Emerson(US:EMR)2025-08-06 11:30Q3 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]