Emerson Reports Fourth Quarter and Full Year 2025 Results; Provides Initial 2026 Outlook

Core Insights - Emerson reported solid financial results for the fourth quarter and fiscal year 2025, with a 5% increase in quarterly cash dividend and a share repurchase authorization of up to 50 million shares [1][3][4] Financial Performance - Net sales for Q4 2025 reached $4,855 million, a 5% increase from Q4 2024's $4,619 million, while total net sales for fiscal year 2025 were $18,016 million, up 3% from $17,492 million in 2024 [2][16] - Underlying orders growth was 4% in Q4 2025, compared to 6% in Q4 2024, indicating a slight slowdown [2] - GAAP earnings per share increased by 15% to $1.12 in Q4 2025 from $0.97 in Q4 2024, and for the full year, it rose 43% to $4.03 from $2.82 [2][16] Margin and Earnings - Pretax earnings for Q4 2025 were $796 million, up from $679 million in Q4 2024, with a margin increase from 14.7% to 16.4% [2][16] - Adjusted segment EBITA for Q4 2025 was $1,333 million, reflecting a margin improvement to 27.5% from 26.2% in Q4 2024 [2][16] Management Commentary - The CEO highlighted the successful integration of AspenTech and the completion of the Test & Measurement integration, achieving $200 million in run-rate cost synergies [3] - The company is positioned to benefit from long-term secular trends, supporting mid-single-digit underlying orders growth for three consecutive quarters [3] 2026 Outlook - For fiscal year 2026, Emerson anticipates net sales growth of approximately 5.5% and adjusted earnings per share between $6.35 and $6.55 [4][5] - The company plans to return approximately $2.2 billion to shareholders through share repurchases and dividends [4]