Emerson Electric Company · NYSE:EMR
Emerson Electric — Q1 2026 Earnings Presentation
22 slides from Emerson Electric's earnings presentation, Feb 3, 2026
Slide 1: 2026 Q1 Earnings
2026 Q1 Earnings February 3, 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: Emerson's Value Creation Framework
Emerson’s Value Creation Framework November 2025 Investor Conference 1 VALUE CREATION FRAMEWORK 2028 TARGETS Organic Growth THROUGH-THE-CYCLE Aligning with secular tailwinds and delivering on industry- Organic Sales leading innovation 4 – 7% Growth $21B Net Sales Incremental Adjusted Segment 40% Mar
Slide 4: Product Award Accelerating Innovation
Test & Measurement Is Celebrating 50 Years of Unlocking Productivity Through Innovation Product Award Nigel AI named to Electronic Product Design & Test’s 2025 Product of the Year list Semi-Autonomous Nigel AI Agent Accelerating Innovation Released new Nigel AI capabilities today, enabling automated
Slide 5: Key Messages
End-Market Demand Q1 Performance Q1 underlying orders growth of 9% Underlying sales growth of 2% Significant demand in Software & Systems Adjusted segment EBITA margin of 27.7% as our growth verticals continue to see strong investment Adjusted EPS of $1.46 Sustained momentum in North America, India
Slide 6: Robust Orders Driven by Longer-Cycle Project Bookings in Growth Verticals
Robust Orders Driven by Longer-Cycle Q1 DRIVERS Project Bookings in Growth Verticals Continued strength in North America, India and Trailing Three-Month Underlying Orders1 the Middle East & Africa, offset by ongoing 10% softness in Europe and China 9% Broad-based momentum in longer-cycle project 8%
Slide 7: 2026 Q1 Performance Summary
2026 Q1 Performance Summary Sales Adjusted Segment EBITA $4.2B $4.3B 28.0% 27.7% 5 30.0% Underlying Sales Growth: 4.5 4 Software & Systems 3% Exceeded expectations 25.0% 3.5 Intelligent Devices 2% Price-cost and cost reductions 20.0% 3 2% 30 outpaced inflation 2.5 Underlying Safety & Productivity 1%
Slide 8: 2026 Q1 Underlying Sales by Region
2026 Q1 Underlying Sales by Region Q1 2026 NET SALES Growth -2.000 Verticals ~$1B $4.3B AmericasAmericas +3% U.S. +6% +14% Growth Verticals yoy Europe Europe +3% Power LNG Asia, Middle flat Life Sciences East & Africa Middle East & Africa +9% Asia, MEA China (5%) Semiconductor Aerospace & Defense EM
Slide 9: 2026 Q1 Group Results
2026 Q1 Group Results Adjusted Underlying Sales ($M) EBITA Commentary Growth Margin Broad-based strength in Test & Measurement, +11% underlying Significant performance in growth verticals led by Power, Software & Semiconductor, Life Sciences and Aerospace & Defense $1,453 3% 31.3% Systems Lower avai
Slide 10: Q1 Adjusted Segment EBITA and EPS Bridges
2 1.8 $0.10 ($0.06) 1.6 $0.04 $1.46 1.4 $1.38 Share Count $0.02 Tax $0.02 Q1 Adjusted 1.2 FX $0.01 1 Other ($0.01) 6% Segment EBITA 0.8 and EPS Bridges 0.6 0.4 0.2 0 2025 Operations Impact of Renewals Other / 2026 Non-Operating Adjusted Segment EBITA Margin 28.0% 0.4 pts (0.7 pts) n/a 27.7% E M E R
Slide 11: 2026 Guidance
2026 Guidance GAAP Sales Growth ~5.5% Underlying Sales Growth ~4% OTHER 2026 GUIDANCE DETAILS Full Year Adjusted Segment EBITA ~28% Free Cash Flow $3.5B – $3.6B Adjusted EPS $6.40 – $6.55 Price expected to contribute ~2.5 pts GAAP Sales Growth 3% – 4% Tax rate: ~21.5% Underlying Sales Growth 1% – 2%
Slide 12: 2026 Group Underlying Sales Guidance
2026 Group Underlying Sales Guidance Q2 X Full Year Assumptions Broad-based strength in Test & Measurement ~flat ~4% Software & Lower available software renewals results in an ~$65M Q2 headwind; impacts Software & Systems T&M: HSD T&M: HSD Systems full year growth by ~2 pts CS&S: (LSD) CS&S: LSD ACV
Slide 13: 2026 Adjusted Segment EBITA Margin and EPS Bridges
2026 Adjusted Segment EBITA Margin and EPS Bridges 1.8 Q2 1.7 1.6 ~$0.05 (~$0.09) ~$0.09 $1.50 – $1.55 $1.48 Q2 2025 Operations 1.5 included favorable mix 1.4 1.3 Impact of renewals is Adjusted EPS 1.2 (~0.9 pts) for Adjusted 1.1 Segment EBITA; ($0.09) 1 Q2 2025 Operations Impact of Renewals Other /
Slide 14: Appendix
Appendix E M E R S O N | 14
Slide 15: Corporate and Other Items
Corporate and Other Items 2026 Q2 (in millions) 2026 Q1 Results 2026 Expectations Expectations Stock Compensation – GAAP ($55) ~($60) ~($235) Integration-Related Stock Compensation Expense $4 ~$5 ~$20 Adjusted Stock Compensation – Non-GAAP ($51) ~($55) ~($215) Pension $29 ~$30 ~$110 Corporate & Othe
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) 2026 Q2 2026 Underlying Sales Growth 2026 Q1 Guidance Guidance Reported (GAAP) 4% 3% - 4% ~5.5% (Fa
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 Q2 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 Q1 2025 Q2 2026 Q1 2025 Net sales $4,175 $4,432 $4,346 $18,016 Pretax ea
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 Q2 2026 2025 Q1 2025 Q2 2026 Q1 Guidance 2025 Guidance Earnings per share (GAAP) $1.02 $0.86 $1.07 $1.06
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 Q1 2026 Q1 Guidance Net Sales $4,175 $4,346 ~$19.0 Operating cash flow (GAAP) $777 $
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) September 30, 2025 December 31, 2025 Backlog (GAAP) $8.6 $9.2 AspenTech (1.2) (1.3) Backlog excluding AspenTech (non-
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
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