Core Insights - Emerson Electric Co. reported fourth-quarter fiscal 2025 adjusted earnings of $1.62 per share, matching the Zacks Consensus Estimate, with a year-over-year increase of 9% [1] - The company's net sales reached $4.89 billion, exceeding the consensus estimate of $4.88 billion, and reflecting a 5% year-over-year growth driven by the Software and Control segment [1] Business Segments' Performance - Emerson operates under two segments: Intelligent Devices and Software & Control, with Intelligent Devices generating net sales of $3.40 billion, a 4% increase year over year [2] - The Intelligent Devices segment includes four subgroups: Final Control, Measurement & Analytical, Discrete Automation, and Safety & Productivity [2] - Final Control's sales increased 4% to $1.22 billion, Measurement & Analytical sales rose 3% to $1.15 billion, Discrete Automation's sales grew 5% to $676 million, and Safety & Productivity's sales increased 2% to $360 million [3] - The Software and Control segment generated net sales of $1.48 billion, up 9% year over year, with Control Systems & Software sales at $1.07 billion (7% increase) and Test & Measurement sales at $408 million (13% increase) [4] Margin Details - The cost of sales rose 3.9% year over year to $2.34 billion, with a pretax earnings margin of 16.4%, up from 14.7% in the previous year [5] - Adjusted EBITA margin improved to 27.5% from 26.2% year over year, while selling, general, and administrative expenses increased 1.1% to $1.33 billion [5] Balance Sheet & Cash Flow - At the end of the fiscal fourth quarter, Emerson had cash and cash equivalents of $1.54 billion, down from $3.6 billion at the end of fiscal 2024, and long-term debt increased to $8.32 billion from $7.16 billion [6] - The company generated net cash of $3.10 billion from operating activities, a 7% decrease year over year, with capital expenditure rising to $431 million from $419 million [7] - Emerson paid out dividends of $1.19 billion and repurchased shares worth $1.17 billion during the same period [7] Fiscal 2026 Outlook - For the first quarter of fiscal 2026, Emerson anticipates net sales growth of approximately 4% and underlying sales growth of about 2% [8] - The company projects fiscal 2026 net sales growth of approximately 5.5%, with underlying sales expected to rise about 4% [11] - Adjusted earnings per share are estimated to be between $6.35 and $6.55, with operating cash flow projected at $4.0 to $4.1 billion and free cash flow around $3.5 to $3.6 billion [11]

Core Insights - Emerson Electric Co. (EMR) is experiencing strong momentum in its Intelligent Devices segment, particularly in the Final Control business, which saw a 4% year-over-year sales increase in the first nine months of fiscal 2025 [1][8] - The Measurement & Analytical business is benefiting from robust growth in the Americas and Asia, the Middle East & Africa, with a 2% year-over-year sales increase, although the Safety & Productivity business faced a 4% decline due to weak demand [2][8] - The Software and Control segment is expected to grow due to strong performance in the AspenTech unit and favorable conditions in power and process markets, with overall net sales projected to rise approximately 3.5% year over year in fiscal 2025 [3][8] Segment Performance - Final Control business sales increased by 4% year over year in the first nine months of FY25, driven by strong demand in power end markets [1][8] - Measurement & Analytical sales rose by 2% year over year, supported by growth in the Americas and AMEA regions [2][8] - Safety & Productivity business sales declined by 4% in the first nine months of fiscal 2025 due to weak demand across all geographies [2] Peer Comparison - Flowserve Corporation (FLS) reported a 1.3% year-over-year revenue increase in its Pump Division, totaling $818.9 million in the first half of 2025 [4] - Ingersoll Rand Inc. (IR) saw a 1.7% year-over-year revenue growth in its Industrial Technologies & Services segment, with revenues reaching $1.49 billion in the second quarter of 2025 [5] Financial Performance - Emerson's shares have increased by 11.8% over the past year, outperforming the industry growth of 6.8% [6] - The company is trading at a forward price-to-earnings ratio of 19.41X, which is below the industry average of 22.52X [9] - The Zacks Consensus Estimate for EMR's fiscal 2025 earnings has been rising over the past 60 days, with current estimates at $6.00 per share for the current year and $6.48 for the next year [10][11]

Core Insights - Emerson Electric Co. reported adjusted earnings of $1.52 per share for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.51, with a year-over-year increase of 6% [1] - The company's net sales were $4.55 billion, slightly below the consensus estimate of $4.58 billion, but represented a 4% year-over-year growth, primarily driven by the Software and Control segment [1] Business Segments' Performance - Emerson operates under two segments: Intelligent Devices and Software & Control, with Intelligent Devices generating net sales of $3.13 billion, a 4% increase year over year [2] - Within the Intelligent Devices segment, Final Control sales rose 7% to $1.12 billion, Measurement & Analytical sales increased 3% to $1.01 billion, Discrete Automation sales grew 5% to $649 million, while Safety & Productivity sales decreased by 1% to $346 million [3] - The Software and Control segment achieved net sales of $1.44 billion, up 3% year over year, with Control Systems & Software sales at $1.08 billion (4% increase) and Test & Measurement sales at $361 million (2% increase) [4] Margin Details - The cost of sales increased by 4.5% year over year to $2.16 billion, with a pretax earnings margin of 16.1%, up from 10.4% in the previous year [5] - The adjusted EBITA margin was 26%, slightly down from 26.4% in the year-ago quarter, while selling, general, and administrative expenses rose by 1% to $1.27 billion [5] Balance Sheet & Cash Flow - At the end of Q3, Emerson had cash and cash equivalents of $2.22 billion, down from $3.6 billion at the end of fiscal 2024, with long-term debt increasing to $8.28 billion from $7.2 billion [6] - The company generated net cash of $2.09 billion from operating activities, a decrease of 7.1% year over year, with capital expenditure rising to $263 million from $251 million in the previous year [7] Q4 Fiscal 2025 Outlook - For Q4 fiscal 2025, Emerson anticipates net sales growth of 5.5-6.5% year over year and underlying sales growth of 5-6% [8] - The company expects adjusted earnings per share to be in the range of $1.58-$1.62 [10] FY25 Outlook - Emerson projects net sales growth of approximately 3.5% for FY25, down from the previously expected 4%, with underlying sales also expected to rise by about 3.5% [11] - Adjusted earnings per share are estimated at approximately $6.00, compared to earlier expectations of $5.90-$6.05, with operating cash flow projected at $3.6 billion and free cash flow at about $3.2 billion [12]