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August 15, 2025 • 4 min read
Industrial automation giant Rockwell Automation (NYSE: ROK) just released its financial results for the third quarter of fiscal year 2025, and the numbers reveal a company successfully navigating a complex global market. In this analysis, we'll dive into the details of their latest quarterly report filed with the SEC to see what's driving their performance and what it tells us about the state of industrial manufacturing.
For the three months ended June 30, 2025, Rockwell reported total sales of $2.14 billion, a solid 5% increase from the $2.05 billion recorded in the same period last year. This growth suggests resilience, but a look at the geographic and business segment breakdown reveals a more nuanced story.
While overall sales are up, the performance varies significantly across Rockwell's different business lines.
The clear standout this quarter was the Software & Control segment. This division, which provides the critical software for controlling and visualizing industrial processes, saw its sales surge by a remarkable 23% to $629 million. Even more impressively, its operating margin—a key measure of profitability—expanded from 23.6% to an impressive 31.6%. This points to strong demand for Rockwell's digital solutions as manufacturers increasingly invest in smart factory technologies.
However, the company's more traditional segments faced headwinds:
This divergence highlights a key trend: Rockwell's strategic pivot towards higher-margin software and recurring revenue is paying off, while its legacy hardware and services businesses are navigating a tougher environment.
To better understand how Rockwell's revenue is converted into profit, the following flow diagram illustrates the company's income statement for the quarter.
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Regionally, North America, Rockwell's largest market, delivered a strong 7% sales growth. The Europe, Middle East, and Africa (EMEA) region also performed well, with reported sales up 10% (5% in organic terms, which excludes the effects of acquisitions and currency fluctuations). However, these gains were partially offset by weakness in Latin America, where sales fell 21%.
On the bottom line, Rockwell's net income attributable to shareholders rose to $295 million, or $2.60 per diluted share. This is a significant jump from the $232 million, or $2.02 per share, reported a year ago.
The company also highlights a non-GAAP (Generally Accepted Accounting Principles) metric called "Adjusted EPS," which provides a view of underlying operational performance by excluding certain items like amortization from acquisitions. Adjusted EPS for the quarter was $2.82, a healthy increase from $2.71 in the prior year, reinforcing the theme of positive, software-driven momentum.
One of the most encouraging signs in the report is Rockwell's robust cash flow. For the first nine months of the fiscal year, cash provided by operating activities was $1.09 billion, a dramatic improvement from $432 million in the same period last year. This strong cash generation provides the company with significant financial flexibility to invest in growth, return capital to shareholders through dividends, and conduct share buybacks. In this quarter alone, the company repurchased approximately $124 million worth of its own stock.
In conclusion, Rockwell Automation's latest quarter paints a picture of a company in successful transition. The powerful performance of its Software & Control segment underscores the accelerating digital transformation across the industrial sector. While challenges remain in its traditional hardware and services businesses, the company's ability to generate strong profits and cash flow positions it well to continue investing in the high-growth areas that will define the future of manufacturing.
Last updated: August 15, 2025