Emerson(US:EMR)2025-05-07 10:53Financial Performance - Net sales for Q2 2025 were $4,432 million, a 1% increase from $4,376 million in Q2 2024[1] - Adjusted earnings per share (EPS) rose by 9% to $1.48 in Q2 2025, compared to $1.36 in Q2 2024[1] - Operating cash flow increased by 13% to $825 million in Q2 2025, up from $733 million in Q2 2024[1] - Free cash flow for Q2 2025 was $738 million, reflecting a 14% increase from $651 million in Q2 2024[1] - Adjusted segment EBITA margin improved to 28.0% in Q2 2025, up from 26.0% in Q2 2024[1] - Net earnings for the six months ended March 31, 2025, increased to $1,022 million from $635 million in 2024, representing a growth of 60.7%[17] - Total sales for the quarter ended March 31, 2025, were reported at $4,432 million, a 1% increase compared to $4,376 million in 2024[21] - Adjusted total segment EBITA for the quarter ended March 31, 2025, was $1,240 million, up from $1,139 million in 2024, reflecting a margin increase from 26.0% to 28.0%[28] - Adjusted EBITA for Q2 2025 was $1,143 million, representing a 25.8% margin compared to $1,072 million and a 24.5% margin in Q2 2024[36] - GAAP pretax earnings for Q2 2025 were $629 million, with a margin of 14.2%, down from $711 million and 16.3% in Q2 2024[36] Cash Flow and Investments - Operating cash flow expectations for fiscal 2025 are updated to between $3.5 billion and $3.6 billion[3] - Free cash flow expectations for fiscal 2025 are projected to be between $3.1 billion and $3.2 billion[3] - Cash provided by operating activities for the six months ended March 31, 2025, was $1,018 million, a decrease from $1,158 million in 2024[17] - Cash used in investing activities for the six months ended March 31, 2025, was $264 million, significantly lower than $8,489 million in 2024, indicating reduced investment activity[17] - The company’s ending cash and equivalents decreased to $1,887 million as of March 31, 2025, down from $2,318 million in 2024[17] Acquisitions and Integration - The completion of the AspenTech acquisition was noted, with significant progress on integration[2] - The company acquired AspenTech on March 12, 2025, integrating it as an independent business unit within the Control Systems & Software segment[23] Shareholder Returns - The company plans to return approximately $2.3 billion to shareholders through $1.1 billion in share repurchases and $1.2 billion in dividends[3] Sales Growth and Market Performance - Sales growth in the Americas for the six months ended March 31, 2025, was 3%, while Europe experienced a decline of 2%[26] - The Control Systems & Software segment reported sales of $2,055 million for the six months ended March 31, 2025, an increase of 8% from $1,897 million in 2024[25] - The company experienced a 2% underlying sales growth in Q2 2025, with a favorable foreign exchange impact of 1%[40] - The underlying sales growth guidance for 2025 is projected at 3.5% - 4.5%[40] Costs and Expenses - Acquisition/divestiture fees and related costs for Q2 2025 amounted to $168 million, compared to $20 million in Q2 2024[36] - Amortization of intangibles for Q2 2025 was $278 million, down from $322 million in Q2 2024[36] - Restructuring and related costs for Q2 2025 were $22 million, slightly up from $21 million in Q2 2024[41]