Emerson Electric Company · NYSE:EMR
Emerson Electric — Q3 2026 Earnings Presentation
20 slides from Emerson Electric's earnings presentation, Aug 4, 2026
Slide 1: 2026 Q3 Earnings
2026 Q3 Earnings August 4, 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: CTO Transition Announcement
CTO Transition Announcement – Emerson Well-Positioned to Continue Accelerating Innovation and Driving Growth Peter Zornio Rudy Sengupta Chief Technology Officer Chief Technology & AI Officer Retiring after 20 years at Emerson 20+ years of experience across engineering, strategy and operations at Eme
Slide 4: Key Messages
End-Market Demand Q3 Performance Exceeded Expectations Q3 underlying orders growth of 7% Underlying sales growth of 6% Broad-based demand across all business Adjusted segment EBITA margin of 28.5% groups, led by Software & Systems Adjusted EPS of $1.71, up 13% yoy Strong growth in North America and
Slide 5: Sustained Robust Demand
Sustained Robust Demand Q3 DRIVERS Continued strength in North America, India, Japan Trailing Three-Month Underlying Orders1 and SE Asia 10% Europe and China improving but soft 8% Resilient momentum in longer-cycle project 7% bookings, led by Power and Aerospace & Defense 6% Q3 ENDING PROJECT FUNNEL
Slide 6: 2026 Q3 Performance Summary
2026 Q3 Performance Summary Sales Adjusted Segment EBITA 28.5% 6 $4.6B $4.9B 30.0% 27.1% 5 Underlying Sales Growth: Software & Systems 11% Exceeded expectations due to 25.0% better volume and segment mix 4 20.0% 6% Intelligent Devices 5% 140 Price-cost and cost reductions 3 Underlying bps 15.0% 2 Sa
Slide 7: 2026 Q3 Underlying Sales by Region
2026 Q3 Underlying Sales by Region 2026 Q3 GEOGRAPHIC MIX 18% Europe 52% -2.000 Americas Americas Americas +8% U.S. +10% $4.9B 30% Asia, Middle East & Africa Asia, Middle +8% East & Africa Middle East & Africa +11% 2026 OUTLOOK Asia, MEA China (3%) Sustained strength in the U.S. Europe Europe (1%) E
Slide 8: 2026 Q3 Group Results
2026 Q3 Group Results May Guide Adjusted Underlying Sales ($M) Underlying EBITA Commentary Growth Growth Margin Robust underlying growth in both Test & Measurement, +23%, and Control Systems & Software, +7% Software & $1,644 11% ~8% 31.8% Strength in growth verticals led by Power, Semiconductor and
Slide 9: 2026 Group Underlying Sales Guidance
2026 Group Underlying Sales Guidance Prior Full Q4 Full Year Assumptions Year Guide ~10% ~6% ~5% Broad-based strength in Test & Measurement and Control Systems & Software in the U.S. and Software & growth verticals Systems T&M: ~10% T&M: ~14% T&M: Low-teens ACV expected to grow 10%+ for the full yea
Slide 10: 2026 Guidance
2026 Guidance OTHER 2026 GUIDANCE DETAILS GAAP Sales Growth ~5% Free Cash Flow ~$3.6B Underlying Sales Growth ~3.5% ~$2.2B returned to shareholders Full Year Adjusted Segment EBITA ~28% through ~$1.2B dividend and ~$1B share repurchase Adjusted EPS ~$6.55 Tax rate: ~21.5% GAAP Sales Growth ~5% Assum
Slide 11: Appendix
Appendix E M E R S O N | 11
Slide 12: Corporate and Other Items
Corporate and Other Items 2026 Q4 (in millions) 2026 Q3 Results 2026 Expectations Expectations Stock Compensation – GAAP ($68) ~($60) ~($240) Integration-Related Stock Compensation Expense $4 ~$3 ~$15 Adjusted Stock Compensation – Non-GAAP ($64) ~($57) ~($225) Pension Income / (Expense) $29 ~$30 ~$1
Slide 13: Q3 Adjusted Segment EBITA and EPS Bridges
2 $0.19 $0.00 $1.71 $1.52 1.5 Q3 Adjusted Segment EBITA 1 13% and EPS Bridges 0.5 0 2025 Operations Other / 2026 Non-Operating Adjusted Segment EBITA Margin 27.1% 1.4 pts n/a 28.5% E M E R S O N | 13
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) 2026 Q4 2026 Underlying Sales Growth 2026 Q3 Guidance Guidance Reported (GAAP) 7% ~5% ~5% (Favorabl
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) Reported (Favorable) / (Acquisitions) / Underlying 2026E Q4 Underlying Sales Change (GAAP) Unfavora
Slide 16: 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) 2026 Q4 2026 Adjusted Segment EBITA 2025 Q3 2026 Q3 Guidance Guidance Net sales $4,553 $4,873 Pretax
Slide 17: 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 Q4 2026 2025 Q3 2026 Q3 Guidance Guidance Earnings per share (GAAP) $1.03 $1.28 ~$1.45 ~$4.89 Amortizatio
Slide 18: 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 Q3 2026 Q3 2025 YTD 2026 YTD Guidance Net Sales $4,553 $4,873 $13,161 $13,781 ~$18.9
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) June 30, 2025 March 31, 2026 June 30, 2026 Backlog (GAAP) $8.9 $9.5 $9.6 AspenTech (1.3) (1.3) (1.4) Backlog excludin
Slide 20: 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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