Rockwell Automation(US:ROK)2025-11-06 12:02Financial Performance - Fourth quarter reported sales increased by 14% to $2,316 million, with organic sales up 13% year over year[4] - Fourth quarter diluted EPS was $1.23, down 41% year over year, while Adjusted EPS rose 32% to $3.34[4] - Full year fiscal 2025 sales were $8,342 million, a 1% increase from $8,264 million in fiscal 2024[12] - Fiscal 2026 guidance projects reported sales growth of 3% to 7% and organic sales growth of 2% to 6%[4] - Fiscal 2025 net income attributable to Rockwell Automation was $869 million, or $7.67 per share, down from $953 million or $8.28 per share in fiscal 2024[14] - Net income for the twelve months ended September 30, 2025, was $749 million, down from $948 million in 2024, representing a decrease of approximately 21%[56] - The company reported a diluted EPS of $7.67 for the twelve months ended September 30, 2025, down from $8.28 in the previous year[50] - Adjusted Income for the twelve months ended September 30, 2025, was $1,195 million, representing an increase of 5.5% from $1,133 million in 2024[69] - Adjusted EPS for the twelve months ended September 30, 2025, is not specified but is a key performance measure for the company[65] Cash Flow and Operating Activities - Full year fiscal 2025 cash provided by operating activities was $1,544 million, up 79% year over year, with free cash flow of $1,358 million, up 113%[15] - Cash provided by operating activities for the quarter ended September 30, 2025, was $527 million, compared to $199 million in the previous quarter[75] - Cash used for investing activities decreased to $216 million in 2025 from $982 million in 2024, a reduction of approximately 78%[56] - The company’s total cash dividends paid increased to $591 million in 2025 from $571 million in 2024, an increase of 3.5%[56] - Free cash flow for the fiscal year 2025 was $1,358 million, significantly higher than $639 million in fiscal year 2024, resulting in a free cash flow conversion rate of 114%[76] Segment Performance - Segment operating earnings for the fourth quarter increased by 27% to $520 million, with a total segment operating margin of 22.5%[6] - Intelligent Devices segment sales increased to $1,086 million for the three months ended September 30, 2025, compared to $946 million in the same period of 2024[50] - Software & Control segment sales rose to $657 million, up from $501 million year-over-year[50] - Lifecycle Services segment sales decreased slightly to $573 million from $588 million in the prior year[50] - The Intelligent Devices segment reported a 15% increase in reported sales for the three months ended September 30, 2025, compared to the prior year[60] Expenses and Liabilities - Total liabilities decreased to $6,583 million as of September 30, 2025, from $6,697 million in the previous year[54] - Cash and cash equivalents were reported at $468 million, a slight decrease from $471 million in the prior year[54] - Selling, general, and administrative expenses for fiscal year 2025 were $1,914 million, a decrease from $2,001 million in fiscal year 2024[82] - Engineering and development expenses for fiscal year 2025 totaled $679 million, slightly lower than $706 million in fiscal year 2024[82] Impairments and Adjustments - The company recognized an impairment of goodwill and intangible assets amounting to $224 million for the twelve months ended September 30, 2025[56] - The company reported a net expense of $110 million related to a goodwill and intangible asset non-cash impairment charge for the three and twelve months ended September 30, 2025[70] - The company plans to exclude legacy asbestos and environmental charges from its adjusted income and EPS definitions starting Q4 2025, impacting historical comparisons[83] Future Guidance - Fiscal 2026 guidance for diluted EPS is projected to be between $10.40 and $11.40, with adjusted EPS expected to range from $11.20 to $12.20[71] - The effective tax rate for fiscal 2026 is anticipated to be approximately 20%[71]