Emerson Electric Co. (EMR) is poised to gain from solid momentum in the Intelligent Devices and Software and Control segments. The company’s measures to reward its shareholders are encouraging.Based in St. Louis, MO, Emerson is a diversified global engineering and technology company. It offers a wide range of products and services to customers in the consumer, commercial and industrial markets. The company boasts a diverse range of brands like Bettis, Crosby, Fisher, Flexim, Micro Motion, Afag, Appleton, AS ...

Financial Performance - Net sales increased from $13.804 billion in 2022 to $17.492 billion in 2024, representing a growth of approximately 26.7% over the two years[202] - Net earnings for 2023 were significantly higher at $13.2 billion compared to $3.23 billion in 2022 and $1.955 billion in 2024, driven by discontinued operations[202] - Basic earnings per share for 2023 surged to $23.00, up from $5.44 in 2022 and $3.44 in 2024, reflecting the impact of discontinued operations[202] - Comprehensive income for 2023 was $13.433 billion, significantly higher than $2.609 billion in 2022 and $2.344 billion in 2024, driven by net earnings and other comprehensive income[203] - Net earnings for 2023 were $13.2 billion, a significant increase from $3.23 billion in 2022, but dropped to $1.955 billion in 2024[209] - Cash provided by operating activities in 2024 was $3.332 billion, up from $637 million in 2023 and $2.922 billion in 2022[209] - Total pretax earnings for 2024 were $2,020, with $712 from the United States and $1,308 from non-U.S. operations[326] - Income tax expense for 2024 was $415, with current U.S. federal taxes at $325 and non-U.S. taxes at $452[328] - The effective income tax rate for 2024 was 20.6%, down from 22.1% in 2023[329] - Total income taxes paid in 2024 were approximately $950, significantly lower than the $3,310 paid in 2023[337] - Net deferred income tax liability increased to $2,074 in 2024 from $1,869 in 2023[337] Acquisitions and Divestitures - The acquisition of National Instruments (NI) was completed on October 11, 2023, with NI generating $1.7 billion in revenue and $170 million in pretax earnings for the 12 months ended September 30, 2023[247] - The total purchase consideration for NI was $8.653 billion, allocated to assets and liabilities including $3.442 billion in goodwill and $5.275 billion in other intangible assets[249][251] - Results of operations for the year ended September 30, 2024, attributable to the NI acquisition include sales of $1.464 billion and a net loss of $537 million[252] - Pro forma net sales for the year ended September 30, 2023 were $16,858 million, including $1,693 million attributable to NI[253] - Pro forma net earnings from continuing operations for 2023 were $1,508 million, with diluted earnings per share of $2.61[253] - The company completed the acquisition of AspenTech, contributing $6.0 billion in cash and owning 55% of the outstanding shares[256] - The total purchase consideration for Heritage AspenTech was $11,188 million, allocated to assets including $7,225 million in goodwill and $4,390 million in other intangible assets[257][258] - In 2023, the company acquired Flexim and Afag for $715 million, recognizing goodwill of $424 million and other intangible assets of $323 million[264] - The company divested its Climate Technologies business for $14.0 billion, receiving $9.7 billion in upfront cash proceeds and retaining a 40% non-controlling equity interest[270] - The company sold its 40% non-controlling equity interest in Copeland for $1.5 billion, recognizing a gain of $539 million[271] - The company divested its InSinkErator business for $3.0 billion, recognizing a pretax gain of approximately $2.8 billion[272] - The company divested its Therm-O-Disc business, recognizing a pretax gain of $486 million[273] - The company exited its Russia-based manufacturing subsidiary, Metran, recognizing a pretax loss of $47 million in 2023[266] - The company completed the divestiture of a majority stake in Copeland on May 31, 2023, receiving upfront, pre-tax cash proceeds of approximately $9.7 billion[283] Research and Development - Total R&D spending in 2024 was 8.1% of sales, up from 6.9% in 2023 and 6.3% in 2022[23] Backlog and Revenue Recognition - The company's consolidated order backlog was $8.4 billion at September 30, 2024, up from $7.8 billion in 2023[27] - Approximately 75% of the backlog is expected to be recognized as revenue within the next 12 months[27] - The Test & Measurement segment, acquired from NI, contributed approximately $400 million to the backlog[27] - The company's backlog for unsatisfied performance obligations as of September 30, 2024, was approximately $8.4 billion, with $1.3 billion attributable to AspenTech and $400 million to National Instruments[244] - The company expects to recognize 75% of its remaining performance obligations as revenue over the next 12 months[245] - Approximately 10% of the company's revenues are recognized over time, primarily in the Control Systems & Software segment[229] - Approximately 15% of revenues relate to sales arrangements with multiple performance obligations, mainly in the Software and Control business group[229] Employee Engagement and Diversity - Employee engagement score increased to 79% in 2024, up from 78% in 2023[34] - The inclusion index score increased by 3.5 percentage points to 79% in 2024[34] - Women represent 33% of the global workforce and 24% of leadership positions[36] Environmental, Social, and Governance (ESG) - The company aims to achieve net zero greenhouse gas emissions across its value chain by 2045[40] - A target of 25% reduction in value chain emissions by 2030 has been set[40] - The company has a goal to achieve zero waste to landfill in manufacturing facilities by 2032[40] Balance Sheet and Cash Flow - Total assets grew from $42.746 billion in 2023 to $44.246 billion in 2024, with goodwill increasing from $14.48 billion to $18.067 billion[204] - Retained earnings rose from $28.053 billion in 2023 to $40.83 billion in 2024, supported by net earnings and dividend payments[207] - Cash and equivalents decreased significantly from $8.051 billion in 2023 to $3.588 billion in 2024, indicating potential cash outflows or investments[204] - Long-term debt decreased slightly from $7.61 billion in 2023 to $7.155 billion in 2024, reflecting debt repayment or refinancing activities[204] - Total equity increased from $26.598 billion in 2023 to $27.509 billion in 2024, supported by retained earnings and other equity adjustments[207] - Foreign currency translation contributed positively to other comprehensive income, with gains of $254 million in 2023 and $400 million in 2024[203] - Capital expenditures increased to $419 million in 2024, compared to $363 million in 2023 and $299 million in 2022[209] - Purchases of businesses, net of cash and equivalents acquired, were $8.342 billion in 2024, significantly higher than $705 million in 2023 and $5.702 billion in 2022[209] - The company sold its 40% non-controlling common equity interest in Copeland for $1.5 billion and its note receivable to Copeland for $1.9 billion in 2024[210] - Total inventories increased to $2.18 billion in 2024 from $2.006 billion in 2023, with finished products rising to $512 million and raw materials and work in process to $1.668 billion[218] - Property, plant and equipment, net, increased to $2.807 billion in 2024 from $2.363 billion in 2023, with buildings rising to $2.048 billion and machinery and equipment to $3.538 billion[221] - The company adopted ASU No. 2022-04 in 2024, which requires disclosures about supplier finance programs but had no material impact on financial statements[211] - The company adopted ASU No. 2021-10 in 2023, requiring annual disclosures about government assistance, with no material impact on financial statements[212] - The company's long-term debt fair value is classified as Level 2, estimated using current interest rates and pricing from financial institutions[219] - Product warranty expense is less than 0.5% of sales[227] Restructuring and Related Costs - Restructuring expenses for 2024 were $228 million, compared to $72 million in 2023 and $75 million in 2022[280] - The company expects fiscal year 2025 restructuring and related costs to be approximately $120 million[280] Leases and Debt - Operating lease expense for 2024 was $208 million, up from $178 million in 2023[288] - The weighted-average remaining lease term for operating leases was 7.7 years as of September 30, 2024[289] - The fair value of the company's long-term debt was $7.0 billion as of September 30, 2024, lower than the carrying value by $705 million[299] - Short-term borrowings and current maturities of long-term debt totaled $532 million as of September 30, 2024[303] - Long-term debt maturing in the next four years after 2025 is $562 million, $760 million, $497 million, and $998 million, respectively[305] - Total interest paid on long-term debt was approximately $193 million in 2024[305] - The company repaid €500 million of euro-denominated debt in 2024, reducing foreign currency risk[296] Pension and Retirement Plans - The company's net periodic pension income increased in 2024 due to higher returns on plan assets, partially offset by higher interest costs[308] - The company is implementing a new profit-sharing retirement program for U.S. non-union employees effective January 1, 2025[309] - U.S. pension plans were overfunded by $800 million in 2024, including unfunded plans totaling $161 million, while non-U.S. plans were underfunded by $38 million, including unfunded plans totaling $230 million[310] - The total projected benefit obligation for U.S. plans increased from $3,112 million in 2023 to $3,089 million in 2024, while non-U.S. plans increased from $965 million to $1,004 million[310] - The fair value of U.S. plan assets increased from $3,625 million in 2023 to $3,889 million in 2024, and non-U.S. plan assets increased from $908 million to $966 million[310] - Future benefit payments by U.S. plans are estimated to be $272 million in 2025, $262 million in 2026, $260 million in 2027, $255 million in 2028, $250 million in 2029, and $1,165 million from 2030 to 2034[312] - The discount rate for U.S. retirement plans decreased from 6.03% in 2023 to 4.97% in 2024, while non-U.S. plans decreased from 5.2% to 4.7%[313] - The expected return on U.S. plan assets increased from 6.00% in 2023 to 6.50% in 2024, while non-U.S. plans increased from 4.4% to 4.7%[313] - U.S. plan asset allocation shifted from 39% equity securities in 2023 to 29% in 2024, while debt securities increased from 51% to 63%[314] - The fair value of U.S. equities decreased from $1,024 million in 2023 to $875 million in 2024, while corporate bonds increased from $1,851 million to $2,100 million[317] - The company expects to contribute approximately $40 million to its retirement plans in 2025[312] - The postretirement benefit liability for U.S. plans was $71 million in 2024, with net postretirement income of $18 million for the year[320] - Future health care benefit payments are estimated to be $7 per year for 2025 through 2029 and $27 in total over the five years 2030 through 2034[322] Stock Compensation and Equity - Stock compensation expense for 2024 was $260, with $96 related to NI restricted stock units[345] - Performance share payouts for 2024 were at 118% of target, with 1,733 shares earned[347] - Approximately 919,000 shares awarded in 2022 will be distributed in early fiscal 2025 after meeting performance objectives at the 118% level[347] - In 2024, approximately 55,000 shares of restricted stock and 1,462,000 restricted stock units vested, with 38,000 shares and 1,404,000 units issued, and 17,000 shares and 58,000 units withheld for taxes[349] - As of September 30, 2024, there were approximately 2,269,000 shares of unvested restricted stock and restricted stock units outstanding[349] - In 2024, the Company awarded approximately 19,000 restricted stock units to non-management directors, with 38,000 shares available for issuance under this plan as of September 30, 2024[350] - As of September 30, 2024, 17.5 million shares remained available for award under incentive shares plans[350] - The total fair value of shares earned/vested in 2024 was $284 million, with $81 million distributed in cash primarily for tax withholding[351] - In 2024, AspenTech granted 263,000 performance stock units with a performance condition and service condition, with up to 150% vesting possible based on performance goals[360] - The total fair value of vested shares from AspenTech RSU grants in 2024 amounted to $62 million, with $21 million paid in withholding taxes[360] - At September 30, 2024, common stock reserved for future issuance under all AspenTech equity compensation plans was 4 million shares[363] - At September 30, 2024, 23.3 million shares of common stock were reserved for issuance under the Company's stock-based compensation plans[364] - In 2024, 4.4 million common shares were purchased and 2.6 million treasury shares were reissued[364] Business Segments - The Final Control segment provides control valves, isolation valves, shutoff valves, pressure relief valves, pressure safety valves, actuators, and regulators for process and hybrid industries[368] - The Measurement & Analytical segment supplies intelligent instrumentation measuring physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame[369] - These devices transfer data and asset management information to control systems and automation software, enabling process and hybrid industry operators to make informed decisions regarding production, reliability, sustainability, and safety[369] Climate Technologies - Net sales for Climate Technologies in 2022 were $4.976 billion, while in 2023 they were $3.156 billion[275] - Earnings before income taxes for Climate Technologies in 2023 were $11.124 billion, significantly higher than the $1.002 billion in 2022[275] - Net cash from operating activities for Climate Technologies in 2023 was $(1.314) billion, compared to $881 million in 2022[276] - The company recognized a gain on the sale of its 40% non-controlling common equity interest in Copeland, amounting to $539 million in 2024[275] - Cash from investing activities for 2024 reflects proceeds of approximately $1.5 billion from the sale of the company's 40% non-controlling common equity interest in Copeland[276] Goodwill and Intangible Assets - Goodwill increased from $13.946 billion in 2022 to $18.067 billion in 2024, driven by acquisitions and foreign currency translation[292] - Intangible assets' net carrying amount rose from $6.263 billion in 2023 to $10.436 billion in 2024, with amortization expense expected to be $1.168 billion in 2025[293] Foreign Currency and Hedging - The company's foreign currency hedge positions had a notional amount of approximately $3.3 billion as of September 30, 2024[295] - Foreign currency translation contributed positively to other comprehensive income, with gains of $254 million in 2023 and $400 million in 2024[203] Tax and Unrecognized Tax Benefits - Unrecognized tax benefits increased to $291 in 2024, up from $235 in 2023[335] Shareholder Equity and Treasury Shares - In 2024, 4.4 million common shares were purchased and 2.6 million treasury shares were reissued[364]

Industrial technology leader will showcase innovations accelerating energy management, emissions reduction and decarbonizationST. LOUIS, Nov. 11, 2024 /PRNewswire/ -- Emerson (NYSE: EMR), an industrial technology leader delivering advanced automation solutions, will attend COP29 in Baku, Azerbaijan, participating in Climate Action's Sustainable Innovation Forum and Hydrogen Transition Summit. Chief Sustainability Officer Mike Train will share his insights on how automation technologies are helping accelerat ...

Key TakeawaysShares of industrial technology and engineering company Emerson Electric popped higher Tuesday.The company reported better-than-expected quarterly sales and profit boosted by its Intelligent Devices segment.Emerson also announced plans to acquire the remaining stake in industrial software firm AspenTech. Emerson Electric (EMR) shares surged 7% on Tuesday, securing one of the top performances in the S&P 500, after the provider of automation equipment, industrial software, and engineering product ...

Emerson Electric Co. (EMR) reported fourth-quarter fiscal 2024 (ended Sept. 30, 2024) adjusted earnings of $1.48 per share, which beat the Zacks Consensus Estimate of $1.47. The bottom line increased 15% year over year.Emerson’s net sales of $4.62 billion beat the consensus estimate of $4.57 billion. The top line increased 13% year over year, driven by solid performance of the Intelligent Devices segment. The underlying sales were up 4% year over year.Stay up-to-date with all quarterly releases: See Zacks E ...

Financial Data and Key Metrics - Underlying sales grew 6% in 2024, with operating leverage at 47%, both in line with guidance [45] - Adjusted EPS was $5.49, at the high end of guidance, and free cash flow reached $2.9 billion, exceeding expectations [46] - Quarterly underlying orders growth was 2% for the year, led by process and hybrid businesses, while discrete automation orders were down mid-single digits but turned positive in Q4 [46][47] - Adjusted segment EBITDA margin was 26%, up 100 basis points from the prior year, driven by favorable price cost and cost reductions [52] - Free cash flow margin improved to 16.6%, a 110-basis point increase from the prior year [54] Business Line Performance - Process and hybrid businesses grew high single digits, while intelligent devices grew 5% and software and control grew 8% [49] - Test & Measurement contributed $1.46 billion to net sales, down 12% for the year, but orders improved sequentially in Q4 [47][51] - Safety & Productivity business, which is under strategic review, generated $1.4 billion in revenue with leading gross margins and strong free cash flow [37] Market Performance - Asia, Middle East, and Africa led growth at 8%, driven by strong project activity in LNG and chemicals, while China was down 3% due to weak demand [50] - Europe grew 7%, supported by LNG, sustainability, decarbonization, and life sciences, while the Americas grew 4%, led by power, LNG, metals, and mining [50] - Middle East and Africa, India, Southeast Asia, and Mexico are expected to lead growth in 2025, with China anticipated to return to growth in the second half [71] Strategic Direction and Industry Competition - The company announced a proposal to acquire the remaining shares of AspenTech for $240 per share, aiming to fully integrate AspenTech's industrial software capabilities with Emerson's automation solutions [9][12] - The combination of Emerson and AspenTech is expected to accelerate the company's software-defined automation strategy, unlock cost synergies, and simplify the company's structure for investors [13][36] - The company is exploring strategic alternatives for its Safety & Productivity business, including a potential cash sale, as it does not align with the automation thematic [14][37] - Emerson plans to repurchase $2 billion of common stock in fiscal 2025, returning approximately 100% of guided free cash flow to shareholders [15][16] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong project activity, with a large project funnel of $11.2 billion, driven by LNG, life sciences, and sustainability investments [59][60] - The company expects process and hybrid markets to remain resilient in 2025, with discrete markets turning positive and growth across all regions [66][69] - Management expressed confidence in the recovery of discrete markets, particularly in semiconductor, industrial, and factory automation, while automotive markets, especially EV, remain weak [69][70] - The company anticipates mid-single-digit growth in process and hybrid businesses, with discrete markets expected to recover in the second half of 2025 [68][69] Other Important Information - The company's backlog increased to $7.2 billion, driven by process and hybrid investments, while Test & Measurement backlog stood at $400 million [51][101] - Emerson's gross margin reached a record high of 50.8% in 2024, up nearly 1,000 basis points from the pre-transformation portfolio in 2021 [57] - The company expects adjusted EPS for 2025 to be between $5.85 and $6.05, with free cash flow projected at $3.2 billion to $3.3 billion [75] Q&A Session Summary Question: Backlog and Book-to-Bill for 2025 - The backlog of $7.2 billion is considered healthy and supportive of 2025 guidance, with no significant changes expected in the book-to-bill ratio [86] - Process and hybrid markets showed strong activity, with new wins in LNG, sustainability, and life sciences, supporting mid-single-digit growth expectations [87] Question: Customer Delays and China Recovery - No significant customer delays were observed, with strong project activity in energy, energy transition, and power sectors [90] - China is expected to return to growth in the second half of 2025, driven by self-reliance programs and sustainability investments, with discrete markets anticipated to recover [92] Question: Discrete Automation Trends and AspenTech Synergies - Discrete automation orders turned positive in Q4, with early signs of recovery in semiconductor and industrial markets, supporting a mid-single-digit growth forecast for 2025 [94] - AspenTech synergies are expected to be neutral to adjusted EPS in 2025, with seasonality and cost synergies factored into the outlook [96][97] Question: Power and Nuclear Exposure - Power generation represents 9% of revenue, with strong growth driven by data center investments, life extension of facilities, and grid modernization [105] - Nuclear accounts for 20% of the power business, with a broad portfolio of capabilities in instrumentation, valves, and control systems [108] Question: Software-Defined Automation Timeline - The transition to software-defined automation is expected to be a phased journey, starting with foundational integration at the site level, followed by site-level and eventually enterprise-wide control and optimization [116][117] Question: Test & Measurement and Synergies - Test & Measurement sales are expected to grow mid-single digits in 2025, with high single-digit order growth and a focus on backlog consumption [123] - Synergies for Test & Measurement are expected to be around $60 million in 2025, with AspenTech synergy details to be provided after a definitive agreement is reached [125]

For the quarter ended September 2024, Emerson Electric (EMR) reported revenue of $4.62 billion, up 12.9% over the same period last year. EPS came in at $1.48, compared to $1.29 in the year-ago quarter.The reported revenue represents a surprise of +0.94% over the Zacks Consensus Estimate of $4.58 billion. With the consensus EPS estimate being $1.47, the EPS surprise was +0.68%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stre ...

Emerson Electric (EMR) came out with quarterly earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.47 per share. This compares to earnings of $1.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.68%. A quarter ago, it was expected that this maker of process controls systems, valves and analytical instruments would post earnings of $1.42 per share when it actually produced earnings of $1.43, delivering a ...

Exhibit 99.1 Emerson Reports Fourth Quarter and Full Year 2024 Results; Provides Initial 2025 Outlook ST. LOUIS (November 5, 2024) - Emerson (NYSE: EMR) today reported results for its fourth quarter and fiscal year ended September 30, 2024. Emerson also declared a quarterly cash dividend increase to $0.5275 per share of common stock payable December 10, 2024 to stockholders of record November 15, 2024. | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------|-----------|----- ...

ST. LOUIS, Nov. 5, 2024 /PRNewswire/ -- Emerson (NYSE: EMR) today reported results1 for its fourth quarter and fiscal year ended September 30, 2024. Emerson also declared a quarterly cash dividend increase to $0.5275 per share of common stock payable December 10, 2024 to stockholders of record November 15, 2024. (dollars in millions, except per share) 2023 Q4 2024 Q4 Change 2023 2024 Change Underlying Orders2 2 % 2 % Net Sales $4,090 $4,619 13 % $15,165 $17,492 15 % Underl ...