Rockwell Automation (ROK) Q4 2025 earnings summary

Executive summary

• Q4 reported sales increased 14% year-over-year, with organic sales up 13–14% and ARR up 8%.

• Full year reported and organic sales rose 1% to $8.3 billion, with adjusted EPS up 7% to $10.53.

• Achieved ~$325M in productivity benefits for FY25 and strong execution on cost reduction and margin expansion.

• Announced dissolution of the Sensia joint venture, expected to close in H1 FY26, resulting in lower revenue but higher operating margins and a simplified go-to-market approach in Oil & Gas.

• Returned to top-line growth and exceeded expectations for free cash flow and productivity savings, positioning for sustained growth and profitability into fiscal 2026.

Financial highlights

• Q4 sales: $2,316M (+14% YoY); segment operating margin: 22.5% (+240 bps YoY); adjusted EPS: $3.34 (+32% YoY).

• Full year sales: $8,342M (+1% YoY); segment margin improved 110 bps to 20.4%; adjusted EPS: $10.53 (+7% YoY).

• Free cash flow for FY25: $1,358M, with 114% conversion, exceeding expectations.

• Q4 net income: $138M ($1.23/share), down from $240M ($2.09/share) YoY, due to one-time charges.

• ROIC for FY25: 14.6% (down from 15.2% in FY24).

Outlook and guidance

• Fiscal 2026 reported sales growth expected at 3–7%, with organic growth guidance of 2–6%.

• Adjusted EPS guidance for fiscal 2026 is $11.20–$12.20, midpoint $11.70; diluted EPS guidance: $10.40–$11.40.

• Segment margin expected to expand by over 100 basis points to 21.5%; free cash flow conversion targeted at 100%.

• ARR expected to grow high single digits in FY26.

• Guidance excludes anticipated impact of Sensia JV dissolution.