Financial Data and Key Metrics Changes - Revenue for the first quarter reached $630 million, a 29% increase year-over-year, meeting the top end of the forecasted range [8][9] - GAAP profitability was achieved with a net income of $13 million, a significant improvement from a net loss of $17 million in the same quarter last year [14][15] - Adjusted EBITDA was $67 million, well above the forecasted range, marking a significant increase from $18 million in the first quarter of fiscal year 2025 [15] Business Line Data and Key Metrics Changes - Systems revenue grew by 27% year-over-year to $590 million, driven by new deployments and operational transitions [10] - Software revenue increased by 97% year-over-year to $10.9 million, while operations services revenue grew by 68% year-over-year to $28.8 million [10] Market Data and Key Metrics Changes - The backlog remained strong at $22.3 billion, reflecting a modest change from $22.5 billion last quarter due to revenue recognition [15] - The company processed over two billion cases for customers in calendar year 2025, indicating significant operational scale [7] Company Strategy and Development Direction - The company aims to broaden opportunities in e-commerce, particularly through improvements in automation systems for Walmart [5][6] - The acquisition of Fox Robotics is intended to enhance the company's capabilities in autonomous forklift solutions, expanding its market reach [6][38] - Investment in R&D is focused on driving higher performance levels across operational systems, with a strong emphasis on product innovation [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory towards GAAP profitability and margin expansion, citing operational execution and product innovation as key drivers [4][9] - The outlook for the second quarter anticipates revenue between $650 million and $670 million, with continued strong top-line growth and margin expansion expected [16] Other Important Information - The company has made significant improvements in deployment timelines, with the average time from installation to operational status now around ten months [22] - An accounting change in stock-based compensation expense recognition was implemented, which may affect financial reporting but does not change prior period adjusted EBITDA results [13][14] Q&A Session Summary Question: Impact of paid development on revenue and EBITDA - Management noted that paid development has reached double digits as a percentage of total revenue, but it may not maintain that level in the second quarter due to resource redeployment [19][20] Question: Update on deployment timelines - The average timeline from announcement to operational status remains around two years, with improvements noted in the time from installation to operational acceptance [22] Question: R&D spending and implications for gross margins - R&D spending is expected to increase in the second quarter, with a focus on aligning resources with revenue-generating activities [25][26] Question: Composition of new deployments - The ten new deployments included a mix of traditional systems, with no micro-fulfillment systems in this quarter [28][29] Question: Shipment trajectory and growth expectations - Management clarified that the anticipated sequential growth in the second and third quarters aligns with previous guidance, with a stronger growth expected in the fourth quarter [35][36] Question: Implications of the Fox acquisition - The acquisition is expected to open new customer bases and enhance the company's offerings in dock automation, although specific revenue implications are still being assessed [38][39] Question: Update on the Mexico site and pipeline - The Mexico site is progressing well, with expectations for multiple sites in the region due to strong customer satisfaction [69] Question: Progress on chilled or frozen offerings - The company is actively working on designs for perishables and expects to announce some perishable sites soon, leveraging the new structure for cost efficiency [77][81]

Financial Data and Key Metrics Changes - Emerson's underlying sales growth was 2% year-over-year, with adjusted segment EBITDA margin at 27.7% and adjusted earnings per share at $1.46, reflecting a 6% increase year-over-year [10][19][24] - The backlog ended the quarter at $7.9 billion, up 9% year-over-year, with a book-to-bill ratio of 1.13 [19][63] Business Line Data and Key Metrics Changes - Software and systems reported a 3% underlying sales growth, driven by test and measurement, which grew 11% [19][23] - Intelligent devices grew 2%, while safety and productivity increased by 1% [19][24] - Ovation business saw a significant increase of 74% in orders, driven by large project wins [14][40] Market Data and Key Metrics Changes - North America orders were up 18%, with strong performance in power and LNG sectors [38][97] - The Middle East and Africa experienced a 9% growth, while Europe and China showed ongoing softness [14][38][75] Company Strategy and Development Direction - Emerson aims to return $10 billion to shareholders through share repurchase and dividends, with a focus on organic growth and operational excellence [7][11] - The company is aligned with secular tailwinds such as electrification, energy security, and nearshoring, expecting these to drive growth over the next three years [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 targets, supported by a good start to the year and operational excellence [10][11] - The company anticipates continued strong demand in North America, India, and the Middle East, while acknowledging challenges in Europe and China [14][75] Other Important Information - Emerson was named the 2026 Industrial IoT Company of the Year, highlighting its leadership in industrial IoT technology [11] - The company released DeltaV version 16, enhancing its software-defined automation vision [12] Q&A Session Summary Question: Can you break down the 9% order growth in Q1 between process and hybrid? - Management noted that power orders were driven by modernization and behind-the-meter power generating capacity at data centers, with significant growth in test and measurement orders [34][36][40] Question: What is the expected impact of AI on software growth? - Management believes AI capabilities will accelerate growth in software offerings, with minimal disruption expected [41][43] Question: Are the orders in power pushing beyond this year into multi-year phases? - Management confirmed confidence in backlog timing supporting sales into 2027, particularly in power and LNG sectors [46][47] Question: What is the outlook for weak verticals like chemicals? - Management indicated continued flat activity in Europe, particularly in chemicals, with a bearish outlook for China [75][76] Question: What is the opportunity in Venezuela? - Management acknowledged a long-established history in Venezuela and plans to mobilize for potential growth, particularly in power generation [104][106] Question: Any updates on tariffs and mitigation activity? - Management reported some positive developments regarding tariffs, particularly with China, while noting challenges with Mexico [115] Question: What are the green shoots in China? - Management highlighted good activity in the test and measurement space and broad portfolio business, despite overall softness [117]

Emerson Electric (NYSE:EMR) Q1 2026 Earnings call February 03, 2026 04:30 PM ET Company ParticipantsChigusa Katoku - VP in Equity Research for Electrical Equipment, Machinery, and Multi‑Industry SectorsDoug Ashby - Director of Investor RelationsJeffrey Sprague - Founder and Managing PartnerLal Karsanbhai - President and CEOMike Baughman - EVP and CFORam Krishnan - EVP and COOConference Call ParticipantsAndrew Obin - Managing Director and Senior Analyst for U.S. Multi‑Industry and Machinery SectorAndy Kaplow ...

Financial Data and Key Metrics Changes - In Q1 2026, underlying sales increased by 2% year-over-year, with adjusted segment EBITDA margin at 27.7% and adjusted earnings per share (EPS) at $1.46, reflecting a 6% increase year-over-year [9][10][17] - The company expects full-year sales growth of approximately 4% and adjusted EPS guidance raised to $6.40-$6.55 per share [10][23] Business Line Data and Key Metrics Changes - The software and systems segment saw underlying sales growth of 3%, driven by strong performance in test and measurement, which grew 11% [20][24] - Intelligent devices grew by 2%, while safety and productivity increased by 1% [20][22] - The Ovation business experienced a significant increase of 74% in orders, driven by large project wins [12][29] Market Data and Key Metrics Changes - North America, India, and the Middle East and Africa showed robust demand, with North America orders up 18% [12][32] - Europe and China experienced ongoing softness, with orders in Europe down low single digits and China down high single digits [12][32] - The overall order growth was 9%, with significant contributions from power and LNG sectors [12][29] Company Strategy and Development Direction - The company aims to return $10 billion to shareholders through share repurchases and dividends, with a focus on organic growth and operational excellence [5][10] - Emerson's automation portfolio is aligned with secular trends such as electrification and energy security, expected to drive growth over the next three years [4][5] - The company is committed to enhancing adjusted segment EBITDA margins by 240 basis points by 2028 [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 targets, supported by a strong start to the year and operational excellence [9][10] - The company noted that AI capabilities integrated into their software offerings are expected to accelerate growth rather than disrupt it [33] - Concerns were raised about the softness in Europe and China, particularly in the chemical sector, but there are signs of growth in test and measurement and power generation [44][60] Other Important Information - Emerson completed $250 million in share repurchases in Q1 and plans to return approximately $2.2 billion to shareholders [10][23] - The company was recognized as the 2026 Industrial IoT Company of the Year, highlighting its leadership in industrial IoT technology [10] Q&A Session Summary Question: Can you break down the 9% order growth in Q1 between process and hybrid? - Management noted that the growth was predominantly driven by modernization and behind-the-meter power generating capacity at data centers, with significant activity in test and measurement [29][30] Question: What are the expectations for the impact of AI on software growth? - Management indicated that AI capabilities are expected to complement and accelerate growth in software offerings, with minimal disruption anticipated [33] Question: How should we think about the cadence of longer-cycle orders translating into sales? - Management stated that the backlog supports mid-single-digit growth and that the build is across various business segments, particularly in control systems and software [40] Question: What is the outlook for the chemical sector in Europe and China? - Management acknowledged continued flat activity in Europe, particularly in chemicals, and a bearish outlook for China, with expectations of low single-digit declines [44][60] Question: What is the company's strategy regarding the opportunity in Venezuela? - Management highlighted a long-established history in Venezuela and plans to mobilize resources to capitalize on potential growth opportunities in the region, particularly in power generation [54][56]

Core Viewpoint - Rockwell Automation Inc. (ROK) is expected to report strong earnings growth in its first-quarter fiscal 2026 results, with an estimated EPS of $2.54, reflecting a 38.8% year-over-year increase, and sales projected at $2.09 billion, indicating a 10.9% rise from the previous year [1][5]. Earnings Estimates - The Zacks Consensus Estimate for ROK's earnings has increased by 1.2% over the past 60 days [1][5]. - The earnings surprise history shows ROK has consistently beaten estimates, with an average surprise of 12.3% over the last four quarters [2][3]. Earnings Prediction Model - The model indicates a likely earnings beat for ROK, supported by a positive Earnings ESP of +1.03% and a Zacks Rank of 2 (Buy) [4][6]. Segment Performance Expectations - The Intelligent Devices segment is expected to see a 20.2% year-over-year sales increase to $968 million, with an operating profit of $175 million, up 45.6% [11]. - The Software & Control segment is projected to achieve sales of $568 million, reflecting a 7.5% growth, with an operating profit of $168 million, indicating a 26% increase [12]. - The Lifecycle Services segment is anticipated to report sales of $521 million, a 4.7% decline, with an operating profit of $51 million, suggesting a 25.4% decrease [13]. Market Context - ROK's stock has performed well, increasing by 60.9% over the past year, outperforming the industry average of 35.7% [14].

Core Viewpoint - Emerson Electric held its 2026 Annual Meeting of Shareholders, where shareholders voted on the election of directors, fiscal 2025 performance, and several proposals, including a board declassification amendment that ultimately failed to pass. Group 1: Shareholder Meeting Outcomes - Shareholders voted to reelect directors Martin Craighead, Gloria Flach, and Matthew Levatich for three-year terms expiring in 2029, with substantial majority support [1][5] - The board declassification proposal did not receive the required 85% approval and was therefore not approved [5][8] - The advisory say-on-pay proposal for fiscal 2025 received approximately 90% support, while the ratification of KPMG as auditor garnered about 92% approval [4][7] Group 2: Financial Performance - Emerson reported a "solid fiscal 2025," with sales increasing by 3%, operating cash flow up by 11%, free cash flow up by 12%, and earnings per share (EPS) rising by 43% (adjusted EPS up by 9%) [4][10][16] - The company highlighted key portfolio actions, including the acquisition of Aspen Technology, integration of National Instruments, and divestiture of Copeland, aimed at strengthening its automation portfolio [4][11] Group 3: Voting and Proxy Details - As of the record date, Emerson had 562,302,093 shares of common stock outstanding, with proxies and ballots received for 495,357,307 shares, representing over 88% of shares entitled to vote [2] - The meeting was conducted in accordance with Emerson's bylaws and included four proposals, with the results to be disclosed in a Form 8-K filing within four business days [3][12]

Financial Data and Key Metrics Changes - The company reported a solid fiscal 2025 with sales and underlying sales increasing by 3% [10] - Operating cash flow rose by 11%, while free cash flow increased by 12% [10] - Earnings per share surged by 43%, and adjusted earnings per share grew by 9% [10] Business Line Data and Key Metrics Changes - The acquisition of Aspen Technology, along with the integration of National Instruments and the divestiture of Copeland, has created a cohesive automation portfolio [10] Market Data and Key Metrics Changes - No specific market data or key metrics changes were provided in the meeting [10] Company Strategy and Development Direction - The company is focused on transforming into a global automation leader for mission-critical industries [10] - The recent acquisitions align with long-term secular trends and the investing priorities of customers [10] Management Comments on Operating Environment and Future Outlook - Management highlighted the dedication of global teams in achieving fiscal 2025 results and emphasized the importance of the recent acquisitions in driving future growth [10] Other Important Information - The proposal to amend the company's Restated Articles of Incorporation to declassify the board of directors was not approved, failing to receive the required 85% of outstanding shares voting in favor [11] Q&A Session Summary - There were no questions from shareholders pertaining to the matters being voted on at the meeting [10]

Financial Data and Key Metrics Changes - The company reported a solid fiscal 2025 with sales and underlying sales increasing by 3% [10] - Operating cash flow rose by 11%, while free cash flow increased by 12% [10] - Earnings per share surged by 43%, and adjusted earnings per share grew by 9% [10] Business Line Data and Key Metrics Changes - The acquisition of Aspen Technology, along with the integration of National Instruments and the divestiture of Copeland, has created a cohesive automation portfolio [10] Market Data and Key Metrics Changes - No specific market data or key metrics changes were provided in the meeting [10] Company Strategy and Development Direction - The company is focused on transforming into a global automation leader for mission-critical industries, aligning with long-term secular trends and customer investment priorities [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the dedication of global teams in achieving fiscal 2025 results and emphasized the importance of recent acquisitions in enhancing the company's automation capabilities [10] Other Important Information - The proposal to amend the company's Restated Articles of Incorporation to declassify the board of directors was not approved, failing to receive the required 85% of outstanding shares voting in favor [11] Q&A Session Summary - There were no questions from shareholders pertaining to the matters being voted on at the meeting [10]

Financial Data and Key Metrics Changes - The company reported a solid fiscal 2025 with sales and underlying sales up 3% [9] - Operating cash flow increased by 11% and free cash flow rose by 12% [9] - Earnings per share surged by 43%, while adjusted earnings per share grew by 9% [9] Business Line Data and Key Metrics Changes - The acquisition of Aspen Technology, along with the integration of National Instruments and the divestiture of Copeland, has created a cohesive automation portfolio [9] Market Data and Key Metrics Changes - No specific market data or key metrics changes were provided in the meeting [9] Company Strategy and Development Direction - The company is focused on transforming into a global automation leader for mission-critical industries, aligning with long-term secular trends and customer investment priorities [9] Management Comments on Operating Environment and Future Outlook - Management highlighted the dedication of global teams in achieving fiscal 2025 results and emphasized the importance of recent acquisitions in enhancing the company's automation capabilities [9] Other Important Information - The proposal to amend the company's Restated Articles of Incorporation to declassify the board of directors did not receive the required 85% of outstanding shares voting in favor and therefore was not approved [10] Q&A Session Summary - There were no questions from shareholders pertaining to the matters being voted on at the meeting [9]

Core Viewpoint - Rockwell Automation (ROK) is expected to report strong quarterly earnings and revenue growth, with analysts predicting earnings of $2.54 per share, a 38.8% increase year-over-year, and revenues of $2.09 billion, reflecting an 11% year-over-year increase [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 2.7% over the past 30 days, indicating a positive reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions and have shown a strong correlation with short-term stock price performance [3]. Key Metrics Forecast - Analysts project 'Sales- Intelligent Devices' to reach $958.27 million, marking an 18.9% increase from the previous year [5]. - 'Sales- Lifecycle Services' is expected to be $521.51 million, indicating a year-over-year decline of 4.5% [5]. - 'Sales- Software & Control' is forecasted to be $592.47 million, reflecting a 12% increase year-over-year [5]. Operating Earnings Estimates - The consensus for 'Operating earnings- Intelligent Devices' is $173.19 million, up from $120.00 million in the same quarter last year [6]. - 'Operating earnings- Lifecycle Services' is estimated at $60.65 million, down from $68.00 million year-over-year [6]. - 'Operating earnings- Software & Control' is expected to reach $171.74 million, compared to $133.00 million in the previous year [7]. Stock Performance - Rockwell Automation shares have returned +6% over the past month, outperforming the Zacks S&P 500 composite, which saw a +1.8% change [7].