Rockwell EPS Beats, Revenue Misses in Q2 2025

Key Financial Highlights

Rockwell Automation reported $2,001 million in revenue. This missed the $2,045.23 million estimate. Revenue decreased by 6% year-over-year. Adjusted EPS reached $2.45, beating the $2.39 estimate. However, adjusted EPS fell 2% from last year. Net income totaled $252 million. Last year's net income was $266 million. Free cash flow increased significantly to $171 million. Prior year free cash flow was $69 million. Lower tax payments drove this increase. The segment operating margin improved to 20.4%. Last year's margin was 19.0%. Cost reduction and margin expansion drove this. Annual Recurring Revenue (ARR) grew by 8% year-over-year. The book-to-bill ratio remained around 1.0. This reflects balanced demand and sales.

Segment Performance Overview

Intelligent Devices sales were $896 million. This represents an 8% decrease year-over-year. The segment's operating margin increased to 17.7%. Software & Control sales slightly decreased to $568 million. This segment's operating margin rose to 30.1%. Lifecycle Services reported $537 million in sales. This is an 8% decline. The operating margin for this segment decreased to 14.5%.

Analysis and Future Outlook

Currency fluctuations and market dynamics impacted Rockwell's results. Yet, cost reduction efforts showed resilience. The company updated its fiscal 2025 guidance. Reported sales growth is now expected between -4.5% and 1.5%. Adjusted EPS guidance ranges from $9.20 to $10.20. Rockwell focuses on structural productivity. They also invest in digital transformation. This positions them for future opportunities.