Emerson Reports Second Quarter 2025 Results; Updates 2025 Outlook

Rhea-AI Summary

Emerson (NYSE: EMR) reported its Q2 2025 results with net sales up 1% to $4.43B and underlying orders growth of 4%. The company achieved adjusted EPS of $1.48, up 9% from the previous year, while GAAP EPS decreased 9% to $0.86. Operating cash flow improved 13% to $825M, and free cash flow increased 14% to $738M. Notably, the company reached record gross profit and adjusted segment EBITA margins of 28%. Emerson updated its FY2025 outlook, projecting net sales growth of ~4% and adjusted EPS guidance of $5.90-$6.05. The company plans to return ~$2.3B to shareholders through $1.1B in share repurchases and ~$1.2B in dividends. Additionally, Emerson declared a quarterly dividend of $0.5275 per share, payable June 10, 2025. The company also announced the completion of the AspenTech buy-in on March 12 and decided to retain its Safety & Productivity segment following a strategic review.

Positive

• Adjusted EPS increased 9% to $1.48
• Record adjusted segment EBITA margins of 28%, up 200 bps
• Operating cash flow up 13% to $825M
• Free cash flow improved 14% to $738M
• Underlying orders growth of 4%
• Plans to return ~$2.3B to shareholders through buybacks and dividends

Negative

• GAAP EPS declined 9% to $0.86
• Pretax earnings margin decreased 210 bps to 14.2%
• Net sales growth of only 1% to $4.43B

Insights

Financial Analyst

Emerson's Q2 shows modest growth but strong margins; raised guidance and 9% higher adjusted EPS signal operational excellence.

Emerson delivered a quarter that underscores its operational excellence despite modest top-line growth. The company reported $4.43 billion in Q2 sales (up 1%), with underlying sales growth of 2% and underlying orders growth of 4% – indicating potential acceleration in future quarters.

The headline metrics reveal an important contrast: GAAP pretax earnings fell to $629 million (down 11.5%) with margins contracting 210 basis points to 14.2%, while adjusted segment EBITA rose to $1.24 billion with margins expanding 200 basis points to a record 28.0%. This divergence reflects transaction costs from the recently completed AspenTech buy-in, which management identified as concluding Emerson's portfolio transformation.

Cash generation remains particularly robust with operating cash flow up 13% to $825 million and free cash flow increasing 14% to $738 million. This strong cash conversion supports the company's plans to return approximately $2.3 billion to shareholders in fiscal 2025 through $1.1 billion in share repurchases and $1.2 billion in dividends.

Looking ahead, management has expressed increased confidence by raising full-year net sales growth guidance to approximately 4% and adjusted EPS guidance at the midpoint to $5.90-$6.05. The company maintained its underlying sales growth target at approximately 4%. Management specifically noted their ability to navigate the "tariff environment" effectively, which along with stronger-than-expected margin performance, provided confidence for the improved outlook.

The strategic decision to retain the Safety & Productivity segment after a review of alternatives highlights management's belief in the segment's "industry leading margins and cash flow" – suggesting a focus on maintaining high-performing assets rather than further portfolio reshaping.

ST. LOUIS, May 7, 2025 /PRNewswire/ -- 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.

(dollars in millions, except per share)	2024 Q2	2025 Q2	Change
Underlying Orders2			4 %
Net Sales	$4,376	$4,432	1 %
Underlying Sales3			2 %
Pretax Earnings	$711	$629
Margin	16.3 %	14.2 %	(210) bps
Adjusted Segment EBITA4	$1,139	$1,240
Margin	26.0 %	28.0 %	200 bps
GAAP Earnings Per Share	$0.95	$0.86	(9) %
Adjusted Earnings Per Share5	$1.36	$1.48	9 %
Operating Cash Flow	$733	$825	13 %
Free Cash Flow	$651	$738	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	4.5% - 5.5%	~4%
Underlying Sales Growth	3.5% - 4.5%	~4%
Earnings Per Share	$1.04 - $1.08	$4.05 - $4.20
Amortization of Intangibles	~$0.36	~$1.34
Restructuring / Related Costs	~$0.06	~$0.20
Acquisition / Divestiture Fees and Related Costs	~$0.02	~$0.22
Discrete taxes related to AspenTech transaction		$0.09
Adjusted Earnings Per Share	$1.48 - $1.52	$5.90 - $6.05
Operating Cash Flow		$3.5B - $3.6B
Free Cash Flow		$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.

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

(tables attached)

 

					Table 1
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
	Quarter Ended March 31,				Six Months Ended March 31,
	2024		2025		2024		2025
Net sales	$   4,376		$   4,432		$   8,493		$   8,608
Cost of sales	2,092		2,061		4,293		4,002
SG&A expenses	1,296		1,283		2,573		2,506
Gain on subordinated interest	(79)		—		(79)		—
Other deductions, net	330		418		781		646
Interest expense, net	57		41		101		50
Interest income from related party1	(31)		—		(62)		—
Earnings from continuing operations before income taxes	711		629		886		1,404
Income taxes	162		199		178		382
Earnings from continuing operations	549		430		708		1,022
Discontinued operations, net of tax	(46)		—		(73)		—
Net earnings	503		430		635		1,022
Less: Noncontrolling interests in subsidiaries	2		(55)		(8)		(48)
Net earnings common stockholders	$      501		$      485		$      643		$   1,070
Earnings common stockholders
Earnings from continuing operations	$      547		$      485		$      716		$   1,070
Discontinued operations	(46)		—		(73)		—
Net earnings common stockholders	$      501		$      485		$      643		$   1,070
Diluted avg. shares outstanding	574.1		565.4		573.7		568.2
Diluted earnings per share common stockholders
Earnings from continuing operations	$     0.95		$     0.86		$     1.24		$     1.88
Discontinued operations	(0.08)		—		(0.12)		—
Diluted earnings per common share	$     0.87		$     0.86		$     1.12		$     1.88
	Quarter Ended March 31,				Six Months Ended March 31,
	2024		2025		2024		2025
Other deductions, net
Amortization of intangibles	$      273		$      229		$      547		$      457
Restructuring costs	30		21		113		32
Other	27		168		121		157
Total	$      330		$      418		$      781		$      646

1 Represents interest on the Copeland note receivable.

 

			Table 2
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
	Sept 30, 2024		Mar 31, 2025
Assets
Cash and equivalents	$           3,588		$           1,887
Receivables, net	2,927		2,901
Inventories	2,180		2,216
Other current assets	1,497		1,623
Total current assets	10,192		8,627
Property, plant & equipment, net	2,807		2,757
Goodwill	18,067		17,999
Other intangible assets	10,436		9,823
Other	2,744		2,772
Total assets	$         44,246		$         41,978
Liabilities and equity
Short-term borrowings and current maturities of long-term debt	$              532		$           6,187
Accounts payable	1,335		1,340
Accrued expenses	3,875		3,319
Total current liabilities	5,742		10,846
Long-term debt	7,155		8,176
Other liabilities	3,840		3,690
Equity
Common stockholders' equity	21,636		19,249
Noncontrolling interests in subsidiaries	5,873		17
Total equity	27,509		19,266
Total liabilities and equity	$         44,246		$         41,978

 

				Table 3
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
	Six Months Ended March 31,
		2024		2025
Operating activities
Net earnings		$              635		$           1,022
Earnings from discontinued operations, net of tax		73		—
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		846		767
Stock compensation		147		127
Amortization of acquisition-related inventory step-up		231		—
Gain on subordinated interest		(79)		—
Changes in operating working capital		(347)		(203)
Other, net		(329)		(110)
Cash from continuing operations		1,177		1,603
Cash from discontinued operations		(19)		(585)
Cash provided by operating activities		1,158		1,018
Investing activities
Capital expenditures		(159)		(170)
Purchases of businesses, net of cash and equivalents acquired		(8,342)		(36)
Proceeds from subordinated interest		79		—
Other, net		(68)		(58)
Cash from continuing operations		(8,490)		(264)
Cash from discontinued operations		1		—
Cash used in investing activities		(8,489)		(264)
Financing activities
Net increase in short-term borrowings		2,464		2,628
Proceeds from short-term borrowings greater than three months		99		2,496
Proceeds from long-term debt		—		1,544
Dividends paid		(600)		(598)
Purchases of common stock		(175)		(1,122)
AspenTech purchases of common stock		(129)		—
Purchase of noncontrolling interest		—		(7,171)
Settlement of AspenTech share awards		—		(76)
Other, net		(46)		(83)
Cash provided by (used in) financing activities		1,613		(2,382)
Effect of exchange rate changes on cash and equivalents		(15)		(73)
Decrease in cash and equivalents		(5,733)		(1,701)
Beginning cash and equivalents		8,051		3,588
Ending cash and equivalents		$            2,318		$           1,887

 

Table 4

EMERSON AND SUBSIDIARIES SEGMENT 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 intended to supplement the Company's results of operations, including its segment earnings which are defined as earnings before interest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excluding intangibles amortization expense, and restructuring and related expense. Adjusted segment and total segment EBITA, and adjusted segment and total segment EBITA margin are measures used by management and may be useful for investors to evaluate the Company's segments' operational performance.

	Quarter Ended March 31,
	2024		2025		Reported		Underlying
Sales
Final Control	$           1,051		$           1,073		2 %		3 %
Measurement & Analytical	1,013		1,002		(1) %		— %
Discrete Automation	632		615		(3) %		(1) %
Safety & Productivity	365		339		(7) %		(6) %
Intelligent Devices	$           3,061		$           3,029		(1) %		— %
Control Systems & Software1	965		1,062		10 %		11 %
Test & Measurement	367		359		(2) %		(1) %
Software and Control	$           1,332		$           1,421		7 %		7 %
Eliminations	(17)		(18)
Total	$           4,376		$           4,432		1 %		2 %
Sales Growth by Geography
	Quarter Ended March 31,
Americas	3 %
Europe	(1) %
Asia, Middle East & Africa	3 %

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.
	Six Months Ended March 31,
	2024		2025		Reported		Underlying
Sales
Final Control	$           1,991		$           2,049		3 %		4 %
Measurement & Analytical	1,960		1,977		1 %		2 %
Discrete Automation	1,245		1,195		(4) %		(3) %
Safety & Productivity	687		651		(5) %		(5) %
Intelligent Devices	$           5,883		$           5,872		— %		1 %
Control Systems & Software	1,897		2,055		8 %		9 %
Test & Measurement	749		718		(4) %		(3) %
Software and Control	$           2,646		$           2,773		5 %		6 %
Eliminations	(36)		(37)
Total	$           8,493		$           8,608		1 %		2 %
Sales Growth by Geography
	Six Months Ended March 31,
Americas	3 %
Europe	(2) %
Asia, Middle East & Africa	3 %

Table 4 cont.
	Quarter Ended March 31,				Quarter Ended March 31,
	2024				2025
	As Reported (GAAP)		Adjusted EBITA (Non-GAAP)		As Reported (GAAP)		Adjusted EBITA (Non-GAAP)
Earnings
Final Control	$          259		$          274		$          267		$          290
Margins	24.7 %		26.1 %		24.9 %		27.0 %
Measurement & Analytical	274		287		266		279
Margins	27.0 %		28.3 %		26.6 %		27.8 %
Discrete Automation	116		131		117		130
Margins	18.4 %		20.9 %		19.0 %		21.2 %
Safety & Productivity	83		91		75		82
Margins	22.7 %		24.7 %		22.2 %		24.3 %
Intelligent Devices	$          732		$          783		$          725		$          781
Margins	23.9 %		25.6 %		23.9 %		25.8 %
Control Systems & Software	143		278		239		372
Margins	14.8 %		28.8 %		22.5 %		35.0 %
Test & Measurement	(79)		78		(24)		87
Margins	(21.7) %		21.4 %		(6.8) %		24.2 %
Software and Control	$            64		$          356		$          215		$          459
Margins	4.7 %		26.7 %		15.1 %		32.3 %
Corporate items and interest expense, net:
Stock compensation	(73)		(59)		(59)		(50)
Unallocated pension and postretirement costs	38		38		27		27
Corporate and other	(103)		(46)		(238)		(74)
Gain on subordinated interest	79		—		—		—
Interest expense, net	(57)		—		(41)		—
Interest income from related party1	31		—		—		—
Pretax Earnings / Adjusted EBITA	$          711		$        1,072		$          629		$        1,143
Margins	16.3 %		24.5 %		14.2 %		25.8 %
Supplemental Total Segment Earnings:
Adjusted Total Segment EBITA			$        1,139				$        1,240
Margins			26.0 %				28.0 %

1 Represents interest on the Copeland note receivable.

Table 4 cont.
	Quarter Ended March 31,				Quarter Ended March 31,
	2024				2025
	Amortization of Intangibles1		Restructuring and Related Costs2		Amortization of Intangibles1		Restructuring and Related Costs2
Final Control	$                   22		$                    (7)		$                   21		$                     2
Measurement & Analytical	12		1		11		2
Discrete Automation	8		7		8		5
Safety & Productivity	7		1		6		1
Intelligent Devices	$                   49		$                     2		$                   46		$                   10
Control Systems & Software	132		3		127		6
Test & Measurement	141		16		105		6
Software and Control	$                 273		$                   19		$                 232		$                   12
Corporate	—		123		—		53
Total	$                 322		$                   33		$                 278		$                   27

1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended March 31, 2024 and 2025, respectively.

2 Restructuring and related costs includes $3 and $6 reported in cost of sales and selling, general and administrative expenses for the three months ended March 31, 2024 and 2025, respectively.

3 Corporate restructuring of $5 for the three months ended March 31, 2025 includes $1 related to integration-related stock compensation expense attributable to AspenTech. Corporate restructuring of $12 for the three months ended March 31, 2024 includes $10 related to integration-related stock compensation expense attributable to NI.

	Quarter Ended March 31,
Depreciation and Amortization	2024		2025
Final Control	$                39		$                41
Measurement & Analytical	33		31
Discrete Automation	21		22
Safety & Productivity	15		14
Intelligent Devices	108		108
Control Systems & Software	152		146
Test & Measurement	153		119
Software and Control	305		265
Corporate	11		11
Total	$              424		$              384

 

Table 5
EMERSON AND SUBSIDIARIES ADJUSTED 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. The Company's definition of adjusted corporate and other excludes corporate restructuring and related costs, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. This metric is useful for reconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.
					Quarter Ended March 31,
					2024		2025
Stock compensation (GAAP)					$                  (73)		$                  (59)
Integration-related stock compensation expense					141		92
Adjusted stock compensation (non-GAAP)					$                  (59)		$                  (50)
					Quarter Ended March 31,
					2024		2025
Corporate and other (GAAP)					$                (103)		$                (238)
Corporate restructuring and related costs					2		4
Acquisition / divestiture costs					16		160
Loss on divestiture of business					39		—
Adjusted corporate and other (non-GAAP)					$                  (46)		$                  (74)

1 Integration-related stock compensation expense for the three months ended March 31, 2024 relates to NI and includes $10 reported as restructuring costs.

2 Integration-related stock compensation expense for the three months ended March 31, 2025 relates to AspenTech and includes $1 reported as restructuring costs.

 

Table 6
EMERSON AND SUBSIDIARIES ADJUSTED 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 adjusted EBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense, restructuring expense, 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 purchase accounting related items and transaction-related costs, and certain gains, losses or impairments. Adjusted EBITA, adjusted EBITA margin, and adjusted earnings per share are measures used by management and may be useful for investors to evaluate the Company's operational performance.
	Quarter Ended March 31,
	2024		2025
Pretax earnings	$             711		$             629
Percent of sales	16.3 %		14.2 %
Interest expense, net	57		41
Interest income from related party1	(31)		—
Amortization of intangibles	322		278
Restructuring and related costs	33		27
Acquisition/divestiture fees and related costs	20		168
Loss on divestiture of business	39		—
Gain on subordinated interest	(79)		—
Adjusted EBITA	$          1,072		$          1,143
Percent of sales	24.5 %		25.8 %
	Quarter Ended March 31,
	2024		2025
GAAP earnings from continuing operations per share	$            0.95		$            0.86
Amortization of intangibles	0.36		0.32
Restructuring and related costs	0.05		0.04
Discrete taxes related to AspenTech transaction	—		0.09
Acquisition/divestiture fees and related costs	0.03		0.17
Loss on divestiture of business	0.07		—
Gain on subordinated interest	(0.10)		—
Adjusted earnings from continuing operations per share	$            1.36		$            1.48
1 Represents interest on the Copeland note receivable

Table 6 cont.
Quarter Ended March 31, 2025
	Pretax Earnings		Income Taxes		Earnings from Cont. Ops.		Non- Controlling Interests3		Net Earnings Common Stockholders		Diluted Earnings Per Share
As reported (GAAP)	$         629		$         199		$         430		$         (55)		$            485		$        0.86
Amortization of intangibles	2781		63		215		32		183		0.32
Restructuring and related costs	272		5		22		—		22		0.04
Acquisition/divestiture fees and related costs	168		22		146		48		98		0.17
Discrete taxes related to AspenTech transaction	—		(49)		49		—		49		0.09
Adjusted (non-GAAP)	$      1,102		$         240		$         862		$           25		$            837		$        1.48
Interest expense, net	41
Adjusted EBITA (non-GAAP)	$      1,143

1 Amortization of intangibles includes $49 reported in cost of sales.

2 Restructuring and related costs includes $6 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.

 

Reconciliations of Non-GAAP Financial Measures & Other				Table 7
Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts). See tables 4 through 6 for additional non-GAAP reconciliations.
2025 Q2 Underlying Sales Change	Reported	(Favorable) / Unfavorable FX	(Acquisitions) / Divestitures	Underlying
Final Control	2 %	1 %	— %	3 %
Measurement & Analytical	(1) %	1 %	— %	— %
Discrete Automation	(3) %	2 %	— %	(1) %
Safety & Productivity	(7) %	1 %	— %	(6) %
Intelligent Devices	(1) %	1 %	— %	— %
Control Systems & Software	10 %	1 %	— %	11 %
Test & Measurement	(2) %	1 %	— %	(1) %
Software and Control	7 %	— %	— %	7 %
Emerson	1 %	1 %	— %	2 %
Six Months Ended March 31, 2025 Underlying Sales Change	Reported	(Favorable) / Unfavorable FX	(Acquisitions) / Divestitures	Underlying
Final Control	3 %	1 %	— %	4 %
Measurement & Analytical	1 %	1 %	— %	2 %
Discrete Automation	(4) %	1 %	— %	(3) %
Safety & Productivity	(5) %	— %	— %	(5) %
Intelligent Devices	— %	1 %	— %	1 %
Control Systems & Software	8 %	1 %	— %	9 %
Test & Measurement	(4) %	1 %	— %	(3) %
Software and Control	5 %	1 %	— %	6 %
Emerson	1 %	1 %	— %	2 %

Underlying Growth Guidance	2025 Q3 Guidance	2025 Guidance
Reported (GAAP)	4.5% - 5.5%	~4%
(Favorable) / Unfavorable FX	~1 pt	-
(Acquisitions) / Divestitures	-	-
Underlying (non-GAAP)	3.5% - 4.5%	~4%

2024 Q2 Adjusted Segment EBITA	EBIT	EBIT Margin	Amortization of Intangibles	Restructuring and Related Costs	Adjusted Segment EBITA	Adjusted Segment EBITA Margin
Final Control	$               259	24.7 %	$                 22	$                   (7)	$               274	26.1 %
Measurement & Analytical	274	27.0 %	12	1	287	28.3 %
Discrete Automation	116	18.4 %	8	7	131	20.9 %
Safety & Productivity	83	22.7 %	7	1	91	24.7 %
Intelligent Devices	$               732	23.9 %	$                 49	$                     2	$               783	25.6 %
Control Systems & Software	143	14.8 %	132	3	278	28.8 %
Test & Measurement	(79)	(21.7) %	141	16	78	21.4 %
Software and Control	$                 64	4.7 %	$               273	$                  19	$               356	26.7 %
2025 Q2 Adjusted Segment EBITA	EBIT	EBIT Margin	Amortization of  Intangibles	Restructuring and Related Costs	Adjusted Segment EBITA	Adjusted Segment EBITA Margin
Final Control	$               267	24.9 %	$                 21	$                     2	$               290	27.0 %
Measurement & Analytical	266	26.6 %	11	2	279	27.8 %
Discrete Automation	117	19.0 %	8	5	130	21.2 %
Safety & Productivity	75	22.2 %	6	1	82	24.3 %
Intelligent Devices	$               725	23.9 %	$                 46	$                  10	$               781	25.8 %
Control Systems & Software	239	22.5 %	127	6	372	35.0 %
Test & Measurement	(24)	(6.8) %	105	6	87	24.2 %
Software and Control	$               215	15.1 %	$               232	$                  12	$               459	32.3 %

Total Adjusted Segment EBITA		2024 Q2	2025 Q2
Pretax earnings (GAAP)		$                 711	$                 629
Margin		16.3 %	14.2 %
Corporate items and interest expense, net		85	311
Amortization of intangibles		322	278
Restructuring and related costs		21	22
Adjusted segment EBITA (non-GAAP)		$              1,139	$              1,240
Margin		26.0 %	28.0 %

Free Cash Flow		2024 Q2	2025 Q2		2025E ($ in billions)
Operating cash flow (GAAP)		$                 733	$                 825		$3.5 - $3.6
Capital expenditures		(82)	(87)		~(0.4)
Free cash flow (non-GAAP)		$                 651	$                 738		$3.1 - $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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SOURCE Emerson

FAQ

What were Emerson's (EMR) Q2 2025 earnings per share?

Emerson reported Q2 2025 GAAP EPS of $0.86 (down 9%) and adjusted EPS of $1.48 (up 9%) compared to the previous year.

How much dividend did Emerson (EMR) declare for Q2 2025?

Emerson declared a quarterly cash dividend of $0.5275 per share, payable June 10, 2025 to stockholders of record on May 16, 2025.

What is Emerson's (EMR) revenue guidance for fiscal 2025?

Emerson expects net sales growth of approximately 4% for fiscal 2025, with underlying sales growth also projected at ~4%.

How much cash does Emerson (EMR) plan to return to shareholders in 2025?

Emerson plans to return approximately $2.3 billion to shareholders through $1.1 billion in share repurchases and ~$1.2 billion in dividends.

What happened to Emerson's Safety & Productivity segment review?

Following a strategic review, Emerson decided to retain the Safety & Productivity segment, determining it would provide the best value for shareholders.