01—Abstract
Summary
Summary of the 10-Q filed August 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Rockwell Automation, Inc. (ROK) reported financial results for the third quarter and nine months ended June 30, 2025.
For the quarter, the company saw a revenue increase of 5% to $2.144 billiona, driven by growth in North America and favorable pricing, though total sales for the nine-month period saw a slight decrease of 3%. Net income attributable to Rockwell Automation increased significantly to $295 million in the quarter, up from $232 million in the prior year. Diluted Earnings Per Share (EPS) also rose to $2.60 from $2.02 year-over-year for the quarter.
The company's performance was influenced by strong pricing realization across its Intelligent Devices and Software & Control segments. The Software & Control segment, in particular, showed robust growth with a 23%b increase in sales for the quarter, accompanied by a significant expansion in operating margin.
Conversely, the Lifecycle Services segment experienced a sales decline of 6% for the quarter, impacting its segment operating margin. Management highlights ongoing efforts in cost reduction and margin expansion, anticipating over $250 millionc in year-over-year benefits for 2025.
02—Key points
Key Highlights
- Total sales for the third quarter increased by 5% year-over-year to $2.144 billion, with organic sales up 4%.
- Net income attributable to Rockwell Automation for the third quarter surged to $295 million, a substantial increase from $232 million in the prior year.
- Diluted EPS for the quarter was $2.60, up from $2.02 in the comparable period last year.
- The Software & Control segment demonstrated strong performance, with quarterly sales up 23% and operating margin expanding significantly to 31.6%.
- The Intelligent Devices segment saw modest growth in the quarter (1% reported and organic sales), but its operating margin declined.
- Lifecycle Services segment experienced a decline in both reported and organic sales for the quarter (-6% and -3% respectively), and its operating margin decreased.
- The company generated strong free cash flow of $953 million for the nine months ended June 30, 2025, a significant increase from $272 million in the prior year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Rockwell Automation kept $0.14.
- Revenue$2.14B100.0%
- Cost of revenue−$1.10B51.2%
- Gross profit$1.05B48.8%
- Operating costs−$592.0M27.6%
- Operating income$454.0M21.2%
- Interest, other & tax−$159.0M7.4%
- Net income$295.0M13.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed August 6, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $2.14B$2.05B | +4.5% |
| Cost of Revenue | $1.10B$1.26B | −12.6% |
| Gross Profit | $1.05B$795.00M | +31.6% |
| R&D Expenses | $170.00M— | — |
| SG&A Expenses | $498.00M$501.00M | −0.6% |
| Operating Income | $454.00M— | — |
| Net Income | $295.00M$232.00M | +27.2% |
| EPS (Basic) | $2.61$2.03 | +28.6% |
| EPS (Diluted) | $2.60$2.02 | +28.7% |
| Shares Outstanding (Basic) | 112.50M113.70M | −1.1% |
| Shares Outstanding (Diluted) | 113.00M114.20M | −1.1% |
05—Questions
Frequently Asked Questions
How did Rockwell Automation's sales perform in the third quarter compared to the previous year?
Rockwell Automation reported a 5% increase in total sales for the third quarter ended June 30, 2025, reaching $2.144 billion. Organic sales, which exclude the impact of acquisitions and currency fluctuations, also grew by 4%. This growth was primarily driven by North America and favorable pricing actions.
What was the company's profitability during the quarter?
The company's profitability improved significantly. Net income attributable to Rockwell Automation for the third quarter was $295 million, a notable increase from $232 million in the same period last year. Diluted Earnings Per Share (EPS) rose to $2.60 from $2.02 year-over-year.
Which business segments performed well, and which faced challenges?
The Software & Control segment was a standout performer, with a 23% increase in quarterly sales and a significant expansion in its operating margin. The Intelligent Devices segment showed modest sales growth but experienced a decline in operating margin. The Lifecycle Services segment faced challenges, with both reported and organic sales declining during the quarter, leading to a decrease in its operating margin.
What is the company's cash flow generation outlook?
Rockwell Automation demonstrated strong cash flow generation, with free cash flow of $953 million for the nine months ended June 30, 2025, a substantial increase from $272 million in the prior year. This improvement was attributed to higher pre-tax income, no incentive compensation payout related to prior year performance, and lower tax payments.
06—Continue