Emerson Reports First Quarter 2025 Results; Updates 2025 Outlook

Rhea-AI Summary

Emerson (NYSE: EMR) reported strong Q1 2025 results with net sales reaching $4,175 million, up 1% from the previous year. The company demonstrated significant improvements in profitability, with pretax earnings margin expanding to 18.6% from 4.2% year-over-year. Adjusted earnings per share increased 13% to $1.38, while operating cash flow grew 75% to $777 million.

The company updated its fiscal 2025 outlook, projecting net sales growth of 1.5-3.5% and underlying sales growth of 3-5%. Emerson plans to return approximately $3.2 billion to shareholders through $2.0 billion in share repurchases and $1.2 billion in dividend payments. The company declared a quarterly dividend of $0.5275 per share, payable March 10, 2025.

Positive

• Net sales increased 1% to $4,175 million
• Pretax earnings margin expanded significantly to 18.6% (up 1440 bps)
• Adjusted EPS grew 13% to $1.38
• Operating cash flow increased 75% to $777 million
• Record gross profit margin and adjusted segment EBITA margin of 28.0%
• Planned $3.2 billion shareholder return through buybacks and dividends

Negative

• Q2 2025 guidance shows potential negative sales growth (-0.5% to 0.5%)

Insights

Financial Analyst

Emerson's Q1 2025 results showcase impressive operational execution and financial discipline. The standout 340 basis point expansion in adjusted segment EBITA margin to 28.0% reflects successful portfolio optimization and operational efficiency initiatives. The 89% surge in free cash flow to $694M provides substantial financial flexibility for both strategic investments and shareholder returns.

The maintained FY2025 guidance amid market uncertainties demonstrates management's confidence in their execution capabilities. The robust $3.2B shareholder return program, combining substantial share repurchases with a stable dividend policy, indicates strong cash generation sustainability and balanced capital allocation strategy.

Two key metrics deserve attention: First, the 252% increase in GAAP EPS to $1.02 reflects significant margin improvement and operational efficiency. Second, the steady 1-2% underlying order growth, while modest, suggests resilient demand in core markets despite broader economic uncertainties.

The upcoming portfolio transactions involving AspenTech and Safety & Productivity segments, though not included in current guidance, position Emerson for enhanced focus on high-margin industrial technology solutions. The sustained quarterly dividend of $0.5275 per share, maintained despite significant portfolio changes, underscores management's commitment to consistent shareholder returns while pursuing strategic transformation.

ST. LOUIS, Feb. 5, 2025 /PRNewswire/ -- Emerson (NYSE: EMR) today reported results¹ for its first quarter ended December 31, 2024 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 March 10, 2025 to stockholders of record on February 14, 2025.

(dollars in millions, except per share)	2024 Q1	2025 Q1	Change
Underlying Orders2			1 %
Net Sales	$4,117	$4,175	1 %
Underlying Sales3			2 %
Pretax Earnings	$175	$775
Margin	4.2 %	18.6 %	1440 bps
Adjusted Segment EBITA4	$1,014	$1,169
Margin	24.6 %	28.0 %	340 bps
GAAP Earnings Per Share	$0.29	$1.02	252 %
Adjusted Earnings Per Share5	$1.22	$1.38	13 %
Operating Cash Flow	$444	$777	75 %
Free Cash Flow	$367	$694	89 %

Management Commentary

"Emerson began the fiscal year on a strong note, exceeding first quarter expectations for incremental operating margins and earnings per share with strong cash flow generation," said Emerson President and Chief Executive Officer Lal Karsanbhai. "Our record gross profit margin and adjusted segment EBITA margin reflect the strength of our transformed industrial technology portfolio and Emerson Management System, as well as the talent and dedication of our world-class team."

Karsanbhai continued, "We reiterate our guide for underlying sales, earnings per share and cash flow driven by resilient demand in process and hybrid markets, expected second half discrete recovery and our proven ability to execute. Our team remains energized, and we look forward to continuing the positive momentum across our business, including progressing in the final phase of our portfolio transformation."

2025 Outlook

The following tables summarize the fiscal year 2025 guidance framework and does not include any impact from the recently announced portfolio transactions⁶ related to AspenTech and Safety & Productivity. The 2025 outlook assumes returning approximately $3.2 billion to shareholders through approximately $2.0 billion of share repurchases and approximately $1.2 billion of dividend payments. Guidance figures are approximate.

	2025 Q2	2025
Net Sales Growth	(0.5%) - 0.5%	1.5% - 3.5%
Underlying Sales Growth	1% - 2%	3% - 5%
Earnings Per Share	$1.01 - $1.05	$4.42 - $4.62
Amortization of Intangibles	~$0.31	~$1.21
Restructuring / Related Costs	~$0.04	~$0.14
Acquisition / Divestiture Fees and Related Costs	~$0.02	~$0.08
Adjusted Earnings Per Share	$1.38 - $1.42	$5.85 - $6.05
Operating Cash Flow		$3.6B - $3.7B
Free Cash Flow		$3.2B - $3.3B

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, the amortization of acquisition-related inventory step-up, acquisition/divestiture gains, losses, fees and related costs, and discrete taxes.

6 Guidance includes Safety & Productivity and assumes AspenTech at our current ownership of ~57% outstanding shares.

Conference Call

Today, beginning at 7:30 a.m. Central Time / 8:30 a.m. Eastern Time, Emerson management will discuss the first 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 technology and software company providing innovative solutions for the world's essential industries. Through its leading automation portfolio, including its majority stake in AspenTech, Emerson helps hybrid, process and discrete manufacturers optimize operations, protect personnel, reduce emissions and achieve their sustainability goals. 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 Dec 31
	2023		2024
Net sales	$           4,117		$           4,175
Cost and expenses
Cost of sales	2,201		1,940
SG&A expenses	1,277		1,224
Other deductions, net	451		228
Interest expense, net	44		8
Interest income from related party1	(31)		—
Earnings from continuing operations before income taxes	175		775
Income taxes	16		182
Earnings from continuing operations	159		593
Discontinued operations, net of tax	(27)		—
Net earnings	132		593
Less: Noncontrolling interests in subsidiaries	(10)		8
Net earnings common stockholders	$              142		$              585
Earnings common stockholders
Earnings from continuing operations	$              169		$              585
Discontinued operations	(27)		—
Net earnings common stockholders	$              142		$              585
Diluted avg. shares outstanding	573.3		571.1
Diluted earnings per share common stockholders
Earnings from continuing operations	$             0.29		$             1.02
Discontinued operations	(0.04)		—
Diluted earnings per common share	$             0.25		$             1.02
	Quarter Ended Dec 31
	2023		2024
Other deductions, net
Amortization of intangibles	$              274		$              229
Restructuring costs	83		11
Other	94		(12)
Total	$              451		$              228
1 Represents interest on the Copeland note receivable

 

			Table 2
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
	Sept 30, 2024		Dec 31, 2024
Assets
Cash and equivalents	$           3,588		$           2,834
Receivables, net	2,927		2,694
Inventories	2,180		2,200
Other current assets	1,497		1,466
Total current assets	10,192		9,194
Property, plant & equipment, net	2,807		2,743
Goodwill	18,067		17,906
Other Intangibles	10,436		10,025
Other	2,744		2,742
Total assets	$         44,246		$         42,610
Liabilities and equity
Short-term borrowings and current maturities of long-term debt	$              532		$           1,066
Accounts payable	1,335		1,260
Accrued expenses	3,875		3,632
Total current liabilities	5,742		5,958
Long-term debt	7,155		6,557
Other liabilities	3,840		3,716
Equity
Common stockholders' equity	21,636		20,490
Noncontrolling interests in subsidiaries	5,873		5,889
Total equity	27,509		26,379
Total liabilities and equity	$         44,246		$         42,610

 

				Table 3
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
	Three Months Ended Dec 31
		2023		2024
Operating activities
Net earnings		$              132		$              593
Earnings from discontinued operations, net of tax		27		—
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		422		383
Stock compensation		74		68
Amortization of acquisition-related inventory step-up		231		—
Changes in operating working capital		(238)		(154)
Other, net		(204)		(113)
Cash from continuing operations		444		777
Cash from discontinued operations		(29)		—
Cash provided by operating activities		415		777
Investing activities
Capital expenditures		(77)		(83)
Purchases of businesses, net of cash and equivalents acquired		(8,339)		(37)
Other, net		(37)		(22)
Cash from continuing operations		(8,453)		(142)
Cash from discontinued operations		1		—
Cash used in investing activities		(8,452)		(142)
Financing activities
Net increase in short-term borrowings		2,647		2
Payments of long-term debt		—		(2)
Dividends paid		(300)		(301)
Purchases of common stock		(175)		(899)
AspenTech purchases of common stock		(72)		—
Other, net		(45)		(91)
Cash provided by (used in) financing activities		2,055		(1,291)
Effect of exchange rate changes on cash and equivalents		7		(98)
Decrease in cash and equivalents		(5,975)		(754)
Beginning cash and equivalents		8,051		3,588
Ending cash and equivalents		$            2,076		$           2,834

 

			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 Dec 31
	2023		2024		Reported		Underlying
Sales
Final Control	$              940		$              976		4 %		5 %
Measurement & Analytical	947		975		3 %		4 %
Discrete Automation	613		580		(5) %		(4) %
Safety & Productivity	322		312		(3) %		(3) %
Intelligent Devices	$           2,822		$           2,843		1 %		2 %
Control Systems & Software	675		690		2 %		3 %
Test & Measurement	382		359		(6) %		(5) %
AspenTech	257		303		18 %		18 %
Software and Control	$           1,314		$           1,352		3 %		4 %
Eliminations	(19)		(20)
Total	$           4,117		$           4,175		1 %		2 %

Sales Growth by Geography
	Quarter Ended Dec 31
Americas	3 %
Europe	(2) %
Asia, Middle East & Africa	4 %

Table 4 cont.
	Quarter Ended Dec 31				Quarter Ended Dec 31
	2023				2024
	As Reported (GAAP)		Adjusted EBITA (Non-GAAP)		As Reported (GAAP)		Adjusted EBITA (Non-GAAP)
Earnings
Final Control	$          194		$          223		$          236		$          260
Margins	20.6 %		23.6 %		24.2 %		26.6 %
Measurement & Analytical	235		258		285		296
Margins	24.9 %		27.3 %		29.2 %		30.4 %
Discrete Automation	97		116		98		112
Margins	15.8 %		18.9 %		16.9 %		19.3 %
Safety & Productivity	68		74		67		73
Margins	21.1 %		23.1 %		21.6 %		23.8 %
Intelligent Devices	$          594		$          671		$          686		$          741
Margins	21.0 %		23.8 %		24.1 %		26.1 %
Control Systems & Software	149		155		193		200
Margins	22.1 %		23.1 %		27.9 %		28.8 %
Test & Measurement	(78)		101		(13)		91
Margins	(20.4) %		26.5 %		(3.6) %		25.5 %
AspenTech	(35)		87		15		137
Margins	(13.7) %		33.6 %		4.8 %		45.1 %
Software and Control	$            36		$          343		$          195		$          428
Margins	2.8 %		26.1 %		14.4 %		31.6 %
Corporate items and interest expense, net:
Stock compensation	(74)		(44)		(68)		(66)
Unallocated pension and postretirement costs	31		31		27		27
Corporate and other	(399)		(38)		(57)		(34)
Interest expense, net	(44)		—		(8)		—
Interest income from related party1	31		—		—		—
Pretax Earnings / Adjusted EBITA	$          175		$          963		$          775		$        1,096
Margins	4.2 %		23.4 %		18.6 %		26.3 %
Supplemental Total Segment Earnings:
Adjusted Total Segment EBITA			$        1,014				$        1,169
Margins			24.6 %				28.0 %
1 Represents interest on the Copeland note receivable.

Table 4 cont.
	Quarter Ended Dec 31				Quarter Ended Dec 31
	2023				2024
	Amortization of Intangibles1		Restructuring and Related Costs2		Amortization of Intangibles1		Restructuring and Related Costs2
Final Control	$                   22		$                     7		$                   22		$                     2
Measurement & Analytical	20		3		10		1
Discrete Automation	9		10		8		6
Safety & Productivity	6		—		6		—
Intelligent Devices	$                   57		$                   20		$                   46		$                     9
Control Systems & Software	5		1		5		2
Test & Measurement	139		40		105		(1)
AspenTech	122		—		122		—
Software and Control	$                 266		$                   41		$                 232		$                     1
Corporate	—		26	3	—		3
Total	$                 323		$                   87		$                 278		$                   13
1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended December 31, 2023 and 2024, respectively.
2 Restructuring and related costs includes $4 reported in cost of sales for the three months ended December 31, 2023. The three months ended December 31, 2024 includes $2 reported in selling, general and administrative expenses.
3 Corporate restructuring of $26 for the three months ended December 31, 2023 is comprised entirely of integration-related stock compensation expense attributable to NI.

	Quarter Ended Dec 31
Depreciation and Amortization	2023		2024
Final Control	$                40		$                40
Measurement & Analytical	40		31
Discrete Automation	22		21
Safety & Productivity	14		15
Intelligent Devices	116		107
Control Systems & Software	21		23
Test & Measurement	151		118
AspenTech	123		124
Software and Control	295		265
Corporate	11		11
Total	$              422		$              383

 

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 Dec 31
					2023		2024
Stock compensation (GAAP)					$                  (74)		$                  (68)
Integration-related stock compensation expense1					30		2
Adjusted stock compensation (non-GAAP)					$                  (44)		$                  (66)
					Quarter Ended Dec 31
					2023		2024
Corporate and other (GAAP)					$                (399)		$                  (57)
Corporate restructuring and related costs					—		3
Acquisition / divestiture costs					130		20
Amortization of acquisition-related inventory step-up					231		—
Adjusted corporate and other (non-GAAP)					$                  (38)		$                  (34)

1 Integration-related stock compensation expense relates to NI and includes $26 and $— reported as restructuring costs for the three months ended December 31,  2023 and 2024, respectively

 

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 Dec 31
	2023		2024
Pretax earnings	$             175		$             775
Percent of sales	4.2 %		18.6 %
Interest expense, net	44		8
Interest income from related party1	(31)		—
Amortization of intangibles	323		278
Restructuring and related costs	87		13
Acquisition/divestiture fees and related costs	134		22
Amortization of acquisition-related inventory step-up	231		—
Adjusted EBITA	$             963		$          1,096
Percent of sales	23.4 %		26.3 %
	Quarter Ended Dec 31
	2023		2024
GAAP earnings from continuing operations per share	$            0.29		$            1.02
Amortization of intangibles	0.36		0.31
Restructuring and related costs	0.12		0.02
Acquisition/divestiture fees and related costs	0.17		0.03
Amortization of acquisition-related inventory step-up	0.38		—
Discrete taxes	(0.10)		—
Adjusted earnings from continuing operations per share	$            1.22		$            1.38
1 Represents interest on the Copeland note receivable

Table 6 cont.
Quarter Ended December 31, 2024
	Pretax Earnings		Income Taxes		Earnings from Cont. Ops.		Non- Controlling Interests3		Net Earnings Common Stockholders		Diluted Earnings Per Share
As reported (GAAP)	$         775		$         182		$         593		$             8		$            585		$        1.02
Amortization of intangibles	278	1	62		216		41		175		0.31
Restructuring and related costs	13	2	—		13		—		13		0.02
Acquisition/divestiture fees and related costs	22		5		17		—		17		0.03
Adjusted (non-GAAP)	$      1,088		$         249		$         839		$           49		$            790		$        1.38
Interest expense, net	8
Adjusted EBITA (non-GAAP)	$      1,096

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

2 Restructuring and related costs includes $2 reported in selling, general and administrative expenses.

3 Represents the non-controlling interest in AspenTech applied to AspenTech's share of each adjustment presented herein and eliminated from Emerson's consolidated results.

 

Table 7
EMERSON AND SUBSIDIARIES ASPENTECH CONTRIBUTION TO EMERSON RESULTS SUPPLEMENTAL (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
The following tables reconcile the financial results of AspenTech reported to its shareholders with the amounts included in Emerson's consolidated financial results. Emerson currently owns approximately 57 percent of the common shares outstanding of AspenTech, a separately traded public company (NASDAQ: AZPN), and consolidates AspenTech in its financial results. The 43 percent non-controlling interest in AspenTech is removed from Emerson's net earnings common stockholders through the non-controlling interest line item. AspenTech is also one of Emerson's segments and its GAAP segment earnings is reconciled below to its consolidated impact to clarify that certain items are reported outside of its segment earnings within Emerson corporate, including interest income and stock compensation.
Quarter Ended December 31, 2024
	Pretax Earnings		Income Taxes (Benefit)		Earnings from Cont. Ops.		Non- Controlling Interests4		Net Earnings Common Stockholders		Diluted Earnings Per Share
Standalone reporting (GAAP)	$           17	1	$           (3)		$           20
Other	—		2		(2)
Reported in Emerson consolidation (GAAP)	17		(1)		18		8		10		$        0.02
Adjustments:
Amortization of intangibles	122	2	26		96		41		55		0.09
Adjusted (Non-GAAP)	$         139		$           25		$         114		$           49		$             65		$        0.11
Interest income	(17)	3
Stock compensation	15	3
Adjusted segment EBITA (non- GAAP)	$         137
Reconciliation to Segment EBIT
Pre-tax earnings	$           17
Interest income	(17)	3
Stock compensation	15	3
Segment EBIT (GAAP)	$           15
Amortization of intangibles	122	2
Adjusted segment EBITA (non- GAAP)	$         137

1 Amount reflects AspenTech's pretax earnings for the three months ended December 31, 2024 as reported in its quarterly earnings release 8-K.

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

3 Reported in Emerson corporate line items.

4 Represents the non-controlling interest in AspenTech applied to each adjustment presented herein and eliminated from Emerson's consolidated results.

 

Reconciliations of Non-GAAP Financial Measures & Other							Table 8
Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts). See tables 4 through 7 for additional non-GAAP reconciliations.

2025 Q1 Underlying Sales Change	Reported	(Favorable) / Unfavorable FX	(Acquisitions) / Divestitures	Underlying
Final Control	4 %	1 %	— %	5 %
Measurement & Analytical	3 %	1 %	— %	4 %
Discrete Automation	(5) %	1 %	— %	(4) %
Safety & Productivity	(3) %	— %	— %	(3) %
Intelligent Devices	1 %	1 %	— %	2 %
Control Systems & Software	2 %	1 %	— %	3 %
Test & Measurement	(6) %	1 %	— %	(5) %
AspenTech	18 %	— %	— %	18 %
Software and Control	3 %	1 %	— %	4 %
Emerson	1 %	1 %	— %	2 %

Underlying Growth Guidance	2025 Q2 Guidance	2025 Guidance
Reported (GAAP)	(0.5%) - 0.5%	1.5% - 3.5%
(Favorable) / Unfavorable FX	~1.5 pts	~1.5 pts
(Acquisitions) / Divestitures	-	-
Underlying (non-GAAP)	1% - 2%	3% - 5%

2024 Q1 Adjusted Segment EBITA	EBIT	EBIT  Margin	Amortization of Intangibles	Restructuring and Related Costs	Adjusted Segment EBITA	Adjusted Segment EBITA Margin
Final Control	$               194	20.6 %	$                 22	$                     7	$               223	23.6 %
Measurement & Analytical	235	24.9 %	20	3	258	27.3 %
Discrete Automation	97	15.8 %	9	10	116	18.9 %
Safety & Productivity	68	21.1 %	6	—	74	23.1 %
Intelligent Devices	$               594	21.0 %	$                 57	$                  20	$               671	23.8 %
Control Systems & Software	149	22.1 %	5	1	155	23.1 %
Test & Measurement	(78)	(20.4) %	139	40	101	26.5 %
AspenTech	(35)	(13.7) %	122	—	87	33.6 %
Software and Control	$                 36	2.8 %	$               266	$                  41	$               343	26.1 %

2025 Q1 Adjusted Segment EBITA	EBIT	EBIT  Margin	Amortization of Intangibles	Restructuring and Related Costs	Adjusted Segment EBITA	Adjusted Segment EBITA Margin
Final Control	$               236	24.2 %	$                 22	$                     2	$               260	26.6 %
Measurement & Analytical	285	29.2 %	10	1	296	30.4 %
Discrete Automation	98	16.9 %	8	6	112	19.3 %
Safety & Productivity	67	21.6 %	6	—	73	23.8 %
Intelligent Devices	$               686	24.1 %	$                 46	$                     9	$               741	26.1 %
Control Systems & Software	193	27.9 %	5	2	200	28.8 %
Test & Measurement	(13)	(3.6) %	105	(1)	91	25.5 %
AspenTech	15	4.8 %	122	—	137	45.1 %
Software and Control	$               195	14.4 %	$               232	$                     1	$               428	31.6 %

Total Adjusted Segment EBITA		2024 Q1	2025 Q1
Pretax earnings (GAAP)		$                 175	$                 775
Margin		4.2 %	18.6 %
Corporate items and interest expense, net		455	106
Amortization of intangibles		323	278
Restructuring and related costs		61	10
Adjusted segment EBITA (non-GAAP)		$              1,014	$              1,169
Margin		24.6 %	28.0 %

Free Cash Flow		2024 Q1	2025 Q1		2025E ($ in billions)
Operating cash flow (GAAP)		$                 444	$                 777		$3.6 - $3.7
Capital expenditures		(77)	(83)		~(0.4)
Free cash flow (non-GAAP)		$                 367	$                 694		$3.2 - $3.3

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) Q1 2025 earnings per share?

Emerson reported GAAP earnings per share of $1.02 and adjusted earnings per share of $1.38 in Q1 2025, representing a 13% increase in adjusted EPS.

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

Emerson plans to return approximately $3.2 billion to shareholders in 2025, consisting of $2.0 billion in share repurchases and $1.2 billion in dividend payments.

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

Emerson expects net sales growth of 1.5-3.5% and underlying sales growth of 3-5% for fiscal 2025.

What is Emerson's (EMR) Q1 2025 dividend payment?

Emerson declared a quarterly cash dividend of $0.5275 per share, payable March 10, 2025 to stockholders of record on February 14, 2025.

What was Emerson's (EMR) operating cash flow in Q1 2025?

Emerson's operating cash flow in Q1 2025 was $777 million, representing a 75% increase from the previous year.