Emerson Electric Company · NYSE:EMR
Emerson Electric — Q1 2024 Earnings Presentation
19 slides from Emerson Electric's earnings presentation, Feb 7, 2024
Slide 1: 2024 Q1 Emerson Earnings
2024 Q1 Emerson Earnings February 7, 2024 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: Robust Start to 2024
Healthy End-Market Demand Strong Performance Process and hybrid markets continue to be Q1 orders, sales, operating leverage and resilient; discrete markets still down with adjusted EPS all exceeded expectations Robust second half in focus Start to 2024 Accelerating Growth Test & Measurement Ahead of
Slide 4: 2024 Q1 Key Metrics Exceeded Expectations
Results Prior Guidance Underlying Orders Growth1 4% 2024 Q1 Key Underlying Sales Growth 10% 6.5% – 8.5% Metrics Exceeded Operating Leverage2 41% Mid 30s Expectations Adjusted EPS $1.22 $1.00 – $1.05 Free Cash Flow $367M 1 Excludes AspenTech EMERSON | 4 2 Excludes Test & Measurement
Slide 5: Winning in Growth Platforms
PROJECT WINS Winning in Growth Platforms Sustainability & Decarbonization Traditional PROJECT FUNNEL Energy LNG EV Battery Carbon Capture Sustainability & Decarbonization: $3.0B Energy Transition: $5.1B ~$400M Growth Platforms: $6.7B Chemical Clean Fuels Traditional Metals & Mining Energy Traditiona
Slide 6: Industrial IoT Company of the Year
Innovation Award Industrial IoT Company of the Year Emerson named IoT Breakthrough “Industrial IoT Company of the Year” Innovation Event Emerson Exchange 2024 Customer case studies, Düsseldorf technology exhibit and (February 2024) industry sessions featuring over 1,000 Emerson customers EMERSON | 6
Slide 7: Test & Measurement Synergy Progress
Test & Measurement Synergy Progress UPDATED SYNERGY TARGETS Increasing and accelerating cost synergy target Original Updated ~$80M of cost synergies recognized Target Target in year 1 Currently evaluating potential sales Cost Synergies $165M $185M synergies by end of year 5 by end of year 3 INTEGRAT
Slide 8: 2024 Q1 Performance Summary
2024 Q1 Performance Summary Sales Adjusted Segment EBITA 24.6% $4.1B 22.7% $3.4B Sales growth led by process and hybrid businesses Leverage on volume and price- cost drove margin expansion Price contributed 2 pts 10% 190 Test & Measurement margins Underlying Test & Measurement exceeded bps above exp
Slide 9: Test & Measurement 2024 Q1 Performance
Test & Measurement 2024 Q1 Performance Q2 Guidance Sales Adjusted EPS Contribution1 Sales: ~$350M Adjusted EPS Contribution1: ~$0.07 $0.13 $382M ~$300M ~$0.05 2024 Guidance Sales: $1.5B – $1.6B Adjusted EPS Contribution1: $0.40 – $0.45 November Guidance Q1 Actual November Guidance Q1 Actual EMERSON
Slide 10: 2024 Guidance
2024 Guidance 2024 Q2 2024 Net Sales Growth 12.5% – 14.5% 14.5% – 17% Share repurchase: ~$500M FX ~0 pts ~0 pts Acquisitions (NI) ~9 pts 10 – 10.5 pts Divestitures ~0 pts ~0 pts Underlying Sales Growth 3.5% – 5.5% 4.5% – 6.5% Dividend payments: $1.2B Operating Leverage1 Low to Mid 40s Adjusted EPS $
Slide 11: Appendix
Appendix E M E R S O N | 11
Slide 12: Corporate and Other Items
Corporate and Other Items (in millions) 2024 Q1 2024 Q2 Expectations 2024 Expectations Stock Compensation – GAAP ($74) ~($70) ~($260) Integration-Related Stock Compensation Expense $30 ~$15 ~$50 Adjusted Stock Compensation – Non-GAAP ($44) ~($55) ~($210) Pension $31 ~$35 ~$140 Copeland Equity Loss (
Slide 13: Reconciliation of Non-GAAP Measures: Underlying Growth
Reconciliation of Non-GAAP Measures Underlying Growth This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) 2024 Q2 2024 2024 Q1 Guidance Guidance Reported (GAAP) 22% 12.5% - 14.5% 14.5% - 17% (Favorable) / Unfavo
Slide 14: 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 2023 Q1 2024 Q1 Net sales $3,373 $4,117 Pretax earnings (GAAP) $422 $139 Pret
Slide 15: 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) 2024 Q2 2024 2023 Q1 2024 Q1 Guidance Guidance Earnings per share (GAAP) $0.56 $0.25 $0.68 - $0.72 $2.80 - $2.
Slide 16: 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) 2024 2023 Q1 2024 Q1 Guidance Operating cash flow (GAAP) $302 $444 $3.0B - $3.1B Capital expenditures (59) (
Slide 17: Reconciliation of Non-GAAP Measures: Test & Measurement
Reconciliation of Non-GAAP Measures Test & Measurement This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) 2024 Q2 2024 Earnings Per Share 2024 Q1 Guidance Guidance Earnings per share - T&M contribution (GAAP) (
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) 2024 Earnings Per Share 2024 Q1 Guidance Earnings per share (GAAP) ($0.02) ($0.05) - ($0.03) Amortization of inta
Slide 19: 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, 2023 Backlog (GAAP) $8.8 AspenTech (1.2) Backlog excluding AspenTech (non-GAAP) $7.6 E M E R S O N | 19
Emerson Electric Company — Q1 2024 Earnings Presentation on 6ix