Company: ROK
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001024478-25-000010
Chunk: 27

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 were $38 million in the three months ended December 31, 2024, compared to $40 million in the three months ended December 31, 2023.

Income before Income Taxes

Income before income taxes was $213 million in the three months ended December 31, 2024, compared to $260 million in the three months ended December 31, 2023. The decrease in the three months ended December 31, 2024, was primarily due to lower segment operating earnings.

Total segment operating earnings decreased 9.8 percent year over year in the three months ended December 31, 2024, primarily due to lower sales volume partially offset by the benefits from cost reduction and margin expansion actions.

Income Taxes

The effective tax rate for the three months ended December 31, 2024, was 16.4 percent, compared to 18.1 percent for the three months ended December 31, 2023. Our adjusted effective tax rate for the three months ended December 31, 2024, was 17.5 percent, compared to 17.9 percent for the three months ended December 31, 2023. The decrease in both the effective tax rate and the adjusted effective tax rate was primarily due to favorable geographic mix of pre-tax income and higher discrete benefits recognized in the current year.

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%. Discussions related to the formal implementation and enactment of this agreement, including within the tax law of each member jurisdiction including the United States, are ongoing. Certain countries have enacted the Pillar Two framework, including Singapore, which is expected to result in the greatest impact to the Company. 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.

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Diluted EPS and Adjusted EPS

2025 first quarter Net income attributable to Rockwell Automation was $184 million or $1.61 per share, compared to $215 million or $1.86 per share in the first quarter of 2024. The decreases in