ROK · 10-Q · 2026Q2 · Full report
Free Cash Flow and Liquidity
ROCKWELL AUTOMATION, INC · 2026-08-04 · Importance 54 · Surprise 40 · In source text
Cash provided by operating activities increased 17% to $1,278 million in the nine months ended June 30, 2026, from $1,090 million in the prior-year period. Free cash flow increased 15% to $1,099 million from $953 million, primarily because of higher pre-tax income, partly offset by incentive-compensation payments and higher working capital. Short-term commercial-paper borrowings were $684 million at June 30, 2026, at a weighted-average interest rate of 3.89% and 25-day maturity, compared with $522 million at September 30, 2025. Rockwell had a new $1.5 billion unsecured revolving credit facility expiring in November 2030, had not borrowed against it, and maintained stable investment-grade ratings from Standard & Poor’s, Moody’s, and Fitch.
Key facts
- In November 2025, the Company replaced its former $1.5 billion unsecured revolving credit facility with a new five-year $1.5 billion unsecured revolving credit facility expiring in November 2030, with the ability to increase by up to $750 million subject to bank consent. source
- Free cash flow for the nine months ended June 30, 2026: $1,099 million, compared to $953 million for the nine months ended June 30, 2025. source
- As of June 30, 2026, the Company expects that approximately $1 million of pre-tax net unrealized gains on cash flow hedges will be reclassified into earnings during the next 12 months. source
- Cash provided by operating activities for the nine months ended June 30, 2026: $1,278 million. source
- Short-term debt as of June 30, 2026 included commercial paper borrowings of $684 million with a weighted average interest rate of 3.89% and a weighted average maturity period of 25 days. source
- Short-term debt as of September 30, 2025 included commercial paper borrowings of $522 million with a weighted average interest rate of 4.24% and a weighted average maturity period of 16 days. source
- At June 30, 2026, separate short-term unsecured credit facilities of approximately $274 million were available to non-U.S. subsidiaries, of which approximately $32 million was committed under letters of credit. source
- Net gains and losses related to derivative forward exchange contracts reclassified from Accumulated other comprehensive loss into earnings: $2 million and $6 million for the three and nine months ended June 30, 2026, respectively. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | -1.5% | Short-term debt as of June 30, 2026 included commercial paper borrowings of $684 million with a weighted average interest rate of 3.89%… |
| cash | positive | realized | +1.3% | Free cash flow for the nine months ended June 30, 2026: $1,099 million, compared to $953 million for the nine months ended June 30, 2025. |
| liability | negative | committed | -0.3% | At June 30, 2026, separate short-term unsecured credit facilities of approximately $274 million were available to non-U.S. subsidiaries,… |
| net_income | positive | probable | +0.0% | As of June 30, 2026, the Company expects that approximately $1 million of pre-tax net unrealized gains on cash flow hedges will be… |
| cash | unclear | realized | — | Cash provided by operating activities for the nine months ended June 30, 2026: $1,278 million. |