Rockwell Automation Q3 Earnings Beat Estimates, Sales Increase Y/Y

Rockwell Automation Inc. ROK has reported adjusted earnings per share (EPS) of $2.82 in third-quarter fiscal 2025 (ended June 30, 2025), which surpassed the Zacks Consensus Estimate of $2.69. The bottom line improved 4% year over year.

Including one-time items, earnings were $2.60 per share compared with $2.02 in the year-ago quarter.

Total sales were $2.14 billion, up 4.5% from the prior-year quarter. The top line beat the Zacks Consensus Estimate of $2.07 billion. Organic sales grew 4%. We had projected a 0.2% decline in organic sales.

ROK’s Margin Performance in Q3

The cost of sales increased 1% year over year to $1.27 billion. The gross profit improved 10.2% to $876 million. Selling, general and administrative expenses edged down 0.6% year over year to $498 million.

Consolidated segment operating income totaled $454 million, up 6.6% from the prior-year quarter. The total segment operating margin was 21.2% in the fiscal third quarter, higher than the prior-year period’s 20.8%. The upside was driven by productivity, price realization and a favorable mix.

Rockwell Automation’s Q3 Segmental Results

Intelligent Devices: Net sales amounted to $968 million, up 1% year over year. The reported figure beat our estimate of $926 million.

The segment’s operating earnings totaled $182 million compared with the year-earlier quarter’s $193 million. We predicted the segment operating earnings to be $195 million. The operating margin fell to 18.8% from the year-ago quarter’s 20.2% due to higher compensation and unfavorable net currency. This was partially offset by productivity and price realization.

Software & Control: Net sales rose 23% year over year to $629 million. Reported sales surpassed our estimate of $583 million.

The segment’s operating earnings rose 61% year over year to $199 million, higher than our expectation of $149 million. The operating margin was 31.6% compared with 23.6% in the year-earlier quarter, reflecting the impacts of higher volume, price realization and productivity.

Lifecycle Services: Net sales for the segment were $547 million, down 6% year over year. We had projected the segment’s sales to be $550 million.

The segment’s operating earnings totaled $73 million compared with the year-ago quarter’s $112 million. Our estimate for operating earnings was $85.5 million. 

The segment’s operating margin was 13.3% compared with the year-ago quarter’s 19.3%. The downside was led by higher compensation and lower volume.

ROK’s Cash Position & Balance Sheet Updates

At the end of the fiscal third quarter, cash and cash equivalents were approximately $495 million compared with $471 million as of the end of fiscal 2024. Cash flow from operations was $1.09 billion in the first nine months of fiscal 2025 compared with $0.43 billion in the prior-year period. Return on invested capital was 15% as of June 30, 2025.

ROK’s long-term debt was $2.62 million at the end of the quarter, higher than $2.56 billion at the fiscal 2024 end.

Rockwell Automation repurchased 0.5 million shares for $123 million in the fiscal third quarter. As of the end of the quarter, $1 billion was available under the existing share-repurchase authorization.

Rockwell Automation’s FY25 Guidance

The company updated its reported sales view to a decline of 2% to growth of 1%. It had earlier projected a drop of 4.5% to 1.5% growth in sales. The revised guidance includes no foreign currency impact. Organic sales growth is expected between a decline of 2% and an increase of 1%.

Rockwell Automation updated its adjusted EPS guidance to $9.80-$10.20 for fiscal 2025. It earlier expected an adjusted EPS of $9.20-$10.20.

ROK Stock’s Price Performance

In the past year, Rockwell Automation shares have gained 40.5% compared with the industry’s 2.5% growth.

Rockwell Automation’s Zacks Rank

ROK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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TER’s sales of $652 million beat the Zacks Consensus Estimate by 0.89% but declined 10.7% year over year. The figure also came in above the mid-point of Teradyne’s guidance range.

KLA Corporation KLAC reported fourth-quarter fiscal 2025 adjusted earnings of $9.38 per share, beating the Zacks Consensus Estimate by 10%. The figure jumped 42.1% year over year.

KLA Corp’s sales increased 23.6% year over year to $3.17 billion, surpassing the Zacks Consensus Estimate by 3.21%.

The Timken Company TKR posted an adjusted EPS of $1.42 in second-quarter 2025, beating the Zacks Consensus Estimate of $1.34 per share. The bottom line declined 13% year over year from the EPS of $1.63 in the year-ago quarter.

Timken’s total sales were $1.17 billion, down 0.8% from sales of $1.18 billion in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $1.15 billion.

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