Emerson Electric : Q1 EARNINGS PRESENTATION
EMR
2025 Q1 Earnings
February 5, 2025
E M E R S O N | 1
Key Messages
End-Market Demand
Process and hybrid markets remain resilient. Discrete orders up sequentially, though softer than expected; looking to the second half for meaningful growth.
Strength in customer adoption for our subscription software with ACV 1 up 10%.
Strong Q1 Operational Execution
Operating leverage, adjusted EPS and cash flow all exceeded our expectations with underlying sales in line.
Updating Full Year Guidance
Reiterating guidance for underlying sales, adjusted EPS and free cash flow. Increasing guidance for operating leverage.
Considers outstanding Q1 operational performance, impact of foreign exchange and outlook on discrete end markets.
Portfolio Transformation
Agreement reached with AspenTech under which Emerson would acquire all outstanding shares of common stock for $265 per share pursuant to an all-cash tender offer.
Strategic alternatives evaluation still underway for Safety & Productivity.
E M E R S O N | 3
1 Annual contract value (ACV) includes all applicable Emerson software businesses. See the end notes for definition.
2025 Q1 Key Metrics
Results
November Guidance
Underlying Orders Growth1
1%
Underlying Sales Growth
2%
2% - 3%
Gross Profit Margin
53.5%
Adjusted Segment EBITA Margin
28.0%
Operating Leverage
265%
Mid 50s
Adjusted EPS
$1.38
$1.25 - $1.30
Free Cash Flow
$694M
Share Repurchase
~$1B
~$1B
E M E R S O N | 4
1 Excludes AspenTech
Breakthrough Innovation
Software-
Defined
Automation
DeltaV Edge Environment named "Breakthrough Product" and in January, Emerson introduced DeltaV Edge Environment 2.0
Innovation Award
Innovation of the Year
Emerson won IoT Breakthrough "Industrial Innovation of the Year"
EE MM EE RR SS OO NN || 55
Significant Opportunity Ahead for LNG
EPC Awards
Potential
80+ MTPA
per year
~75%
North
1
America
18 MTPA
2024
2025E - 2027E
Key Emerson Win
Drivers
Expectation for uptick in NA FIDs post-moratorium Increased demand from Asia and Europe Energy transition fuel
Increased demand in power
>$1B
Potential Emerson orders
over next few years
~$10M
Automation Project Scope per 1 MTPA of liquefaction
>50%
Win rate of control
systems in current wave
~70%
3.3 MTPA floating LNG facility
World's LNG flows
through Emerson valves
E M E R S O N | 6
1 Million tonnes per annum.
Strong Macro Trends Support Growth in Power
~50%
18 / 20
N.A. power generation
Largest U.S. combined
automated by Ovation
cycle plants use Ovation
(20% global)
~40%
10 / 20
N.A. market share in real-time
Largest U.S.
grid management software1
utilities use DGM
(20% global)
~100
~90%
Nuclear reactors use
World's nuclear plants
Ovation technology
have Emerson valves
65,000
~40%
Wind turbines installed
U.S. Hydro automated by
around the world
Emerson
Key Win (Nuclear)
1 Market size for software on ACV basisE M E R S O N | 7 Sources: IEA, L.E.K. Consulting, COP28 Global Renewables & Energy Efficiency Pledge, Rystad Energy, public company reports and presentations, internal estimates
Resilient Capital Cycle
Q1 ENDING PROJECT FUNNEL
Carbon Capture & Energy /
Emissions Management
Sustainability & Decarbonization1: $3.0B
Clean Fuels
Energy Transition: $5.8B
Growth Platforms2: $8.0B
Q1 PROJECT WINS
Sustainability &
Decarbonization
Hydrogen
Traditional Energy
LNG
Traditional
Energy
Renewables
Nuclear
$11.5B
Organic: $11.2B
Semi1: +$0.3B
Chemical
Traditional Power
Now a Growth Platform
Life
Sciences
Renewables4
~$400M
Power &
Chemical
Semiconductor
Metals &
Life
Mining
Sciences
LNG
Metals &
Mining3
EE MM EE RR SS OO NN || 88
4 Includes wins in Traditional Power, Renewables and Nuclear
2025 Q1 Performance Summary
Sales
$4.1B
$4.2B
Process and hybrid businesses
grew MSD
2%
Growth Platforms grew MSD
Underlying
Price contributed 1.5 pts
Backlog1: $7.3B
Up 4% sequentially, excluding FX
2024
2025
Adjusted EPS
$1.38
$1.22
Exceptional operational
13% performance
20242025
Adjusted Segment EBITA
28.0%
24.6%
Record margin from favorable
340
price and net material inflation,
mix and the benefit of cost &
bps
synergy actions
Operating leverage: 265%
2024
2025
Free Cash Flow
$694B
Higher earnings, improved trade
$367B
working capital and tailwinds
89%
from Q1'24 acquisition-related
spend delivered strong YoY
growth
Free cash flow margin of 17%
2024
2025
E M E R S O N | 9
1 Excludes AspenTech
$0.16$0.00$1.38
FX $0.04
Stock Comp ($0.03)
Q1 Adjusted
$1.22
Pension ($0.01)
EPS Bridge
Software & Control $0.09
13%
Intelligent Devices $0.07
Q1 2024
Operations
Other /
Q1 2025
Non-Operating
E M E R S O N | 10
Disclaimer
Emerson Electric Co. published this content on February 05, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 05, 2025 at 12:01:11.216.