ROK · 10-K · 2026A · Full report

Supply Chain Tariff Impact

ROCKWELL AUTOMATION, INC · 2026-11-12 · Importance 52 · Surprise 60 · In source text

Rockwell manages tariffs through pricing, alternative material sources, and redundant manufacturing locations, and expects these actions to mostly offset tariff-related costs, although it may not fully recover costs in the dynamic tariff environment. In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unauthorized; the company filed refund claims for the majority of IEEPA tariffs paid, which CBP approved and paid in the fourth quarter of fiscal 2026. The company reported $103 million of IEEPA tariff refunds received and an $85 million reduction of sales for its customer refund program; the program, announced in September 2026, is expected to be completed in 2027.

Key facts

• In September 2026, Rockwell Automation approved and communicated a refund program for customers who paid price increases on products affected by IEEPA tariffs; the program will be completed in 2027. source
• In February 2026, the U.S. Supreme Court ruled that tariffs imposed under IEEPA were unauthorized. source
• In fiscal 2026’s fourth quarter, Rockwell Automation filed refund claims for the majority of its IEEPA tariffs paid; the claims were subsequently approved and paid by U.S. Customs and Border Protection. source
• Rockwell Automation recognized $108 million of tariff refunds and related interest income in the fiscal 2026 cash-flow increase. source
• Rockwell Automation expects its tariff-resiliency actions to mostly offset tariff-related costs, but warns the dynamic tariff environment could prevent full recovery of those costs. source
• Rockwell Automation’s fiscal 2026 results included an $85 million sales reduction for the customer tariff refund program, a $103 million cost-of-sales reduction for IEEPA tariff refunds received, and $8 million of related non-recurring charges. source
• The 2026 reconciliation of reported sales to organic sales includes estimated customer tariff refunds of $85 million as an other unallocated item. source
• Rockwell Automation manages tariff impacts through pricing and supply-chain actions, including alternative material sources and redundant manufacturing locations. source

Impact estimates