Emerson Electric Company · NYSE:EMR
Emerson Electric — Q4 2025 Earnings Presentation
24 slides from Emerson Electric's earnings presentation, Nov 5, 2025
Slide 1: 2025 Q4 and Full Year Earnings
2025 Q4 and Full Year Earnings November 5, 2025 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: Key Messages
End-Market Demand Q4 Performance Q4 underlying orders growth of 6% Underlying sales growth of 4% Strong demand in our growth verticals Adjusted Segment EBITA margin of 27.5%, +1.3 pts Test & Measurement up 27% Adjusted EPS of $1.62, up 9% yoy Key Messages 2025 Performance Full Year 2026 Guidance Und
Slide 4: Strong Orders Momentum Driven by Sustained Investment in Automation
Strong Orders Momentum Driven by Sustained Investment in Automation Trailing Three-Month Underlying Orders1 Q4 DRIVERS 8% 6% 6% Sustained momentum in North America, India and the Middle East, offset by continued 4% softness in Europe and China 2% 0% Longer-cycle project bookings drove stronger finis
Slide 5: Winning in Growth Verticals
Secular Growth Winning in Growth Verticals Emerson’s leading technology, domain knowledge and application expertise drive differentiated results Industrial Software Power Accelerating Innovation LNG Emerson continues to launch AI-powered tools to unlock productivity and workflow automation Life Scie
Slide 6: Strong Execution in Guidance
November August 2025 Guidance Guidance Results Underlying Sales Growth 3% – 5% ~3.5% 3% Strong Gross Profit Margin 52.8% Execution in Adjusted Segment EBITA Margin ~27.5% 27.6% 2025 Operating Leverage Mid 40s 70s 81% Adjusted EPS $5.85 – $6.05 ~$6.00 $6.00 Free Cash Flow $3.2B – $3.3B ~$3.2B $3.24B
Slide 7: 2025 Full Year Performance Summary
2025 Full Year Performance Summary Sales Adjusted Segment EBITA $17.5B $18.0B 27.6% 26.0% 18 30.0% 16 Software & Control grew 5% 25.0% 14 12 underlying; Intelligent Devices 20.0% Exceeded expectations 3% grew 2% underlying 160 Price-cost, cost reductions and 10 Underlying bps 15.0% Price contributed
Slide 8: Adjusted EPS Bridge
7 6.5 $0.15 ($0.11) $0.47 $6.00 6 Pension ($0.09) 2025 Other ($0.02) 5.5 $5.49 Adjusted 5 $0.62 9% EPS Bridge 4.5 4 3.5 3 2024 Operations Higher Software Other / 2025 Renewals Non-Operating EMERSON | 8
Slide 9: 2026 Underlying Sales Outlook by Region
2026 Underlying Sales Outlook by Region Q4 2025 ENDING PROJECT FUNNEL 0.000 Middle East +HSD ~$6B from verticals & Africa Middle East & Africa $11.1B supported by secular drivers Americas Americas +MSD Power LNG Asia Asia +LSD China ~flat Life Sciences Europe Europe ~flat Semiconductor Aerospace & D
Slide 10: 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 $6.35 – $6.55 Price expected to contribute ~2.5 pts GAAP Sales Growth ~4% Tax rate: ~21.5% Underlying Sales Growth ~2% Q1 Adju
Slide 11: 2026 Group Underlying Sales Guidance
2026 Group Underlying Sales Guidance H1 H2 Full Year Assumptions Broad-based strength in Test & Measurement Software ~flat ~7% ~4% Lower available software renewals results in a ~$110M H1 headwind; impacts and Software and Control full year growth by ~2 pts T&M: HSD T&M: HSD T&M: HSD Control CS&S: (
Slide 12: 2026 Adjusted Segment EBITA Margin and EPS Bridges
2026 Adjusted Segment EBITA Margin and EPS Bridges OTHER 2026 GUIDANCE DETAILS 1.8 Q1 1.7 1.6 Q1 2025 Operations 1.5 ~$0.05 (~$0.07) ~$0.04 ~$1.40 $1.38 included benefit of several 1.4 dynamics 1.3 Adjusted EPS 1.2 Impact of renewals is 1.1 (~0.8 pts) for Adjusted 1 Q1 2025 Operations Impact of Rene
Slide 13: 2026 Free Cash Flow and Return of Capital to Shareholders
2026 Free Cash Flow and Return of Capital to Shareholders 2026E Free Cash Flow Dividend Per Share Increases 4 ~$0.2B (~$0.1B) $3.5B – $3.6B 12 11¢ ~$0.2B $3.24B 3.5 10 3 8 6 2.5 ~10% 4¢ 2 4 2¢ 2¢ 2¢ 1¢ 1.5 2 1 0 2021 2022 2023 2024 2025 2026E 0.5 0 Share Repurchase 2025 Acquisition-Related Benefit O
Slide 14: Appendix
Appendix E M E R S O N | 14
Slide 15: Corporate and Other Items
Corporate and Other Items 2026 Q1 (in millions) 2025 Q4 Results 2025 Results 2026 Expectations Expectations Stock Compensation – GAAP ($65) ($263) ~($55) ~($235) Integration-Related Stock Compensation Expense $10 $47 ~$5 ~$20 Adjusted Stock Compensation – Non-GAAP ($55) ($216) ~($50) ~($215) Pension
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 Q1 2026 H1 2026 H2 2026 Underlying Sales Growth 2025 Q4 2025 Guidance Guidance Guidance Guidan
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 H1 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 2024 Q4 2025 Q4 2024 2025 Net sales $4,619 $4,855 $17,492 $18,016 Pretax earn
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 Q1 2026 2024 Q4 2025 Q4 2024 2025 Guidance Guidance Earnings per share (GAAP) $0.97 $1.12 $2.82 $4.03 ~$0
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 2024 Q4 2025 Q4 2024 2025 Guidance Net Sales $4,619 $4,855 $17,492 $18,016 ~19.0 Operatin
Slide 21: Reconciliation of Non-GAAP Measures: Net Debt / Adjusted EBITDA
Reconciliation of Non-GAAP Measures Net Debt / Adjusted EBITDA This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) 2025 2026E Net Debt / pretax earnings (GAAP) 3.9x 2.9x Interest, depreciation, amortization (1.4
Slide 22: 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) June 30, 2025 September 30, 2025 Backlog (GAAP) $8.9 $8.6 AspenTech (1.3) (1.2) Backlog excluding AspenTech (non-GAAP
Slide 23: Control Systems & Software Historical Results Including AspenTech
Control Systems & Software Historical Results Including AspenTech This information is being provided for investors to see the historical results of Control Systems & Software that now includes AspenTech. Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2025 Sales $932 $965 $1,043
Slide 24: 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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