Emerson Electric Company · NYSE:EMR
Emerson Electric — Q2 2026 Earnings Presentation
22 slides from Emerson Electric's earnings presentation, May 5, 2026
Slide 1: 2026 Q2 Earnings
2026 Q2 Earnings May 5, 2026 EMERSON | 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation and our commentary and responses to questions that are not strictly historical may be “forward-looking” statements, which represent management’s expectations, based on currently available information. Actual results, performance or achievements c
Slide 3: Jennifer Newstead to Join Emerson's Board of Directors
Jennifer Newstead to Join Emerson’s Board of Directors Effective August 3, 2026 | Board will expand to 11 members Committee Participation Compensation Committee & Corporate Governance and Nominating Committee Senior Vice President Key Skills and Experience and General Counsel Apple Corporate Global
Slide 4: Key Messages
End-Market Demand Q2 Performance Q2 underlying orders growth of 5% Underlying sales growth of 0.5%, below expectations due to a 1-pt impact from the Middle East conflict Sustained robust demand in Software & Systems, led by our growth verticals Growth verticals exceptionally strong, +22% Strength in
Slide 5: Resilient Demand Led by Growth Verticals
Resilient Demand Led by Growth Verticals Q2 DRIVERS Trailing Three-Month Underlying Orders1 Continued strength in North America and India, 5 Consecutive Quarters offset by ongoing softness in Europe and China 10% of MSD+ Growth Broad-based momentum in longer-cycle project 8% bookings, led by Power,
Slide 6: Middle East Conflict Update
Middle East Conflict Update EMERSON IN THE MIDDLE EAST Q2 Impact Safety of our people while continuing to serve customers is our top priority $1.2B 2025 Sales 1-pt Manufacturing disruptions in March Impact to Q2 Underlying Sales Field service engineers operated at <50% of pre-conflict levels in Marc
Slide 7: 2026 Q2 Performance Summary
2026 Q2 Performance Summary Sales Adjusted Segment EBITA $4.6B Underlying Sales Growth: $4.4B 28.0% 27.6% 5 Software & Systems 1% 30.0% 4.5 Exceeded expectations due to 4 Intelligent Devices (1%) 25.0% 3.5 segment and geographic mix Safety & Productivity 2% 20.0% 3 2.5 0.5% 40 Price-cost and cost re
Slide 8: 2026 Q2 Underlying Sales by Region
2026 Q2 Underlying Sales by Region 2026 OUTLOOK -5.000 U.S. strength offsets incremental Americas Americas +5% weakness in China U.S. +9% Raising U.S. expectations to +HSD Lowering China expectations to (MSD) Europe remains stable but soft Europe Europe (4%) Expect ~1 pt impact from the conflict in
Slide 9: 2026 Q2 Group Results
2026 Q2 Group Results Feb. Guide Adjusted Underlying Sales ($M) Underlying EBITA Commentary Growth Growth Margin Strong underlying growth in Test & Measurement, +12% Strength in growth verticals led by Power, Life Sciences, Aerospace & Defense Software & and Semiconductor $1,503 1% ~flat 29.2% Syste
Slide 10: Q2 Adjusted Segment EBITA and EPS Bridges
2 $0.08 ($0.09) $0.07 $1.54 1.5 $1.48 FX $0.07 Q2 Adjusted Segment EBITA 1 4% and EPS Bridges 0.5 0 2025 Operations Impact of Renewals Other / 2026 Non-Operating Adjusted Segment EBITA Margin 28.0% 0.5 pts (0.9 pts) n/a 27.6% E M E R S O N | 10
Slide 11: 2026 Group Underlying Sales Guidance
2026 Group Underlying Sales Guidance Prior Full Q3 Full Year Assumptions Year Guide ~8% ~5% ~4% Broad-based strength in Test & Measurement and Control Systems & Software in the U.S. and Software & growth verticals Systems T&M: Mid-teens T&M: Low-teens T&M: HSD ACV expected to grow 10%+ for the full
Slide 12: 2026 Guidance
2026 Guidance OTHER 2026 GUIDANCE DETAILS GAAP Sales Growth ~4.5% Free Cash Flow $3.5B – $3.6B Underlying Sales Growth ~3% Price expected to contribute ~2.5 pts Full Year Adjusted Segment EBITA ~28% Assumes impact of Middle East conflict Adjusted EPS $6.45 – $6.55 is contained within the region Expe
Slide 13: Appendix
Appendix E M E R S O N | 13
Slide 14: Corporate and Other Items
Corporate and Other Items 2026 Q3 (in millions) 2026 Q2 Results 2026 Expectations Expectations Stock Compensation – GAAP ($57) ~($60) ~($230) Integration-Related Stock Compensation Expense $4 ~$5 ~$15 Adjusted Stock Compensation – Non-GAAP ($53) ~($55) ~($215) Pension Income / (Expense) $28 ~$30 ~$1
Slide 15: Reconciliation of Non-GAAP Measures: Underlying Sales Growth
Reconciliation of Non-GAAP Measures Underlying Sales Growth This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) 2026 Q3 2026 Underlying Sales Growth 2026 Q2 Guidance Guidance Reported (GAAP) 3% ~5.5% ~4.5% (Favo
Slide 16: Reconciliation of Non-GAAP Measures: Underlying Sales Growth
Reconciliation of Non-GAAP Measures Underlying Sales Growth This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Underlying Sales Growth 2026 Q2 Reported (GAAP) 3% (Favorable) / Unfavorable FX (2.5%) (Acquisition
Slide 17: Reconciliation of Non-GAAP Measures: Underlying Sales Growth
Reconciliation of Non-GAAP Measures Underlying Sales Growth This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Reported (Favorable) / (Acquisitions) / Underlying 2026E Q3 Underlying Sales Change (GAAP) Unfavora
Slide 18: Reconciliation of Non-GAAP Measures: Adjusted Segment EBITA
Reconciliation of Non-GAAP Measures Adjusted Segment EBITA This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Adjusted Segment EBITA 2025 Q2 2026 Q2 Net sales $4,432 $4,562 Pretax earnings (GAAP) $629 $793 Pret
Slide 19: Reconciliation of Non-GAAP Measures: Adjusted EPS
Reconciliation of Non-GAAP Measures Adjusted EPS This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) 2026 Q3 2026 2025 Q2 2026 Q2 Guidance Guidance Earnings per share (GAAP) $0.86 $1.10 $1.22 - $1.27 $4.79 - $4.
Slide 20: Reconciliation of Non-GAAP Measures: Free Cash Flow
Reconciliation of Non-GAAP Measures Free Cash Flow This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) $ in billions 2026 2025 Q2 2026 Q2 Guidance Net Sales $4,432 $4,562 ~$18.8 Operating cash flow (GAAP) $825 $
Slide 21: Reconciliation of Non-GAAP Measures: Other
Reconciliation of Non-GAAP Measures Other This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in billions, except per share amounts) December 31, 2025 March 31, 2026 Backlog (GAAP) $9.2 $9.5 AspenTech (1.3) (1.3) Backlog excluding AspenTech (non-GAAP
Slide 22: Endnotes
Endnotes Annual Contract Value (ACV): ACV is an estimate of the annual value of our portfolio of term license and software maintenance and support (SMS) contracts, the annual value of SMS agreements purchased with perpetual licenses and the annual value of standalone SMS agreements purchased with ce