MILWAUKEE — Rockwell Automation, Inc. today reported fiscal 2025 fourth quarter and full year results and introduced fiscal 2026 guidance.
“We entered fiscal 2025 with a clear view of the challenges ahead, and we delivered. Rockwell finished the year with growth in sales and adjusted earnings, strong cash flow, and continued margin expansion. We also took proactive steps to streamline financial reporting and simplify our operating model. With our differentiated portfolio and relentless focus on execution, we are well positioned for continued profitable growth in FY26 and beyond,” said Blake Moret, Chairman and CEO.
Accounting Adjustments, One-time Charges, and Updated Definitions of Adjusted Income and Adjusted EPS
In the fourth quarter of 2025, the company took steps to streamline financial reporting and simplify its operating model, including the following:
- The fourth quarter and full year results include pre-tax charges for a change in accounting method for legacy asbestos defense costs of $91 million and indemnity accrual increase of $45 million ($136 million, $0.91 per share).
- Following a strategic review, the company and SLB, its joint venture partner, have agreed to pursue an orderly dissolution of Sensia. Rockwell will assume ownership of the process automation business that it originally contributed to Sensia. The transaction is anticipated to close in the first half of fiscal 2026, subject to customary closing conditions. Fourth quarter results include a non-cash impairment charge of $110 million ($0.97 per share), net of tax effects and non-controlling interest adjustment, related to the dissolution.
- Effective in the fourth quarter of fiscal 2025, Rockwell is updating its definition of Adjusted Income and Adjusted EPS to exclude legacy asbestos and environmental charges, which are unrelated to current operations. All periods have been recast for consistency (see page 29).
- Engineering and development costs, previously included in cost of sales, are now being reported as a separate line item in the statement of operations. All periods presented have been recast to conform to the current presentation (see page 28).
Fiscal Q4 2025 Financial Results
Fiscal 2025 fourth quarter sales were $2,316 million, up 14% compared to $2,035 million in the fourth quarter of fiscal 2024. Organic sales increased 13% and currency translation increased sales by 1%.
Income before income taxes was $63 million in the fourth quarter of fiscal 2025 compared to $275 million in the same period last year. Pre-tax margin was 2.7% in the fourth quarter of fiscal 2025 compared to 13.5% in the same period last year. The decrease was primarily driven by the non-cash impairment charge related to the Sensia joint venture and an accounting change and accrual increase for legacy asbestos liabilities, partially offset by higher sales volume and prior year restructuring charges. Total segment operating earnings were $520 million in the fourth quarter of fiscal 2025, up 27% compared to $409 million in the same period of fiscal 2024. Total segment operating margin was 22.5% in the fourth quarter compared to 20.1% a year ago. The increase in segment operating margin was driven by higher sales volume, price realization, and favorable mix, partially offset by higher compensation and a prior year earnout accrual adjustment.
Fiscal 2025 fourth quarter net income attributable to Rockwell Automation was $138 million or $1.23 per share, compared to $240 million or $2.09 per share in the fourth quarter of fiscal 2024. The decreases in net income attributable to Rockwell Automation and diluted EPS were primarily due to lower pre-tax margin. Fiscal 2025 fourth quarter Adjusted EPS was $3.34, up 32% compared to $2.53 in the fourth quarter of fiscal 2024, primarily due to higher sales volume and higher segment operating margin.
Cash flow generated by operating activities in the fourth quarter of fiscal 2025 was $454 million, compared to $432 million in the fourth quarter of fiscal 2024. Free cash flow was $405 million, including a voluntary pre-tax contribution of $70 million to the company’s U.S. pension plan, compared to $367 million in the fourth quarter of fiscal 2024. Increases in cash flow provided by operating activities and free cash flow were primarily due to cost reduction and other margin expansion actions.
Fiscal 2025 Full Year Financial Results
Fiscal 2025 sales were $8,342 million, a reported and organic increase of 1% from $8,264 million in fiscal 2024.
Income before income taxes was $917 million in fiscal 2025, compared to $1,100 million in fiscal 2024. Pre-tax margin was 11.0% in fiscal 2025, compared to 13.3% in fiscal 2024. The decrease was primarily due to higher compensation, the non-cash impairment charge related to the Sensia joint venture, and an accounting change and accrual increase for legacy asbestos liabilities, partially offset by productivity, price realization, and prior year restructuring charges. Total segment operating earnings were $1,703 million in fiscal 2025, up 7% from $1,595 million in fiscal 2024. Total segment operating margin was 20.4% compared to 19.3% a year ago. The increase was due to productivity, higher sales driven by price realization, and favorable mix, partially offset by higher compensation and unfavorable net currency.
Fiscal 2025 net income attributable to Rockwell Automation was $869 million or $7.67 per share, compared to $953 million or $8.28 per share in fiscal 2024. The decreases in net income attributable to Rockwell Automation and diluted EPS were primarily due to lower pre-tax margin and a higher effective tax rate. Fiscal 2025 Adjusted EPS was $10.53, up 7% compared to $9.85 in fiscal 2024. The increase in Adjusted EPS was primarily due to higher segment operating margin.
Cash flow generated by operating activities in fiscal year 2025 was $1,544 million, compared to $864 million in fiscal 2024. Free cash flow was $1,358 million compared to $639 million last year. Increases in cash flow provided by operating activities and free cash flow were driven by cost reduction and other margin expansion actions, no payout of incentive compensation in the first quarter of fiscal 2025 related to fiscal 2024 performance, and lower tax payments, partially offset by a voluntary pre-tax contribution of $70 million to the company’s U.S. pension plan.
Fiscal Year 2026 Outlook
The table below provides guidance for sales growth and earnings per share for fiscal 2026. Fiscal 2026 Guidance does not include the anticipated impact of the dissolution of the Sensia joint venture.
(1) Organic sales growth and Adjusted EPS are non-GAAP measures. See Organic Sales, Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate, and Fiscal 2026 Guidance for more information on these non-GAAP measures.
“As we look to fiscal 2026, we are confident in Rockwell’s ability to gain share and expand margins, even amid continued macro and geopolitical uncertainty. We believe that greater stability in trade policy could serve as a powerful catalyst for unlocking additional investment. Our guidance reflects a seasonally low first quarter, followed by gradual sequential improvement throughout the year,” Moret continued.
Following is a discussion of quarter and full year results for our business segments.
Intelligent Devices
Intelligent Devices fiscal 2025 fourth quarter sales were $1,086 million, an increase of 15% compared to $946 million in the same period last year. Organic sales increased 14% and currency translation increased sales by 1%. Segment operating earnings were $215 million in the fourth quarter of fiscal 2025 compared to $196 million in the same period last year. Segment operating margin decreased to 19.8% in the fourth quarter of fiscal 2025 from 20.7% a year ago reflecting higher compensation costs and a prior year earnout accrual adjustment. The quarter also included favorable impacts from price realization and higher volume.
Intelligent Devices fiscal 2025 sales were $3,756 million, a reported and organic decrease of (1)% from $3,804 million last year. Segment operating earnings were $676 million in fiscal 2025 compared to $700 million in fiscal 2024. Segment operating margin decreased to 18.0% in fiscal 2025 from 18.4% a year ago due to higher compensation, lower sales volume, and a prior year earnout accrual adjustment, partially offset by productivity and price realization.
Software & Control
Software & Control fiscal 2025 fourth quarter sales were $657 million, an increase of 31% compared to $501 million in the same period last year. Organic sales increased 30% and currency translation increased sales by 1%. Segment operating earnings were $205 million in the fourth quarter of fiscal 2025 compared to $112 million in the same period last year. Segment operating margin increased to 31.2% in the fourth quarter of fiscal 2025 from 22.4% a year ago driven by higher sales volume and price realization, partially offset by higher compensation.
Software & Control fiscal 2025 sales were $2,383 million, a reported and organic increase of 9% from $2,187 million last year. Segment operating earnings were $708 million in fiscal 2025 compared to $530 million in fiscal 2024. Segment operating margin increased to 29.7% in fiscal 2025 from 24.2% a year ago driven by productivity, higher sales volume, and price realization, partially offset by higher compensation.
Lifecycle Services
Lifecycle Services fiscal 2025 fourth quarter sales were $573 million, a decrease of (3)% compared to $588 million in the same period last year. Organic sales decreased (4)% and currency translation increased sales by 1%. Segment operating earnings were $100 million in the fourth quarter of fiscal 2025 compared to $101 million in the same period last year. Segment operating margin increased to 17.5% in the fourth quarter of fiscal 2025 from 17.2% a year ago driven by strong project execution and productivity, partially offset by higher compensation.
Lifecycle Services fiscal 2025 sales were $2,203 million, a reported and organic decrease of (3)% from $2,273 million in fiscal 2024. Segment operating earnings were $319 million in fiscal 2025 compared to $365 million in fiscal 2024. Segment operating margin decreased to 14.5% in fiscal 2025 from 16.1% a year ago due to higher compensation, partially offset by strong project execution and productivity.
Supplemental Information
ARR – Total ARR grew 8% compared to the end of the fourth quarter of fiscal 2024.
Corporate and Other – Fiscal 2025 fourth quarter Corporate and other expense was $27 million compared to $29 million in the fourth quarter of 2024. Corporate and other expense was $125 million for the full fiscal year 2025 compared to $114 million in fiscal 2024.
Purchase accounting depreciation and amortization, and impairment – Fiscal 2025 fourth quarter purchase accounting depreciation and amortization, and impairment expense was $259 million, up $223 million from the fourth quarter of fiscal 2024. Full year fiscal 2025 purchase accounting depreciation and amortization, and impairment expense was $365 million, up $221 million from fiscal 2024. The increases were primarily due to a $224 million non-cash impairment charge related to the Sensia joint venture, or $110 million including the impact of non-controlling interest and tax effects.
Restructuring charges – Fiscal 2025 fourth quarter and full year include an accrual reversal of $5 million. Fiscal 2024 fourth quarter and full year restructuring charges were $27 million and $97 million, respectively.
Net legacy asbestos and environmental charges – Fiscal 2025 fourth quarter charges were $141 million, up $132 million from the fourth quarter of fiscal 2024. Fiscal 2025 full year charges were $154 million, up $133 million from fiscal 2024. Fiscal 2025 fourth quarter and full year results include pre-tax charges for a change in accounting method for legacy asbestos defense costs of $91 million and indemnity accrual increase of $45 million.
Tax – On a GAAP basis, the effective tax rate in the fourth quarter of fiscal 2025 was 52.4% compared to 13.1% in the fourth quarter of 2024. The Adjusted Effective Tax Rate for the fourth quarter of fiscal 2025 was 17.8% compared to 15.3% in the fourth quarter of 2024. The effective tax rate for the full fiscal year 2025 was 18.3% compared to 13.8% in fiscal 2024. The Adjusted Effective Tax Rate for the full fiscal year 2025 was 17.1% compared to 15.3% in fiscal 2024. The increases in the fourth quarter and full year effective tax rate are related to valuation allowances and tax effects related to the non-cash impairment charge for the Sensia joint venture and higher discrete tax benefits in 2024 as compared to 2025. The increases to the Adjusted Effective Tax Rate for the fourth quarter and full year are related to higher discrete tax benefits in 2024 as compared to 2025.
Share Repurchases – The Company repurchased approximately 200 thousand shares of its common stock at a cost of $69 million during the fourth quarter of fiscal 2025. For the full fiscal year 2025, the Company repurchased 1.5 million shares of its common stock at a cost of $419 million. At September 30, 2025, $927 million remained available under the existing share repurchase authorization.
Return on Invested Capital (ROIC) – ROIC was 14.6% for fiscal year 2025 compared to 15.2% for fiscal year 2024.
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