Rockwell Automation Inc (NYSE:ROK) stock fell 0.91% (As on November 7, 11:24:51 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter results that exceeded analyst expectations, driven by strong organic sales growth and significant margin expansion despite one-time charges. The strong performance came despite one-time charges that reduced diluted EPS by $1.88, including accounting adjustments for legacy asbestos liabilities and an impairment charge related to the planned dissolution of its Sensia joint venture. Organic sales grew 13% compared to the prior year versus 5.9% rise expected by analysts. The company’s Software & Control segment was particularly strong, with sales increasing 31% to $657 million and operating margin expanding to 31.2% from 22.4% a year ago. Intelligent Devices sales rose 15% to $1.09 billion, while Lifecycle Services revenue decreased 3% to $573 million. At the end of fiscal 2025, cash and cash equivalents were $468 million compared with $471 million as of the end of fiscal 2024. The long-term debt was $2.61 billion at the end of fiscal 2025, up from $2.56 million at the end of fiscal 2024.

ROK in the fourth quarter of FY25 has reported the adjusted earnings per share of $3.34, beating the analysts’ estimates for the adjusted earnings per share of $2.94, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 14 percent to $2.32 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $2.21 billion. The gross profit grew 21.1% year over year to $1.12 billion. The gross margin came in at 48.4% compared with the prior-year quarter’s 45.5%. Consolidated segment operating income totaled $520 million, up 27.1% from the prior-year quarter. The total segment operating margin was 22.5% in the fiscal fourth quarter, higher than the prior-year period’s 20.1%.

For the full fiscal year 2025, Rockwell reported sales of $8.34 billion, up 1% on both a reported and organic basis. Annual adjusted EPS reached $10.53, a 7% increase from fiscal 2024.

Looking ahead, Rockwell provided fiscal 2026 guidance projecting reported sales growth of 3% to 7% and organic sales growth of 2% to 6%. The company expects diluted EPS between $10.40 and $11.40, with adjusted EPS ranging from $11.20 to $12.20.

The company also announced plans to dissolve its Sensia joint venture with SLB, with Rockwell assuming ownership of the process automation business it originally contributed. The transaction is expected to close in the first half of fiscal 2026.