Emerson (NYSE: EMR) today reported results1 for its third quarter ended June30, 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 September 10, 2025 to stockholders of record on August 15, 2025.
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(dollars in millions, except per share) 2024 Q3 2025 Q3 ChangeUnderlying Orders2 4%Net Sales $4,380 $4,553 4%Underlying Sales3 3%Pretax Earnings $455 $734Margin 10.4% 16.1% 570 bpsAdjusted Segment EBITA4 $1,189 $1,232Margin 27.1% 27.1% 0 bpsGAAP Earnings Per Share $0.60 $1.03 72%Adjusted Earnings Per Share5 $1.43 $1.52 6%Operating Cash Flow $1,067 $1,062 -%Free Cash Flow $975 $970 (1)%
Management Commentary
“Emerson's solid third quarter results reflect our sustained momentum, delivering strong underlying growth, profitability and cash flow, which we expect to continue as we finish the fiscal year,” said Emerson President and Chief Executive Officer Lal Karsanbhai. “We are experiencing positive momentum in key end markets, and our team's ability to execute in this dynamic environment demonstrates the resilience of our business model and our operational excellence.”
Karsanbhai continued, “We are taking pivotal steps to advance our industrial software capabilities, launching breakthrough innovations that are transforming how our customers optimize their operations. We deliver value by unlocking productivity and efficiency, and we are seeing accelerated adoption of our digital solutions.”
2025 Outlook
The following table summarizes the fiscal year 2025 guidance framework. Net and underlying sales guidance of ~3.5% growth reflects our updated expectations for pricing actions as the tariff expense exposure has reduced. GAAP EPS is now expected to be ~$4.08 and adjusted EPS guidance is now ~$6.00, an increase versus the previous midpoint. Expectations for operating cash flow and free cash flow increase to ~$3.6B and ~$3.2B, respectively. The 2025 outlook assumes returning ~$2.3B to shareholders through $1.1B of share repurchases and ~$1.2B of dividends, unchanged from the prior guidance.
2025 Q4 2025Net Sales Growth 5.5% – 6.5% 3.5%Underlying Sales Growth 5% – 6% 3.5%Earnings Per Share $1.13 – $1.17 $4.08Amortization of Intangibles $0.34 $1.34Restructuring / Related Costs $0.10 $0.22Acquisition / Divestiture Fees and Related Costs $0.01 $0.27Discrete taxes related to AspenTech transaction $0.09Adjusted Earnings Per Share $1.58 – $1.62 $6.00Operating Cash Flow $3.6BFree Cash Flow $3.2B
1Results are presented on a continuing operations basis.2Underlying orders do not include AspenTech.3Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures.4Adjusted segment EBITA represents segment earnings less restructuring and intangibles amortization expense.5Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, acquisition/divestiture gains, losses, fees and related costs, and discrete taxes.
Conference Call and Upcoming Events
Today, beginning at 6:30 a.m. Central Time / 7:30 a.m. Eastern Time, Emerson management will discuss the third quarter results during an investor conference call. Participants can access a live webcast available at https://ir.emerson.com 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.
Emerson also announces it will host an investor conference on Nov. 20, 2025 in New York City. Event details will be distributed closer to this date.
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
Statementsin this press release that are not strictly historical may be “forward-looking” statements, which represent management's expectations, based on currently available information. Actual results, performance or achievements could differ materially from those expressed in any forward-looking statement. Any forward-looking statements in this press release speak only as of the date of this press release. Emerson undertakes no obligation to update any such statements to reflect new information or later developments. Examples of risks and uncertainties that may cause or actual results or performance to be materially different from those expressed or implied by forward looking statements 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, https://ir.emerson.com, 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.
Investors: Media:Colleen Mettler Joseph Sala / Greg Klassen(314) 553-2197 Joele Frank, Wilkinson Brimmer Katcher (212) 355-4449
(tables attached)
Table 1EMERSON AND SUBSIDIARIESCONSOLIDATED OPERATING RESULTS(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) Quarter Ended Nine Months Ended June 30, June 30, 2024 2025 2024 2025Net sales $ 4,380 $ 4,553 $ 12,873 $ 13,161Cost of sales 2,066 2,160 6,359 6,161SG&A expenses 1,254 1,266 3,827 3,773Gain on subordinated interest – – (79) -Loss on Copeland note receivable 279 – 279 -Other deductions, net 294 298 1,075 944Interest expense, net 56 95 157 145Interest income from related party1 (24) – (86) -Earnings from continuing operations before income taxes 455 734 1,341 2,138Income taxes 88 154 266 536Earnings from continuing operations 367 580 1,075 1,602Discontinued operations, net of tax (15) 6 (88) 7Net earnings 352 586 987 1,609Less: Noncontrolling interests in subsidiaries 23 – 15 (48)Net earnings common stockholders $ 329 $ 586 $ 972 $ 1,657Earnings common stockholdersEarnings from continuing operations $ 344 $ 580 $ 1,060 $ 1,650Discontinued operations (15) 6 (88) 7Net earnings common stockholders $ 329 $ 586 $ 972 $ 1,657Diluted avg. shares outstanding 574.8 564.7 574.1 567.1Diluted earnings per share common stockholdersEarnings from continuing operations $ 0.60 $ 1.03 $ 1.84 $ 2.91Discontinued operations (0.03) 0.01 (0.15) 0.01Diluted earnings per common share $ 0.57 $ 1.04 $ 1.69 $ 2.92 Quarter Ended Nine Months Ended June 30, June 30, 2024 2025 2024 2025Other deductions, netAmortization of intangibles $ 264 $ 219 $ 811 $ 677Restructuring costs 57 37 170 70Other (27) 42 94 197Total $ 294 $ 298 $ 1,075 $ 944
1 Represents interest on the Copeland note receivable through June 6, 2024.
Table 2EMERSON AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(DOLLARS IN MILLIONS, UNAUDITED) Sept 30, 2024 June 30, 2025AssetsCash and equivalents $ 3,588 $ 2,219Receivables, net 2,927 2,908Inventories 2,180 2,288Other current assets 1,497 1,657Total current assets 10,192 9,072Property, plant & equipment, net 2,807 2,791Goodwill 18,067 18,158Other intangible assets 10,436 9,669Other 2,744 2,827Total assets $ 44,246 $ 42,517Liabilities and equityShort-term borrowings and current maturities of long-term debt $ 532 $ 5,953Accounts payable 1,335 1,272Accrued expenses 3,875 3,507Total current liabilities 5,742 10,732Long-term debt 7,155 8,278Other liabilities 3,840 3,621EquityCommon stockholders' equity 21,636 19,870Noncontrolling interests in subsidiaries 5,873 16Total equity 27,509 19,886Total liabilities and equity $ 44,246 $ 42,517
Table 3EMERSON AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(DOLLARS IN MILLIONS, UNAUDITED) Nine Months Ended June 30, 2024 2025Operating activitiesNet earnings $ 987 $ 1,609Earnings from discontinued operations, net of tax 88 (7)Adjustments to reconcile net earnings to net cash provided by operating activities:Depreciation and amortization 1,263 1,139Stock compensation 203 198Amortization of acquisition-related inventory step-up 231 -Gain on subordinated interest (79) -Loss on Copeland note receivable 279 -Changes in operating working capital (176) (80)Other, net (552) (195)Cash from continuing operations 2,244 2,664Cash from discontinued operations 4 (576)Cash provided by operating activities 2,248 2,088Investing activitiesCapital expenditures (251) (263)Purchases of businesses, net of cash and equivalents acquired (8,342) (36)Proceeds from subordinated interest 79 -Other, net (86) (94)Cash from continuing operations (8,600) (393)Cash from discontinued operations 36 -Cash used in investing activities (8,564) (393)Financing activitiesNet increase in short-term borrowings 2,229 1,419Proceeds from short-term borrowings greater than three months 322 5,292Payments of short-term borrowings greater than three months (100) (1,349)Proceeds from long-term debt – 1,544Payments of long-term debt (547) (503)Dividends paid (901) (895)Purchases of common stock (175) (1,147)AspenTech purchases of common stock (188) -Purchase of noncontrolling interest – (7,244)Settlement of AspenTech share awards – (76)Other, net (57) (60)Cash provided by (used in) financing activities 583 (3,019)Effect of exchange rate changes on cash and equivalents (20) (45)Decrease in cash and equivalents (5,753) (1,369)Beginning cash and equivalents 8,051 3,588Ending cash and equivalents $ 2,298 $ 2,219
Table 4EMERSON AND SUBSIDIARIESSEGMENT SALES AND EARNINGS(DOLLARS IN MILLIONS, UNAUDITED)The following tables show results for the Company's segments on an adjusted segment EBITA basis and are intendedto supplement the Company's results of operations, including its segment earnings which are defined as earnings beforeinterest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excludingintangibles amortization expense, and restructuring and related expense. Adjusted segment and total segmentEBITA,and adjusted segment and total segmentEBITA margin are measures used by management and may be useful forinvestors to evaluate the Company's segments' operational performance.
Quarter Ended June 30, 2024 2025 Reported UnderlyingSalesFinal Control $ 1,046 $ 1,116 7% 5%Measurement & Analytical 982 1,014 3% 2%Discrete Automation 618 649 5% 3%Safety & Productivity 351 346 (1)% (2)%Intelligent Devices $ 2,997 $ 3,125 4% 3%Control Systems & Software1 1,043 1,083 4% 3%Test & Measurement 355 361 2% (1)%Software and Control $ 1,398 $ 1,444 3% 2%Eliminations (15) (16)Total $ 4,380 $ 4,553 4% 3%Sales Growth by Geography Quarter Ended June 30,Americas 7%Europe (7)%Asia, Middle East & Africa 2%
1 AspenTech was fully acquired on March 12, 2025 and is now an independent business unit inside of the Control Systems & Software reporting segment.
Table 4 cont. Nine Months Ended June 30, 2024 2025 Reported UnderlyingSalesFinal Control $ 3,037 $ 3,165 4% 4%Measurement & Analytical 2,942 2,992 2% 2%Discrete Automation 1,863 1,844 (1)% (1)%Safety & Productivity 1,038 996 (4)% (4)%Intelligent Devices $ 8,880 $ 8,997 1% 1%Control Systems & Software 2,940 3,138 7% 7%Test & Measurement 1,104 1,079 (2)% (2)%Software and Control $ 4,044 $ 4,217 4% 4%Eliminations (51) (53)Total $ 12,873 $ 13,161 2% 2%Sales Growth by Geography Nine Months Ended June 30,Americas 5%Europe (4)%Asia, Middle East & Africa 3%
Table 4 cont. Quarter Ended June 30, Quarter Ended June 30, 2024 2025 As Reported Adjusted As Adjusted (GAAP) EBITA Reported EBITA (Non-GAAP) (GAAP) (Non-GAAP)EarningsFinal Control $ 253 $ 279 $ 267 $ 292Margins 24.2% 26.8% 23.9% 26.2%Measurement & Analytical 252 266 246 259Margins 25.6% 27.0% 24.2% 25.5%Discrete Automation 109 134 118 132Margins 17.6% 21.5% 18.2% 20.4%Safety & Productivity 79 86 73 80Margins 22.5% 24.7% 21.1% 22.9%Intelligent Devices $ 693 $ 765 $ 704 $ 763Margins 23.1% 25.5% 22.5% 24.4%Control Systems & Software 217 348 267 388Margins 20.8% 33.3% 24.7% 35.9%Test & Measurement (88) 76 (26) 81Margins (24.7)% 21.4% (7.2)% 22.4%Software and Control $ 129 $ 424 $ 241 $ 469Margins 9.2% 30.3% 16.7% 32.6%Corporate items and interest expense, net:Stock compensation (56) (47) (71) (45)Unallocated pension and postretirement costs 38 38 27 27Corporate and other (38) (24) (72) (31)Loss on Copeland note receivable (279) – – -Interest expense, net (56) – (95) -Interest income from related party1 24 – – -Pretax Earnings / Adjusted EBITA $ 455 $ 1,156 $ 734 $ 1,183Margins 10.4% 26.4% 16.1% 26.0%Supplemental Total Segment Earnings:Adjusted Total Segment EBITA $ 1,189 $ 1,232Margins 27.1% 27.1%
1 Represents interest on the Copeland note receivable.
Table 4 cont. Quarter Ended June 30, Quarter Ended June 30, 2024 2025 Amortization of Restructuring Amortization of Restructuring Intangibles1 and Intangibles1 and Related Costs2 Related Costs2Final Control $ 21 $ 5 $ 22 $ 3Measurement & Analytical 11 3 11 2Discrete Automation 9 16 8 6Safety & Productivity 6 1 7 -Intelligent Devices $ 47 $ 25 $ 48 $ 11Control Systems & Software 127 4 114 7Test & Measurement 139 25 107 -Software and Control $ 266 $ 29 $ 221 $ 7Corporate – 63 – 233Total $ 313 $ 60 $ 269 $ 41
1 Amortization of intangibles includes $49 and $50 reported in cost of sales for the three months ended June 30, 2024 and 2025, respectively.2 Restructuring and related costs includes $3 and $4 reported in cost of sales and selling, general and administrative expenses for the three months ended June 30, 2024 and 2025, respectively.3 Corporate restructuring and related costs of $23 for the three months ended June 30, 2025 includes $20 related to integration-related stock compensation expense attributable to AspenTech. Corporate restructuring and related costs of $6 for the three months ended June 30, 2024 includes $5 related to integration-related stock compensation expense attributable to NI.
Quarter Ended June 30,Depreciation and Amortization 2024 2025Final Control $ 41 $ 39Measurement & Analytical 32 32Discrete Automation 22 22Safety & Productivity 14 15Intelligent Devices 109 108Control Systems & Software 148 134Test & Measurement 150 119Software and Control 298 253Corporate 10 11Total $ 417 $ 372
Table 5EMERSON AND SUBSIDIARIESADJUSTED CORPORATE AND OTHER SUPPLEMENTAL(DOLLARS IN MILLIONS, UNAUDITED)The following table shows the Company's stock compensation and corporate and other expenses on an adjusted basis.The Company's definition of adjusted stock compensation excludes integration-related stock compensation expense. TheCompany's definition of adjusted corporate and other excludes corporate restructuring and related costs, first yearpurchase accounting related items and transaction fees, and certain gains, losses or impairments. This metric is useful forreconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA. Quarter Ended June 30, 2024 2025Stock compensation (GAAP) $ (56) $ (71)Integration-related stock compensation expense 91 262Adjusted stock compensation (non-GAAP) $ (47) $ (45) Quarter Ended June 30, 2024 2025Corporate and other (GAAP) $ (38) $ (72)Corporate restructuring and related costs 1 3Acquisition / divestiture costs 13 38Adjusted corporate and other (non-GAAP) $ (24) $ (31)
1 Integration-related stock compensation expense for the three months ended June 30, 2024 relates to NI and includes $5 reported as restructuring costs.2 Integration-related stock compensation expense for the three months ended June 30, 2025 includes $24 related to AspenTech of which $20 is reported as restructuring costs, and $2 related to NI.
Table 6EMERSON AND SUBSIDIARIESADJUSTED EBITA & EPS SUPPLEMENTAL(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)The following tables, which show results on an adjusted EBITA basis and diluted earnings per share on an adjusted basis,are intended to supplement the Company's discussion of its results of operations herein. The Company defines adjustedEBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense, restructuringexpense, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments.Adjusted earnings per share excludes intangibles amortization expense, restructuring expense, first year purchaseaccounting related items and transaction-related costs, and certain gains, losses or impairments. Adjusted EBITA,adjustedEBITA margin, and adjusted earnings per share are measures used by management and may be useful forinvestors to evaluate the Company's operational performance. Quarter Ended June 30, 2024 2025Pretax earnings $ 455 $ 734Percent of sales 10.4% 16.1%Interest expense, net 56 95Interest income from related party1 (24) -Amortization of intangibles 313 269Restructuring and related costs 60 41Acquisition/divestiture fees and related costs 17 44Loss on Copeland note receivable 279 -Adjusted EBITA $ 1,156 $ 1,183Percent of sales 26.4% 26.0% Quarter Ended June 30, 2024 2025GAAP earnings from continuing operations per share $ 0.60 $ 1.03Amortization of intangibles 0.35 0.37Restructuring and related costs 0.08 0.06Acquisition/divestiture fees and related costs 0.02 0.06Loss on Copeland note receivable 0.38 -Adjusted earnings from continuing operations per share $ 1.43 $ 1.52
1 Represents interest on the Copeland note receivable through June 6, 2024
Table 6 cont.Quarter Ended June 30, 2025 Pretax Income Earnings Non- Net Diluted Earnings Taxes from Controlling Earnings Earnings Cont. Interests3 Common Per Ops. Stockholders ShareAs reported (GAAP) $ 734 $ 154 $ 580 $ – $ 580 $ 1.03Amortization of intangibles 2691 62 207 – 207 0.37Restructuring and related costs 412 5 36 – 36 0.06Acquisition/divestiture fees and related costs 44 9 35 – 35 0.06Adjusted (non-GAAP) $ 1,088 $ 230 $ 858 $ – $ 858 $ 1.52Interest expense, net 95Adjusted EBITA (non-GAAP) $ 1,183
1 Amortization of intangibles includes $50 reported in cost of sales.2 Restructuring and related costs includes $4 reported in cost of sales and selling, general and administrative expenses.3 Non-Controlling Interests for AspenTech ceased as of March 12, 2025 with the completion of the buy-in.
Table 7Reconciliations of Non-GAAP Financial Measures & OtherReconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except pershare amounts). See tables 4 through 6 for additional non-GAAP reconciliations.2025 Q3 Underlying Sales Change Reported (Favorable) / (Acquisitions) / Underlying Unfavorable FX DivestituresFinal Control 7% (2)% -% 5%Measurement & Analytical 3% (1)% -% 2%Discrete Automation 5% (2)% -% 3%Safety & Productivity (1)% (1)% -% (2)%Intelligent Devices 4% (1)% -% 3%Control Systems & Software 4% (1)% -% 3%Test & Measurement 2% (3)% -% (1)%Software and Control 3% (1)% -% 2%Emerson 4% (1)% -% 3%Nine Months Ended June 30, 2025 Underlying Sales Change Reported (Favorable) / (Acquisitions) / Underlying Unfavorable FX DivestituresFinal Control 4% -% -% 4%Measurement & Analytical 2% -% -% 2%Discrete Automation (1)% -% -% (1)%Safety & Productivity (4)% -% -% (4)%Intelligent Devices 1% -% -% 1%Control Systems & Software 7% -% -% 7%Test & Measurement (2)% -% -% (2)%Software and Control 4% -% -% 4%Emerson 2% -% -% 2%
Underlying Growth Guidance 2025 Q4 2025 Guidance GuidanceReported (GAAP) 5.5% – 6.5% 3.5%(Favorable) / Unfavorable FX 0.5 pts -(Acquisitions) / Divestitures – -Underlying (non-GAAP) 5% – 6% 3.5%
2024 Q3 Adjusted Segment EBITA EBIT EBIT Amortization Restructuring Adjusted Adjusted Margin of and Related Segment Segment Intangibles Costs EBITA EBITA MarginFinal Control $ 253 24.2% $ 21 $ 5 $ 279 26.8%Measurement & Analytical 252 25.6% 11 3 266 27.0%Discrete Automation 109 17.6% 9 16 134 21.5%Safety & Productivity 79 22.5% 6 1 86 24.7%Intelligent Devices $ 693 23.1% $ 47 $ 25 $ 765 25.5%Control Systems & Software 217 20.8% 127 4 348 33.3%Test & Measurement (88) (24.7)% 139 25 76 21.4%Software and Control $ 129 9.2% $ 266 $ 29 $ 424 30.3%2025 Q3 Adjusted Segment EBITA EBIT EBIT Amortization Restructuring Adjusted Adjusted Margin of and Related Segment Segment Intangibles Costs EBITA EBITA MarginFinal Control $ 267 23.9% $ 22 $ 3 $ 292 26.2%Measurement & Analytical 246 24.2% 11 2 259 25.5%Discrete Automation 118 18.2% 8 6 132 20.4%Safety & Productivity 73 21.1% 7 – 80 22.9%Intelligent Devices $ 704 22.5% $ 48 $ 11 $ 763 24.4%Control Systems & Software 267 24.7% 114 7 388 35.9%Test & Measurement (26) (7.2)% 107 – 81 22.4%Software and Control $ 241 16.7% $ 221 $ 7 $ 469 32.6%
Total Adjusted Segment EBITA 2024 Q3 2025 Q3Pretax earnings (GAAP) $ 455 $ 734Margin 10.4% 16.1%Corporate items and interest expense, net 367 211Amortization of intangibles 313 269Restructuring and related costs 54 18Adjusted segment EBITA (non-GAAP) $ 1,189 $ 1,232Margin 27.1% 27.1%
Free Cash Flow 2024 Q3 2025 Q3 2025E ($ in billions)Operating cash flow (GAAP) $ 1,067 $ 1,062 $3.6Capital expenditures (92) (92) (0.4)Free cash flow (non-GAAP) $ 975 $ 970 $3.2
Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures.Note 2: All fiscal year 2025E figures are approximate, except where range is given.
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