MILWAUKEE — Rockwell Automation, Inc. today reported third quarter fiscal 2025 results.
“Q3 marked another quarter of strong execution and significant progress toward our long-term margin expansion goals. We returned to year-over-year sales growth with a broad set of customer wins in the quarter, including significant brownfield and greenfield opportunities. Rockwell is also investing over $2 billion in our plants, talent, and digital infrastructure over the next five years. The majority of this spend is focused on capital investment in the United States,” said Blake Moret, Chairman and CEO.
Fiscal Q3 2025 Financial Results
Fiscal 2025 third quarter reported sales were $2,144 million, up 5% from $2,051 million in the third quarter of fiscal 2024. Organic sales increased over 4% and currency translation increased sales by less than 1%.
Income before income taxes was $342 million in the third quarter of fiscal 2025 compared to $255 million in the same period last year. Pre-tax margin was 16.0% in the third quarter of fiscal 2025 compared to 12.4% in the same period last year, due to restructuring charges taken in the prior year. Total segment operating earnings were $454 million in the third quarter of fiscal 2025, up 7% from $426 million in the same period of fiscal 2024. Total segment operating margin was 21.2% compared to 20.8% a year ago. The increase in segment operating margin was primarily due to productivity, price realization, and favorable mix, partially offset by higher compensation and unfavorable currency.
Fiscal 2025 third quarter Net income attributable to Rockwell Automation was $295 million or $2.60 per share, compared to $232 million or $2.02 per share in the third quarter of fiscal 2024. Fiscal 2025 third quarter Adjusted EPS was $2.82, up 4% compared to $2.71 in the third quarter of fiscal 2024.
Cash flow generated by operating activities in the third quarter of fiscal 2025 was $527 million, compared to $279 million in the third quarter of fiscal 2024. Free cash flow in the third quarter of fiscal 2025 was $489 million, compared to $238 million in the same period last year. Increases in cash flow provided by operating activities and free cash flow were primarily due to higher net income.
Fiscal Year 2025 Outlook
The table below provides updated guidance for fiscal 2025.
(1) Organic sales growth and Adjusted EPS are non-GAAP measures. See Organic Sales and Adjusted Income, Adjusted EPS, and Adjusted Effective Tax Rate Reconciliations for more information on these non-GAAP measures.
“We are increasing our Adjusted EPS outlook as we continue to outperform on our productivity and margin targets. Our expectations for fiscal 2025 customer spend and our topline growth remain largely unchanged with the exception of a slight benefit from tariff-based pricing and favorable currency. Even in this uncertain environment, our team is not waiting for macro-economic improvement to play offense. We are delivering customer value and expanding margins,” Moret continued.
Following is a discussion of third quarter results for business segments.
Intelligent Devices
Intelligent Devices third quarter fiscal 2025 sales were $968 million, an increase of 1% compared to $957 million in the same period last year. Organic sales increased 1%. Segment operating earnings were $182 million compared to $193 million in the same period last year. Segment operating margin decreased to 18.8% from 20.2% a year ago. The decrease from prior year was driven by higher compensation and unfavorable net currency, partially offset by productivity and price realization.
Software & Control
Software & Control third quarter fiscal 2025 sales were $629 million, an increase of 23% compared to $513 million in the same period last year. Organic sales increased 22% and currency translation increased sales by 1%. Segment operating earnings were $199 million compared to $121 million in the same period last year. Segment operating margin increased to 31.6% from 23.6% a year ago. The increase from prior year was driven by higher volume, price realization, and productivity, partially offset by higher compensation.
Lifecycle Services
Lifecycle Services third quarter fiscal 2025 sales were $547 million, a decrease of (6)% compared to $581 million in the same period last year. Organic sales decreased (6)%. Segment operating earnings were $73 million compared to $112 million in the same period last year. Segment operating margin decreased to 13.3% from 19.3% a year ago driven by higher compensation and lower volume, partially offset by productivity.
Supplemental Information
ARR – Total ARR grew 7% compared to the end of the third quarter of fiscal 2024.
Corporate and other – Fiscal 2025 third quarter Corporate and other expense was $40 million compared to $29 million in the third quarter of fiscal 2024.
Purchase accounting depreciation and amortization – Fiscal 2025 and 2024 third quarter purchase accounting depreciation and amortization expense was $35 million.
Restructuring charges – Fiscal 2024 third quarter restructuring charges were $70 million, which relate to actions in conjunction with an enterprise-wide comprehensive program to optimize cost structure and expand margins. The charges are primarily related to severance benefits.
Tax – On a GAAP basis, the effective tax rate in the third quarter of fiscal 2025 was 14.3% compared to 9.4% in the third quarter of fiscal 2024. The Adjusted Effective Tax Rate for the third quarter of fiscal 2025 was 15.2% compared to 13.3% in the prior year. The increases were primarily due to lower discrete benefits recognized in the current year.
Share repurchases – During the third quarter of fiscal 2025, the Company repurchased approximately 0.5 million shares of its common stock at a cost of $123 million. At June 30, 2025, approximately $1.0 billion remained available under our existing share repurchase authorization.
Return on Invested Capital (ROIC) – ROIC was 15.0% for the twelve months ended June 30, 2025, compared to 16.0% for the twelve months ended June 30, 2024.
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