Rockwell Automation, Inc. (ROK): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Rockwell Automation, Inc. (ROK) to see where the real value is being built, and honestly, the numbers from their $8.342 billion in fiscal 2025 sales tell a clear story. As someone who's looked at these industrial giants for two decades, what stands out is the balanced revenue mix: hardware from Intelligent Devices brought in $3.756 billion, but the higher-margin Software & Control segment contributed $2.383 billion, closely followed by $2.203 billion from Lifecycle Services. So, this isn't just a box-pusher anymore; it's a complex ecosystem built on proprietary IP and a massive partner network, generating $1.544 billion in operating cash flow last year. Dive into the nine blocks below to see exactly how Rockwell Automation, Inc. connects its OT (Operational Technology) and IT to keep those high-margin, recurring revenue streams growing, like their 8% year-over-year ARR increase.

Rockwell Automation, Inc. (ROK) - Canvas Business Model: Key Partnerships

Rockwell Automation, Inc. relies heavily on its ecosystem to deliver its industrial automation and digital transformation value proposition. As of fiscal year end 2025, Rockwell Automation employed approximately 26,000 problem solvers serving customers in more than 100 countries, a reach amplified significantly by its partners.

Global PartnerNetwork of over 4,000 members

The core of this external structure is the PartnerNetwork, which the outline specifies as having over 4,000 members. This network is described as the strongest and largest partner ecosystem in the industry, cultivated for close to 100+ years in North American industrial technology, and continually expanding globally.

The community segments include:

• System Integrator Partners: Over 3,700 partners offer design, implementation, and support for complete automation solutions.
• Original Equipment Manufacturer (OEM) Partners: More than 3,600 global OEM Partners collaborate to improve machine performance.
• Technology Partners: Close to 150 Strategic and Digital Technology Partners provide over 1,000 products.
• Distributor Partners: Over 200 distributors offer local support and inventory management.

Strategic alliances with System Integrators and OEMs

The relationship with System Integrators and OEMs is recognized through annual events, such as the EMEA PartnerNetwork Awards ceremony held on February 25th, 2025. These alliances are critical, as noted by the recognition of Interstates as the 2025 System Integrator Partner of the Year. The tight product integration and mutual trust established over many years result in multiple business successes across the manufacturing spectrum.

Technology Partners (e.g., Spectrum Controls) for product augmentation

Technology Partners augment Rockwell Automation's core offerings. Spectrum Controls Inc. was named the 2025 Technology Partner of the Year. This partner has been with Rockwell Automation for over 35 years, since 1991. Their specialized I/O modules enhance capabilities in over 10 of Rockwell Automation's I/O platforms. For instance, their Universal Industrial Gateway supports 12 different protocols in a single module. One application of their high-density I/O allowed a customer to reduce modules from six to three, resulting in a 50% cost savings.

Localized manufacturing collaboration with alfanar in Saudi Arabia

In November 2025, Rockwell Automation announced a strategic collaboration with alfanar to establish a dedicated manufacturing zone within alfanar's facility in Riyadh's Industrial City. This zone will assemble advanced automation panels, initially prioritizing deployment in key infrastructure projects for the Saudi Water Authority (SWA).

Cloud and IT partnerships for digital transformation solutions

Digital transformation is heavily supported by hyperscaler alliances. Rockwell Automation and Amazon Web Services, Inc. (AWS) announced a collaboration around April 2025 to accelerate digital transformation with cloud-enabled offerings. This includes expanding Rockwell's software-as-a-service within FactoryTalk® Hub to AWS, making solutions like DataMosaix™ and Fiix® CMMS available in AWS Marketplace. Furthermore, the strategic alliance with PTC involves Rockwell Automation making a $1 billion equity investment in PTC, securing an approximate 8.4% ownership interest.

Key Financial/Statistical Partnership Data as of Late 2025:

Rockwell Automation, Inc. (ROK) - Canvas Business Model: Key Activities

You're looking at the core actions Rockwell Automation, Inc. takes to deliver its value proposition, and honestly, the numbers from fiscal year 2025 tell a clear story of balancing investment with efficiency gains.

Research and development of industrial automation hardware and software.

Rockwell Automation, Inc. keeps a steady hand on R&D to maintain its technology edge. For fiscal year 2025, the company continued to fund new product development with R&D spending targeted at around 6% of total revenue, which is a consistent commitment to innovation. This investment supports their differentiated portfolio and secular growth drivers like AI applications in automation.

Here's a look at how the key segments performed in terms of sales for the full fiscal year 2025:

The total reported sales for Rockwell Automation, Inc. for the full fiscal year ending September 30, 2025, reached $8,342 million.

Manufacturing and supply chain management for Intelligent Devices.

Managing the supply chain for Intelligent Devices is a massive undertaking, involving complex global sourcing and manufacturing workflows. The segment, which includes hardware and logic sales, saw its full-year sales slightly contract in fiscal 2025. The Intelligent Devices segment generated $3,756 million in sales for fiscal year 2025, representing a reported and organic decrease of (1)% from the prior year. The segment operating margin for Intelligent Devices settled at 18.0% for fiscal 2025. To bolster resilience, Rockwell Automation, Inc. has earmarked roughly $2 billion of organic investment over five years, with capital expenditures (capex) intensity targeted around 2.5%-4.0% of sales, focusing on capacity additions and supply chain efficiency.

Software development for the FactoryTalk and Plex platforms.

Software development is a clear growth engine, evidenced by the Software & Control segment's performance. This segment houses platforms like FactoryTalk and Plex MES. For the full fiscal year 2025, sales in Software & Control were $2,383 million, marking a reported and organic increase of 9% over fiscal 2024. This growth drove the segment operating margin up to 29.7% in fiscal 2025, compared to 24.2% the year before. The focus on recurring revenue is also key; Total Annual Recurring Revenue (ARR) grew 8% year-over-year as of the end of fiscal 2025.

Key software-related metrics for fiscal year 2025 include:

• Total ARR growth: 8%.
• Software & Control Segment Operating Margin: 29.7%.
• Software & Control FY2025 Sales: $2,383 million.

Executing cost reduction and margin expansion initiatives.

The focus on efficiency is translating directly to the bottom line, even with margin pressures. Rockwell Automation, Inc. successfully executed its productivity programs, achieving $435 million in savings over the 18 months ended September 2025, beating its initial $350 million target. For fiscal 2025 specifically, the company met its full-year target of $250 million in savings in just the first three quarters. These actions helped support an Adjusted EPS of $10.53 for fiscal 2025, which was up 7% compared to fiscal 2024.

The overall financial impact of these activities for the full fiscal year 2025 included:

• Cash flow generated by operating activities: $1,544 million.
• Free cash flow: $1,358 million.
• Pre-tax margin: 11.0%.

Still, the company is planning for the future, intending to invest over $2 billion in plants, digital infrastructure, and talent over the next five years to continue margin expansion.

Global sales, distribution, and technical support.

Global sales execution is vital, and the company maintains a book-to-bill ratio near 1.0x as of September 2025, suggesting order intake is keeping pace with shipments. Technical support and services fall under Lifecycle Services, which generated $2,203 million in sales for fiscal year 2025, a reported and organic decrease of (3)%. The segment operating margin for Lifecycle Services was 14.5% in fiscal 2025. Geographically, North America was a major contributor to historical revenue, accounting for 45% of total revenue in 2023, while Asia-Pacific contributed $2.1 billion (24%) in 2023.

Here's a snapshot of the full-year 2025 performance metrics:

The company's ability to attract, develop, and retain qualified employees is listed as a key factor in its success.

Rockwell Automation, Inc. (ROK) - Canvas Business Model: Key Resources

You're looking at the core assets that power Rockwell Automation, Inc.'s operations as of late 2025. These aren't just line items on a balance sheet; they are the engines driving their industrial automation and digital transformation business.

Proprietary hardware and software Intellectual Property form the bedrock. This includes the proprietary Allen-Bradley industrial control hardware, which is the physical gear on the factory floor, and the FactoryTalk software suite and cloud-native platforms. The strength of this IP is reflected in the recurring revenue stream; for instance, Total Annual Recurring Revenue (ARR) grew 8% compared to the end of the second quarter of fiscal 2024. This recurring revenue base supports the ongoing development of these digital assets.

The human capital and reach are substantial. Rockwell Automation, Inc. employed approximately 26,000 people as of September 30, 2025. This workforce supports a global distribution network that moves products and services across continents. The scale of the business supported by these resources is evident in the fiscal 2025 performance.

Financial strength directly underpins resource deployment and sustainability. Cash flow from operations in fiscal 2025 reached $\text{\$1.544 billion}$, a significant increase from $\text{\$864 million}$ in fiscal 2024. This robust cash generation is a key resource itself, providing liquidity and funding for future innovation and capacity.

The deep domain expertise in diverse industrial sectors is evidenced by the performance across their operating segments. This expertise allows Rockwell Automation, Inc. to tailor solutions for complex manufacturing environments. Here's a look at the financial scale associated with these key resources for fiscal 2025:

The intellectual property is deployed across distinct areas, each contributing significantly to the top line. This segmentation shows where the expertise is concentrated and monetized. For example, the Intelligent Devices segment generated sales of $\text{\$3,756 million}$ in fiscal 2025, while the Software & Control segment posted fourth quarter sales of $\text{\$657 million}$.

You can see the tangible output of these resources through the following operational highlights:

• Fiscal 2025 Adjusted EPS was $\text{\$10.53}$, up 7% from fiscal 2024.
• Fiscal 2025 net income attributable to Rockwell Automation, Inc. was $\text{\$869 million}$.
• The company's total assets stood at approximately $\text{\$11.2B}$ as of Q3 2025.
• Fourth quarter cash flow from operations for fiscal 2025 was $\text{\$454 million}$.

These figures defintely show the scale of the assets Rockwell Automation, Inc. commands.

Rockwell Automation, Inc. (ROK) - Canvas Business Model: Value Propositions

You're looking at the core promises Rockwell Automation, Inc. (ROK) is making to its industrial customers as of late 2025, grounded in their fiscal year results. It's not just about selling boxes anymore; it's about delivering measurable business outcomes through digital integration.

The Connected Enterprise: Bridging Operational Technology (OT) and IT

Rockwell Automation's foundational value is delivering The Connected Enterprise-that's the convergence of plant-level Operational Technology (OT) with enterprise Information Technology (IT) to create a common production platform. This integration is how they help manufacturers access, analyze, and act on production data in real-time. The company's mission statement itself reflects this value: to improve the quality of life by making the world more productive and sustainable. This strategy is supported by a massive installed base of Allen-Bradley programmable logic controllers (PLCs) and the FactoryTalk software portfolio.

The scale of their operation supporting this vision involves approximately 27,000 problem solvers across more than 100 countries as of the end of fiscal year 2024. For the full fiscal year 2025, Rockwell Automation reported total sales of $8,342 million, which shows the sheer volume of transactions flowing through this connected ecosystem.

Enhancing customer productivity and operational efficiency

The promise of The Connected Enterprise translates directly into hard productivity gains for your operations. When systems are seamlessly connected, bottlenecks become visible, and maintenance shifts from reactive to predictive. Here's what customers have seen by adopting this integrated approach:

• Productivity increases of 4 to 5% per year.
• Waste reductions resulting in hundreds of thousands of dollars in savings.
• Faster time to market, including plants becoming operational in weeks instead of months.
• Quality improvements that result in defects being cut in half.
• On-time delivery increases from 82% to 98%.

This focus on efficiency is a primary driver for customer investment; a March 2025 survey showed 81% of manufacturers cite internal efficiency as a top driver for digital transformation. The financial result of this focus on operational excellence for Rockwell Automation in fiscal 2025 was an Adjusted EPS of $10.53, a 7% increase year-over-year, supported by strong margin expansion.

Providing integrated hardware, software, and services for a single vendor solution

You get the benefit of dealing with a single vendor for the core components of your automation architecture-hardware, software, and the ongoing support to keep it running. This integrated approach simplifies procurement, integration, and support. The company's structure reflects this: Intelligent Devices (hardware), Software & Control, and Lifecycle Services.

The performance across these areas in fiscal 2025 shows a clear strategic pivot toward the digital components:

The Software & Control segment, which houses the digital brain, saw its Q4 sales surge 31% year-over-year to $657 million, clearly indicating where the high-value integration is happening. Also, the total Annual Recurring Revenue (ARR) grew 8% compared to the end of the fourth quarter of fiscal 2024, which is the financial proof of the services and software stickiness.

Enabling greater sustainability and resilience for industrial operations

Rockwell Automation, Inc.'s mission explicitly includes making the world more sustainable. This value proposition is increasingly critical as manufacturers face regulatory and public scrutiny. Resilience-the ability to withstand and recover from disruptions-is tied directly to digital maturity, especially cybersecurity.

The focus on resilience is evident in the growing concern over security. Cybersecurity is now ranked as the second most significant external risk by manufacturers surveyed in March 2025. To counter this, the reliance on advanced tools is growing:

• 49% of manufacturers plan to rely on Artificial Intelligence (AI) for cybersecurity management in 2025.
• This is a notable increase from 40% in 2024.

Furthermore, the company is investing in its own operational resilience, announcing plans for a new greenfield manufacturing site in Southeastern Wisconsin as part of a previously announced $2 billion investment in plants, digital infrastructure, and talent over the next five years.

Delivering high-margin, recurring digital solutions via the Software & Control segment

This is where the financial quality of the business model really shines through. The shift from one-time hardware sales to subscription-like software and services creates more predictable, high-margin revenue streams. The Software & Control segment is the primary vehicle for this, as evidenced by its superior profitability.

For fiscal 2025, this segment achieved an operating margin of 29.7%, significantly higher than the 18.0% in Intelligent Devices. The growth in recurring revenue streams underpins the company's financial stability. The total company ARR growth of 8% year-over-year in Q4 FY2025 demonstrates the success of this strategy. You can see the impact on cash flow, too: Cash flow generated by operating activities in fiscal year 2025 hit $1,544 million, a 79% jump from the prior year, which is what allows for strategic investments and shareholder returns.

Finance: draft 13-week cash view by Friday.

Rockwell Automation, Inc. (ROK) - Canvas Business Model: Customer Relationships

You're looking at how Rockwell Automation, Inc. keeps its customer base engaged and supported, which is critical given the complexity of industrial automation. Their approach is multi-faceted, blending high-touch human interaction with robust digital tools.

Dedicated direct sales and technical support teams

Rockwell Automation, Inc. maintains a global footprint to serve its clients directly. As of fiscal year end 2025, the company has approximately 26,000 problem solvers dedicated to their customers. These teams operate in more than 100 countries, ensuring proximity for complex, on-site support and relationship management.

Long-term service contracts and maintenance agreements (Lifecycle Services)

The commitment to customers extends well beyond the initial sale through Lifecycle Services. This segment is built on securing long-term revenue streams, often measured by Annual Recurring Revenue (ARR).

This focus on recurring revenue helps stabilize the relationship and provides predictable support streams for the installed base. The company's overall Adjusted EPS for fiscal 2025 reached $10.53, up 7% year-over-year, showing the financial impact of their operational execution across segments.

Digital engagement and self-service via the myRockwellAutomation portal

The digital layer centralizes customer interaction for efficiency. The myRockwellAutomation portal acts as a single sign-in hub for personalized workflows.

• Access to Compatibility & Downloads (PCDC).
• Self-service for Service Contracts & Tickets.
• Tools for Asset Management (RAAMP) and Installed Base Evaluation (IBE).
• Access to Knowledgebase and Literature Library.

This digital ecosystem is designed to streamline daily tasks and provide immediate access to essential information for technical professionals.

Consultative selling for complex, large-scale digital transformation projects

For major digital transformation initiatives, the relationship shifts to a deep, consultative partnership, often centered around the Software & Control segment.

• Software & Control segment sales increased 31% in Q4 FY 2025.
• Software & Control organic sales grew 22% year-over-year in Q3 FY 2025.
• Company R&D funding is at 6% of total revenue.

This investment in R&D supports the development of the advanced solutions required for these complex, large-scale projects, which is where the consultative sales force focuses its expertise.

Annual user events like Automation Fair for customer education and networking

Rockwell Automation, Inc. uses its flagship event to foster community, education, and direct engagement with its user base.

The event provides tailored sessions, hands-on labs, and keynotes, helping to educate customers and solidify the ecosystem of users and partners. The company is already promoting the debut of new technologies at Automation Fair® 2025.

Rockwell Automation, Inc. (ROK) - Canvas Business Model: Channels

You're looking at how Rockwell Automation, Inc. gets its industrial automation and digital transformation products and services to the customer base. It's a layered approach, balancing deep local support with global scale.

Global network of authorized independent distributors (primary channel).

Rockwell Automation, Inc. relies heavily on its Allen-Bradley® authorized distributor network. This isn't a free-for-all; the company employs a limited distribution model, assigning one authorized distributor per geographic region. This structure means that the local distributor is responsible for everything: stocking inventory, providing tech support, handling warranties, and guiding product selection. This setup drives deeper expertise locally, as distributors invest heavily to become true experts in their assigned area.

Direct sales force for large enterprise accounts and strategic projects.

For the biggest deals, especially those involving complex, multi-site, or strategic digital transformation projects, the direct sales force steps in. This team handles the largest enterprise accounts where the relationship and solution complexity demand a direct corporate touchpoint. While specific direct sales revenue contribution isn't broken out, the overall scale of the company's go-to-market effort is significant; Rockwell Automation, Inc. employed approximately 26,000 problem solvers dedicated to customers in more than 100 countries as of fiscal year end 2025.

System Integrators and OEMs within the PartnerNetwork.

The PartnerNetwork™ is crucial for extending reach and capability. This ecosystem includes System Integrators (SIs) who design, build, install, and maintain automation solutions, and Original Equipment Manufacturers (OEMs) who embed Rockwell Automation, Inc. solutions into their own machinery. These partners are essential for delivering business-critical outcomes, as noted when recognizing winners across EMEA for innovation and sustainability in early 2025. The collaboration across SIs, OEMs, and Distributors is what helps Rockwell Automation, Inc. deliver the value of The Connected Enterprise.

Digital channels for software delivery and Annual Recurring Revenue (ARR).

Software delivery and the growing recurring revenue stream are increasingly channeled digitally, often through cloud-native platforms. This is a key focus area for growth. For the full fiscal year 2025, Total ARR grew 8% year-over-year. In the fourth quarter of fiscal 2025, the Software & Control segment, which houses much of this digital offering, posted sales of $657 million. This focus on recurring revenue helps stabilize the business, even when hardware sales fluctuate; for instance, the full fiscal year 2025 reported sales were up only 1% year-over-year.

Here's a quick look at the financial scale related to the segments that rely on these channels for fiscal year 2025:

The channel strategy is designed to ensure customers have access to the right expertise, whether that's a local distributor for immediate parts, an SI for a complex integration, or a direct sales team for a major capital expenditure.

The types of partners available through the PartnerNetwork database include:

• Distributor Partners for design, implementation, and support.
• OEM Partners who build innovative equipment with the solutions.
• System Integrator Partners for building and maintaining solutions.
• Technology Partners extending the core architecture.
• EPC Partners for professional services spanning design and management.

Finance: draft the Q1 FY26 channel performance forecast by end of January.

Rockwell Automation, Inc. (ROK) - Canvas Business Model: Customer Segments

Rockwell Automation, Inc. serves a broad base of global industrial customers, with fiscal 2025 total reported sales reaching $8,342 million. The company employs approximately 27,000 individuals across more than 100 countries. Total Annual Recurring Revenue (ARR) showed growth of 8% year-over-year as of the end of the fourth quarter of fiscal 2025.

The customer base is segmented across the company's three operating segments: Intelligent Devices, Software & Control, and Lifecycle Services. For the full fiscal year 2025, the revenue contribution by segment was:

The sum of these segment sales is $8,342 million, matching the total reported sales for fiscal 2025.

You're looking at the specific industries Rockwell Automation, Inc. targets; these are the core of their market strategy. Here's how the key end markets performed directionally in the fourth quarter of fiscal 2025 compared to the prior year:

The growth in the Discrete segment was significantly bolstered by e-Commerce & Warehouse Automation, which saw organic sales growth of approximately 70% in the fourth quarter of fiscal 2025.

Discrete and Process Manufacturing (e.g., Automotive, Metals, Mining).

• Automotive customers saw organic sales growth up low double digits in Q4 FY2025.
• Semiconductor customers experienced a decline of mid single digits in Q4 FY2025 organic sales.
• Metals and Mining fall under the Process end markets, which saw an overall decline in Q4 FY2025.

Life Sciences (e.g., Pharma, Medical Devices).

• Life Sciences is categorized within the Hybrid end markets.
• The Hybrid end markets, which include Life Sciences, experienced organic sales growth of low double digits in Q4 FY2025.

Consumer Packaged Goods (CPG) and Food and Beverage.

• Food and Beverage is a key part of the Hybrid end markets.
• Food & Beverage organic sales growth was low double digits in Q4 FY2025.

Oil and Gas, Water/Wastewater, and other Infrastructure/Utility sectors.

• Oil and Gas is included in the Process end markets, which saw a decline in Q4 FY2025.
• Water/Wastewater is part of the Eco Industrial category, which also includes Waste Management, Mass Transit, and Renewable Energy.
• Energy sectors, including Fossil Fuels, Renewables, CCUS, Low Emission Fuels, Energy Storage, and Traditional Power, are also served.

Global industrial companies operating in over 100 countries.

• Rockwell Automation, Inc. employs approximately 27,000 individuals across more than 100 countries as of the first quarter of fiscal 2025.
• Lifecycle Services sales decreased 3% organically in fiscal 2025 compared to fiscal 2024, with all regions except Europe, Middle East, and Africa experiencing reported sales decreases.

Rockwell Automation, Inc. (ROK) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Rockwell Automation, Inc.'s operations as of late 2025. This is where the money actually goes to keep the industrial automation engine running.

Cost of Goods Sold (COGS) for manufacturing hardware (Intelligent Devices)

The direct cost of making the physical gear, which Rockwell Automation, Inc. calls Cost of Sales, saw a significant jump in the final quarter of fiscal 2025. For the fourth quarter of fiscal 2025, the Cost of Sales was reported at $1.2 billion. This cost base supports the Intelligent Devices segment, which posted net sales of $1.09 billion in that same fourth quarter. The overall gross margin for the quarter reflected this cost structure, landing at 48.4%. The company is managing input costs, but the sheer volume of hardware production dictates a large portion of the expense base.

High compensation and R&D costs for software and engineering talent

The push into digital transformation means talent costs are a major structural expense, especially for the Software & Control segment. While specific R&D dollar amounts aren't broken out separately from Cost of Sales in the summary data, the impact of compensation is clear. For instance, the segment operating margin for Software & Control in fiscal 2025 was 29.7%, but this was achieved despite being partially offset by higher compensation costs. This shows the premium Rockwell Automation, Inc. pays to secure the engineers building out their software and control platforms.

Here's a look at the segment performance, which ties directly to the cost of the talent driving it:

Selling, General, and Administrative (SG&A) expenses for global sales and distribution

Keeping the global sales and distribution network running requires substantial overhead. For the fourth quarter of fiscal 2025, Rockwell Automation, Inc.'s Selling, General, and Administrative expenses were $471 million. This figure represents the cost to market, sell, and manage the business across its worldwide footprint.

• SG&A expenses in Q4 2025 were down 2.9% year over year.
• The company achieved structural productivity savings exceeding $325 million for the full fiscal year 2025.

Capital expenditures (capex) for plant and digital infrastructure investment

Investment in the future, both in physical plant upgrades and the digital backbone, is a planned cost commitment. While the final full-year 2025 CapEx number isn't immediately available in the summary, the guidance for the next fiscal year gives you a clear picture of the current investment priority. You should budget for CapEx to be a controlled percentage of revenue going forward.

The company introduced guidance for fiscal 2026 that targets capital expenditures at:

• Targeted Capital Expenditures (CapEx) for fiscal 2026: approximately 3% of sales.

For context on recent spending, the investing activities section of the Q2 2025 filing showed capital expenditures of ($99 million) for that quarter alone. This shows the ongoing, material investment required to support the digital and manufacturing footprint.

Rockwell Automation, Inc. (ROK) - Canvas Business Model: Revenue Streams

You're looking at how Rockwell Automation, Inc. (ROK) brings in the money as of late 2025. It's a clear breakdown across three main operational segments, with a growing emphasis on recurring revenue streams.

The backbone of the revenue still comes from hardware and software sales, but the services component is a critical part of the overall picture, helping to smooth out the cyclical nature of capital expenditure spending. Honestly, the mix shows a strategic push toward more predictable income.

Here's the quick math on the fiscal 2025 segment sales, which gives you the scale of each area:

The total segment sales for fiscal 2025 were $8,342 million, reflecting a 1% increase in both reported and organic sales year-over-year.

Beyond the transactional sales, the recurring component is showing healthy momentum. You'll want to track this closely; it's defintely a key indicator of future stability.

• Annual Recurring Revenue (ARR) grew by 8% year-over-year.
• Software & Control segment operating margin reached 29.7% in fiscal 2025.
• Total segment operating margin improved to 20.4% in fiscal 2025 from 19.3% a year ago.

That margin expansion you see is being supported by strong price realization across the business, which helped offset higher compensation costs. For instance, the Software & Control margin saw a significant jump, up 880 basis points year-over-year in the fourth quarter, driven by good price realization and strong organic sales growth of 30% in that quarter.