Emerson Highlights Strategy for Engineering the Autonomous Future at 2025 Investor Conference

Rhea-AI Summary

Emerson (NYSE: EMR) hosted its 2025 Investor Conference on November 20, 2025 and introduced new 2028 financial targets and a shareholder return plan. Key targets include $21 billion in net sales (5% organic CAGR), a 30% adjusted segment EBITA margin (2.4 ppt expansion), $8.00 adjusted EPS (10% CAGR) and $12 billion cumulative free cash flow for 2026–2028.

The company said it plans to return $10 billion to shareholders through share repurchases and increased dividends through 2028 and reiterated its 2026 Q1 and full‑year outlook provided on November 5, 2025. Emerson also published a through‑the‑cycle framework: 4–7% organic sales growth, 40% incremental margins, 10% adjusted EPS growth and 18–20% free cash flow margin.

Positive

• $21B net sales target for 2028 (5% organic CAGR)
• 30% adjusted segment EBITA margin target
• $8.00 adjusted EPS target (10% CAGR to 2028)
• $12B cumulative free cash flow projected for 2026–2028
• Plan to return $10B to shareholders through 2028

Negative

• Target requires 2.4 ppt segment EBITA margin expansion
• $10B shareholder returns consume most of $12B projected FCF

Introduces 2028 Financial Targets Reflecting Enhanced Growth and Profitability

Announces Plan to Return $10 Billion to Shareholders Through 2028

ST. LOUIS, Nov. 20, 2025 /PRNewswire/ -- Emerson (NYSE: EMR) today hosted its 2025 Investor Conference, during which it outlined its strategic priorities for engineering the autonomous future and introduced new 2028 financial targets.

"The new Emerson is a global automation leader built for value creation – with a differentiated portfolio, broad exposure to high-growth markets and an unparalleled software-defined technology stack," said Emerson President and Chief Executive Officer Lal Karsanbhai. "With our successful transformation complete, Emerson is well positioned for the future, and we will continue to play a leading role as our customers invest in autonomous operations."

Karsanbhai continued, "The 2028 targets we provided today underscore our conviction in Emerson's ability to extend our track record of strong financial performance and deliver even greater value for our shareholders. Emerson will capture significant organic growth from innovation and secular tailwinds across our key growth verticals: power, LNG, life sciences, semiconductors and aerospace & defense. Price realization, operational excellence and acquisition synergies will drive further margin expansion. Supported by robust cash generation, we will prioritize returning significant capital to shareholders."

Emerson also provided an updated through-the-cycle value creation framework:

• 4 – 7% organic sales growth
• 40% incremental margins
• 10% adjusted EPS growth
• 18 – 20% free cash flow margin

Consistent with the value creation framework, Emerson's new 2028 financial targets include:

• $21 billion in net sales, a 5% organic CAGR
• 30% adjusted segment EBITA margin, 2.4 percentage points of expansion
• $8.00 adjusted EPS, a 10% CAGR
• $12 billion of cumulative free cash flow from 2026 through 2028, with plans to return $10 billion to shareholders through share repurchases and increased dividends

The Company also reiterated its 2026 Q1 and full-year outlook provided on November 5, 2025.

The Investor Conference webcast replay and presentation are available on Emerson's Investor Relations page at https://ir.emerson.com/.

About Emerson

Emerson (NYSE: EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. 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 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 our 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.

Contacts
Investors	Media
Colleen Mettler	Joseph Sala / Greg Klassen / Connor Murphy
(314) 553-2197	Joele Frank, Wilkinson Brimmer Katcher
	(212) 355-4449

 

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SOURCE Emerson

FAQ

What 2028 financial targets did Emerson (EMR) announce on November 20, 2025?

Emerson announced $21B net sales, 30% adjusted segment EBITA margin, $8.00 adjusted EPS and $12B cumulative free cash flow for 2026–2028.

How much cash will Emerson (EMR) return to shareholders by 2028?

Emerson plans to return $10B to shareholders through share repurchases and increased dividends through 2028.

What organic growth rate did Emerson (EMR) include in its 2028 targets?

The 2028 targets reflect a 5% organic compound annual growth rate to reach $21B in net sales.

What free cash flow did Emerson (EMR) project for 2026–2028 and the implied margin?

Emerson projected $12B cumulative free cash flow for 2026–2028 and a through‑the‑cycle free cash flow margin of 18–20%.

What margin improvement is embedded in Emerson's (EMR) 2028 targets?

The targets require a 2.4 percentage‑point expansion to reach a 30% adjusted segment EBITA margin by 2028.