STOCK TITAN

Emerson Reports Fourth Quarter and Full Year 2024 Results; Provides Initial 2025 Outlook

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

Emerson (NYSE: EMR) reported strong fiscal 2024 results with net sales increasing 15% to $17.492 billion. The company achieved underlying sales growth of 6% and improved adjusted segment EBITA margin by 100 basis points to 26.0%. Adjusted earnings per share grew 24% to $5.49, while free cash flow increased 23% to $2.898 billion. For fiscal 2025, Emerson projects net sales growth of 3.5-5.5% and adjusted EPS of $5.85-$6.05. The company also announced a quarterly dividend increase to $0.5275 per share.

Emerson (NYSE: EMR) ha riportato risultati solidi per l'esercizio fiscale 2024, con un incremento delle vendite nette del 15%, che ha raggiunto i 17,492 miliardi di dollari. L'azienda ha ottenuto una crescita delle vendite sottostante del 6% e ha migliorato il margine EBITA rettificato del segmento di 100 punti base, portandolo al 26,0%. Gli utili per azione rettificati sono aumentati del 24% a 5,49 dollari, mentre il flusso di cassa libero è cresciuto del 23% a 2,898 miliardi di dollari. Per l'esercizio fiscale 2025, Emerson prevede una crescita delle vendite nette del 3,5-5,5% e un utile per azione rettificato compreso tra 5,85 e 6,05 dollari. L'azienda ha anche annunciato un aumento del dividendo trimestrale a 0,5275 dollari per azione.

Emerson (NYSE: EMR) reportó resultados sólidos para el ejercicio fiscal 2024, con un aumento de las ventas netas del 15%, alcanzando los 17,492 millones de dólares. La compañía logró un crecimiento de las ventas subyacentes del 6% y mejoró el margen EBITA ajustado del segmento en 100 puntos base, alcanzando el 26,0%. Las ganancias por acción ajustadas crecieron un 24% a 5,49 dólares, mientras que el flujo de caja libre aumentó un 23% a 2,898 millones de dólares. Para el ejercicio fiscal 2025, Emerson proyecta un crecimiento de las ventas netas del 3,5-5,5% y un BPA ajustado de 5,85 a 6,05 dólares. La compañía también anunció un aumento del dividendo trimestral a 0,5275 dólares por acción.

엠슨 (NYSE: EMR)은 2024 회계연도 강력한 실적을 보고하며, 순매출이 15% 증가하여 174억 9,200만 달러에 도달했다고 발표했습니다. 이 회사는 기본 매출 성장률 6%을 달성했으며, 조정된 세그먼트 EBITA 마진을 100bp 향상시켜 26.0%에 도달했습니다. 조정된 주당순이익은 24% 증가하여 5.49달러에 이르렀고, 자유 현금 흐름은 23% 증가하여 28억 9,800만 달러에 도달했습니다. 2025 회계연도를 위해, 엠슨은 순매출 성장률을 3.5-5.5%로, 조정된 주당순이익을 5.85-6.05달러로 예상하고 있습니다. 회사는 또한 분기 배당금을 주당 0.5275달러로 인상한다고 발표했습니다.

Emerson (NYSE: EMR) a rapporté de bons résultats pour l'exercice fiscal 2024, avec une augmentation des ventes nettes de 15%, atteignant 17,492 milliards de dollars. L'entreprise a réussi à réaliser une croissance des ventes sous-jacentes de 6% et à améliorer la marge EBITA ajustée de 100 points de base pour atteindre 26,0%. Les bénéfices par action ajustés ont augmenté de 24% pour atteindre 5,49 dollars, tandis que le flux de trésorerie disponible a augmenté de 23% à 2,898 milliards de dollars. Pour l'exercice fiscal 2025, Emerson prévoit une croissance des ventes nettes de 3,5 à 5,5 % et un BPA ajusté de 5,85 à 6,05 dollars. L'entreprise a également annoncé une augmentation du dividende trimestriel à 0,5275 dollars par action.

Emerson (NYSE: EMR) berichtete über starke Ergebnisse für das Geschäftsjahr 2024, mit einem Umsatzanstieg von 15% auf 17,492 Milliarden Dollar. Das Unternehmen erzielte ein organisches Umsatzwachstum von 6% und verbesserte die bereinigte EBITA-Marge um 100 Basispunkte auf 26,0%. Der bereinigte Gewinn pro Aktie stieg um 24% auf 5,49 Dollar, während der freie Cashflow um 23% auf 2,898 Milliarden Dollar zunahm. Für das Geschäftsjahr 2025 prognostiziert Emerson ein Umsatzwachstum von 3,5-5,5% und einen bereinigten Gewinn pro Aktie von 5,85-6,05 Dollar. Das Unternehmen gab ebenfalls eine Erhöhung der vierteljährlichen Dividende auf 0,5275 Dollar je Aktie bekannt.

Positive
  • Net sales grew 15% to $17.492 billion in FY2024
  • Adjusted EPS increased 24% to $5.49
  • Free cash flow rose 23% to $2.898 billion
  • Adjusted segment EBITA margin improved 100 bps to 26.0%
  • Achieved $100 million in Test & Measurement synergies
  • Increased quarterly dividend to $0.5275 per share
Negative
  • GAAP EPS declined 29% to $2.82
  • Pretax margin decreased 760 bps to 11.5%
  • GAAP pretax earnings fell from $2,903M to $2,020M

Insights

Emerson delivered a strong fiscal 2024 with notable financial improvements. $17.492B in net sales represents a robust 15% increase, while adjusted EPS grew 24% to $5.49. The company's operating efficiency is evident in the 100 basis points expansion in adjusted segment EBITA margin to 26%.

The FY2025 outlook projects continued growth with net sales expected to increase 3.5-5.5% and adjusted EPS of $5.85-$6.05. The planned $2B share repurchase program and increased dividend signal management's confidence in future cash flows. Free cash flow generation remains strong, with $2.898B in FY2024, up 23% year-over-year.

The Test & Measurement integration has exceeded expectations with $100M in first-year synergies, validating Emerson's strategic shift toward industrial technology and automation solutions. The company's transformation into a higher-margin business is materializing, though Q4 GAAP margins declined due to one-time factors.

The robust order book with 2% underlying growth and strong cash position provide stability amid market uncertainties. The increased dividend and substantial share buyback program demonstrate management's commitment to shareholder returns while maintaining investment capacity for growth initiatives.

ST. LOUIS, Nov. 5, 2024 /PRNewswire/ -- Emerson (NYSE: EMR) today reported results1 for its fourth quarter and fiscal year ended September 30, 2024. Emerson also declared a quarterly cash dividend increase to $0.5275 per share of common stock payable December 10, 2024 to stockholders of record November 15, 2024.

(dollars in millions, except per share)


2023 Q4

2024 Q4

Change


2023

2024

Change

Underlying Orders2




2 %




2 %

Net Sales


$4,090

$4,619

13 %


$15,165

$17,492

15 %

Underlying Sales3




4 %




6 %

Pretax Earnings


$1,020

$679



$2,903

$2,020


Margin


24.9 %

14.7 %

(1020) bps


19.1 %

11.5 %

(760) bps

Adjusted Segment EBITA4


$1,045

$1,210



$3,794

$4,552


Margin


25.5 %

26.2 %

70 bps


25.0 %

26.0 %

100 bps

GAAP Earnings Per Share


$1.36

$0.97

(29) %


$3.96

$2.82

(29) %

Adjusted Earnings Per Share5


$1.29

$1.48

15 %


$4.44

$5.49

24 %

Operating Cash Flow


$991

$1,073

8 %


$2,710

$3,317

22 %

Free Cash Flow


$822

$905

10 %


$2,347

$2,898

23 %

Management Commentary

"Emerson completed an outstanding fiscal 2024, with strong underlying sales growth, operating leverage, adjusted earnings per share and cash generation. I want to thank our employees around the world for their commitment and passion which were integral to delivering these results," said Emerson President and Chief Executive Officer Lal Karsanbhai. "We have done an exceptional job integrating Test & Measurement with $100 million of synergies realized in the first year, and we remain resolute in our focus on executing at a world-class level, guided by our Emerson Management System. Emerson's leading technology, alignment with secular trends and customer focus provide confidence for continued momentum in fiscal 2025."

Karsanbhai continued, "We have made significant progress on our value-creation roadmap over the past three years, and the strategic actions announced today mark the final phase of our portfolio transformation to an industrial technology leader delivering advanced automation solutions. The actions we are taking, combined with our solid fiscal 2024 financial results, demonstrate the benefits and potential of Emerson's higher growth and higher margin portfolio. We are energized to complete our transformation and continue creating value for shareholders over the near- and long-term."

2025 Outlook

The following tables summarize the fiscal year 2025 guidance framework and does not include any impact from the proposed portfolio transactions announced today. The 2025 outlook assumes approximately $1.2 billion of dividend payments. Guidance figures are approximate.


2025 Q1

2025

Net Sales Growth

2.5% - 3.5%

3.5% - 5.5%

Underlying Sales Growth

2% - 3%

3% - 5%

Earnings Per Share

$0.89 - $0.94

$4.42 - $4.62

Amortization of Intangibles

~$0.31

~$1.23

Restructuring / Related Costs

~$0.04

~$0.16

Acquisition / Divestiture Fees and Related Costs

~$0.01

~$0.04

Adjusted Earnings Per Share

$1.25 - $1.30

$5.85 - $6.05

Operating Cash Flow


$3.6B - $3.7B

Free Cash Flow


$3.2B - $3.3B

Share Repurchase

~$1.0B

~$2.0B

1 Results are presented on a continuing operations basis.

2 Underlying orders do not include AspenTech.

3 Underlying sales exclude 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, discrete taxes, an AspenTech Micromine purchase price hedge and write-offs associated with Emerson's Russia exit.

Conference Call

Today, beginning at 7:00 a.m. Central Time / 8:00 a.m. Eastern Time, Emerson management will discuss the fourth quarter and fiscal year 2024 results, as well as the strategic actions announced in a separate press release this morning, 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.

Contacts

Investors:                             

Media:

Colleen Mettler                   

Joseph Sala / Greg Klassen / Connor Murphy

(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

 September 30,


Year Ended

 September 30,




2023


2024


2023


2024









Net sales

$       4,090


$       4,619


$    15,165


$    17,492

Costs and expenses:








     Cost of sales

2,078


2,248


7,738


8,607

     SG&A expenses

1,114


1,315


4,186


5,142

     Gain on subordinated interest

(161)



(161)


(79)

     Loss on Copeland note receivable




279

     Other deductions, net

147


359


506


1,434

     Interest expense (income), net

(77)


18


34


175

     Interest income from related party1

(31)



(41)


(86)

Earnings from continuing operations before income taxes

1,020


679


2,903


2,020

Income taxes

242


149


642


415

Earnings from continuing operations

778


530


2,261


1,605

Discontinued operations, net of tax

(40)


438


10,939


350

Net earnings

738


968


13,200


1,955

Less: Noncontrolling interests in subsidiaries

(6)


(28)


(19)


(13)

Net earnings common stockholders

$         744


$         996


$    13,219


$      1,968









Earnings common stockholders








Earnings from continuing operations

$         784


$         558


$      2,286


$      1,618

Discontinued operations

(40)


438


10,933


350

Net earnings common stockholders

$         744


$         996


$    13,219


$      1,968









Diluted avg. shares outstanding

574.7


573.9


577.3


574.0









Diluted earnings per share common stockholders








Earnings from continuing operations

$        1.36


$        0.97


$        3.96


$        2.82

Discontinued operations

(0.07)


0.76


18.92


0.61

Diluted earnings per common share

$        1.29


$        1.73


$      22.88


$        3.43


















Quarter Ended

 September 30,


Year Ended

 September 30,




2023


2024


2023


2024

Other deductions, net








     Amortization of intangibles

$         125


$         266


$         482


$      1,077

     Restructuring costs

31


58


72


228

     Other

(9)


35


(48)


129

          Total

$         147


$         359


$         506


$      1,434

1 Represents interest on the Copeland note receivable.








 




Table 2

EMERSON AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(DOLLARS IN MILLIONS, UNAUDITED)






Year Ended Sept 30


2023


2024

Assets




     Cash and equivalents

$           8,051


$           3,588

     Receivables, net

2,518


2,927

     Inventories

2,006


2,180

     Other current assets

1,244


1,497

          Total current assets

13,819


10,192

     Property, plant & equipment, net

2,363


2,807

     Goodwill

14,480


18,067

     Other intangible assets

6,263


10,436

     Copeland note receivable and equity investment held-for-sale

3,255


     Other

2,566


2,744

          Total assets

$         42,746


$         44,246





Liabilities and equity




     Short-term borrowings and current




        maturities of long-term debt

$              547


$              532

     Accounts payable

1,275


1,335

     Accrued expenses

3,210


3,875

          Total current liabilities

5,032


5,742

     Long-term debt

7,610


7,155

     Other liabilities

3,506


3,840

Equity




     Common stockholders' equity

20,689


21,636

     Noncontrolling interests in subsidiaries

5,909


5,873

     Total equity

26,598


27,509

          Total liabilities and equity

$         42,746


$         44,246

 





Table 3

EMERSON AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN MILLIONS, UNAUDITED)







Year Ended Sept 30



2023


2024

Operating activities





Net earnings


$          13,200


$           1,955

Earnings from discontinued operations, net of tax


(10,939)


(350)

Adjustments to reconcile net earnings to net cash provided by operating activities:





        Depreciation and amortization


1,051


1,689

        Stock compensation


250


260

        Amortization of acquisition-related inventory step-up



231

        Pension expense


(71)


(79)

        Pension funding


(43)


(38)

        Changes in operating working capital


(148)


(151)

        Gain on subordinated interest


(161)


(79)

        Loss on Copeland note receivable



279

        Other, net


(429)


(400)

            Cash from continuing operations


2,710


3,317

            Cash from discontinued operations


(2,073)


15

            Cash provided by operating activities


637


3,332






Investing activities





Capital expenditures


(363)


(419)

Purchases of businesses, net of cash and equivalents acquired


(705)


(8,342)

Proceeds from subordinated interest


176


79

Proceeds from related party note receivable


918


Other, net


(141)


(114)

    Cash from continuing operations


(115)


(8,796)

    Cash from discontinued operations


12,530


3,436

    Cash provided by (used in) investing activities


12,415


(5,360)






Financing activities





Net increase (decrease) in short-term borrowings


(1,578)


(15)

Proceeds from short-term borrowings greater than three months


395


322

Payments of short-term borrowings greater than three months


(400)


(327)

Payments of long-term debt


(741)


(547)

Dividends paid


(1,198)


(1,201)

Purchases of common stock


(2,000)


(435)

AspenTech purchases of common stock


(214)


(208)

Payment of related party note payable


(918)


Other, net


(169)


(44)

    Cash provided by (used in) financing activities


(6,823)


(2,455)






Effect of exchange rate changes on cash and equivalents


18


20

Increase (Decrease) in cash and equivalents


6,247


(4,463)

Beginning cash and equivalents


1,804


8,051

Ending cash and equivalents


$            8,051


$           3,588

 




Table 4

EMERSON AND SUBSIDIARIES

SEGMENT SALES AND EARNINGS

(AMOUNTS 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 Sept 30



2023


2024


Reported


Underlying











Sales









Final Control

$           1,081


$           1,167


8 %


7 %


Measurement & Analytical

1,045


1,119


7 %


7 %


Discrete Automation

666


643


(3) %


(4) %


Safety & Productivity

354


352


(1) %


(1) %


Intelligent Devices

$           3,146


$           3,281


4 %


4 %











Control Systems & Software

714


780


9 %


9 %


Test & Measurement


360






AspenTech

249


215


(13) %


(13) %


Software and Control

$              963


$           1,355


41 %


3 %











Eliminations

(19)


(17)






Total

$           4,090


$           4,619


13 %


4 %










Sales Growth by Geography









Quarter Ended

 Sept 30





Americas

4 %







Europe

— %







Asia, Middle East & Africa

6 %























 


Table 4 cont.

 


Year Ended Sept 30


2023


2024


Reported


Underlying









Sales








Final Control

$           3,970


$           4,204


6 %


6 %

Measurement & Analytical

3,595


4,061


13 %


14 %

Discrete Automation

2,635


2,506


(5) %


(5) %

Safety & Productivity

1,388


1,390


— %


— %

Intelligent Devices

$         11,588


$         12,161


5 %


5 %









Control Systems & Software

2,606


2,842


9 %


10 %

Test & Measurement


1,464





AspenTech

1,042


1,093


5 %


5 %

Software and Control

$           3,648


$           5,399


48 %


8 %









Eliminations

(71)


(68)





Total

$         15,165


$         17,492


15 %


6 %









Sales Growth by Geography









Year Ended Sept

 30





Americas

4 %







Europe

7 %







Asia, Middle East & Africa

8 %















 

Table 4 cont.

 


Quarter Ended Sept 30


Quarter Ended Sept 30


2023


2024


As

 Reported

 (GAAP)


Adjusted

 EBITA

(Non-

GAAP)


As

Reported

(GAAP)


Adjusted

EBITA

(Non-

GAAP)

Earnings








Final Control

$          247


$          285


$          271


$          305

 Margins

22.9 %


26.4 %


23.2 %


26.1 %

Measurement & Analytical

275


298


295


326

 Margins

26.3 %


28.4 %


26.4 %


29.2 %

Discrete Automation

131


145


144


154

 Margins

19.7 %


21.8 %


22.3 %


23.9 %

Safety & Productivity

78


83


78


90

 Margins

21.9 %


23.5 %


22.2 %


25.4 %

Intelligent Devices

$          731


$          811


$          788


$          875

 Margins

23.2 %


25.8 %


24.0 %


26.6 %









Control Systems & Software

151


158


177


188

 Margins

21.1 %


22.2 %


22.7 %


24.3 %

Test & Measurement



(45)


96

 Margins





(12.4) %


26.7 %

AspenTech

(47)


76


(79)


51

 Margins

(18.7) %


30.2 %


(36.7) %


23.2 %

Software and Control

$          104


$          234


$            53


$          335

 Margins

10.8 %


24.3 %


3.9 %


24.7 %









Corporate items and interest expense, net:








Stock compensation

$         (52)


$         (52)


$         (57)


$         (52)

Unallocated pension and postretirement costs

38


38


37


37

Corporate and other

(70)


(41)


(124)


(60)

Gain on subordinated interest

161




Interest (expense) income, net

77



(18)


Interest income from related party1

31












Pretax Earnings / Adjusted EBITA

$       1,020


$          990


$          679


$       1,135

 Margins

24.9 %


24.2 %


14.7 %


24.6 %









Supplemental Total Segment Earnings:








Adjusted Total Segment EBITA



$       1,045




$       1,210

 Margins



25.5 %




26.2 %









1 Represents interest on the Copeland note receivable.

 


Year Ended Sept 30


Year Ended Sept 30


2023


2024


As

Reported

(GAAP)


Adjusted

EBITA

(Non-

GAAP)


As

Reported

(GAAP)


Adjusted

 EBITA

(Non-

GAAP)

Earnings








Final Control

$          865


$          981


$          977


$       1,081

 Margins

21.8 %


24.7 %


23.2 %


25.7 %

Measurement & Analytical

936


976


1,056


1,137

 Margins

26.0 %


27.1 %


26.0 %


28.0 %

Discrete Automation

509


565


466


535

 Margins

19.3 %


21.4 %


18.6 %


21.3 %

Safety & Productivity

306


332


308


341

 Margins

22.0 %


23.9 %


22.2 %


24.5 %

Intelligent Devices

$       2,616


$       2,854


$       2,807


$       3,094

 Margins

22.6 %


24.6 %


23.1 %


25.4 %









Control Systems & Software

529


560


645


686

 Margins

20.3 %


21.5 %


22.7 %


24.1 %

Test & Measurement



(290)


351

Margins





(19.8) %


24.0 %

AspenTech

(107)


380


(73)


421

 Margins

(10.3) %


36.4 %


(6.7) %


38.5 %

Software and Control

$          422


$          940


$          282


$       1,458

 Margins

11.6 %


25.8 %


5.2 %


27.0 %









Corporate items and interest expense, net:








Stock compensation

(250)


(250)


(260)


(202)

Unallocated pension and postretirement costs

171


171


144


144

Corporate and other

(224)


(159)


(664)


(168)

Gain on subordinated interest

161



79


Loss on Copeland note receivable



(279)


Interest (expense) income, net

(34)



(175)


Interest income from related party1

41



86










Pretax Earnings / Adjusted EBITA

$       2,903


$       3,556


$       2,020


$       4,326

 Margins

19.1 %


23.4 %


11.5 %


24.7 %









Supplemental Total Segment Earnings:








Adjusted Total Segment EBITA



$       3,794




$       4,552

 Margins



25.0 %




26.0 %









1 Represents interest on the Copeland note receivable.

 


Table 4 cont.

 


Quarter Ended Sept 30


Quarter Ended Sept 30


2023


2024


Amortization of

Intangibles1


Restructuring

and

Related Costs2


Amortization of

Intangibles1


Restructuring

and

Related Costs2

Final Control

$                   22


$                   16


$                   22


$                   12

Measurement & Analytical

12


11


12


19

Discrete Automation

7


7


8


2

Safety & Productivity

6


(1)


7


5

Intelligent Devices

$                   47


$                   33


$                   49


$                   38









Control Systems & Software

5


2


4


7

Test & Measurement



141


AspenTech

122


1


122


8

Software and Control

$                 127


$                     3


$                 267


$                   15









Corporate


2



11

Total

$                 174


$                   38


$                 316


$                   64









1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended September 30, 2023 and 2024, respectively.

2 Restructuring and related costs includes $7 and $6 reported in cost of sales and selling, general and administrative expenses for the three months ended September 30, 2023 and 2024, respectively.

 


Year Ended Sept 30


Year Ended Sept 30


2023


2024


Amortization of

Intangibles1


Restructuring

and

Related Costs2


Amortization of

Intangibles1


Restructuring

and

Related Costs2

Final Control

$                   88


$                   28


$                   87


$                   17

Measurement & Analytical

27


13


55


26

Discrete Automation

29


27


34


35

Safety & Productivity

26



26


7

Intelligent Devices

$                 170


$                   68


$                 202


$                   85









Control Systems & Software

22


9


26


15

Test & Measurement



560


81

AspenTech

486


1


486


8

Software and Control

$                 508


$                   10


$               1,072


$                 104









Corporate


14



55

Total

$                 678


$                   92


$               1,274


$                 244









1 Amortization of intangibles includes $196 and $196 reported in cost of sales for the twelve months ended September 30, 2023 and 2024, respectively.

2 Restructuring and related costs includes $20 and $16 reported in cost of sales and selling, general and administrative expenses for the twelve months ended September 30, 2023 and 2024, respectively.

 






Quarter Ended Sept 30


2023


2024





Depreciation and Amortization




Final Control

$                41


$                39

Measurement & Analytical

37


33

Discrete Automation

21


22

Safety & Productivity

13


15

Intelligent Devices

112


109





Control Systems & Software

23


26

Test & Measurement


153

AspenTech

123


124

Software and Control

146


303





     Corporate

13


14

          Total

$              271


$              426

 






Year Ended Sept 30


2023


2024





Depreciation and Amortization




Final Control

$              170


$              159

Measurement & Analytical

121


138

Discrete Automation

84


87

Safety & Productivity

57


58

Intelligent Devices

432


442





Control Systems & Software

90


101

Test & Measurement


607

AspenTech

492


493

Software and Control

582


1,201





     Corporate

37


46

          Total

$           1,051


$           1,689

 

 

Table 5

EMERSON AND SUBSIDIARIES

ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL

(AMOUNTS IN MILLIONS, UNAUDITED)


The following table shows the Company's corporate and other expenses on an adjusted basis. 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 Sept 30,







2023


2024


Stock compensation (GAAP)





$                  (52)


$                  (57)


Integration-related stock compensation expense






5

1

Adjusted stock compensation (non-GAAP)





$                  (52)


$                  (52)














Quarter Ended Sept 30







2023


2024


 Corporate and other (GAAP)





$                  (70)


$                (124)


 Corporate restructuring and related costs





2


9


 National Instruments investment gain





(9)



 Acquisition / divestiture costs





36


46


 Loss on divestiture of business






9











 Adjusted corporate and other (Non-GAAP)





$                  (41)


$                  (60)









Year Ended Sept 30,







2023


2024


 Stock compensation (GAAP)





$                (250)


$                (260)


Integration-related stock compensation expense






58

2

 Adjusted stock compensation (non-GAAP)





$                (250)


$                (202)














Year Ended Sept 30







2023


2024


 Corporate and other (GAAP)





$                (224)


$                (664)


 Corporate restructuring and related costs





14


12


 National Instruments investment gain





(56)



 Loss on divestiture of businesses






48


 Acquisition / divestiture costs





84


205


 Russia business exit





47



 AspenTech Micromine purchase price hedge





(24)



 Amortization of acquisition-related inventory step-up






231











 Adjusted corporate and other (Non-GAAP)





$                (159)


$                (168)










1 Integration-related stock compensation expense relates to NI and includes $2 reported as restructuring costs

2 Integration-related stock compensation expense relates to NI and includes $43 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, gains or losses on the Copeland equity

method investment, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles

amortization expense, restructuring expense, first year purchase accounting related items and transaction fees, interest

income on undeployed proceeds, gains or losses on the Copeland equity method investment, 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 Sept 30


2023


2024





Pretax earnings

$          1,020


$             679

Percent of sales

24.9 %


14.7 %

Interest expense (income), net

(77)


18

Interest income from related party1

(31)


Amortization of intangibles

174


316

Restructuring and related costs

38


64

Acquisition/divestiture fees and related costs

36


49

Gain on subordinated interest

(161)


National Instruments investment gain

(9)


Loss on divestiture of business


9

Adjusted EBITA

$             990


$          1,135

Percent of sales

24.2 %


24.6 %






Quarter Ended Sept 30


2023


2024





GAAP earnings from continuing operations per share

$            1.36


$            0.97





Amortization of intangibles

0.16


0.35

Restructuring and related costs

0.07


0.08

Acquisition/divestiture fees and related costs

0.06


0.06

Gain on subordinated interest

(0.21)


National Instruments investment gain

(0.01)


Loss on divestiture of business


0.02

Interest income on undeployed proceeds from Copeland transaction

(0.14)






Adjusted earnings from continuing operations per share

$            1.29


$            1.48





Less: AspenTech contribution to adjusted earnings per share

(0.06)


(0.04)





Adjusted earnings per share excluding AspenTech contribution

$            1.23


$            1.44





1 Represents interest on the Copeland note receivable



Year Ended Sept 30


2023


2024





Pretax earnings

$          2,903


$          2,020

Percent of sales

19.1 %


11.5 %

Interest expense (income), net

34


175

Interest income from related party1

(41)


(86)

Amortization of intangibles

678


1,274

Restructuring and related costs

92


244

Amortization of acquisition-related inventory step-up


231

Acquisition/divestiture fees and related costs

84


220

Loss on divestiture of businesses


48

Loss on Copeland note receivable


279

Gain on subordinated interest

(161)


(79)

National Instruments investment gain

(56)


AspenTech Micromine purchase price hedge

(24)


Russia business exit charge

47


Adjusted EBITA

$          3,556


$          4,326

Percent of sales

23.4 %


24.7 %






Year Ended Sept 30


2023


2024





GAAP earnings from continuing operations per share

$            3.96


$            2.82





Amortization of intangibles

0.62


1.43

Restructuring and related costs

0.14


0.33

Amortization of acquisition-related inventory step-up


0.38

Acquisition/divestiture fees and related costs

0.13


0.26

Loss on divestiture of businesses


0.09

Loss on Copeland note receivable


0.38

Discrete taxes


(0.10)

Gain on subordinated interest

(0.21)


(0.10)

National Instruments investment gain

(0.07)


AspenTech Micromine purchase price hedge

(0.02)


Interest income on undeployed proceeds from Copeland transaction

(0.19)


Russia business exit charge

0.08






Adjusted earnings from continuing operations per share

$            4.44


$            5.49





Less: AspenTech contribution to adjusted earnings per share

(0.27)


(0.35)





Adjusted earnings per share excluding AspenTech contribution

$            4.17


$            5.14





1 Represents interest on the Copeland note receivable

 

Table 6 cont.

Quarter Ended September 30, 2024


Pretax
Earnings


Income
Taxes


Earnings

from
Cont.
Ops.


Non-

Controlling

Interests3


Net
Earnings
Common
Stockholders


Diluted
Earnings
Per
Share

As reported (GAAP)

$       679


$       149


$          530


$           (28)


$               558


$      0.97

Amortization of intangibles

316

1

74


242


40


202


0.35

Restructuring and related costs

64

2

16


48


3


45


0.08

Acquisition/divestiture and related costs

49


15


34



34


0.06

Loss on divestitures of businesses

9



9



9


0.02

Adjusted (Non-GAAP)

$     1,117


$       254


$          863


$            15


$               848


$      1.48

Interest expense, net

$         18











Adjusted EBITA (Non-GAAP)

$     1,135























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

2 Restructuring and related costs includes $3 reported in cost of sales.

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.

 

Year Ended September 30, 2024


Pretax
Earnings


Income
Taxes


Earnings

 from
Cont.
Ops.


Non-

Controlling

Interests3


Net
Earnings
Common
Stockholders


Diluted
Earnings
Per
Share

As reported (GAAP)

$     2,020


$       415


$       1,605


$           (13)


$            1,618


$      2.82

Amortization of intangibles

1,274

1

294


980


162


818


1.43

Restructuring and related costs

244

2

53


191


3


188


0.33

Acquisition/divestiture and related costs

220


59


161



161


0.26

Gain on subordinated interest

(79)


(19)


(60)



(60)


(0.10)

Loss on Copeland note receivable

279


62


217



217


0.38

Loss on divestiture of businesses

48


(2)


50



50


0.09

Amortization of acquisition-related inventory step-up

231


14


217



217


0.38

Discrete taxes


57


(57)



(57)


(0.10)

Adjusted (Non-GAAP)

$     4,237


$       933


$       3,304


$          152


$            3,152


$      5.49

Interest expense, net

175











Interest income from related party4

(86)











Adjusted EBITA (Non-GAAP)

$     4,326























1 Amortization of intangibles includes $196 reported in cost of sales.

2 Restructuring and related costs includes $9 reported in cost of sales.

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.

4 Represents interest on the Copeland note receivable.

 

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, stock compensation and the Micromine purchase

price hedge. 

 

Quarter Ended September 30, 2024


Pretax
Earnings


Income
Taxes
(Benefit)


Earnings

from
Cont.
Ops.


Non-

Controlling

Interests4


Net
Earnings
Common
Stockholders


Diluted
Earnings
Per
Share

Standalone reporting (GAAP)

$        (77)

1

$        (17)


$          (60)







 Other

1


6


(5)







Reported in Emerson consolidation (GAAP)

(76)


(11)


(65)


(27)


(38)


$     (0.07)













Adjustments:












Amortization of intangibles

122

2

28


94


40


54


0.10

Restructuring

8


1


7


3


4


0.01

Adjusted (Non-GAAP)

$         54


$         18


$           36


$            16


$                20


$      0.04

 Interest income

(17)

3










 Stock compensation

14

3










Adjusted Segment EBITA (Non-GAAP)

$         51























Reconciliation to Segment EBIT













Pre-tax earnings

$        (76)











Interest income

(17)

3










Stock compensation

14

3










Segment EBIT (GAAP)

$        (79)











Amortization of intangibles

122

2










Restructuring

8











Adjusted Segment EBITA (Non-GAAP)

$         51























1 Amount reflects AspenTech's pretax earnings for the three months ended September 30, 2024 as reported in its quarterly earnings release 8-K.

2 Amortization of intangibles includes $48 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.

 

Year Ended September 30, 2024


Pretax
Earnings


Income
Taxes
(Benefit)


Earnings

from
Cont.
Ops.


Non-

Controlling

Interests4


Net
Earnings
Common
Stockholders


Diluted
Earnings
Per
Share

Standalone reporting (GAAP)

$        (69)

1

$        (33)


$          (36)







 Other

(2)


(1)


(1)







Reported in Emerson consolidation (GAAP)

(71)


(34)


(37)


(16)


(21)


$     (0.04)













Adjustments:












Amortization of intangibles

486

2

107


379


162


217


0.38

Restructuring

8


1


7


3


4


0.01

Adjusted (Non-GAAP)

$       423


$         74


$         349


$          149


$               200


$      0.35

 Interest income

(57)

3










 Stock compensation

55

3










Adjusted Segment EBITA (Non-GAAP)

$       421























Reconciliation to Segment EBIT













Pre-tax earnings

$        (71)











Interest income

(57)

3










Stock compensation

55

3










Segment EBIT (GAAP)

$        (73)











Amortization of intangibles

486

2










Restructuring

8











Adjusted Segment EBITA (Non-GAAP)

$       421























1 Amount reflects AspenTech's pretax earnings for the twelve months ended September 30, 2024, derived from AspenTech's results for the year ended June 30, 2024 as reported in their Annual Report on Form 10-K, the results for the three months ended September 30, 2023 as reported in their Form 10-Q, and the results for the three months ended September 30, 2024 as reported in its quarterly earnings release 8-K.

2 Amortization of intangibles includes $193 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.









Q4 FY24 Underlying Sales Change

Reported

(Favorable) /

Unfavorable FX

(Acquisitions) /

Divestitures

Underlying

Final Control

8 %

(1) %

— %

7 %

Measurement & Analytical

7 %

— %

— %

7 %

Discrete Automation

(3) %

(1) %

— %

(4) %

Safety & Productivity

(1) %

— %

— %

(1) %

Intelligent Devices

4 %

— %


4 %

Control Systems & Software

9 %

— %

— %

9 %

Test & Measurement





AspenTech

(13) %

— %

— %

(13) %

Software and Control

41 %

— %

(38) %

3 %

Emerson

13 %

— %

(9) %

4 %

 

Year Ended Sept 30, 2024 Underlying Sales Change

Reported

(Favorable) /

Unfavorable FX

(Acquisitions) /

Divestitures

Underlying

Final Control

6 %

— %

— %

6 %

Measurement & Analytical

13 %

— %

1 %

14 %

Discrete Automation

(5) %

— %

— %

(5) %

Safety & Productivity

— %

— %

— %

— %

Intelligent Devices

5 %

— %

— %

5 %

Control Systems & Software

9 %

— %

1 %

10 %

Test & Measurement





AspenTech

5 %

— %

— %

5 %

Software and Control

48 %

— %

(40) %

8 %

Emerson

15 %

— %

(9) %

6 %

 

Underlying Growth Guidance

2025 Q1

Guidance

2025

Guidance

Reported (GAAP)

2.5% - 3.5%

3.5% - 5.5%

(Favorable) / Unfavorable FX

~(0.5) pts

~(0.5) pts

(Acquisitions) / Divestitures

-

-

Underlying (non-GAAP)

2% - 3%

3% - 5%

 

2023 Q4 Adjusted Segment EBITA

EBIT

EBIT

Margin

Amortization

of

Intangibles

Restructuring

 and Related

 Costs

Adjusted

 Segment

 EBITA

Adjusted

 Segment

EBITA

Margin

Final Control

$               247

22.9 %

$                 22

$                  16

$               285

26.4 %

Measurement & Analytical

275

26.3 %

12

11

298

28.4 %

Discrete Automation

131

19.7 %

7

7

145

21.8 %

Safety & Productivity

78

21.9 %

6

(1)

83

23.5 %

Intelligent Devices

$               731

23.2 %

$                 47

$                  33

$               811

25.8 %

Control Systems & Software

151

21.1 %

5

2

158

22.2 %

Test & Measurement







AspenTech

(47)

(18.7) %

122

1

76

30.2 %

Software and Control

$               104

10.8 %

$               127

$                     3

$               234

24.3 %

 

2024 Q4 Adjusted Segment EBITA

EBIT

EBIT

Margin

Amortization
of
 Intangibles

Restructuring

 and Related

Costs

Adjusted

Segment

EBITA

Adjusted

Segment

EBITA

Margin

Final Control

$               271

23.2 %

$                 22

$                  12

$               305

26.1 %

Measurement & Analytical

295

26.4 %

12

19

326

29.2 %

Discrete Automation

144

22.3 %

8

2

154

23.9 %

Safety & Productivity

78

22.2 %

7

5

90

25.4 %

Intelligent Devices

$               788

24.0 %

$                 49

$                  38

$               875

26.6 %

Control Systems & Software

177

22.7 %

4

7

188

24.3 %

Test & Measurement

(45)

(12.4) %

141

96

26.7 %

AspenTech

(79)

(36.7) %

122

8

51

23.2 %

Software and Control

$                 53

3.9 %

$               267

$                  15

$               335

24.7 %

 

Total Adjusted Segment EBITA


2023 Q4

2024 Q4

Pretax earnings (GAAP)


$              1,020

$                 679

Margin


24.9 %

14.7 %

Corporate items and interest expense, net


(185)

162

Amortization of intangibles


174

316

Restructuring and related costs


36

53

Adjusted segment EBITA (non-GAAP)


$              1,045

$              1,210

Margin


25.5 %

26.2 %

 

2023 Adjusted Segment EBITA

EBIT

EBIT

Margin

Amortization

of

Intangibles

Restructuring

 and Related

Costs

Adjusted

 Segment

EBITA

Adjusted

Segment

EBITA

Margin

Final Control

$               865

21.8 %

$                 88

$                  28

$               981

24.7 %

Measurement & Analytical

936

26.0 %

27

13

976

27.1 %

Discrete Automation

509

19.3 %

29

27

565

21.4 %

Safety & Productivity

306

22.0 %

26

332

23.9 %

Intelligent Devices

$           2,616

22.6 %

$               170

$                  68

$           2,854

24.6 %

Control Systems & Software

529

20.3 %

22

9

560

21.5 %

Test & Measurement







AspenTech

(107)

(10.3) %

486

1

380

36.4 %

Software and Control

$               422

11.6 %

$               508

$                  10

$               940

25.8 %

 

2024 Adjusted Segment EBITA

EBIT

EBIT

Margin

Amortization
of
 Intangibles

Restructuring

 and Related

Costs

Adjusted

Segment

EBITA

Adjusted

Segment

EBITA

Margin

Final Control

$               977

23.2 %

$                 87

$                  17

$           1,081

25.7 %

Measurement & Analytical

1,056

26.0 %

55

26

1,137

28.0 %

Discrete Automation

466

18.6 %

34

35

535

21.3 %

Safety & Productivity

308

22.2 %

26

7

341

24.5 %

Intelligent Devices

$           2,807

23.1 %

$               202

$                  85

$           3,094

25.4 %

Control Systems & Software

645

22.7 %

26

15

686

24.1 %

Test & Measurement

(290)

(19.8) %

560

81

351

24.0 %

AspenTech

(73)

(6.7) %

486

8

421

38.5 %

Software and Control

$               282

5.2 %

$            1,072

$                104

$           1,458

27.0 %

 

Total Adjusted Segment EBITA


2023

2024

Pretax earnings (GAAP)


$              2,903

$              2,020

Margin


19.1 %

11.5 %

Corporate items and interest expense, net


135

1,069

Amortization of intangibles


678

1,274

Restructuring and related costs


78

189

Adjusted segment EBITA (non-GAAP)


$              3,794

$              4,552

Margin


25.0 %

26.0 %

 

Free Cash Flow


2023 Q4

2024 Q4




Operating cash flow (GAAP)


$                 991

$              1,073




Capital expenditures


(169)

(168)




Free cash flow (non-GAAP)


$                 822

$                 905




 

Free Cash Flow


FY23

FY24



2025E

($ in billions)

Operating cash flow (GAAP)


$              2,710

$              3,317



 $3.6 - $3.7

Capital expenditures


(363)

(419)



~(0.4)

Free cash flow (non-GAAP)


$              2,347

$              2,898



$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.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/emerson-reports-fourth-quarter-and-full-year-2024-results-provides-initial-2025-outlook-302296123.html

SOURCE Emerson

FAQ

What was Emerson's (EMR) revenue growth in fiscal 2024?

Emerson's net sales grew 15% to $17.492 billion in fiscal 2024, with underlying sales growth of 6%.

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

Emerson expects adjusted earnings per share of $5.85-$6.05 for fiscal 2025.

How much did Emerson (EMR) increase its dividend in Q4 2024?

Emerson increased its quarterly dividend to $0.5275 per share, payable December 10, 2024.

What was Emerson's (EMR) free cash flow in fiscal 2024?

Emerson generated $2.898 billion in free cash flow during fiscal 2024, a 23% increase from the previous year.

Emerson Electric Co.

NYSE:EMR

EMR Rankings

EMR Latest News

EMR Stock Data

62.70B
572.70M
0.31%
79.92%
1.51%
Specialty Industrial Machinery
Electronic & Other Electrical Equipment (no Computer Equip)
Link
United States of America
ST LOUIS