Emerson Electric Company · NYSE:EMR
Emerson Electric — Q1 2025 Earnings Presentation
21 slides from Emerson Electric's earnings presentation, Feb 5, 2025
Slide 1: 2025 Q1 Earnings
2025 Q1 Earnings February 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 involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later develop
Slide 3: Key Messages
End-Market Demand Strong Q1 Operational Execution Process and hybrid markets remain resilient. Operating leverage, adjusted EPS and cash Discrete orders up sequentially, though softer flow all exceeded our expectations with than expected; looking to the second half for underlying sales in line. mean
Slide 4: 2025 Q1 Key Metrics
Results November Guidance Underlying Orders Growth1 1% Underlying Sales Growth 2% 2% – 3% 2025 Q1 Gross Profit Margin 53.5% Adjusted Segment EBITA Margin 28.0% Key Metrics Operating Leverage 265% Mid 50s Adjusted EPS $1.38 $1.25 – $1.30 Free Cash Flow $694M Share Repurchase ~$1B ~$1B EMERSON | 4 1 E
Slide 5: Software-Defined Automation
Breakthrough Innovation Software- Defined Automation DeltaV Edge Environment named “Breakthrough Product” and in January, Emerson introduced DeltaV Edge Innovation Award Environment 2.0 Innovation of the Year Emerson won IoT Breakthrough “Industrial Innovation of the Year” EMERSON | 5
Slide 6: Significant Opportunity Ahead for LNG
Significant Opportunity Ahead for LNG EPC Awards $108.0 Potential 80+ MTPA Drivers Expectation for uptick in NA FIDs post-moratorium ~$10M Automation Project Scope per year per 1 MTPA of liquefaction Increased demand from Asia and Europe $88.0 $68.0 Energy transition fuel $48.0 ~75% Increased demand
Slide 7: Strong Macro Trends Support Growth in Power
Strong Macro Trends Support Growth in Power ~50% 18 / 20 N.A. power generation Largest U.S. combined automated by Ovation cycle plants use Ovation (20% global) ~40% 10 / 20 N.A. market share in real-time Largest U.S. grid management software1 utilities use DGM (20% global) ~100 ~90% Nuclear reactors
Slide 8: Resilient Capital Cycle
Resilient Capital Cycle Q1 ENDING PROJECT FUNNEL Carbon Capture & Energy / Q1 PROJECT WINS Emissions Management Sustainability & Decarbonization1: $3.0B Clean Fuels Energy Transition: $5.8B Growth Platforms2: $8.0B Sustainability & Decarbonization Traditional LNG Energy Traditional Hydrogen Energy P
Slide 9: 2025 Q1 Performance Summary
2025 Q1 Performance Summary Sales Adjusted Segment EBITA 5 4.5 $4.1B $4.2B 30.0% 28.0% 4 Process and hybrid businesses 24.6% grew MSD 25.0% 3.5 Record margin from favorable 3 20.0% price and net material inflation, 2% Growth Platforms grew MSD mix and the benefit of cost & 2.5 340 synergy actions 15
Slide 10: Q1 Adjusted EPS Bridge
1.6 1.5 1.4 $0.16 $0.00 $1.38 FX $0.04 1.3 Stock Comp ($0.03) Q1 Adjusted Pension ($0.01) $1.22 1.2 Software & Control $0.09 EPS Bridge 13% Intelligent Devices $0.07 1.1 1 0.9 0.8 Q1 2024 Operations Other / Q1 2025 Non-Operating E M E R S O N | 10
Slide 11: 2025 Guidance
2025 Guidance 2025 Q2 2025 Full Year Net Sales Growth (0.5%) – 0.5% 1.5% – 3.5% FX ~(1.5 pts) ~(1.5 pts) GUIDANCE ASSUMPTIONS Underlying Sales Growth 1% – 2% 3% – 5% Safety & Productivity Growth flat Share Repurchase: ~$2.0B Profitability ~26.5% 70s Metric Adjusted Segment EBITA Operating Leverage A
Slide 12: Appendix
Appendix E M E R S O N | 12
Slide 13: Corporate and Other Items
Corporate and Other Items (in millions) 2025 Q1 Results 2025 Q2 Expectations 2025 Expectations Stock Compensation – GAAP ($68) ~($57) ~($240) Integration-Related Stock Compensation Expense $2 ~$2 ~$10 Adjusted Stock Compensation – Non-GAAP ($66) ~($55) ~($230) Pension $27 ~$25 ~$110 Corporate & Othe
Slide 14: 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) 2025 Q2 2025 Underlying Sales Growth 2025 Q1 Guidance Guidance Reported (GAAP) 1% (0.5%) - 0.5% 1.5
Slide 15: 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 Q1 2025 Q1 Net sales $4,117 $4,175 Pretax earnings (GAAP) 175 775 Pretax
Slide 16: 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) 2025 Q2 2025 2024 Q1 2025 Q1 Guidance Guidance Earnings per share (GAAP) $0.29 $1.02 $1.01 - $1.05 $4.42 - $4.
Slide 17: 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 2025 2024 Q1 2025 Q1 Guidance Net Sales $4,117 $4,175 Operating cash flow (GAAP) $444 $777 $3.
Slide 18: Reconciliation of Non-GAAP Measures: AspenTech
Reconciliation of Non-GAAP Measures AspenTech This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) 2025 Q2 2025 Earnings Per Share 2025 Q1 Guidance Guidance Earnings per share (GAAP) - AspenTech contribution $0.0
Slide 19: Reconciliation of Non-GAAP Measures: Safety & Productivity
Reconciliation of Non-GAAP Measures Safety & Productivity This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in billions, except per share amounts) 2025 Underlying Sales Growth Guidance Reported (GAAP) – Safety & Productivity ~(1%) (Favorable) / Unf
Slide 20: 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, 2024 December 31, 2024 Backlog (GAAP) $8.45 $8.52 AspenTech (1.29) (1.25) Backlog excluding AspenTech (
Slide 21: 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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