Emerson Electric : Q2 EARNINGS RELEASE

Published: 2025-05-07 07:01:08 ET EMR

Published on 05/07/2025 at 07:01

ST. LOUIS (May 7, 2025) - Emerson (NYSE: EMR) today reported results1 for its second quarter ended March 31, 2025 and updated its full year outlook for fiscal 2025. Emerson also declared a quarterly cash dividend of $0.5275 per share of common stock payable June 10, 2025 to stockholders of record on May 16, 2025.

View the Q2 printer-friendly release with financial tables here.

(dollars in millions, except per share)

2024 Q2

2025 Q2

Change

Underlying Orders2

4%

Net Sales

Underlying Sales3

$4,376

$4,432

1%

2%

Pretax Earnings

Margin

$711

16.3%

$629

14.2%

(210) bps

Adjusted Segment EBITA4

Margin

$1,139

26.0%

$1,240

28.0%

200 bps

GAAP Earnings Per Share

Adjusted Earnings Per Share5

$0.95

$1.36

$0.86

$1.48

(9)%

9%

Operating Cash Flow

Free Cash Flow

$733

$651

$825

$738

13%

14%

Management Commentary

"Emerson delivered strong underlying orders in the second quarter with margin expansion and adjusted earnings exceeding our expectations," said Emerson President and Chief Executive Officer Lal Karsanbhai. "We achieved another quarter of record gross profit and adjusted segment EBITA margins, supported by our Emerson Management System and demonstrating the value customers attribute to our leading technology. Our superior first half performance and ability to navigate the tariff environment give us the confidence to update our 2025 outlook."

Karsanbhai continued, "We have also marked the conclusion of Emerson's portfolio transformation with the completion of the AspenTech buy-in on March 12. We are pleased to be making significant progress on the integration. In addition, our review of strategic alternatives for our Safety & Productivity segment concluded the best value for our shareholders is to retain the business and continue to drive the segment's industry leading margins and cash flow. Looking ahead, we are excited to capitalize on the growth potential of our transformed portfolio, supported by secular drivers, and to sustain the excellent operational performance we have consistently delivered since 2021."

2025 Outlook

The fiscal year 2025 guidance framework now reflects the full ownership of AspenTech. Net sales guidance increases to ~4%, as the impact from foreign exchange is now expected to be flat, and underlying sales are held at the midpoint. GAAP EPS decreases due to transaction-related costs, while adjusted EPS guidance increases at the midpoint. Expectations for operating cash flow and free cash flow are updated to $3.5B - $3.6B and $3.1B - $3.2B, respectively, as strong operational performance partially offsets transaction-related headwinds of ~$0.2B. The 2025 outlook assumes returning ~$2.3B to shareholders through $1.1B of share repurchases and ~$1.2B of dividend.

Guidance figures are approximate.

2025 Q3

2025

Net Sales Growth Underlying Sales Growth

4.5% - 5.5% 3.5% - 4.5%

~4% ~4%

Earnings Per Share

Amortization of Intangibles Restructuring / Related Costs Acquisition / Divestiture Fees and Related Costs Discrete taxes related to AspenTech transaction

Adjusted Earnings Per Share

$1.04 - $1.08

~$0.36 ~$0.06 ~$0.02

$1.48 - $1.52

$4.05 - $4.20

~$1.34 ~$0.20 ~$0.22 $0.09

$5.90 - $6.05

Operating Cash Flow Free Cash Flow

$3.5B - $3.6B $3.1B - $3.2B

1 Results are presented on a continuing operations basis.

2 Underlying orders do not include AspenTech.

3 Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures.

4 Adjusted segment EBITA represents segment earnings excluding restructuring and intangibles amortization expense.

5 Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, acquisition/divestiture gains, losses, fees and related costs, and discrete taxes.

Conference Call

Today, beginning at 7:00 a.m. Central Time / 8:00 a.m. Eastern Time, Emerson management will discuss the second quarter results during an investor conference call. Participants can access a live webcast available at www.emerson.com/investors at the time of the call. A replay of the call will be available for 90 days. Conference call slides will be posted in advance of the call on the company website.

About Emerson

Emerson (NYSE: EMR) is a global industrial technology leader that provides advanced automation. With an unmatched portfolio of intelligent devices, controls systems, and industrial software, Emerson delivers solutions that automate and optimize business performance. Headquartered in Saint Louis, Missouri, Emerson combines innovative technology with proven operational excellence to power the future of automation. For more information, visit Emerson.com.

Forward-Looking and Cautionary Statements

Statements in this press release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the scope, duration and ultimate impacts of the Russia-Ukraine and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

Emerson uses our Investor Relations website, www.Emerson.com/investors, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts and social media. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Contacts Investors Colleen Mettler 314-553-2197

Media Joseph Sala / Greg Klassen Joele Frank, Wilkinson Brimmer Katcher 212-355-4449

Disclaimer

Emerson Electric Co. published this content on May 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 11:00 UTC.