Emerson Q2 Earnings Top Estimates, Software and Control Sales Rise

Core Viewpoint - Emerson Electric Co. reported strong second-quarter fiscal 2025 results, with adjusted earnings per share of $1.48, exceeding estimates and reflecting a 9% year-over-year increase [1] Financial Performance - Net sales reached $4.43 billion, surpassing the consensus estimate of $4.38 billion, and increased by 1% year over year, driven by the Software and Control segment [2] - The Intelligent Devices segment reported net sales of $3.03 billion, a decline of 1% year over year, while the Software and Control Automation Solutions segment generated net sales of $1.42 billion, up 7% year over year [3][5] - The cost of sales decreased by 1.5% year over year to $2.06 billion, with a pretax earnings margin of 14.2%, down from 16.3% a year ago [6] Segment Performance - In the Intelligent Devices segment, Final Control sales increased by 2% to $1.07 billion, while Measurement & Analytical sales were $1 billion, down 1% [4] - The Software and Control segment's Control Systems & Software reported sales of $1.06 billion, reflecting a 10% increase year over year [5] Balance Sheet and Cash Flow - At the end of the fiscal second quarter, cash and cash equivalents were $1.89 billion, down from $3.6 billion at the end of fiscal 2024, with long-term debt increasing to $8.18 billion [7] - The company generated net cash of $1.02 billion from operating activities, a 12.1% increase year over year, and paid dividends of $598 million while repurchasing shares worth $1.12 billion [8] Future Outlook - For the third quarter of fiscal 2025, Emerson anticipates net sales growth of 4.5–5.5% and adjusted earnings per share in the range of $1.48–$1.52 [9] - The full fiscal year 2025 outlook includes an expected net sales growth of approximately 4% and adjusted earnings per share projected between $5.90 and $6.05 [10][11]