Emerson Electric Company · NYSE:EMR
Emerson Electric — Q3 2025 Earnings Presentation
19 slides from Emerson Electric's earnings presentation, Aug 6, 2025
Slide 1: 2025 Q3 Earnings
2025 Q3 Earnings August 6, 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: Accelerating Industrial Software Innovation
Accelerating Industrial Software Innovation AspenTech Announced strategic collaboration with TotalEnergies to implement Inmation as their industrial data fabric, powering AI use cases including Emerson’s advanced process control solutions Ovation Released Ovation AI Advisor, the first GenAI advisor
Slide 4: Key Messages
End-Market Demand Q3 Performance Continued momentum in process and Underlying orders growth of 4%; Test & hybrid markets; discrete markets recovering Measurement orders up 16% Strength in North America, India and the Underlying sales growth of 3% was Middle East & Africa meaningfully impacted by red
Slide 5: Strong Orders Outlook Driven by Discrete Recovery and Sustained Investment in Automation
Strong Orders Outlook Driven by Discrete Recovery and Sustained Investment in Automation Trailing Three-Month Underlying Orders1 Versus Prior Year 12% Process & Hybrid 10% 8% July T3M Emerson 6% 6% 4% 2% 0% (2%) Discrete (4%) Trailing Three-Month Underlying % Change Q3 Q4E (6%) Process & Hybrid 4% M
Slide 6: Strong End-Market Demand Outlook Expected to Support Step-up in Fourth Quarter Underlying Sales Growth
Strong End-Market Demand Outlook Expected to Support Step-up in Fourth Quarter Underlying Sales Growth Americas Europe Asia, Middle East & Africa ~50% of sales ~20% of sales ~30% of sales 2025E MSD 2025E ~flat 2025E MSD PROCESS & HYBRID Q4E 2025E Q4E 2025E Q4E 2025E Ex-China China DISCRETE Q4E 2025E
Slide 7: Reduced Tariff Exposure of ~$210M Annualized; Expect to Offset Fully
Reduced Tariff Exposure of ~$210M Annualized; Expect to Offset Fully May Guidance August Guidance ~1% incremental price and surcharges ~0.5% incremental price and surcharges 2025E 2025E Gross Tariffs Mitigations 300 300 ~$245M ~1.35% of sales (~$245M) 250 250 2025E 2025E ~$100M Gross Tariffs1 Mitiga
Slide 8: 2025 Q3 Performance Summary
2025 Q3 Performance Summary Sales Adjusted Segment EBITA $4.4B $4.6B 27.1% 27.1% 5 Process and hybrid 30.0% businesses grew 3.5% and Met expectations 4 25.0% discrete businesses turned positive, up 2% 20.0% Price-cost and cost reductions 3% 3 flat offset by tariff expense Underlying Price contribute
Slide 9: Q3 Adjusted EPS Bridge
1.7 1.6 $0.09 $0.00 $1.52 1.5 $1.43 1.4 Software & Control $0.06 Share count $0.03 Intelligent Devices $0.03 Other $0.01 Q3 Adjusted FX ($0.02) Pension ($0.02) 1.3 6% EPS Bridge 1.2 1.1 1 0.9 0.8 Q3 2024 Operations Other / Q3 2025 Non-Operating EMERSON | 9
Slide 10: 2025 Guidance
2025 Guidance OTHER 2025 GUIDANCE DETAILS Underlying Sales Growth 5% – 6% Free Cash Flow raised to ~$3.2B, ~18% margin Adjusted Segment EBITA ~27% Q4 Operating Leverage ~40% Returning $2.3B to shareholders Adjusted EPS $1.58 – $1.62 through dividend and share YoY Growth 7% - 10% repurchase Price now
Slide 11: Appendix
Appendix E M E R S O N | 11
Slide 12: Corporate and Other Items
Corporate and Other Items (in millions) 2025 Q3 Results 2025 Q4 Expectations 2025 Expectations Stock Compensation – GAAP ($71) ~($55) ~($250) Integration-Related Stock Compensation Expense $26 ~$5 ~$40 Adjusted Stock Compensation – Non-GAAP ($45) ~($50) ~($210) Pension $27 ~$30 ~$110 Corporate & Oth
Slide 13: 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 Q4 2025 Underlying Sales Growth 2025 Q3 Guidance Guidance Reported (GAAP) 4% 5.5% - 6.5% ~3.5%
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 2024 Q3 2025 Q3 Net sales $4,380 $4,553 Pretax earnings (GAAP) $455 $734 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) 2025 Q4 2025 2024 Q3 2025 Q3 Guidance Guidance Earnings per share (GAAP) $0.60 $1.03 $1.13 - $1.17 ~$4.08 Amor
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) $ in billions 2025 2024 Q3 2025 Q3 Guidance Net Sales $4,380 $4,553 ~$18.1 Operating cash flow (GAAP) $1,067
Slide 17: 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) March 31, 2025 June 30, 2025 Backlog (GAAP) $8.8 $8.9 AspenTech (1.3) (1.3) Backlog excluding AspenTech (non-GAAP) $7
Slide 18: 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. 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q2 2025 Sales $3,648 $932 $965 $1,043 $995 $3,
Slide 19: 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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