Emerson(US:EMR)2025-11-20 11:55Financial Performance - Net sales for Q4 2025 were $4,855 million, representing a 5% increase from Q4 2024's $4,619 million[1] - Full year net sales increased by 3% to $18,016 million in 2025, up from $17,492 million in 2024[1] - GAAP earnings per share for Q4 2025 rose by 15% to $1.12, compared to $0.97 in Q4 2024[1] - Adjusted earnings per share for the full year 2025 were $6.00, a 9% increase from $5.49 in 2024[1] - Net earnings for the year ended September 30, 2024, were $1,955 million, projected to increase to $2,246 million in 2025[18] - The year ended September 30, 2025, saw GAAP earnings of $2,285 million, with diluted earnings per share at $4.03[41] - Adjusted (non-GAAP) earnings for the year were $3,404 million, leading to adjusted diluted earnings per share of $6.00[41] Cash Flow and Returns - Operating cash flow for 2025 was $3,676 million, an 11% increase from $3,317 million in 2024[1] - Free cash flow for 2025 was $3,245 million, a 12% increase from $2,898 million in 2024[1] - The company plans to return approximately $2.2 billion to shareholders in 2026, including about $1 billion in share repurchases and $1.2 billion in dividends[3] - Free cash flow for FY24 is $2,898 million and for FY25 it is expected to be $3,245 million, with projections for FY26E ranging from $3.5 billion to $3.6 billion[45] Segment Performance - Emerson achieved $200 million in run-rate cost synergies from the integration of AspenTech and Test & Measurement[2] - The Intelligent Devices segment reported sales of $12,161 million for the year ended September 30, 2024, with a projected increase to $12,400 million in 2025, reflecting a 2% growth[25] - Adjusted EBITA for the Final Control segment was $271 million for Q4 2024, expected to rise to $305 million in Q4 2025, with margins increasing from 23.2% to 26.1%[28] - The Control Systems & Software segment achieved an adjusted EBITA of $98 million for Q4 2024, with margins expected to improve from 9.8% to 24.0% in Q4 2025[28] - The Final Control segment reported an adjusted EBITA of $335 million for Q4 2025, with an EBITA margin of 27.6%[44] - The Intelligent Devices segment achieved an adjusted EBITA of $926 million for Q4 2025, with an EBITA margin of 27.2%[44] - Control Systems & Software segment EBITA margin improved significantly from 28.1% in 2024 to 33.0% in 2025, with EBITA increasing from $1,107 million to $1,388 million[45] Sales Growth - Sales growth in the Americas for the quarter ended September 30, 2024, was 6%, while Europe and Asia, Middle East & Africa saw growth of 3% and 2%, respectively[23] - The company experienced a 5% underlying sales change for the fourth quarter of FY25, with a 4% underlying growth guidance for Q1 2026[43] - The 2026 outlook projects net sales growth of approximately 5.5% and underlying sales growth of around 4%[4] Cost and Expenses - The company incurred restructuring and related costs of $64 million for the quarter ended September 30, 2024, which rose to $81 million in 2025[38] - The total adjusted corporate and other expenses for the quarter ended September 30, 2024, were $(60) million, improving to $(34) million in 2025[35] - The company incurred $257 million in amortization of intangibles and $61 million in restructuring and related costs for Q4 2025[44] Depreciation and Amortization - Total depreciation and amortization for the quarter ended September 30, 2024, was $426 million, down from $379 million in 2025[32] - The company’s amortization of intangibles for the year ended September 30, 2024, was $1,274 million, decreasing to $1,083 million in 2025[39] Other Financial Metrics - The company reported a margin increase of 170 basis points in Q4 2025, reaching 16.4% compared to 14.7% in Q4 2024[1] - Total pretax earnings (GAAP) increased from $2,020 million in 2024 to $2,934 million in 2025, reflecting a margin increase from 11.5% to 16.3%[45] - Adjusted EBITA for the quarter ended September 30, 2024, was $1,135 million, representing a 24.6% margin, compared to $1,271 million and a 26.2% margin in 2025[38]