As a listener at the Rockwell Automation ($ROK (-0,04 %) ) conference, I gained exciting insights into the company's strategy. CEO Blake Moret presented Rockwell as a pure player in industrial automation and digital transformation - with a clear focus on the US manufacturing industry. The company is broadly positioned: Software & Control, Intelligent Devices and Lifecycle Services form the foundation. Rockwell is particularly strong in process industries such as energy and chemicals, which account for 40% of sales.

Growth is stable, but not explosive. The market is growing by 3-5 % annually, plus an increase of 1-2 % through expansion and recurring revenues. Acquisitions are expected to contribute around 1 % in the long term. Rockwell is the market leader in the USA - but European competitors are putting the company under increasing pressure.

Improving margins was a hot topic. Rockwell is focusing on cost reductions: SG&A reductions, optimized material procurement and more efficient production are already showing initial success. Pricing is also becoming more aggressive - with targeted increases in high-margin areas.

Cyclical fluctuations remain a challenge. While some sectors such as food, beverages and life sciences are recovering, the oil and gas market remains stable but difficult to compare. Interesting: E-commerce and warehouse automation are strong growth drivers, which puts Rockwell in a good long-term position.

The transformation towards recurring revenues is in full swing. Rockwell is focusing on growth in the software segment in particular. The acquisition of Plex for maintenance management is paying off, and the company is driving innovation with cloud-based solutions such as FactoryTalk Design Studio and Fiix. The development towards virtual PLCs is exciting, but classic hardware will remain the standard for the foreseeable future.

In the service sector, Rockwell is targeting high-margin segments such as digital twins and cybersecurity. The company intends to focus less on standard services and instead create differentiated, highly profitable offerings.

Rockwell remains in a solid financial position. The future cash strategy is: fewer acquisitions, but more share buybacks - at least 300 million dollars are planned, with potential for more. At the same time, the debt burden will be reduced to ensure future flexibility.

The valuation? Rather neutral. Despite stable market share and growing recurring revenues, many investors see core growth as the biggest challenge. The company is solid, but not necessarily a no-brainer for explosive share price gains. Rockwell remains a stock for long-term investors who believe in digital transformation and automation.

I hope you enjoyed the summary.

• $ROK (-0,04 %)
  Revenue: USD 1.88 billion compared to analyst estimates of USD 1.89 billion (a year-on-year decline of 8.3% and a miss of 0.6%).

• Adjusted EPS (earnings per share): USD 1.83 compared to analyst estimates of USD 1.58 (a 16% outperformance).

• Adjusted EBITDA: $286 million compared to analyst estimates of $311.3 million (a margin of 15.2% and a miss of 8.1%).

• Management reaffirmed its guidance for the full year: Adjusted EPS of $9.20 (center).

• Operating margin: 17.1%, up from 13.7% in the same quarter last year.

• Free cash flow: $293 million, up from -$35.3 million in the same quarter last year.

• Organic sales: Decrease of 7.6% compared to the previous year (growth was 1% in the same quarter of the previous year)

Forecasts for the financial year 2025:

• The forecast sales growth range was reduced to (5.5)% to 0.5 which is based on a currency impact (FX) of around (1,5) % on turnover.

• The forecast range for organic sales growth was confirmed and stands at (4)% to 2.

• The forecast for diluted EPS (earnings per share) was confirmed and is in the range of 7.65 to 8.85 US dollars.

• The forecast for adjusted EPS was confirmed and is in the range of 8.60 to 9.80 US dollars.

A new acquisition in my portfolio

Rockwell Automat.

a fine company specializing in industrial automation and investing heavily in artificial intelligence.

I'm taking advantage of a downturn to get in.

Hello dear community,

In view of the fact that there are now a lot of newcomers on the platform, I've created a graphic, typical of social media, to give you an overview of stocks that not everyone may have on their radar. It goes without saying that you can't know your way around every sector. But we have come together here in the community for a solid exchange.

But since we're here on Getquin and not on Instagram, here's some input for the inquisitive.

What do the companies do anyway?

Service providers:

On the service provider side, there are some rather atypical companies for the sector.

Here I have Friedrich Vorwerk $VH2 (-0,42 %) Vinci $DG (+1,4 %) , Ferrovial $FER , Bilfinger $GBF (-2,23 %) and Jacobs Solutions $J (+0,88 %) are listed here.

Their main focus is the background work on the properties themselves. They support the companies in planning, realization, construction and maintenance. They work decentrally in regional working groups to cover the breadth of the industry. They offer almost every service for an industrial company.

The established elite

If you want to invest in the hydrogen sector, all roads lead to the giants Linde $LIN (+1,5 %) Air Products $APD (+0,84 %) and Air Liquide $AI (+1,27 %) . Their market power in the field of industrial gases and in today's market environment of commercial hydrogen production seems irrefutable. Their know-how in the gaseous material production segment has been tried and tested for decades and the processes are almost perfectly optimized. Each company also has its own engineering divisions, making them perfectly positioned for the future in electrolyzer development.

The established newcomers

With plenty of money in their pockets, the oil companies Shell $SHEL (-1,07 %) Total $TTE (-0,39 %) and BP $BP. (-1,65 %) are also entering the segment. Oil is finite, but the business should not be. These companies are also experienced in dealing with hydrogen. Hydrogen is an essential component in the refinery process. In order to become less dependent on the big 3, new market areas are also being explored here. Will they be able to prove themselves?

Speculative titles

Never anything but expenses. Years of hype and yet a harsh reality hit the small fish in the shark tank surrounding the segment. Nel $NEL (-3,7 %) Plug Power $PLUG (-8,43 %) and Ballard $BLDP (-4,33 %) are long-suffering. They have never been able to deliver even remotely profitable figures. On the contrary, things seem to be getting worse quarter after quarter. Only turnover is increasing. Can that ever be good?

Plant engineering and equipment

Of course, in a globalized world, you no longer take care of the entire value chain from A-Z. Every company specializes in its own segment. The long-term beneficiaries of the industry are therefore the equipment suppliers, because they have to develop the technical foundations for every innovation in order to survive in the vastness of globalization.

The plant manufacturers

They manufacture the physical parts for the process plants.

Examples of this are Voestalpine $VOE (+0,41 %) , Atlas Copco $ATCO B or Sulzer $SUNE .

The suppliers

The transportation of substances is also part of this. Material transport in industry, but also at home, for example in water pipes, is ensured by pumps (for liquids) or compressors (for gases). Established brands here are KSB $KSB (-1,48 %) , Xylem $XYL (+0,93 %) , Gorrman-Rupp $GRC (-0,29 %) but also as a complete supplier Chart Industries $GTLS (-2,45 %) or SKF $SKF B (+0,23 %) or for specialized tools Stanley B&D $SWK (-0,78 %) .

Process control is also indispensable. Brands such as Siemens $SIE (-0,58 %) ABB $ABBN (+1,39 %) or Rockwell $ROK (-0,04 %) and Parker $PH (-0,66 %) have established themselves here. They not only supply the electronic equipment for the process systems. They also offer their software services as safety services so that safety in process control can always be guaranteed.

I hope I have given you a little insight into the industry and would be delighted to receive constructive feedback.

#wasserstoff
#h2
#hydrogen

top up -> savings plan

As promised

Short info about $EMR (-1,23 %)

• active in industrial automation
• Competitor among others $ROK (-0,04 %)
  
• ETFs $RBOT (-0,1 %)

Comparison

EMR: ROK:

KGV: 18.46. 31.95

Payout ratio: 43.75%. 49.19%

Leverage ratio: 0.7 1.8

5yrs ROIC: 15.22% 14.93%.

5yrs ROE: 24.31%. 37.99%

Both listed on the stock exchange since 1984