from venture capital investments, including as a result of being a minority investor or macroeconomic conditions.
Even if we successfully identify and complete such transactions, we may not achieve the expected benefits of such transactions and we may not be able to successfully address risks and uncertainties inherent in such transactions, including: • difficulties in integrating the purchased or new operations, technologies, products or services, retaining customers, and achieving the expected benefits of the transaction, such as sales increases, access to technologies, cost savings, and increases in geographic or product presence, in the desired time frames; • loss of key employees or difficulties integrating personnel; • legal and compliance issues; • unknown or undisclosed and unmitigated cybersecurity risks to purchased systems, products, and services; • difficulties implementing and maintaining consistent standards, financial systems, internal and other controls, procedures, policies, and information processes and systems; • difficulties maintaining relationships with our joint venture and other strategic partners (including as a result of such joint venture and other strategic partners having differing business objectives) and managing disputes with such joint venture and other strategic partners that may arise in connection with our relationships with them; and • difficulties in yielding the desired strategic or financial benefit from venture capital investments, including as a result of being a minority investor.
We do business in more than 100 countries around the world. In addition, our manufacturing operations, suppliers, and employees are located in many places around the world. The future success of our business depends on growth in our sales in all global markets.
We do business in more than 100 countries around the world. In addition, our manufacturing operations, suppliers, and employees are located in many places around the world. The future success of our business depends on growth in our sales in global markets.
Our reliance on suppliers involves certain risks, including: • shortages of components, commodities, or other materials, which could adversely affect our manufacturing efficiencies and ability to make timely delivery of our products, solutions, and services; • changes in the cost of these purchases due to inflation, exchange rate fluctuations, taxes, tariffs, commodity market volatility, or other factors that affect our suppliers; • poor quality or an insecure supply chain, which could adversely affect the reliability and reputation of our hardware and software products, solutions, and services; • embargoes, sanctions, and other trade restrictions that may affect our ability to purchase from various suppliers; and • intellectual property risks such as challenges to ownership of rights or alleged infringement by suppliers.
Our reliance on suppliers involves certain risks, including: • shortages of components, commodities, or other materials, which could adversely affect our manufacturing efficiencies and ability to make timely delivery of our products, solutions, and services; • changes in the cost of these purchases due to inflation, exchange rate fluctuations, taxes, tariffs, commodity market volatility, or other factors that affect our suppliers; • poor quality or an insecure supply chain, which could adversely affect the reliability and reputation of our hardware and software products, solutions, and services; • embargoes, sanctions, and other trade restrictions that may affect our ability to purchase components, commodities, or other materials, including rare earth minerals, from various suppliers; and • intellectual property risks such as challenges to ownership of rights or alleged infringement by suppliers.
This process is not exact because it relies on a variety of assumptions and specific factors that could potentially change over time and therefore increase or decrease our future projected asbestos liabilities. Our products may also be used in hazardous industrial activities, which could result in product liability claims.
This process is not exact because it relies on a variety of assumptions and specific factors that could potentially change over time and therefore increase or decrease our future projected legacy asbestos net liabilities. Our products may also be used in hazardous industrial activities, which could result in product liability claims.
If our access to credit, including the commercial paper market, is adversely affected by a change in market conditions or otherwise, our cost of borrowings may increase or our ability to fund operations may be reduced. Business and Operational Risks We rely on suppliers to provide equipment, components, and services.
If our access to credit, including the commercial paper market, is adversely affected by a change in market conditions or otherwise, our cost of borrowings may increase or our ability to fund operations may be reduced. 5 Table of Contents Business and Operational Risks We rely on suppliers to provide equipment, components, and services.
There is a risk that these initiatives will not result in the projected savings that we anticipate and could negatively impact our business and financial results. Our business success depends on attracting, developing, and retaining highly qualified employees. Our success depends on the efforts and abilities of our leadership team and employees across the Company.
There is a risk that these initiatives will not result in the projected savings that we anticipate and could negatively impact our business and financial results. 7 Table of Contents Our business success depends on attracting, developing, and retaining highly qualified employees. Our success depends on the efforts and abilities of our leadership team and employees across the Company.
Strategic transactions and technology investments could result in debt, dilution, liabilities, increased interest expense, restructuring charges, and impairment and amortization expenses related to goodwill and identifiable intangible assets. 9 Table of Contents Legal, Tax, and Regulatory Risks New legislative and regulatory actions could adversely affect our business.
Strategic transactions and technology investments could result in debt, dilution, liabilities, increased interest expense, restructuring charges, and impairment and amortization expenses related to goodwill and identifiable intangible assets. 9 Table of Contents Legal, Tax, and Regulatory Risks New governmental actions and regulations could adversely affect our business.
If we are not able to anticipate, identify, develop, and market products that respond to changes in customer preferences and emerging technological and broader industry trends, including the development of artificial intelligence and machine learning, demand for our products could decline. There are inherent risks in our solutions and services businesses.
If we are not able to anticipate, identify, develop, and market products that respond to changes in customer preferences and emerging technological and broader industry trends, including the adoption and integration of AI, demand for our products could decline. There are inherent risks in our solutions and services businesses.
Expenses and funding requirements related to employer-funded healthcare benefits depend on laws and regulations, which could change, as well as healthcare cost inflation. An inability to control costs and funding requirements related to employee and retiree benefits could negatively impact our operating results and financial condition.
Significant unfavorable changes in these factors would increase our expenses and funding requirements. Expenses and funding requirements related to employer-funded healthcare benefits depend on laws and regulations, which could change, as well as healthcare cost inflation. An inability to control costs and funding requirements related to employee and retiree benefits could negatively impact our operating results and financial condition.
Legislative and regulatory action, including those related to corporate income taxes, the environment, materials, products, certification, and labeling, privacy, cybersecurity, or climate change, may be taken in the jurisdictions where we operate that may affect our business activities or may otherwise increase our costs to do business.
Governmental actions and regulations, including those related to corporate income taxes, the environment, materials, products, certification and labeling, trade policies, privacy, cybersecurity, AI, or climate change, may be taken in the jurisdictions where we operate that may affect our business activities or may otherwise increase our costs to do business.
We have been named as a defendant in lawsuits alleging personal injury as a result of exposure to asbestos that was used in certain of our products many years ago. We estimate the future asbestos litigation-related costs that we expect to incur over the next several years.
We have been named as a defendant in lawsuits alleging personal injury as a result of exposure to asbestos that was used in certain of our products many years ago. We estimate the future litigation-related costs, including both future claim resolution costs and defense costs, that we expect to incur.
Disruptions to our existing distribution channel or the failure of distributors to maintain and develop the appropriate capabilities to sell our hardware and software products, solutions, and services could adversely affect our sales.
Disruptions to our existing distribution channel or the failure of distributors to maintain and develop the appropriate capabilities to sell our hardware and software products, solutions, and services could adversely affect our sales. A disruption could result from the sale of a distributor to a competitor, financial instability of a distributor, or other events.
We rely heavily on technology in our commercial product offerings for use in our customers’ manufacturing environment, and in our enterprise infrastructure. Despite the implementation of security measures, our systems are vulnerable to unauthorized access by nation states, hackers, cyber-criminals, malicious insiders, and other actors who may engage in fraud, theft of confidential or proprietary information, or sabotage.
Despite the implementation of security measures, our systems are vulnerable to unauthorized access by nation states, hackers, cyber-criminals, malicious insiders, and other actors who may engage in fraud, theft of confidential or proprietary information, or sabotage.
In addition, cybersecurity threats may pose a significant risk to our third-party partners and could have a material adverse impact on their businesses, operations, products, and services that we use in our day-to-day operations. 7 Table of Contents An inability to successfully execute cost productivity and margin expansion initiatives.
In addition, cybersecurity threats may pose a significant risk to our third-party partners and could have a material adverse impact on their businesses, operations, products, and services that we use in our day-to-day operations.
Our ability to access the credit markets and the costs of borrowing are affected by the strength of our credit rating and current market conditions.
Volatility and disruption of the capital and credit markets may result in increased costs to maintain our capital structure. Our ability to access the credit markets and the costs of borrowing are affected by the strength of our credit rating and current market conditions.
Unauthorized resellers and counterfeiters of Company-branded products of inferior quality or that may otherwise be materially different from genuine goods sold by the Company and its authorized distributors may harm the goodwill and reputation of the Company and could adversely affect our results of operations.
Unauthorized resellers and counterfeiters of Company-branded products of inferior quality or that may otherwise be materially different from genuine goods sold by the Company and its authorized distributors may harm the goodwill and reputation of the Company and could adversely affect our results of operations. 8 Table of Contents Increasing employee benefit costs and funding requirements could have a negative effect on our operating results and financial condition.
Changes in these requirements could impact demand for our hardware and software products, solutions, and services. Failure to maintain information privacy and security could result in legal liability or reputational harm. Claims from taxing authorities could have an adverse effect on our income tax expense and financial condition.
Changes in these requirements could impact demand for our hardware and software products, solutions, and services. Failure to maintain information privacy and security could result in legal liability or reputational harm.
Dollar (USD) may adversely impact our sales and profitability related to business we do outside the U.S. Economic, political, regulatory, and compliance risks, particularly in emerging markets, can restrict our ability to exchange, transact, or pay dividends with foreign currencies we hold. Oil & Gas is a major industry that we serve, including through our Sensia joint venture.
Dollar (USD) may adversely impact our sales and profitability related to business we do outside the U.S. Economic, political, regulatory, and compliance risks, particularly in emerging markets, can restrict our ability to exchange, transact, or pay dividends with foreign currencies we hold. See Item 7A for additional information about foreign currency risks.
We conduct business in many countries, which requires us to interpret and comply with the income tax laws and rulings in each of those taxing jurisdictions.
Claims from taxing authorities could have an adverse effect on our income tax expense and financial condition. We conduct business in many countries, which requires us to interpret and comply with the income tax laws and rulings in each of those taxing jurisdictions.
The uncertainties of litigation 10 Table of Contents (including asbestos claims) and the uncertainties related to the collection of insurance proceeds make it difficult to predict the ultimate resolution of these lawsuits.
While we have insurance coverage for certain of these claims, the uncertainties of litigation and the uncertainties related to the collection of insurance proceeds make it difficult to predict the ultimate resolution of these lawsuits.
Due to the ambiguity of tax laws among those jurisdictions as well as the uncertainty of how underlying facts may be construed, our estimates of income tax liabilities may differ from actual payments or assessments. We must successfully defend any claims from taxing authorities to avoid an adverse effect on our operating results and financial condition.
Due to the ambiguity of tax laws among those jurisdictions as well as the uncertainty of how underlying facts may be construed, our estimates of income tax liabilities may differ from actual payments or assessments.
A disruption could result from the sale of a distributor to a competitor, financial instability of a distributor, or other events. 8 Table of Contents Intellectual property infringement claims of others and the inability to protect our intellectual property rights could harm our business and our customers. Others may assert intellectual property infringement claims against us or our customers.
Intellectual property infringement claims of others and the inability to protect our intellectual property rights could harm our business and our customers. Others may assert intellectual property infringement claims against us or our customers.
The current cyber threat environment indicates increased risk for all companies, including those in industrial automation and information technology. Like other global companies, we have experienced cyber threats and incidents, although none have been material or had a material adverse effect on our business or financial condition.
Like other global companies, we have experienced cyber threats and incidents, although none have been material or had a material adverse effect on our business or financial condition.
The relative importance of these factors differs across the geographic markets and product areas that we serve and across our market segments. We seek to maintain competitive pricing levels across and within geographic markets by continually developing advanced technologies for new hardware and software products and product enhancements and offering complete solutions for our customers’ business problems.
The relative importance of these factors differs across the geographic markets and product areas that we serve and across our market segments. We strive to stay competitive by continuously advancing technologies, including through the adoption and integration of artificial intelligence (AI), for new hardware and software products, product enhancements, and complete solutions that address our customers’ business challenges.
Strategic Transactions and Investments Risks Failure to identify, manage, complete, and integrate strategic transactions may adversely affect our business or we may not achieve the expected benefits of these transactions. As part of our strategy, we pursue strategic transactions, including acquisitions, joint ventures, investments, and other business opportunities and purchases of technology from third parties.
As part of our strategy, we pursue strategic transactions, including acquisitions, joint ventures, investments, and other business opportunities and purchases of technology from third parties.
The expenses we record for our pension and other postretirement benefit plans depend on factors such as changes in market interest rates, the value and investment performance of plan assets, mortality assumptions, and healthcare trend rates. Significant unfavorable changes in these factors would increase our expenses and funding requirements.
One important aspect of attracting and retaining qualified personnel is continuing to offer competitive employee retirement and health care benefits. The expenses we record for our pension and other postretirement benefit plans depend on factors such as changes in market interest rates, the value and investment performance of plan assets, mortality assumptions, and healthcare trend rates.
We expect the level of competition to remain high in the future, which could limit our ability to maintain or increase our market share or profitability. Volatility and disruption of the capital and credit markets may result in increased costs to maintain our capital structure.
If we fail to achieve our objectives we may lose business or experience price erosion and correspondingly lower sales and margins. We expect the level of competition to remain high in the future, which could limit our ability to maintain or increase our market share or profitability.
Even where substitute sources of supply are available, qualifying alternative suppliers and establishing reliable supplies could cost more or result in delays and a loss of sales. 6 Table of Contents Failures or security breaches of our commercial product offerings (which includes hardware, software, services, and solutions), manufacturing environment, supply chain, or information and operational technology systems could have an adverse effect on our business.
Failures or security breaches of our commercial product offerings (which includes hardware, software, services, and solutions), manufacturing environment, supply chain, or information and operational technology systems could have an adverse effect on our business. We rely heavily on technology in our commercial product offerings for use in our customers’ manufacturing environment, and in our enterprise infrastructure.
Any significant security incidents could have an adverse impact on sales, harm our reputation, and cause us to incur legal liability and increased costs to address such events and related security concerns.
Any significant security incidents could have an adverse impact on sales, harm our reputation, and cause us to incur legal liability and increased costs to address such events and related security concerns. 6 Table of Contents Product and Services Security Our hardware and software products, services and solutions are used by our customers in applications that may be subject to information theft, tampering, sabotage, or cyber-attacks.
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When adverse Oil & Gas industry events arise, companies may reduce their levels of spending, which could result in decreased demand for our hardware and software products, solutions, and services.
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We conduct significant operations outside the United States and hold derivative instruments that we designate as hedges of certain net investment positions in our foreign subsidiaries. While these instruments are intended to mitigate the impact of exchange rate volatility, our hedging strategies may not be effective.
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Our business depends on the movement of people and goods around the world.
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Foreign currency exchange rate fluctuations could result in gains or losses on the derivative instruments that are not fully offset by corresponding changes in the value of our foreign net investments.
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If we fail to achieve our objectives, to keep pace with technological changes including the development of artificial intelligence and machine learning, or to provide high quality hardware and software products, solutions, and services, we may lose business or experience price erosion and correspondingly lower sales and margins.
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In addition, the use of hedge accounting is subject to complex accounting requirements, and the inability to qualify for or maintain hedge accounting treatment could result in increased volatility in our reported earnings. Furthermore, counterparties to our derivative contracts could default on their obligations, exposing us to potential losses.
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Product and Services Security Our hardware and software products, services and solutions are used by our direct and indirect customers in applications that may be subject to information theft, tampering, sabotage, or cyber-attacks.
Added
Any of these events could adversely affect our financial condition, results of operations, and cash flows. 4 Table of Contents Our profitability and market competitiveness may be adversely impacted by changes in trade policies, including tariffs or other factors.
Removed
Increasing employee benefit costs and funding requirements could have a negative effect on our operating results and financial condition. One important aspect of attracting and retaining qualified personnel is continuing to offer competitive employee retirement and health care benefits.
Added
Changes in trade policies, including the imposition of new tariffs or increases in existing tariffs between the United States, Mexico, Canada, China or other countries, or reactionary measures including retaliatory tariffs, legal challenges, or currency manipulation, could adversely affect our cost structure and profitability.
Removed
Potential liabilities and costs from litigation (including asbestos claims and environmental remediation) could reduce our profitability.
Added
If tariffs on imported materials, components, or finished goods increase, our manufacturing and supply chain costs may rise. Furthermore, changes to trade policies, retaliatory measures, or prolonged uncertainty in trade relationships could result in supply chain disruptions, delayed shipments, or increased operational complexity, adversely affecting our business and financial results.
Added
While we take steps to mitigate or avoid these increased costs and disruptions, our ability to do so may be limited by operational and supply chain constraints, especially in the short term. In addition, our ability to recover cost increases and maintain profitability levels through price adjustments may be limited by competitive pressures, customer acceptance, and contractual limitations.
Added
Even where substitute sources of supply are available, qualifying alternative suppliers and establishing reliable supplies could cost more or result in delays and a loss of sales.
Added
The current cyber threat environment indicates increased risk for all companies, including those in industrial automation and information technology, and the adoption of AI has resulted in more sophisticated attacks, increasing our risk exposure.
Added
Artificial Intelligence As we broaden the application of AI across product development, manufacturing, customer operations, and enterprise operations, we face evolving risks related to safety, data governance, regulatory compliance, intellectual property, and ethical use.
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Integrating AI into our offerings and internal processes may lead to unintended consequences, including biased outputs, inaccurate decision-making, and increased vulnerability to adversarial attacks, that could significantly impact our business, reputation, and financial results. An inability to successfully execute cost productivity and margin expansion initiatives could negatively impact our business and financial results.
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Strategic Transactions and Investments Risks Significant investments in the business may not achieve intended returns and could adversely affect our financial performance. We plan to invest over $2 billion over the next five years in manufacturing facilities, digital infrastructure, and talent to support market share growth, operational resilience, and margin expansion.
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These investments are intended to complement our productivity initiatives and enable long-term global growth. However, there is no assurance that these investments will yield the anticipated benefits. Risks include delays in implementation, cost overruns, supply chain disruptions, and challenges in integrating automation and technologies into our business and manufacturing operations.
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Additionally, if market conditions change or expected efficiencies do not materialize, the return on these investments may be lower than projected. Furthermore, due to global economic factors or company profitability targets, we may invest at a slower pace than planned, which could impact our ability to achieve desired outcomes.
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Failure to realize the expected outcomes could negatively impact our operating results and financial condition. Failure to identify, manage, complete, and integrate strategic transactions may adversely affect our business or we may not achieve the expected benefits of these transactions.
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As global standards and regulations relating to AI increase and change, it could result in additional costs, reputational harm, legal liability, and regulatory scrutiny related to our use of AI. Additionally, misuse of sensitive data used in AI models may lead to privacy violations or non-compliance with data protection laws.
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We must successfully defend any claims from taxing authorities to avoid an adverse effect on our operating results and financial condition. 10 Table of Contents Potential liabilities and costs from litigation could reduce our profitability.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeItem 1C. Cybersecurity Risk Management and Strategy The Company has a cybersecurity risk management program that is designed to assess, identify, manage, and govern risks from cybersecurity threats. Our cybersecurity risk management program is a key component of our overall enterprise risk management strategy.
Biggest changeItem 1C. Cybersecurity Risk Management and Strategy The Company has a cybersecurity risk management program designed to assess, identify, manage, and govern risks from cybersecurity threats. Our cybersecurity risk management program is a key component of our overall enterprise risk management strategy.
During the year ended September 30, 2024, the Company has not identified risks from cybersecurity threats, including as a result of prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition.
During the year ended September 30, 2025, the Company has not identified risks from cybersecurity threats, including as a result of prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeAt September 30, 2024, the Company had two principal distribution locations, one in the U.S. and one in the Netherlands, and approximately ten principal manufacturing facilities worldwide, with the most significant of these located in the U.S., Mexico, Canada, and Singapore. We also have sales and administrative office space at over 200 locations in over 50 countries.
Biggest changeAt September 30, 2025, the Company had two principal distribution locations, one in the U.S. and one in the Netherlands, and approximately ten principal manufacturing facilities worldwide, with the most significant of these located in the U.S., Mexico, Poland, India, Canada, and Singapore. We also have sales and administrative office space at over 200 locations in over 50 countries.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe cumulative total returns on Rockwell Automation common stock and each index as of September 30, 2019 through 2024 plotted in the above graph are as follows: 2019 2020 2021 2022 2023 2024 Rockwell Automation (1) $ 100.00 $ 136.66 $ 185.04 $ 137.74 $ 186.12 $ 178.10 S&P 500 Index 100.00 115.13 149.66 126.48 153.79 209.67 S&P Selected GICS groups 100.00 138.10 176.23 149.59 194.96 261.50 Cash dividends per common share 3.88 4.08 4.28 4.48 4.72 5.00 (1) Includes the reinvestment of all dividends in our common stock. 16 Table of Contents Item 6. [Reserved] Not required.
Biggest changeThe cumulative total returns on Rockwell Automation common stock and each index as of September 30, 2020 through 2025 plotted in the above graph are as follows: 2020 2021 2022 2023 2024 2025 Rockwell Automation (1) $ 100.00 $ 135.41 $ 100.79 $ 136.20 $ 130.33 $ 172.60 S&P 500 Index 100.00 129.99 109.86 133.58 182.12 214.10 S&P Selected GICS groups 100.00 128.33 107.16 140.02 190.95 226.14 Cash dividends per common share 4.08 4.28 4.48 4.72 5.00 5.24 (1) Includes the reinvestment of all dividends in our common stock. 16 Table of Contents Item 6. [Reserved] Not required.
Company Purchases The table below sets forth information with respect to purchases made by or on behalf of us of shares of our common stock during the three months ended September 30, 2024: Period Total Number of Shares Purchased (1) Average Price Paid Per Share (2) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Approx.
Company Purchases The table below sets forth information with respect to purchases made by or on behalf of us of shares of our common stock during the three months ended September 30, 2025: Period Total Number of Shares Purchased (1) Average Price Paid Per Share (2) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Approx.
The following line graph compares the cumulative total shareowner return on our common stock against the cumulative total return of the S&P Composite-500 Stock Index (S&P 500 Index) and the S&P 500 Selected GICS groups (Capital Goods, Software & Services, and Technology Hardware & Equipment) for the period of five fiscal years from October 1, 2019, to September 30, 2024, assuming in each case a fixed investment of $100 at the respective closing prices on September 30, 2019, and reinvestment of all dividends.
The following line graph compares the cumulative total shareowner return on our common stock against the cumulative total return of the S&P Composite-500 Stock Index (S&P 500 Index) and the S&P 500 Selected GICS groups (Capital Goods, Software & Services, and Technology Hardware & Equipment) for the period of five fiscal years from October 1, 2020, to September 30, 2025, assuming in each case a fixed investment of $100 at the respective closing prices on September 30, 2020, and reinvestment of all dividends.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock, $1 par value, is listed on the New York Stock Exchange and trades under the symbol “ROK”. On October 31, 2024, there were 11,332 shareowners of record of our common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock, $1 par value, is listed on the New York Stock Exchange and trades under the symbol “ROK”. On October 31, 2025, there were 10,649 shareowners of record of our common stock.
(2) Average price paid per share includes brokerage commissions. (3) On both May 2, 2022 and September 11, 2024, the Board of Directors authorized us to expend an additional $1.0 billion to repurchase shares of our common stock.
(2) Average price paid per share includes brokerage commissions. (3) On September 11, 2024, the Board of Directors authorized us to expend $1.0 billion to repurchase shares of our common stock.
Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) July 1 – 31, 2024 32,230 $ 272.95 32,230 $ 455,330,732 August 1 – 31, 2024 384,201 263.40 384,201 354,133,262 September 1 – 30, 2024 30,547 261.80 30,547 1,346,135,915 Total 446,978 $ 263.98 446,978 (1) All of the shares purchased during the quarter ended September 30, 2024, were acquired pursuant to the repurchase program described in (3) below.
Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) July 1 – 31, 2025 66,000 $ 349.43 66,000 $ 972,655,682 August 1 – 31, 2025 70,946 340.34 70,946 948,509,764 September 1 – 30, 2025 63,000 343.35 63,000 926,879,025 Total 199,946 $ 344.29 199,946 (1) All of the shares purchased during the quarter ended September 30, 2025, were acquired pursuant to the repurchase program described in (3) below.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

87 edited+52 added−29 removed56 unchanged
Biggest changeThese non-GAAP measures should not be considered a substitute for Net income attributable to Rockwell Automation, diluted EPS, and effective tax rate. 29 Table of Contents The following are reconciliations of Net income attributable to Rockwell Automation, diluted EPS, and effective tax rate to Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate, respectively (in millions, except per share amounts and percentages): Year Ended September 30, 2024 2023 2022 Net income attributable to Rockwell Automation $ 952.5 $ 1,387.4 $ 932.2 Non-operating pension and postretirement benefit (credit) cost (19.8) 82.7 4.7 Tax effect of non-operating pension and postretirement benefit (credit) cost 4.0 (20.6) (1.9) Purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation (1) 132.8 178.3 91.9 Tax effect of purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation (1) (24.6) (9.4) (22.3) Change in fair value of investments (2) (0.1) (279.3) 136.9 Tax effect of change in fair value of investments (2) (0.7) 67.6 (30.8) Restructuring charges (3) 97.4 — — Tax effect of restructuring charges (3) (24.3) — — Adjusted Income $ 1,117.2 $ 1,406.7 $ 1,110.7 Diluted EPS $ 8.28 $ 11.95 $ 7.97 Non-operating pension and postretirement benefit (credit) cost (0.17) 0.72 0.04 Tax effect of non-operating pension and postretirement benefit (credit) cost 0.03 (0.18) (0.02) Purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation 1.16 1.54 0.78 Tax effect of purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation (0.22) (0.08) (0.19) Change in fair value of investments (2) — (2.42) 1.17 Tax effect of change in fair value of investments (2) (0.01) 0.59 (0.26) Restructuring charges 0.85 — — Tax effect of restructuring charges (0.21) — — Adjusted EPS $ 9.71 $ 12.12 $ 9.49 Effective tax rate 13.8 % 20.5 % 14.4 % Tax effect of non-operating pension and postretirement benefit (credit) cost (0.1) % 0.3 % 0.1 % Tax effect of purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation 0.4 % (3.7) % 0.6 % Tax effect of change in fair value of investments (2) 0.1 % (0.7) % 0.9 % Tax effect of restructuring charges 0.9 % — % — % Adjusted Effective Tax Rate 15.1 % 16.4 % 16.0 % (1) 2023 includes $97.3 million net expense from $157.5 million goodwill impairment charge included in Income before income taxes, $33.1 tax effect from goodwill impairment and related valuation allowances recorded in Income tax provision, and ($93.3) million Net loss attributable to noncontrolling interests.
Biggest changeThese non-GAAP measures should not be considered a substitute for Net income attributable to Rockwell Automation, diluted EPS, and effective tax rate. 30 Table of Contents The following are reconciliations of Net income attributable to Rockwell Automation, diluted EPS, and effective tax rate to Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate, respectively (in millions, except per share amounts and percentages): Year Ended September 30, 2025 2024 2023 Net income attributable to Rockwell Automation $ 869 $ 953 $ 1,387 Non-operating pension and postretirement benefit cost (credit) 1 (20) 83 Tax effect of non-operating pension and postretirement benefit cost (credit) (1) 4 (21) Purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation (1) 249 133 178 Tax effect of purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation (1) (38) (25) (9) Net legacy asbestos and environmental charges (2) 154 21 18 Tax effect of net legacy asbestos and environmental charges (2) (37) (5) (4) Change in fair value of investments 3 — (279) Tax effect of change in fair value of investments (1) — 68 Restructuring charges (5) 97 — Tax effect of restructuring charges 1 (25) — Adjusted Income (2) $ 1,195 $ 1,133 $ 1,421 Diluted EPS $ 7.67 $ 8.28 $ 11.95 Non-operating pension and postretirement benefit cost (credit) 0.01 (0.17) 0.72 Tax effect of non-operating pension and postretirement benefit cost (credit) (0.01) 0.03 (0.18) Purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation 2.20 1.16 1.54 Tax effect of purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation (0.34) (0.22) (0.08) Net legacy asbestos and environmental charges 1.36 0.18 0.16 Tax effect of net legacy asbestos and environmental charges (0.33) (0.04) (0.03) Change in fair value of investments 0.02 — (2.42) Tax effect of change in fair value of investments (0.01) (0.01) 0.59 Restructuring charges (0.05) 0.85 — Tax effect of restructuring charges 0.01 (0.21) — Adjusted EPS $ 10.53 $ 9.85 $ 12.25 Effective tax rate 18.3 % 13.8 % 20.5 % Tax effect of non-operating pension and postretirement benefit cost (credit) 0.1 % (0.1) % 0.3 % Tax effect of purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation (2.5) % 0.4 % (3.7) % Tax effect of net legacy asbestos and environmental charges 1.1 % 0.2 % 0.1 % Tax effect of change in fair value of investments 0.1 % 0.1 % (0.7) % Tax effect of restructuring charges — % 0.9 % — % Adjusted Effective Tax Rate 17.1 % 15.3 % 16.5 % (1) 2025 includes $110 million net expense from a $224 million goodwill and intangible asset non-cash impairment charge included in Income before income taxes, ($7) million tax effect including related valuation allowances recorded in the Income tax provision, and ($107) million Net loss attributable to noncontrolling interests. 2023 includes $98 million net expense from a $158 million goodwill impairment charge included in Income before income taxes, $33 million tax effect including related valuation allowances recorded in the Income tax provision, and ($93) million Net loss attributable to noncontrolling interests.
Our long-term profitable growth framework outlines how we will deliver accelerated growth while we continue to transform our company to meet stakeholder expectations over the longer term: • achieve faster secular growth in traditional markets due to customer needs for resiliency (including cybersecurity), agility, sustainability, and mitigating impacts of labor shortages; • grow share and create new ways to win through technology differentiation, industry focus, go to market acceleration, expanded offerings and new markets; • continue double-digit growth in annual recurring revenue; • add 1% average annual growth from acquisitions; and • deliver profitable growth within a disciplined financial framework. 17 Table of Contents Sustainability Our 2023 Sustainability Report highlights our sustainability strategy and outcomes.
Our long-term profitable growth framework outlines how we will deliver accelerated growth while we continue to transform our company to meet stakeholder expectations over the longer term: • achieve faster secular growth in traditional markets due to customer needs for resiliency (including cybersecurity), agility, sustainability, and mitigating impacts of labor shortages; • grow share and create new ways to win through technology differentiation, industry focus, go to market acceleration, expanded offerings and new markets; • continue double-digit growth in annual recurring revenue; • add 1% average annual growth from acquisitions; and • deliver profitable growth within a disciplined financial framework. 17 Table of Contents Sustainability Our 2024 Sustainability Report highlights our sustainability strategy and outcomes.
The key assumption requiring the use of judgement in the valuation of the $41.6 million trademark intangible asset was the weighted average royalty rate of 2.05 percent. This rate was based on royalty market data. A 100 basis point change in the royalty rate would result in a change of $20 million in intangible assets.
The key assumption requiring the use of judgement in the valuation of the $41 million trademark intangible asset was the weighted average royalty rate of 2.05 percent. This rate was based on royalty market data. A 100 basis point change in the royalty rate would result in a change of $20 million in intangible assets.
Actual results and forecasts of revenue growth and margins for our Sensia reporting unit may be impacted by its concentration within the Oil & Gas industry and with its customer base.
Actual results and forecasts of revenue growth and margins for the Sensia reporting unit may be impacted by its concentration within the Oil & Gas industry and with its customer base.
Contributions to our pension plans beyond 2025 will depend on future investment performance of our pension plan assets, changes in discount rate assumptions, and governmental regulations in effect at the time. Amounts subsequent to 2025 are excluded from the summary above, as we are unable to make a reasonably reliable estimate of these amounts.
Contributions to our pension plans beyond 2026 will depend on future investment performance of our pension plan assets, changes in discount rate assumptions, and governmental regulations in effect at the time. Amounts subsequent to 2026 are excluded from the summary above, as we are unable to make a reasonably reliable estimate of these amounts.
The following is a summary of our credit ratings as of November 12, 2024: Credit Rating Agency Short Term Rating Long Term Rating Outlook Standard & Poor’s A-2 A- Stable Moody’s P-2 A3 Stable Fitch Ratings F1 A Stable Our ability to access the commercial paper market, and the related costs of these borrowings, is affected by the strength of our credit ratings and market conditions.
The following is a summary of our credit ratings as of November 12, 2025: Credit Rating Agency Short Term Rating Long Term Rating Outlook Standard & Poor’s A-2 A- Stable Moody’s P-2 A3 Stable Fitch Ratings F1 A Stable Our ability to access the commercial paper market, and the related costs of these borrowings, is affected by the strength of our credit ratings and market conditions.
Our digital services business has a deep understanding of customers’ biggest digital transformation challenges and opportunities for further productivity and growth. Market Access and Expansion Over the past decade, our investments in technology and globalization have enabled us to expand our addressed market to approximately $130 billion.
Our digital services business has a deep understanding of customers’ biggest digital transformation challenges and opportunities for further productivity and growth. Market Access and Expansion Over the past decade, our investments in technology and globalization have enabled us to expand our addressed market to approximately $120 billion.
Approximately 65 percent of our global sales are transacted through independent distributors. Sales to our two largest distributors in 2024, 2023, and 2022, which are attributable to all three segments, were approximately 20 percent of our total sales. 18 Table of Contents Machine builders continue to represent an important growth opportunity.
Approximately 65 percent of our global sales are transacted through independent distributors. Sales to our two largest distributors in 2025, 2024, and 2023, which are attributable to all three segments, were approximately 20 percent of our total sales. 18 Table of Contents Machine builders continue to represent an important growth opportunity.
The table below presents our sales for the year ended September 30, 2024, attributed to the geographic regions based upon country of destination, and the percentage change from the same period in 2023 (in millions, except percentages). Change vs. Change in Organic Sales (1) vs.
The table below presents our sales for the year ended September 30, 2025, attributed to the geographic regions based upon country of destination, and the percentage change from the same period in 2024 (in millions, except percentages). Change vs. Change in Organic Sales (1) vs.
Although we believe the assumptions and estimates made were reasonable and appropriate, these estimates require judgment and are based in part on historical experience and information obtained from Clearpath management. The key assumption requiring the use of judgement in the valuation of the $269.9 million technology asset was the obsolescence factor.
Although we believe the assumptions and estimates made were reasonable and appropriate, these estimates require judgment and are based in part on historical experience and information obtained from Clearpath management. The key assumption requiring the use of judgement in the valuation of the $270 million technology asset was the obsolescence factor.
The following chart illustrates the estimated change in projected benefit obligation and annual net periodic benefit cost assuming a change of 25 basis points in the discount rate for our U.S. pension plans (in millions): Pension Benefits Change in Projected Benefit Obligation Change in Net Periodic Benefit Cost (1) Discount rate $ 64.9 $ 6.9 (1) Change includes both operating and non-operating pension costs.
The following chart illustrates the estimated change in projected benefit obligation and annual net periodic benefit cost assuming a change of 25 basis points in the discount rate for our U.S. pension plans (in millions): Pension Benefits Change in Projected Benefit Obligation Change in Net Periodic Benefit Cost (1) Discount rate $ 56 $ 6 (1) Change includes both operating and non-operating pension costs.
The Manufacturing IP Index is expressed as a percentage of real output in a base year, currently 2017. • The Manufacturing Purchasing Managers’ Index (PMI), published by the Institute for Supply Management (ISM), which indicates the current and near-term state of manufacturing activity in the U.S.
The Manufacturing IP Index shown in the chart below is expressed as a percentage of real output in a base year, currently 2017. • The Manufacturing Purchasing Managers’ Index (PMI), published by the Institute for Supply Management (ISM), which indicates the current and near-term state of manufacturing activity in the U.S.
Enactment of this regulation in its current form would generally apply to the Company beginning in fiscal year 2026, resulting in an increase in our effective tax rate as well as in the amount of global corporate income tax paid.
Enactment of this regulation in its current form would generally apply to the Company beginning in fiscal year 2026, resulting in an approximate increase in our effective tax rate of 3 percent as well as in the amount of global corporate income tax paid.
We strive for zero workplace injuries and illnesses and operate in a manner that recognizes safety as fundamental to Rockwell Automation being a great place to work. In fiscal 2024, we achieved 0.27 recordable cases per 100 employees. • We capture and act upon employee feedback through our annual employee engagement survey.
We strive for zero workplace injuries and illnesses and operate in a manner that recognizes safety as fundamental to Rockwell Automation being a great place to work. In fiscal 2025, we achieved 0.24 recordable cases per 100 employees. • We capture and act upon employee feedback through our annual employee engagement survey.
According to the ISM, a PMI measure above 50 indicates that the U.S. manufacturing economy is generally expanding while a measure below 50 indicates that it is generally contracting. The table below depicts the trends in these indicators from fiscal 2022 to 2024. These figures are as of November 12, 2024, and are subject to revision by the issuing organizations.
According to the ISM, a PMI measure above 50 indicates that the U.S. manufacturing economy is generally expanding while a measure below 50 indicates that it is generally contracting. The table below depicts the trends in these indicators from fiscal 2023 to 2025. These figures are as of November 12, 2025, and are subject to revision by the issuing organizations.
We expect future uses of cash to include working capital requirements, capital expenditures, dividends to shareowners, repurchases of common stock, repayments of debt, additional contributions to our retirement plans, and acquisitions of businesses and other inorganic investments. We expect capital expenditures in 2025 to be approximately $250 million.
We expect future uses of cash to include working capital requirements, capital expenditures, dividends to shareowners, repurchases of common stock, repayments of debt, additional contributions to our retirement plans, and acquisitions of businesses and other inorganic investments. We expect capital expenditures in 2026 to be approximately $270 million.
We use changes in key countries' gross domestic product (GDP), IP, and PMI as indicators of the growth opportunities in each region where we do business. Industrial output outside the U.S. was mixed in the fourth quarter of fiscal 2024.
We use changes in key countries' gross domestic product (GDP), IP, and PMI as indicators of the growth opportunities in each region where we do business. Industrial production outside the U.S. was mixed in the fourth quarter of fiscal 2025.
We exclude purchase accounting depreciation and amortization, impairment, corporate and other, non-operating pension and postretirement benefit credit (cost), change in fair value of investments, restructuring charges aligned with enterprise-wide strategic initiatives, interest expense, net, and income tax provision because we do not consider these items to be directly related to the operating performance of our segments.
We exclude purchase accounting depreciation and amortization, and impairment, corporate and other, non-operating pension and postretirement benefit (cost) credit, net legacy asbestos and environmental charges, change in fair value of investments, restructuring charges aligned with enterprise-wide strategic initiatives, and interest expense, net because we do not consider these items to be directly related to the operating performance of our segments.
In fiscal 2024, the majority of our employees completed one or more of our training programs representing over 1.1 million learning hours. • We offer employee assistance and work life benefits to all global employees. Our comprehensive benefits include healthcare benefits, disability and life insurance benefits, paid time off, and leave programs.
In fiscal 2025, the majority of our employees completed one or more of our training programs representing approximately one million learning hours. • We offer employee assistance and work life benefits to all global employees. Our comprehensive benefits include healthcare benefits, disability and life insurance benefits, paid time off, and leave programs.
At September 30, 2024, we had approximately $1,346.1 million remaining for share repurchases under our existing board authorizations. See Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities , for additional information regarding share repurchases.
At September 30, 2025, we had approximately $927 million remaining for share repurchases under our existing board authorizations. See Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities , for additional information regarding share repurchases.
During fiscal 2024, we updated our Hybrid Workplace Program, which combines the values of both physical workspaces and virtual work options, both of which are important for attracting, retaining, and developing employees and facilitating innovation, engagement, and productivity. We offer flextime, remote work, and part-time arrangements whenever business conditions permit.
During fiscal 2025, we saw strong participation in our Hybrid Workplace Program, which combines the values of both physical workspaces and virtual work options, both of which are important for attracting, retaining, and developing employees and facilitating innovation, engagement, and productivity. We offer flextime, remote work, and part-time arrangements whenever business conditions permit.
We see converging megatrends including digitization and artificial intelligence, energy transition and sustainability, shifting demographics, and an increased need for resiliency.
We see converging megatrends including digitization and AI, energy transition and sustainability, shifting demographics, and an increased need for resiliency.
At September 30, 2024, our employees, including those employed by consolidated subsidiaries, by region were approximately: North America 9,500 Europe, Middle East and Africa 5,500 Asia Pacific 7,000 Latin America 5,000 Total employees 27,000 Our employees had the following global gender demographics based on voluntary disclosure: September 30, 2024 Women Men Undisclosed All employees 32% 68% —% Individual Contributors 33% 67% —% People Managers 27% 73% —% Technical Talent 19% 81% —% Manufacturing Associates 45% 55% —% 20 Table of Contents Our U.S. employees had the following race and ethnicity demographics based on voluntary disclosure: September 30, 2024 Black / African American Asian Hispanic / Latinx White Multiracial, Native American and Pacific Islander Undisclosed All U.S.
At September 30, 2025, our employees, including those employed by consolidated subsidiaries, by region were approximately: North America 9,000 Europe, Middle East and Africa 5,000 Asia Pacific 7,000 Latin America 5,000 Total employees 26,000 20 Table of Contents Our employees had the following global gender demographics based on voluntary disclosure: September 30, 2025 Women Men Undisclosed All employees 33% 67% —% Individual Contributors 34% 66% —% People Managers 27% 73% —% Technical Talent 20% 80% —% Manufacturing Associates 46% 54% —% Our U.S. employees had the following race and ethnicity demographics based on voluntary disclosure: September 30, 2025 Black / African American Asian Hispanic / Latinx White Multiracial, Native American and Pacific Islander Undisclosed All U.S.
We engaged an independent third-party valuation specialist to assist with the fair value allocation of the intangible assets assumed through the acquisition of Clearpath. The intangible assets were valued using income approaches, specifically the relief from royalty method and multi-period excess earnings method.
We engaged an independent third-party valuation specialist to assist with the fair value allocation of the intangible assets assumed through the Clearpath Robotics, Inc. acquisition including its industrial division OTTO Motors (Clearpath). The intangible assets were valued using income approaches, specifically the relief from royalty method and multi-period excess earnings method.
Our quarterly dividend rate as of September 30, 2024, is $1.25 per common share ($5.00 per common share annually), which is determined at the sole discretion of our Board of Directors. 34 Table of Contents Supplemental Sales Information We translate sales of subsidiaries operating outside of the United States using exchange rates effective during the respective period.
Our quarterly dividend rate as of September 30, 2025, is $1.31 per common share ($5.24 per common share annually), which is determined at the sole discretion of our Board of Directors. Supplemental Sales Information We translate sales of subsidiaries operating outside of the United States using exchange rates effective during the respective period.
At September 30, 2023, there were $1.1 million of outstanding common stock share repurchases recorded in Accounts payable that did not settle until 2024. Our decision to repurchase shares in 2025 will depend on business conditions, free cash flow generation, other cash requirements, and stock price.
At September 30, 2024, there was no significant outstanding common stock share repurchases recorded in Accounts payable that did not settle until 2025. Our decision to repurchase shares in 2026 will depend on business conditions, free cash flow generation, other cash requirements, and stock price.
Pricing increased total company sales by approximately 2 percentage points, realized in the Intelligent Devices and Software & Control segments. Volume decreased total company sales by approximately 12 percentage points year over year driven by the Software & Control and Intelligent Devices segments, partially offset by the Lifecycle Services segment.
Pricing increased total company sales by approximately 3 percentage points year over year, realized in the Intelligent Devices and Software & Control segments. Volume decreased total company sales by approximately 2 percentage points year over year driven by the Intelligent Devices segment.
As of September 30, 2024 and 2023, included in Short-term debt was $70.0 million borrowed against the line of credit with an interest rate of 6.17 percent and 6.29 percent, respectively. Also included in Short-term debt as of September 30, 2024 and September 30, 2023 was $23.5 million of interest-bearing loans from Schlumberger (SLB) to Sensia, due April 2025.
As of September 30, 2025 and 2024, included in Short-term debt was $70 million borrowed against the line of credit with an interest rate of 5.18 percent and 6.17 percent, respectively. Also included in Short-term debt as of September 30, 2025, and September 30, 2024, was $14 million and $42 million, respectively, of interest-bearing loans from Schlumberger (SLB) to Sensia.
Our Short-term debt as of September 30, 2024, includes commercial paper borrowings of $657.0 million with a weighted average interest rate of 5.14 percent and a weighted average maturity period of 24 days. We had no commercial paper borrowings as of September 30, 2023. In December 2022, Sensia entered into an unsecured $75.0 million line of credit.
Our Short-term debt as of September 30, 2025 and 2024, includes commercial paper borrowings of $522 million and $657 million, with a weighted average interest rate of 4.24 percent and 5.14 percent, and a weighted average maturity period of 16 days and 24 days, respectively. In December 2022, Sensia entered into an unsecured $75 million line of credit.
In 2023, we repurchased approximately 1.2 million shares of our common stock under our share repurchase program at a total cost of $311.0 million and an average cost of $265.48 per share. At September 30, 2024, there were $0.4 million of outstanding common stock share repurchases recorded in Accounts payable that do not settle until 2025.
In 2024, we repurchased approximately 2.2 million shares of our common stock under our share repurchase program at a total cost of $594 million and an average cost of $272.97 per share. At September 30, 2025, there were $1 million of outstanding common stock share repurchases recorded in Accounts payable that do not settle until 2026.
(4) Under the Tax Act, the Company may elect to pay the transition tax interest-free over eight years, with 8% due in each of the first five years, 15% in year six, 20% in year seven, and 25% in year eight.
(5) Under the Tax Act, the Company elected to pay the transition tax interest-free over eight years, with 8% paid in each of the first five years, 15% in year six, 20% in year seven, and 25% in year eight.
Producer prices remain elevated, however, year over year increases continued to decelerate following the last two years' surges in prices. Non-U.S. Economic Trends In 2024, sales to customers outside the U.S. accounted for less than half of our total sales. These customers include both indigenous companies and multinational companies with a global presence.
Producer prices remain elevated, however, year over year increases remain decelerated from the surges in 2023 and 2022. Non-U.S. Economic Trends In 2025, sales to customers outside the U.S. accounted for less than half of our total sales. These customers include both indigenous companies and multinational companies with a global presence.
The terms of this credit facility contain covenants under which we agree to maintain an EBITDA-to-interest ratio of at least 3.0 to 1.0. The EBITDA-to-interest ratio is defined in the credit facility as the ratio of consolidated EBITDA (as defined in the facility) for the preceding four quarters to consolidated interest expense for the same period.
The term loan agreement contains covenants similar to those under our credit facility, in which we agree to maintain an EBITDA-to-interest ratio of at least 3.0 to 1.0. The EBITDA-to-interest ratio is defined in the credit facility as the ratio of consolidated EBITDA for the preceding four quarters to consolidated interest expense for the same period.
If we were to allocate these costs, we would attribute them to each of our segments as follows (in millions): Year Ended September 30, 2024 2023 2022 Purchase accounting depreciation and amortization, and impairment Intelligent Devices $ 37.9 $ 4.7 $ 2.5 Software & Control 67.4 68.5 69.0 Lifecycle Services 37.6 190.2 31.4 Non-operating pension and postretirement benefit (credit) cost Intelligent Devices $ (7.2) $ 21.2 $ (3.5) Software & Control (7.2) 21.2 (3.5) Lifecycle Services (9.5) 28.3 (4.8) Restructuring Charges Intelligent Devices $ 44.4 $ — $ — Software & Control 32.6 — — Lifecycle Services 19.4 — — 28 Table of Contents Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate are non-GAAP earnings measures that exclude non-operating pension and postretirement benefit (credit) cost, purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation, change in fair value of investments, restructuring charges aligned with enterprise-wide strategic initiatives, and Net loss attributable to noncontrolling interests, including their respective tax effects.
If we were to allocate these costs, we would attribute them to each of our segments as follows (in millions): Year Ended September 30, 2025 2024 2023 Purchase accounting depreciation and amortization, and impairment Intelligent Devices $ 37 $ 38 $ 5 Software & Control 66 68 69 Lifecycle Services 262 38 190 Non-operating pension and postretirement benefit (credit) cost Intelligent Devices $ (2) $ (7) $ 21 Software & Control (1) (7) 21 Lifecycle Services (2) (10) 28 Restructuring charges Intelligent Devices $ (2) $ 44 $ — Software & Control (2) 33 — Lifecycle Services (1) 20 — 29 Table of Contents Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate are non-GAAP earnings measures that exclude non-operating pension and postretirement benefit cost (credit), purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation, net legacy asbestos and environmental charges, change in fair value of investments, and restructuring charges aligned with enterprise-wide strategic initiatives, including their respective tax effects and related valuation allowances.
The assumptions and estimates made are based on a number of factors, including historical experience, reference to external product available market and industry growth publications, analysis of peer group projections, and information obtained from the management team, including backlog.
These estimates and assumptions are based on a number of factors, including historical experience, reference to external product available market and industry growth publications, and analysis of peer group projections.
Employees 7% 10% 6% 70% 2% 5% Individual Contributors 8% 11% 5% 69% 2% 5% People Managers 6% 8% 6% 74% 1% 5% Technical Talent 5% 13% 6% 69% 2% 5% Manufacturing Associates 14% 16% 4% 55% 2% 9% 21 Table of Contents U.S. Economic Trends In 2024, sales in the U.S. accounted for over half of our total sales.
Employees 7% 11% 5% 70% 2% 5% Individual Contributors 8% 12% 5% 69% 2% 4% People Managers 6% 7% 5% 75% 1% 6% Technical Talent 6% 13% 6% 69% 2% 4% Manufacturing Associates 15% 17% 3% 56% 2% 7% 21 Table of Contents U.S. Economic Trends In 2025, sales in the U.S. accounted for over half of our total sales.
Acquisitions and Investments Our acquisition and investment strategy focuses on hardware and software products, solutions, and services that will be catalytic to the organic growth of our core offerings. Our key priorities for inorganic investments include: • annual recurring revenue; • market expansion in Europe and Asia; and • application-specific technology in focus industries.
Acquisitions and Investments Our acquisition and investment strategy focuses on hardware and software products, solutions, and services that will be catalytic to the organic growth of our core offerings. Our key priorities for inorganic investments include: • industrial AI applications; • market access in Europe and Asia; and • product portfolio expansion.
These estimates are based on our best judgment about current and future conditions, but actual results could differ from those estimates. Refer to Note 1 in the Consolidated Financial Statements for information regarding our significant accounting policies. Goodwill - Sensia Reporting Unit The quantitative test of goodwill for impairment requires us to estimate the fair value of our reporting units.
These estimates are based on our best judgment about current and future conditions, but actual results could differ from those estimates. Refer to Note 1 in the Consolidated Financial Statements for information regarding our significant accounting policies.
As a result of the broad changes to the U.S. international tax system under the Tax Act, the Company accounts for taxes on earnings of substantially all of its non-U.S. subsidiaries including both non-U.S. and U.S. taxes.
We use a global cash pooling arrangement to efficiently manage liquidity among our entities. As a result of the broad changes to the U.S. international tax system under the Tax Act, the Company accounts for taxes on earnings of substantially all of its non-U.S. subsidiaries including both non-U.S. and U.S. taxes.
We use attrition rate information to identify and address unfavorable trends to mitigate risk to our business. See Item 1A. Risk Factors for a discussion of risks relating to our inability to attract, develop, and retain highly qualified employees.
We believe these rates are favorable to market trends experienced broadly across labor markets in fiscal 2025. We use attrition rate information to identify and address unfavorable trends to mitigate risk to our business. See Item 1A. Risk Factors for a discussion of risks relating to our inability to attract, develop, and retain highly qualified employees.
Separate short-term unsecured credit facilities of approximately $248.5 million at September 30, 2024, were available to non-U.S. subsidiaries, of which approximately $34.6 million was committed under letters of credit. Borrowings under our non-U.S. credit facilities at September 30, 2024 and 2023, were not significant.
Separate short-term unsecured credit facilities of approximately $275 million at September 30, 2025, were available to non-U.S. subsidiaries, of which approximately $34 million was committed under letters of credit. Borrowings under our non-U.S. credit facilities at September 30, 2025 and 2024, were not significant. There are no significant commitment fees or compensating balance requirements under our credit facilities.
Cash provided by operating activities was $863.8 million for the year ended September 30, 2024, compared to $1,374.6 million for the year ended September 30, 2023. Free cash flow was $639.1 million for the year ended September 30, 2024, compared to $1,214.1 million for the year ended September 30, 2023.
Cash provided by operating activities was $1,544 million for the year ended September 30, 2025, compared to $864 million for the year ended September 30, 2024. Free cash flow was $1,358 million for the year ended September 30, 2025, compared to $639 million for the year ended September 30, 2024.
We expect to fund future uses of cash with a combination of existing cash balances, cash generated by operating activities, commercial paper borrowings, or a new issuance of debt or other securities. In addition, we have access to unsecured credit facilities with various banks.
We expect to fund future uses of cash with a combination of existing cash balances, cash generated by operating activities, commercial paper borrowings, or new issuances of debt or other securities. In addition, we have access to unsecured credit facilities with various banks. At September 30, 2025, the majority of our Cash and cash equivalents were held by non-U.S. subsidiaries.
See Note 16 in the Consolidated Financial Statements for a complete reconciliation of the United States statutory tax rate to the effective tax rate and additional information on tax events in 2024 and 2023 affecting each year’s respective tax rates. 25 Table of Contents In October 2021, the Organization for Economic Cooperation and Development (OECD) and G20 Finance Ministers reached an agreement, known as Base Erosion and Profit Shifting (BEPS) Pillar Two, that, among other things, ensures that income earned in each jurisdiction that qualifying multinational enterprises operate in is subject to a minimum corporate income tax rate of at least 15%.
In October 2021, the Organization for Economic Cooperation and Development (OECD) and G20 Finance Ministers reached an agreement, known as Base Erosion and Profit Shifting (BEPS) Pillar Two, that, among other things, ensures that income earned in each jurisdiction that qualifying multinational enterprises operate in is subject to a minimum corporate income tax rate of at least 15 percent.
Software & Control Sales Software & Control reported and organic sales decreased 24 percent in 2024 compared to 2023. All regions experienced reported and organic sales decreases. Segment Operating Margin Software & Control segment operating earnings decreased 44 percent year over year.
Software & Control Sales Software & Control reported and organic sales increased 9 percent in 2025 compared to 2024. All regions except North America experienced reported and organic sales decreases. Segment Operating Margin Software & Control segment operating earnings increased 34 percent year over year.
Year Ended September 30, 2024 Year Ended September 30, 2023 Year Ended September 30, 2023 North America $ 5,052.8 (3) % (5) % Europe, Middle East and Africa 1,504.5 (20) % (21) % Asia Pacific 1,072.8 (21) % (20) % Latin America 634.1 5 % 4 % Total Company Sales $ 8,264.2 (9) % (10) % (1) Organic sales and organic sales growth exclude the effect of acquisitions, changes in currency exchange rates, and divestitures.
Year Ended September 30, 2025 Year Ended September 30, 2024 Year Ended September 30, 2024 North America $ 5,270 4 % 4 % Europe, Middle East and Africa 1,488 (1) % (3) % Asia Pacific 1,024 (5) % (4) % Latin America 560 (12) % (6) % Total Company Sales $ 8,342 1 % 1 % (1) Organic sales and organic sales growth exclude the effect of acquisitions, changes in currency exchange rates, and divestitures.
Demand for Sensia hardware and software products, solutions, and services is sensitive to industry volatility and risks, including those related to commodity prices, supply and demand dynamics, production costs, geological activity, and political activities.
Demand for Sensia hardware and software products, solutions, and services is sensitive to industry volatility and risks, including those related to commodity prices, supply and demand dynamics, production costs, geological activity, and political activities. We determined the discount rate using a weighted average cost of capital adjusted for risk factors.
Segment operating margin decreased to 24.2 percent in 2024 from 33.0 percent in 2023, primarily due to lower sales volume, partially offset by lower incentive compensation and the positive impact of price realization exceeding input costs. Lifecycle Services Sales Lifecycle Services sales increased 10 percent in 2024 compared to 2023. Organic sales increased 8 percent.
Segment operating margin increased to 29.7 percent in 2025 from 24.2 percent in 2024, primarily due to productivity, higher sales volume, and the positive impact of price realization, partially offset by higher compensation. Lifecycle Services Sales Lifecycle Services reported and organic sales decreased 3 percent in 2025 compared to 2024.
Adjusted EPS is also used as a financial measure of performance for our annual incentive compensation. Our measures of Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate may be different from measures used by other companies.
Our measures of Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate may be different from measures used by other companies.
Manufacturing PMI readings outside the U.S were also mixed with results reported above and below 50 and readings improving in some countries during the quarter and softening in others. 22 Table of Contents Backlog Our total order backlog consists of (in millions): September 30, 2024 2023 Intelligent Devices $ 736.8 $ 1,464.1 Software & Control 652.8 897.5 Lifecycle Services 1,701.0 1,747.3 Total Company $ 3,090.6 $ 4,108.9 See Note 2 in the Consolidated Financial Statements for additional information on the nature of our products and services and revenue recognition. 23 Table of Contents Summary of Results of Operations The following table reflects our sales and operating results (in millions, except per share amounts and percentages): Year Ended September 30, 2024 2023 2022 Sales Intelligent Devices (a) $ 3,804.1 $ 4,098.2 $ 3,544.6 Software & Control (b) 2,187.4 2,886.0 2,312.9 Lifecycle Services (c) 2,272.7 2,073.8 1,902.9 Total sales (d) $ 8,264.2 $ 9,058.0 $ 7,760.4 Segment operating earnings (1) Intelligent Devices (e) $ 700.0 $ 828.2 $ 717.6 Software & Control (f) 529.7 953.2 666.7 Lifecycle Services (g) 365.6 148.4 158.3 Total segment operating earnings (2) (h) 1,595.3 1,929.8 1,542.6 Purchase accounting depreciation and amortization, and impairment (143.9) (264.4) (103.9) Corporate and other (135.8) (127.9) (104.7) Non-operating pension and postretirement benefit credit (cost) 19.8 (82.7) (4.7) Change in fair value of investments 0.1 279.3 (136.9) Restructuring charges (97.4) — — Interest expense, net (139.0) (125.6) (118.8) Income before income taxes (i) 1,099.1 1,608.5 1,073.6 Income tax provision (151.8) (330.5) (154.5) Net income 947.3 1,278.0 919.1 Net loss attributable to noncontrolling interests (5.2) (109.4) (13.1) Net income attributable to Rockwell Automation $ 952.5 $ 1,387.4 $ 932.2 Diluted EPS $ 8.28 $ 11.95 $ 7.97 Adjusted EPS (3) $ 9.71 $ 12.12 $ 9.49 Diluted weighted average outstanding shares 114.5 115.6 116.7 Pre-tax margin (i/d) 13.3 % 17.8 % 13.8 % Intelligent Devices segment operating margin (e/a) 18.4 % 20.2 % 20.2 % Software & Control segment operating margin (f/b) 24.2 % 33.0 % 28.8 % Lifecycle Services segment operating margin (g/c) 16.1 % 7.2 % 8.3 % Total segment operating margin (2) (h/d) 19.3 % 21.3 % 19.9 % (1) See Note 20 in the Consolidated Financial Statements for the definition of segment operating earnings.
Backlog Our total order backlog consists of (in millions): September 30, 2025 2024 Intelligent Devices $ 704 $ 737 Software & Control 654 653 Lifecycle Services 1,520 1,701 Total Company $ 2,878 $ 3,091 See Note 2 in the Consolidated Financial Statements for additional information on the nature of our products and services and revenue recognition. 23 Table of Contents Summary of Results of Operations The following table reflects our sales and operating results (in millions, except per share amounts and percentages): Year Ended September 30, 2025 2024 2023 Sales Intelligent Devices (a) $ 3,756 $ 3,804 $ 4,098 Software & Control (b) 2,383 2,187 2,886 Lifecycle Services (c) 2,203 2,273 2,074 Total sales (d) $ 8,342 $ 8,264 $ 9,058 Segment operating earnings (1) Intelligent Devices (e) $ 676 $ 700 $ 828 Software & Control (f) 708 530 953 Lifecycle Services (g) 319 365 148 Total segment operating earnings (2) (h) 1,703 1,595 1,929 Purchase accounting depreciation and amortization, and impairment (365) (144) (264) Corporate and other (3) (125) (114) (110) Non-operating pension and postretirement benefit (cost) credit (1) 20 (83) Net legacy asbestos and environmental charges (3) (154) (21) (18) Change in fair value of investments (3) — 279 Restructuring charges 5 (97) — Interest expense, net (143) (139) (125) Income before income taxes (i) 917 1,100 1,608 Income tax provision (168) (152) (330) Net income 749 948 1,278 Net loss attributable to noncontrolling interests (120) (5) (109) Net income attributable to Rockwell Automation $ 869 $ 953 $ 1,387 Diluted EPS $ 7.67 $ 8.28 $ 11.95 Adjusted EPS (4) $ 10.53 $ 9.85 $ 12.25 Diluted weighted average outstanding shares 113.1 114.5 115.6 Pre-tax margin (i/d) 11.0 % 13.3 % 17.8 % Intelligent Devices segment operating margin (e/a) 18.0 % 18.4 % 20.2 % Software & Control segment operating margin (f/b) 29.7 % 24.2 % 33.0 % Lifecycle Services segment operating margin (g/c) 14.5 % 16.1 % 7.1 % Total segment operating margin (2) (h/d) 20.4 % 19.3 % 21.3 % 24 Table of Contents (1) See Note 20 in the Consolidated Financial Statements for the definition of segment operating earnings.
Organic ARR growth is also used as a financial measure of performance for our annual incentive compensation. 31 Table of Contents Financial Condition The following is a summary of our cash flows from operating, investing, and financing activities, as reflected in the Consolidated Statement of Cash Flows (in millions): Year Ended September 30, 2024 2023 2022 Cash provided by (used for) Operating activities $ 863.8 $ 1,374.6 $ 823.1 Investing activities (982.5) 854.3 (7.8) Financing activities (502.8) (1,675.6) (934.2) Effect of exchange rate changes on cash 12.1 19.2 (52.6) (Decrease) increase in cash, cash equivalents, and restricted cash $ (609.4) $ 572.5 $ (171.5) The following table summarizes free cash flow, which is a non-GAAP financial measure (in millions): Year Ended September 30, 2024 2023 2022 Cash provided by operating activities $ 863.8 $ 1,374.6 $ 823.1 Capital expenditures (224.7) (160.5) (141.1) Free cash flow $ 639.1 $ 1,214.1 $ 682.0 Our definition of free cash flow takes into consideration capital investments required to maintain the operations of our businesses and execute our strategy.
(2) All periods have been recast to conform with current year presentation. 31 Table of Contents Financial Condition The following is a summary of our cash flows from operating, investing, and financing activities, as reflected in the Consolidated Statement of Cash Flows (in millions): Year Ended September 30, 2025 2024 2023 Cash provided by (used for) Operating activities $ 1,544 $ 864 $ 1,374 Investing activities (216) (982) 854 Financing activities (1,335) (503) (1,676) Effect of exchange rate changes on cash 4 12 20 (Decrease) increase in cash, cash equivalents, and restricted cash $ (3) $ (609) $ 572 The following table summarizes free cash flow, which is a non-GAAP financial measure (in millions): Year Ended September 30, 2025 2024 2023 Cash provided by operating activities $ 1,544 $ 864 $ 1,374 Capital expenditures (186) (225) (161) Free cash flow $ 1,358 $ 639 $ 1,213 Our definition of free cash flow takes into consideration capital investments required to maintain the operations of our businesses and execute our strategy.
See Note 18 in the Consolidated Financial Statements for more information on our restructuring charges. Purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation includes an accounting charge related to goodwill impairment for our Sensia joint venture in the year ended September 30, 2023.
See Note 3 in the Consolidated Financial Statements for more information on our goodwill and intangible asset impairment charges. The tax effect of the purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation includes the tax effects on the Sensia joint venture impairments and related Sensia tax asset valuation allowances.
The adjusted effective tax rate in 2024 was 15.1 percent compared to 16.4 percent in 2023. The decrease in the adjusted effective tax rate was primarily due to higher discrete tax benefits in 2024 compared to 2023.
The increase in the Adjusted Effective Tax Rate was primarily due to higher discrete tax benefits in 2024 as compared to 2025.
More information regarding our revenue recognition and returns, rebates, and incentives policies are contained in Note 1 and Note 2 in the Consolidated Financial Statements. 38 Table of Contents Acquisitions - Clearpath Intangible Assets Valuation We account for business acquisitions by allocating the purchase price to tangible and intangible assets acquired and liabilities assumed at their fair values; the excess of the purchase price over the allocated amount is recorded as goodwill.
Acquisitions - Clearpath Intangible Assets Valuation We account for business acquisitions by allocating the purchase price to tangible and intangible assets acquired and liabilities assumed at their fair values; the excess of the purchase price over the allocated amount is recorded as goodwill.
Among other uses, we can draw on our credit facility as a standby liquidity facility to repay our outstanding commercial paper as it matures. This access to funds to repay maturing commercial paper is an important factor in maintaining the short-term credit ratings set forth in the table below.
This access to funds to repay maturing commercial paper is an important factor in maintaining the short-term credit ratings set forth in the table below.
The following is a reconciliation of reported sales to organic sales by geographic region (in millions): Year Ended September 30, 2024 Year Ended September 30, 2023 Reported Sales Less: Effect of Acquisitions Effect of Changes in Currency Organic Sales Reported Sales North America $ 5,052.8 $ 81.8 $ (3.4) $ 4,974.4 $ 5,224.0 Europe, Middle East and Africa 1,504.5 9.0 21.6 1,473.9 1,870.6 Asia Pacific 1,072.8 4.8 (18.2) 1,086.2 1,358.0 Latin America 634.1 0.4 4.5 629.2 605.4 Total Company Sales $ 8,264.2 $ 96.0 $ 4.5 $ 8,163.7 $ 9,058.0 Year Ended September 30, 2023 Year Ended September 30, 2022 Reported Sales Less: Effect of Acquisitions Effect of Changes in Currency Organic Sales Reported Sales North America $ 5,224.0 $ 15.6 $ (23.9) $ 5,232.3 $ 4,722.0 Europe, Middle East and Africa 1,870.6 57.5 (26.3) 1,839.4 1,437.6 Asia Pacific 1,358.0 18.2 (80.5) 1,420.3 1,088.0 Latin America 605.4 0.1 22.8 582.5 512.8 Total Company Sales $ 9,058.0 $ 91.4 $ (107.9) $ 9,074.5 $ 7,760.4 35 Table of Contents The following is a reconciliation of reported sales to organic sales by operating segment (in millions): Year Ended September 30, 2024 Year Ended September 30, 2023 Reported Sales Less: Effect of Acquisitions Effect of Changes in Currency Organic Sales Reported Sales Intelligent Devices $ 3,804.1 $ 68.5 $ 3.7 $ 3,731.9 $ 4,098.2 Software & Control 2,187.4 — 2.2 2,185.2 2,886.0 Lifecycle Services 2,272.7 27.5 (1.4) 2,246.6 2,073.8 Total Company Sales $ 8,264.2 $ 96.0 $ 4.5 $ 8,163.7 $ 9,058.0 Year Ended September 30, 2023 Year Ended September 30, 2022 Reported Sales Less: Effect of Acquisitions Effect of Changes in Currency Organic Sales Reported Sales Intelligent Devices $ 4,098.2 $ 80.6 $ (46.4) $ 4,064.0 $ 3,544.6 Software & Control 2,886.0 — (30.7) 2,916.7 2,312.9 Lifecycle Services 2,073.8 10.8 (30.8) 2,093.8 1,902.9 Total Company Sales $ 9,058.0 $ 91.4 $ (107.9) $ 9,074.5 $ 7,760.4 36 Table of Contents Critical Accounting Estimates We believe the following accounting estimates are the most critical to the understanding of our financial statements as they could have the most significant effect on our reported results and require subjective or complex judgments by management.
The following is a reconciliation of reported sales to organic sales by geographic region (in millions): Year Ended September 30, 2025 Year Ended September 30, 2024 Reported Sales Less: Effect of Acquisitions Effect of Changes in Currency Organic Sales Reported Sales North America $ 5,270 $ 2 $ (12) $ 5,280 $ 5,053 Europe, Middle East and Africa 1,488 — 29 1,459 1,504 Asia Pacific 1,024 — (8) 1,032 1,073 Latin America 560 — (38) 598 634 Total Company Sales $ 8,342 $ 2 $ (29) $ 8,369 $ 8,264 Year Ended September 30, 2024 Year Ended September 30, 2023 Reported Sales Less: Effect of Acquisitions Effect of Changes in Currency Organic Sales Reported Sales North America $ 5,053 $ 82 $ (4) $ 4,975 $ 5,224 Europe, Middle East and Africa 1,504 9 21 1,474 1,871 Asia Pacific 1,073 5 (18) 1,086 1,358 Latin America 634 — 5 629 605 Total Company Sales $ 8,264 $ 96 $ 4 $ 8,164 $ 9,058 35 Table of Contents The following is a reconciliation of reported sales to organic sales by operating segment (in millions): Year Ended September 30, 2025 Year Ended September 30, 2024 Reported Sales Less: Effect of Acquisitions Effect of Changes in Currency Organic Sales Reported Sales Intelligent Devices $ 3,756 $ — $ (16) $ 3,772 $ 3,804 Software & Control 2,383 — (9) 2,392 2,187 Lifecycle Services 2,203 2 (4) 2,205 2,273 Total Company Sales $ 8,342 $ 2 $ (29) $ 8,369 $ 8,264 Year Ended September 30, 2024 Year Ended September 30, 2023 Reported Sales Less: Effect of Acquisitions Effect of Changes in Currency Organic Sales Reported Sales Intelligent Devices $ 3,804 $ 69 $ 3 $ 3,732 $ 4,098 Software & Control 2,187 — 2 2,185 2,886 Lifecycle Services 2,273 27 (1) 2,247 2,074 Total Company Sales $ 8,264 $ 96 $ 4 $ 8,164 $ 9,058 36 Table of Contents Critical Accounting Estimates We believe the following accounting estimates are the most critical to the understanding of our financial statements as they could have the most significant effect on our reported results and require subjective or complex judgments by management.
All regions except North America experienced reported and organic sales decreases. Segment Operating Margin Intelligent Devices segment operating earnings decreased 15 percent year over year.
All regions except Europe, Middle East, and Africa experienced reported sales decreases. All regions experienced organic sales decreases. Segment Operating Margin Lifecycle Services segment operating earnings decreased 13 percent year over year.
We offer a portfolio of all employee, managerial, and leader training that spans on-demand, virtual, and live instructor-led formats. Our programs focus on basic as well as transformational skills.
As the pace of change increases, it is important we provide re-skilling and upskilling opportunities for our technical talent, along with soft skills and leadership development for all. We offer a portfolio of all employee, managerial, and leader training that spans on-demand, virtual, and live instructor-led formats. Our programs focus on basic as well as transformational skills.
(3) Adjusted EPS is a non-GAAP earnings measure. See Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation for more information on this non-GAAP measure. 24 Table of Contents 2024 Compared to 2023 Sales Sales in fiscal 2024 decreased 9 percent compared to 2023. Organic sales decreased 10 percent. Acquisitions increased sales by 1 percentage point.
See Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliation for more information on this non-GAAP measure. 25 Table of Contents 2025 Compared to 2024 Sales Reported and organic sales in fiscal 2025 increased 1 percent compared to 2024, as currency had no material effect.
Approximately all of our 2024 global pension expense and 70 percent of our global projected benefit obligation relate to our U.S. pension plan. The discount rate used to determine our 2024 U.S. pension expense was 6.10 percent, compared to 5.65 percent for 2023. For 2025, our U.S. discount rate will decrease to 5.10 percent from 6.10 percent in 2024.
The discount rate used to determine our 2025 U.S. pension expense was 5.10 percent, compared to 6.10 percent for 2024. For 2026, our U.S. discount rate will increase to 5.35 percent from 5.10 percent in 2025.
Our estimate is based primarily on historical experience. If the time period were to change by 10 percent, the effect would be an adjustment to the accrual of approximately $20.7 million.
Our estimate is based primarily on historical experience. If the time period were to change by 10 percent, the effect would be an adjustment to the accrual of approximately $24 million. More information regarding our revenue recognition and returns, rebates, and incentives policies are contained in Note 1 and Note 2 in the Consolidated Financial Statements.
Adjusted EPS was $9.71 in fiscal 2024, down 20 percent compared to $12.12 in fiscal 2023, primarily due to lower sales and lower segment operating margin. Total segment operating margin was 19.3% compared to 21.3% in fiscal 2023.
Adjusted EPS was $10.53 in fiscal 2025, up 7 percent compared to $9.85 in fiscal 2024, primarily due to higher segment operating margin. Total segment operating margin was 20.4% in 2025 compared to 19.3% in 2024.
Manufacturing IP Index PMI Fiscal 2024 quarter ended: September 2024 99.1 47.2 June 2024 99.5 48.5 March 2024 99.5 50.3 December 2023 99.2 47.1 Fiscal 2023 quarter ended: September 2023 99.6 49.0 June 2023 99.2 46.0 March 2023 99.2 46.3 December 2022 98.1 48.4 Fiscal 2022 quarter ended: September 2022 100.6 50.9 June 2022 100.0 53.0 March 2022 100.6 57.1 December 2021 100.1 58.8 Inflation in the U.S. has also had an impact on our input costs and pricing.
Manufacturing IP Index PMI Fiscal 2025 quarter ended: September 2025 (1) 49.1 June 2025 100.1 49.0 March 2025 100.2 49.0 December 2024 98.9 49.2 Fiscal 2024 quarter ended: September 2024 99.0 47.5 June 2024 99.4 48.5 March 2024 99.5 50.3 December 2023 99.2 47.1 Fiscal 2023 quarter ended: September 2023 99.6 49.0 June 2023 99.2 46.0 March 2023 99.2 46.3 December 2022 98.1 48.4 (1) The September 2025 Manufacturing IP Index has not been published as of November 12, 2025.
Significant long-term uses of cash include the following (in millions): Payments by Period Total 2025 2026 2027 2028 2029 Thereafter Long-term debt and interest (1) $ 5,119.4 $ 407.8 $ 102.3 $ 102.3 $ 343.9 $ 503.1 $ 3,660.0 Minimum lease payments (Note 19) 518.6 111.0 97.2 80.6 59.7 41.3 128.8 Postretirement benefits (2) 44.6 6.7 6.3 5.7 5.2 4.7 16.0 Pension funding contribution (3) 19.0 19.0 — — — — — Transition tax (4) 175.3 77.9 97.4 — — — — Total $ 5,876.9 $ 622.4 $ 303.2 $ 188.6 $ 408.8 $ 549.1 $ 3,804.8 (1) The amounts for Long-term debt assume that the respective debt instruments will be outstanding until their scheduled maturity dates and include interest but exclude unamortized discount.
Significant long-term uses of cash include the following (in millions): Payments by Period Total 2026 2027 2028 2029 2030 Thereafter Long-term debt and interest (1) 4,712 $ 102 $ 102 $ 344 $ 503 $ 71 $ 3,590 Minimum lease payments (Note 19) 479 112 96 76 53 40 102 Postretirement benefits (2) 41 6 6 5 5 4 15 Pension funding contribution (3) 23 23 — — — — — Net legacy asbestos liabilities (4) 151 12 15 13 12 10 89 Transition tax (5) 97 97 — — — — — Total $ 5,503 $ 352 $ 219 $ 438 $ 573 $ 125 $ 3,796 (1) The amounts for Long-term debt assume that the respective debt instruments will be outstanding until their scheduled maturity dates and include interest but exclude unamortized discount.
Our foreign currency forward exchange contracts are usually denominated in currencies of major industrial countries. We diversify our foreign currency forward exchange contracts among counterparties to minimize exposure to any one of these entities.
Our foreign currency forward exchange contracts are denominated in currencies of major industrial countries.
In 2024, we updated the definition of our non-GAAP earnings measures to exclude significant restructuring charges aligned with enterprise-wide strategic initiatives. In the year ended September 30, 2024, we recognized these restructuring charges in conjunction with an enterprise-wide comprehensive program to optimize cost structure and expand margins.
We recognized restructuring charges in conjunction with an enterprise-wide comprehensive program to optimize cost structure and expand margins in the year ended September 30, 2024. See Note 18 in the Consolidated Financial Statements for more information on our restructuring charges.
See Note 14 in the Consolidated Financial Statements for more information on our net periodic pension and postretirement benefit cost. We believe that Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate provide useful information to our investors about our operating performance and allow management and investors to compare our operating performance period over period.
We believe that Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate provide useful information to our investors about our operating performance and allow management and investors to compare our operating performance period over period. Adjusted EPS is also used as a financial measure of performance for our annual incentive compensation.
Diluted EPS and Adjusted EPS Fiscal 2024 Net income attributable to Rockwell Automation was $952.5 million or $8.28 per share, compared to $1,387.4 million or $11.95 per share in fiscal 2023. The decreases in Net income attributable to Rockwell Automation and diluted EPS were primarily due to lower sales and lower pre-tax margin.
The decreases in Net income attributable to Rockwell Automation and diluted EPS were primarily due to lower pre-tax margin and a higher effective tax rate. Pre-tax margin was 11.0% in 2025 compared to 13.3% in 2024.
In April 2024, $18.8 million of new interest-bearing loans from SLB to Sensia were entered into and were due August 2024, extended to April 2025. 32 Table of Contents We repurchased approximately 2.2 million shares of our common stock under our share repurchase program in 2024 at a total cost of $594.2 million and an average cost of $272.97 per share.
The loans outstanding as of September 30, 2024, were extended to October 15, 2026, and are included in Long-term debt as of September 30, 2025. 32 Table of Contents We repurchased approximately 1.5 million shares of our common stock under our share repurchase program in 2025 at a total cost of $419 million and an average cost of $279.43 per share.
Segment operating margin increased to 16.1 percent in 2024 from 7.2 percent in 2023, primarily due to lower incentive compensation, higher sales volume, strong project execution, higher margins in Sensia, and ongoing savings from the prior year structural actions. 27 Table of Contents 2023 Compared to 2022 For a discussion of the Company’s fiscal 2023 results compared to fiscal 2022, see the Company’s Annual Report on Form 10-K for the year ended September 30, 2023, filed on November 8, 2023.
Segment operating margin decreased to 14.5 percent in 2025 from 16.1 percent in 2024, primarily due to higher compensation, partially offset by strong project execution and productivity. 28 Table of Contents 2024 Compared to 2023 For a discussion of the Company’s fiscal 2024 results compared to fiscal 2023, see Item 7.
The year-over-year decreases in cash provided by operating activities and free cash flow were primarily due to lower pre-tax income, higher incentive compensation payments in 2024 related to fiscal 2023 performance, and higher tax payments, partially offset by decreases in working capital. Free cash flow for the year ended September 30, 2024, also includes $64.2 million of higher capital expenditures.
The year-over-year increases in cash provided by operating activities and free cash flow were primarily due to cost reduction and other margin expansion initiatives, no payout of incentive compensation in the first quarter of fiscal 2025 related to fiscal 2024 performance, and lower tax payments, partially offset by a voluntary pre-tax contribution of $70 million to the company's U.S. pension plan.
See Supplemental Sales Information for information on these non-GAAP measures. Corporate and Other Corporate and other expenses were $135.8 million in fiscal 2024 compared to $127.9 million in fiscal 2023. Restructuring Charges Restructuring charges were $97.4 million in fiscal 2024, which relate to actions in conjunction with an enterprise-wide comprehensive program to optimize cost structure and expand margins.
Restructuring Charges During 2025, we reversed $5 million of restructuring accruals primarily due to attrition without payment of severance. Restructuring charges were $97 million in fiscal 2024, which relate to actions in conjunction with an enterprise-wide comprehensive program to optimize cost structure and expand margins. See Note 18 in the Consolidated Financial Statements for more information on our restructuring charges.
More information regarding goodwill impairment testing is contained in Note 1 and Note 3 in the Consolidated Financial Statements. 37 Table of Contents Retirement Benefits - Pension Pension costs and obligations are actuarially determined and are influenced by assumptions used to estimate these amounts, including the discount rate.
Retirement Benefits - Pension Pension costs and obligations are actuarially determined and are influenced by assumptions used to estimate these amounts, including the discount rate. Changes in any of the assumptions and the amortization of differences between the assumptions and actual experience will affect the amount of pension expense in future periods.
It measures several engagement indicators and drivers and provides an overall employee engagement index (EEI) with external benchmark comparison. The latest survey, conducted in February 2024, showed an EEI of 76, which was eight points higher than the industry norm of 68 for this index.
It measures several employee experience indicators and drivers and provides an overall employee engagement index (EEI) with external benchmark comparison. The latest survey, conducted in March 2025, showed a resilient EEI of 70 and a global inclusion index score of 74. Additionally, our intent to stay index was 71. • We invest in growth and development of our employees.
The tax effect of the purchase accounting depreciation and amortization, and impairment attributable to Rockwell Automation includes the tax effects on the Sensia joint venture goodwill impairment and related Sensia tax asset valuation allowances. Non-operating pension and postretirement benefit (credit) cost is defined as all components of our net periodic pension and postretirement benefit cost except for service cost.
Non-operating pension and postretirement benefit cost (credit) is defined as all components of our net periodic pension and postretirement benefit cost except for service cost. See Note 14 in the Consolidated Financial Statements for more information on our net periodic pension and postretirement benefit cost.
The decrease in total segment operating margin was primarily due to lower sales volume and unfavorable mix, partially offset by lower incentive compensation and the benefits from cost reduction actions. 26 Table of Contents Intelligent Devices Sales Intelligent Devices sales decreased 7 percent in 2024 compared to 2023. Organic sales decreased 9 percent. Acquisitions increased sales by 2 percentage points.
The increase in total segment operating margin was primarily due to productivity, higher sales driven by price realization, and favorable mix, partially offset by higher compensation and unfavorable net currency. Intelligent Devices Sales Intelligent Devices reported and organic sales decreased 1 percent in 2025 compared to 2024. All regions experienced reported sales decreases.
The Company has concluded that earnings of a limited number of its non-U.S. subsidiaries are indefinitely reinvested. 33 Table of Contents In June 2022, we replaced our former $1.25 billion unsecured revolving credit facility with a new five-year $1.5 billion unsecured revolving credit facility, expiring in June 2027.
The Company has concluded that earnings of a limited number of its non-U.S. subsidiaries are indefinitely reinvested. 33 Table of Contents In May 2025, we entered into a $500 million senior unsecured 364-day term loan credit agreement and were advanced the full loan amount. In August and September 2025, we repaid the loan amount.
We used the Producer Price Index (PPI), published by the Bureau of Labor Statistics, which measures the average change over time in the selling prices received by domestic producers for their output. After observing double-digit PPI growth through most of 2022, we have now observed PPI growth in the low single digits for the last four quarters.
September 2025 PPI has not been published as of November 12, 2025. Through August 2025, PPI growth did not significantly change from the third quarter of 2025. After observing double-digit PPI growth through most of 2022, we have now observed PPI growth in the low single digits for the last nine quarters.
The decrease in the effective tax rate was primarily due to a valuation allowance established in 2023 on certain deferred tax assets of our Sensia joint venture and tax effects of the related goodwill impairment totaling $33.1 million, and higher discrete tax benefits in 2024 compared to 2023.
The increase in the effective tax rate is related to valuation allowances and tax effects from the non-cash impairment charge for the Sensia joint venture and higher discrete tax benefits in 2024 as compared to 2025. The Adjusted Effective Tax Rate in 2025 was 17.1 percent compared to 15.3 percent in 2024.
This credit facility uses the secured overnight funding rate (SOFR) as the primary basis for determining interest payments. We can increase the aggregate amount of this credit facility by up to $750.0 million, subject to the consent of the banks in the credit facility.
We can increase the aggregate amount of our credit facility by up to $750 million, subject to the consent of the banks in the credit facility. We did not borrow against the credit facility during the periods ended September 30, 2025, or September 30, 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

13 edited+7 added−2 removed3 unchanged
Biggest changeWe have issued, and anticipate continuing to issue, short-term commercial paper obligations as needed. Changes in market interest rates on commercial paper borrowings affect our results of operations. A hypothetical 50 basis point increase in average market interest rates related to our short-term debt would not be significant to our results of operations or financial condition.
Biggest changeA hypothetical 50 basis point increase in average market interest rates related to our short-term debt would not be significant to our results of operations or financial condition. We had outstanding fixed rate long-term and current portion of long-term debt obligations with a carrying value of $2,616 million at September 30, 2025, and $2,868 million at September 30, 2024.
For derivatives that are hedges, depending on the nature of the hedge, changes in fair value are either offset by changes in the fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in Other comprehensive income (loss) until the hedged item is recognized in earnings.
For derivatives that are hedges, depending on the nature of the hedge, changes in fair value are either offset by changes in the fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in Other comprehensive income until the hedged item is recognized in earnings.
We recognize the ineffective portion of a derivative’s change in fair value in earnings immediately. There was no impact on earnings due to ineffective hedges in 2024, 2023, or 2022.
We recognize the ineffective portion of a derivative’s change in fair value in earnings immediately. There was no impact on earnings due to ineffective hedges in 2025, 2024, or 2023.
In December 2022, Sensia entered into an unsecured $75.0 million line of credit. As of September 30, 2024 and 2023, included in Short-term debt was $70.0 million borrowed against the line of credit with an interest rate of 6.17 percent and 6.29 percent, respectively.
In December 2022, Sensia entered into an unsecured $75 million line of credit. As of September 30, 2025 and 2024, included in Short-term debt was $70 million borrowed against the line of credit with an interest rate of 5.18 percent and 6.17 percent, respectively.
We are exposed to interest rate risk on certain of these debt obligations. Our Short-term debt as of September 30, 2024, includes commercial paper borrowings of $657.0 million with a weighted average interest rate of 5.14 percent and a weighted average maturity period of 24 days. We had no commercial paper borrowings as of September 30, 2023.
We are exposed to interest rate risk on certain of these debt obligations. Our Short-term debt as of September 30, 2025 and 2024, includes commercial paper borrowings of $522 million and $657 million, with a weighted average interest rate of 4.24 percent and 5.14 percent, and a weighted average maturity period of 16 days and 24 days, respectively.
The potential increase in fair value on such fixed-rate debt obligations from a hypothetical 50 basis point decrease in market interest rates would not be significant to our results of operations or financial condition.
The fair value of this debt was approximately $2,352 million at September 30, 2025, and $2,639 million at September 30, 2024. The potential increase in fair value on such fixed-rate debt obligations from a hypothetical 50 basis point decrease in market interest rates would not be significant to our results of operations or financial condition.
Also included in Short-term debt as of September 30, 2024 and September 30, 2023 was $23.5 million of interest-bearing loans from SLB to Sensia, due April 2025. In April 2024, $18.8 million of new interest-bearing loans from SLB to Sensia were entered into and were due August 2024, extended to April 2025.
Also included in Short-term debt as of September 30, 2025, and September 30, 2024, was $14 million and $42 million, respectively, of interest-bearing loans from Schlumberger (SLB) to Sensia. In April 2025, $14 million of new interest-bearing loans from SLB to Sensia were entered into, and in October 2025, these loans were extended to January 15, 2026.
These risks include the translation of local currency balances of foreign subsidiaries, transaction gains and losses associated with intercompany loans with foreign subsidiaries, and transactions denominated in currencies other than a location’s functional currency. Our objective is to minimize our exposure to these risks through a combination of normal operating activities and the use of foreign currency forward exchange contracts.
These risks include transactions denominated in currencies other than a location’s functional currency, transaction gains and losses associated with intercompany loans with foreign subsidiaries, and translation of local currency balances of foreign subsidiaries.
The use of foreign currency forward exchange contracts allows us to manage transactional exposure to exchange rate fluctuations as the gains or losses incurred on these contracts will offset, in whole or in part, losses or gains on the underlying foreign currency exposure. Derivatives that are not designated as hedges for accounting purposes are adjusted to fair value through earnings.
The use of foreign currency forward exchange contracts allows us to manage transactional exposure to exchange rate fluctuations as the gains or losses incurred on these contracts will offset, in whole or in part, losses or gains on the underlying foreign currency exposure. Foreign currency forward exchange contracts are denominated in currencies of major industrial countries in which we operate.
For such assets and liabilities without offsetting foreign currency forward exchange contracts, a 10 percent adverse change in the underlying foreign currency exchange rates would reduce our pre-tax income by approximately $61.6 million. We record all derivatives on the balance sheet at fair value regardless of the purpose for holding them.
For assets and liabilities denominated in currencies other than a location’s functional currency without offsetting foreign currency forward exchange contracts, a 10 percent adverse change in the underlying foreign currency exchange rates would reduce our pre-tax income by approximately $35 million.
A hypothetical 10 percent adverse change in underlying foreign currency exchange rates associated with the hedged exposures and related contracts would not be significant to our financial condition or results of operations. Interest Rate Risk In addition to existing cash balances and cash provided by normal operating activities, we use a combination of short-term and long-term debt to finance operations.
A hypothetical 10 percent adverse change in underlying foreign currency exchange rates associated with the hedged exposures and related contracts would not be significant to our financial condition or results of operations. The strengthening of the U.S. dollar against foreign currencies has an unfavorable impact on our sales and results of operations.
We do not enter into derivative financial instruments for speculative purposes. The strengthening of the U.S. dollar against foreign currencies has an unfavorable impact on our sales and results of operations. While future changes in foreign currency exchange rates are difficult to predict, our sales and profitability may be adversely affected if the U.S. dollar strengthens relative to current levels.
While future changes in foreign currency exchange rates are difficult to predict, our sales and profitability may be adversely affected if the U.S. dollar strengthens relative to current levels. Interest Rate Risk In addition to existing cash balances and cash provided by normal operating activities, we use a combination of short-term and long-term debt to finance operations.
Contracts are usually denominated in currencies of major industrial countries. The fair value of our foreign currency forward exchange contracts is an asset of $17.1 million and a liability of $33.5 million at September 30, 2024. We enter into these contracts with major financial institutions that we believe to be creditworthy.
The fair value of our foreign currency forward exchange contracts is an asset of $8 million and a liability of $23 million at September 30, 2025.
Removed
Certain of our locations have assets and liabilities denominated in currencies other than their functional currencies. We enter into foreign currency forward exchange contracts to offset the transaction gains or losses associated with some of these assets and liabilities.
Added
Our objective is to minimize our exposure to these risks through a combination of normal operating activities and the use of financial instruments including, but not limited to, foreign currency forward exchange contracts and cross-currency swaps. We enter into these contracts with major financial institutions that we believe to be creditworthy.
Removed
We had outstanding fixed rate long-term and current portion of long-term debt obligations with a carrying value of $2,868.7 million at September 30, 2024, and $2,871.5 million at September 30, 2023. The fair value of this debt was approximately $2,638.5 million at September 30, 2024, and $2,451.2 million at September 30, 2023.
Added
We do not enter into derivative financial instruments for speculative purposes. We record all derivatives on the balance sheet at fair value regardless of the purpose for holding them.
Added
During 2025, we entered into cross-currency swaps in order to manage foreign currency translation risk of local currency balances of foreign subsidiaries. We designated the cross-currency swaps as a partial hedge of our net investment in certain subsidiaries that are not U.S. dollar functional.
Added
As a result, changes in the fair value of the cross-currency swaps are recorded in accumulated currency translation adjustments within equity in the Consolidated Balance Sheet. A hypothetical 10 percent adverse change in the cross-currency swaps’ underlying spot rates would result in an additional cash outflow at maturity of $80 million.
Added
The fair value of these instruments prior to maturity also includes an interest rate component; however, we currently have no plans to settle these swaps before their maturity and, therefore, fluctuations in market interest rates would not have an effect on our results of operations.
Added
Derivatives that are not designated as hedges for accounting purposes are adjusted to fair value through earnings.
Added
The loans outstanding as of September 30, 2024, were extended to October 15, 2026, and are included in Long-term debt as of September 30, 2025. We have issued, and anticipate continuing to issue, short-term commercial paper obligations as needed. Changes in market interest rates on commercial paper borrowings affect our results of operations.

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