Emerson(US:EMR)2025-08-06 10:32Financial Performance - Emerson's consolidated net sales for Q3 fiscal 2025 were $4.6 billion, a 4% increase compared to the prior year, with underlying sales up 3%[70]. - Earnings from continuing operations attributable to common stockholders were $580 million, up 68%, with diluted earnings per share increasing to $1.03, a 72% rise from $0.60 in the prior year[71][82]. - Adjusted diluted earnings per share from continuing operations were $1.52, reflecting a 6% increase compared to $1.43 in the prior year, driven by sales growth and strong operating performance[82]. - Gross profit for Q3 fiscal 2025 was $2.4 billion, a 3% increase, with a gross margin of 52.6%, down 0.2 percentage points from the prior year[76][77]. - Pretax earnings from continuing operations were $734 million, a 61% increase compared to the prior year, reflecting strong performance across segments[80]. - Earnings from continuing operations before income taxes for the first nine months of 2025 were $2.1 billion, a 59% increase compared to the prior year[103]. - Diluted earnings per share from continuing operations increased to $2.91, up 58% from $1.84 in 2024[98]. Sales Performance - Intelligent Devices sales reached $3.1 billion, a 4% increase, with underlying sales up 3% driven by a 2.5% price increase and 0.5% higher volume[87]. - Software and Control sales reached $1.4 billion in Q3 2025, a 3% increase year-over-year, with underlying sales up 2% driven by higher prices[88]. - Net sales for the first nine months of 2025 were $13.2 billion, a 2% increase compared to 2024, with Software and Control sales up 4%[91]. - Intelligent Devices sales for the first nine months of 2025 were $9.0 billion, an increase of $117 million, or 1 percent, driven by a 4 percent increase in the Americas[105]. - Software and Control sales reached $4,217 million in the first nine months of 2025, an increase of $173 million, or 4 percent, with Control Systems & Software sales up 7 percent[107]. Cost and Expenses - Selling, general and administrative (SG&A) expenses were $1.3 billion, a 1% increase, while SG&A as a percentage of sales decreased to 27.8%[78]. - SG&A expenses decreased by 1% to $3.8 billion, with SG&A as a percentage of sales improving to 28.7%[91]. - Earnings for Software and Control increased by $112 million, or 87%, with a margin improvement of 7.5 percentage points, attributed to cost reduction actions and lower amortization costs[88]. Adjusted Metrics - Adjusted EBITA from continuing operations was $1.2 billion, a 2% increase, with an adjusted EBITA margin of 26.0%[85]. - Adjusted EBITA for the first nine months of 2025 was $3.4 billion, a 7% increase, with an adjusted EBITA margin of 26.0%[103]. - Adjusted EBITA for Software and Control rose by 21 percent to $1,356 million, with an adjusted EBITA margin of 32.2 percent, an increase of 4.4 percentage points[107]. Cash Flow and Debt - Operating cash flow from continuing operations for the first nine months of fiscal 2025 was $2,664 million, an increase of $420 million compared to the prior year[113]. - Free cash flow from continuing operations was $2,401 million, reflecting an increase of $408 million compared to $1,993 million in 2024[113]. - Total debt-to-total capital ratio increased to 41.7 percent as of June 30, 2025, compared to 26.2 percent as of September 30, 2024, due to increased borrowings for the AspenTech transaction[110]. Future Outlook - The company expects consolidated net sales for fiscal year 2025 to increase by approximately 3.5 percent, with earnings per share projected at approximately $4.08[116]. - The company plans to return approximately $2.3 billion to shareholders through share repurchases of $1.1 billion and dividend payments of $1.2 billion[117]. - The interest coverage ratio improved to 9.6X for the 12 months ended June 30, 2025, compared to 8.5X for the same period in 2024[111]. Acquisitions - The acquisition of AspenTech for approximately $7.2 billion was completed, and its results are now consolidated into the Control Systems & Software segment[69].