Company: ROK
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001024478-25-000035
Chunk: 105

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 105
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 to $28 million and $68 million in the three and six months ended March 31, 2024, respectively.

Income before Income Taxes

Income before income taxes was $299 million and $512 million in the three and six months ended March 31, 2025, respectively, compared to $310 million and $570 million in the three and six months ended March 31, 2024, respectively. The decrease in the six months ended March 31, 2025, was primarily due to lower segment operating earnings.

Total segment operating earnings increased 1 percent year over year in the three months ended March 31, 2025, primarily due to the benefits from cost reduction and margin expansion actions and the positive impact of price realization exceeding input costs, partially offset by higher compensation and lower sales volume. Total segment operating earnings decreased 4 percent year over year in the six months ended March 31, 2025, primarily due to lower sales volume and higher compensation, partially offset by the benefits from cost reduction and margin expansion actions and the positive impact of price realization exceeding input costs.

30

Income Taxes

The effective tax rate for the three months ended March 31, 2025, was 17.1 percent, compared to 14.5 percent for the three months ended March 31, 2024. Our adjusted effective tax rate for the three months ended March 31, 2025, was 17.7 percent, compared to 14.8 percent for the three months ended March 31, 2024. The increase in both the effective tax rate and the adjusted effective tax rate was primarily due to lower discrete benefits in the current year.

The effective tax rate for the six months ended March 31, 2025, was 16.8 percent, compared to 16.1 percent for the six months ended March 31, 2024. Our adjusted effective tax rate for the six months ended March 31, 2025, was 17.6 percent, compared to 16.2 percent for the six months ended March 31, 2024. The increase in both the effective tax rate and the adjusted effective tax rate was primarily due to lower discrete benefits 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