Slide 1: 2024 Q2 Emerson Earnings
2024 Q2 Emerson Earnings May 8, 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: Calvin Butler to Join Emerson's Board of Directors
Calvin Butler to Join Emerson’s Board of Directors Effective August 1, 2024 | Board will expand to 12 members Committee Participation Corporate Governance and Nominating Committee Key Skills and Experience President and CEO Exelon Business External Clean Transformation Affairs Energy EMERSON | 3
Slide 4: Key Messages
Strong Q2 Performance Current End-Market Demand Sales, operating leverage and adjusted LSD underlying orders growth in H1 – EPS all exceeded Q2 expectations Process & Hybrid up MSD and Discrete Stronger price and mix than expected down MSD Expecting MSD in H2 and LSD – MSD Key growth for the full ye
Slide 5: 2024 Q2 Key Metrics Exceeded Expectations
Results Prior Guidance Underlying Sales Growth 8% 3.5% – 5.5% 2024 Q2 Key Gross Profit Margin 52.2% Metrics Exceeded Operating Leverage1 54% Low to Mid 40s Expectations Adjusted EPS $1.36 $1.22 – $1.26 Free Cash Flow $675M EMERSON | 5 1 Excludes Test & Measurement
Slide 6: Continued Strength in Large Projects
Continued Strength in Large Projects PROJECT FUNNEL EV Battery Carbon Capture Sustainability & Decarbonization: $3.0B PROJECT WINS Energy Transition: $5.3B Growth Platforms: $7.0B Clean Fuels Sustainability & Traditional Decarbonization Energy Nuclear Traditional Hydrogen Energy LNG Renewables $10.8
Slide 7: AI Driven Investments in Data Centers Heralds a Step Change in Power Growth
U.S. Data Center Annual Electricity Consumption (TWh) AI Driven Investments in Data Centers Heralds a 22% Step Change in the Growth of Power in the U.S. CAGR 372 Impact on Utilities Georgia Dominion North America Electric Power Energy Reliability Corporation 95 “Current projections reflect load “Dat
Slide 8: 2024 Q2 Performance Summary
2024 Q2 Performance Summary Sales Adjusted Segment EBITA $4.4B 30.0% 4.5 24.6% 26.0% 4 $3.8B 25.0% 3.5 Sales growth led by process Leverage on volume, favorable and hybrid businesses 20.0% mix and price-cost drove margin expansion 3 2.5 8% Price contributed 3 pts 15.0% 140 2 Underlying bps Operating
Slide 9: Adjusted EPS Bridge
1.6 1.4 $0.27 $0.00 $1.36 Interest $0.04 Corporate & Other ($0.02) 1.2 FX ($0.02) 2023 Q2 to 2024 Q2 $1.09 Adjusted 1 Software & Control $0.18 Intelligent Devices $0.09 25% EPS Bridge 0.8 0.6 0.4 2023 Operations Other / 2024 Non-Operating EMERSON | 9
Slide 10: 2024 Guidance
2024 Guidance 2024 Q3 2024 Net Sales Growth 11% – 12.5% 15% – 16% FX ~(1 pts) ~(0.5 pts) Acquisitions (NI) ~9 pts ~10 pts Share repurchase: ~$500M Divestitures ~0 pts ~0 pts Underlying Sales Growth 3% – 4.5% 5.5% – 6.5% Dividend payments: $1.2B Operating Leverage1 Mid 30s 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 Q2 2024 Q3 Expectations 2024 Expectations Stock Compensation – GAAP ($73) ~($55) ~($260) Integration-Related Stock Compensation Expense $14 ~$5 ~$50 Adjusted Stock Compensation – Non-GAAP ($59) ~($50) ~($210) Pension $38 ~$35 ~$145 Copeland Equity Loss ($
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 Q3 2024 Underlying Sales Growth 2024 Q2 Guidance Guidance Reported (GAAP) 17% 11% - 12.5% 15% - 16%
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 Q2 2024 Q2 Net sales $3,756 $4,376 Pretax earnings (GAAP) $639 $652 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 Q3 2024 2023 Q2 2024 Q2 Guidance Guidance Earnings per share (GAAP) $0.92 $0.87 $0.92 - $0.96 $2.98 - $3.
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 6 Months Ended 6 Months Ended 2024 2023 Q2 2024 Q2 March 31, 2023 March 31, 2024 Guidance Oper
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 Earnings Per Share 2024 Q2 Guidance Earnings per share - T&M contribution (GAAP) ($0.14) ($0.98) -
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 Guidance Earnings per share (GAAP) ($0.07) - ($0.05) Amortization of intangibles ~ 0.37 A
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) March 31, 2024 Backlog (GAAP) $8.8 AspenTech (1.25) Backlog excluding AspenTech (non-GAAP) $7.55 E M E R S O N | 19