Summary of Emerson Electric Co. Conference Call Company Overview - **Company**: Emerson Electric Co. - **Industry**: Electrical Equipment and Automation Key Points and Arguments Company Transformation and Financial Performance - The CEO, Lal Karsanbhai, expressed optimism about the company's future, highlighting a significant transformation in the portfolio over the past four and a half years, creating a global automation company with a differentiated technology stack [6][7] - The company has improved gross margins by 1,000 basis points and EBITDA margins by 700 basis points [6] - Emerson generates strong cash flow, aiming for a 100% cash conversion measure [7][166] Market Performance and Geographic Insights - **Strong Markets**: The U.S., Middle East, Africa, and India are performing well, with the U.S. market strengthening throughout the year [7] - **Weak Markets**: China and Europe have shown weakness, with China expected to grow at mid-single digits in the next decade, down from historical growth rates [7][53] - The company anticipates orders to come in at the lower end of guidance (5-7%) due to ongoing weakness in Europe and China [8] Vertical Performance - **Strong Verticals**: Power, LNG, and life sciences are identified as strong growth areas, particularly in North America and the Middle East [18][71] - **Weak Verticals**: Traditional process industries, particularly bulk chemicals and automotive, are underperforming [23][20] Sustainability and Project Erosion - There has been a noted erosion of sustainability projects in the U.S., with smaller projects being removed from the funnel [31][34] - The company continues to see a decline in mega projects related to sustainability and decarbonization [34] Future Growth and Investment Strategy - Emerson is focused on capitalizing on the "age of America," with significant investment opportunities in energy policy, power generation, life sciences, and semiconductor nearshoring [52] - The company plans to maintain capital expenditures at around 2.5% of revenue and R&D spending at 8% [62][64] Margin and Profitability Outlook - The company expects normalized incremental margins around 40% going forward, with a focus on maintaining strong segment margins [118][121] - The CEO indicated that the company has achieved a 1,000 basis point improvement in gross margins, with a significant portion attributed to M&A activity [103] AI and Digital Transformation - Emerson is leveraging AI for internal processes and product offerings, including AI agents in LabVIEW and AspenTech, aimed at improving efficiency and reducing engineering time [192][194] - The company is focused on creating a unified data fabric to enhance digital transformation efforts [84] Capital Allocation and Shareholder Returns - Emerson plans to return cash to shareholders through dividends and share repurchases, while continuing to invest in innovation and growth opportunities [180] - The company is looking for bolt-on acquisitions, particularly in the test and measurement and software sectors, with a focus on technology that enhances growth and margins [189] Conclusion - Emerson Electric Co. is navigating a complex market environment with a focus on transformation, geographic strengths, and vertical opportunities while managing challenges in weaker markets. The company is committed to maintaining strong financial performance and shareholder returns through strategic investments and operational efficiencies.

Q3 2025 Performance - Underlying sales growth was 3%[13], impacted by reduced pricing actions due to improved tariff exposure[13] - Adjusted EPS of $1.52 met the top end of guidance[13] - Free cash flow generation exceeded expectations, yielding a 21.3% margin[11] Orders and Demand - Underlying orders grew by 4%[13]; Test & Measurement orders increased by 16%[13] - Strong demand continues in process and hybrid markets, with discrete markets showing recovery[10] - Industrial software saw strong demand, with Annual Contract Value (ACV) at $1.5 billion, up 10% year-over-year[10] Q4 2025 Guidance - Expects underlying sales growth between 5% and 6%[11], driven by Test & Measurement recovery and automation investments[11] - Anticipates an adjusted segment EBITA margin of approximately 27%[11], higher than previously expected due to lower tariff exposure[11] - Projects adjusted EPS of $1.58 to $1.62, representing a 7% to 10% year-over-year increase[11] Tariff Mitigation - Reduced tariff exposure by approximately $210 million annualized[21], expecting full offset[21] - Gross tariffs are estimated at $455 million annualized[22], with mitigations of approximately $130 million[22] through price and supply chain actions[22] Full Year 2025 Guidance - Free Cash Flow raised to approximately $3.2 billion[32], with an ~18% margin[32] - Price is now expected to contribute ~2.5 percentage points due to the improved tariff environment[32]

Core Viewpoint - NI is leading the way towards a data-driven and AI-enabled future in intelligent testing, showcasing its smart testing strategy and significant updates to core products like LabVIEW, PXI, and DAQ at the recently concluded NI Connect 2025 [1][2]. Group 1: Smart Testing Strategy - NI's smart testing strategy focuses on platform-based testing solutions, emphasizing open software, modular hardware, and ecosystem collaboration to tackle next-generation testing challenges [2]. - The company plans to enhance user efficiency and cross-team collaboration through continuous investment in LabVIEW+ suite and SystemLink software platform [2]. - NI aims to push the performance limits of its hardware products like PXI and DAQ while reducing costs to meet diverse needs [2]. Group 2: Product Innovations - The newly launched 3rd generation PXIe-5842 Vector Signal Transceiver (VST3) doubles the instantaneous bandwidth from 2GHz to 4GHz, with potential for up to 7GHz using proprietary spectrum stitching technology [3][4]. - NI plans to release over 25 new data acquisition products in 2025, including the FieldDAQ designed for harsh environments with IP67 protection and wide temperature adaptability [4][6]. - The USB DAQ series NI mioDAQ, launched last year, features 1 million samples per second and 20-bit resolution, gaining popularity for its ease of use [6]. Group 3: Software Enhancements - NI LabVIEW 2025 introduces optimized debugging features and enhanced interoperability with .NET 8.0 and Python 3.11/3.12, improving collaboration among diverse technical teams [8]. - The new version of SystemLink software simplifies setup and licensing for small labs, enabling low-cost deployment and advanced data strategies [10]. - AI advisor Nigel™ has been integrated into LabVIEW and TestStand, providing significant convenience for users [12]. Group 4: Future Directions - NI is committed to building an intelligent testing platform that integrates AI, cloud computing, and advanced technologies to manage complexity and enhance system performance [15][16]. - The company emphasizes the importance of a structured data strategy to realize the value of AI in testing systems [15]. - Future testing systems will focus on AI-driven advancements, enhancing productivity and speed through integrated data management and visualization [16].

Financial Data and Key Metrics Changes - Emerson reported underlying orders growth of 4%, exceeding expectations, with all regions showing positive results, including China [6][12] - Underlying sales were up 2%, with Process and Hybrid businesses growing mid-single digits, while adjusted earnings per share increased by 9% year over year to $1.48 [12][24] - Free cash flow was $738 million, reflecting a 14% increase year over year, with a free cash flow margin of 17% [24][25] Business Line Data and Key Metrics Changes - Process and Hybrid markets grew by 6%, while Discrete businesses turned positive with Test and Measurement orders up 8% [6][14] - Software and Control segment grew by 7%, driven by higher software sales, while Intelligent Devices remained flat due to safety and productivity issues [22] - The Industrial Software business saw an 11% year-over-year increase in annual contract value (ACV), supported by strong demand for AspenTech's offerings [21] Market Data and Key Metrics Changes - Demand for Process and Hybrid businesses remained strong, particularly in energy and LNG projects, with significant capital investment noted in regions like the Middle East, Africa, and India [14][18] - The Americas experienced mid-single-digit growth, while Europe saw low single-digit growth, with continued momentum in Energy Transition and Life Sciences [18][19] - The company expects mid-single-digit growth in Process and Hybrid sales in the second half, with a more muted recovery anticipated in factory automation and automotive sectors [20][36] Company Strategy and Development Direction - Emerson is focused on integrating AspenTech as a key priority for 2025, targeting $100 million in cost synergies by 2028 [10] - The company has completed its portfolio transformation, retaining the Safety and Productivity business due to its strong profitability and cash generation potential [11] - Emerson aims to maintain disciplined capital allocation, prioritizing reinvestment in the business, dividends, and share repurchases while targeting bolt-on acquisitions under $1 billion [39][96] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's plans for the year, guiding for underlying sales growth of approximately 4% and raising the midpoint of adjusted EPS guidance to between $5.90 and $6.05 [9][34] - The management noted that while there are signs of tariff-induced impacts, they have not seen widespread indications affecting demand [16][32] - The company anticipates a favorable spending environment in LNG and power sectors, driven by energy security and self-reliance commitments [16][36] Other Important Information - Emerson's gross exposure to tariffs is estimated at $245 million for 2025, which the company expects to fully mitigate through pricing actions and operational adjustments [7][31] - The company reported a backlog of $7.5 billion, with a book-to-bill ratio of 1.04, indicating a healthy order flow [22] Q&A Session Summary Question: What is improving in discrete automation? - Management highlighted recovery in Test and Measurement driven by Aerospace and Defense, while noting continued weakness in automotive sectors, particularly in China and Germany [42][44] Question: How real is the pharmaceutical spending? - Management confirmed that the commitments from pharmaceutical companies are genuine, with early projects emerging in the life sciences sector [46][48] Question: What can be done with AspenTech now that the deal is closed? - Management expressed excitement about the growth opportunities with AspenTech, emphasizing the potential for double-digit ACV growth and enhanced collaboration with existing Emerson platforms [53][55] Question: Will tariff impacts be offset by the end of the fiscal year? - Management confirmed that they expect to completely cover the tariff impacts by the end of fiscal 2025 [57][59] Question: Why retain the Safety and Productivity business? - Management concluded that retaining the business would provide the best value for shareholders, given its strong profitability and alignment with U.S. manufacturing trends [66][68] Question: What data points indicate softness in China? - Management noted that softness is primarily in the chemical sector, with some positive signs in power generation and marine business [70][72] Question: What is the outlook for Test and Measurement? - Management indicated strong growth in Aerospace and Defense and a recovery in semiconductors, while automotive remains a concern [92][94]

Q2 2025 Performance Highlights - Emerson's underlying orders grew by 4%, with positive contributions from all regions[7] - Process and hybrid businesses increased by 6%, while Test & Measurement (T&M) rose by 8%[7] - Underlying sales grew by 2%, reaching the top of the guided range[7] - Adjusted EPS exceeded the high end of guidance by $006, reaching $148[7, 13] - Free cash flow reached $738 million[13] - Adjusted Segment EBITA Margin was 280%[13] Updated 2025 Guidance - The company expects underlying sales to grow by approximately 4%[9] - The adjusted EPS midpoint is raised to a range of $590 - $605[9] - Free cash flow is updated to $31 billion - $32 billion[9] - The company plans to return $23 billion to shareholders through dividends and share repurchases[9] Tariff Impact and Mitigation - Emerson faces approximately $245 million in tariff exposure for 2025, but expects to fully mitigate the earnings impact[11]

知识自动化 . 洞察全球产业，讲好制造故事 以下文章来源于知识自动化 ，作者林雪萍 易赋 软件收购。 作者 | 林雪萍 易赋 来源 | 知识自动化 （ID：zhishipai） 2016年微软收购领英软件达到了262亿美元，已经是天价市场。而现在，工业软件的交 易，跟全球最热门的社交软件已经达到同一水平。这也意味着，工业知识从来未曾得到 如此高的估值。工业软件，进入活火山一般的活跃交易期，而且往往都是以大型交易为 主力战场。 不对称勇士的新去处 在2024年欧特克Autodesk收购了Datum360，几乎是一次悄无声息的收购。可能后者 只有400万美元的销售体量，不足以引起人们的重视。然而，Datum360这种20人左 右，年收入3000万人民币其实已经是工业软件缝隙里最常见的"局部的王者"。它们最 擅长的是以不对称的战法，以最小的战略资源来获得适者生存的权力。 这类软件企业，可以跟海洋里最明显的比例不对称勇士——招潮蟹相比。绝大多数生命 的身体结构，都表现出某种形式的对称性。然而招潮蟹雄蟹的一只钳子，要比另外一只 大很多。而这只"突出的鳌钳"，跟身体比例相比也过于强大。这为它带来了丰沛的战斗 力。 这些招 ...