ST.
LOUIS, Feb. 5, 2025 /PRNewswire/ -- Emerson
(NYSE: EMR) today reported results1 for its first
quarter ended December 31, 2024 and updated its full year
outlook for fiscal 2025. Emerson also declared a quarterly cash
dividend of $0.5275 per share of
common stock payable March 10, 2025
to stockholders of record on February 14,
2025.
|
(dollars in
millions, except per share)
|
2024
Q1
|
2025
Q1
|
Change
|
|
Underlying
Orders2
|
|
|
1 %
|
|
Net Sales
|
$4,117
|
$4,175
|
1 %
|
|
Underlying
Sales3
|
|
|
2 %
|
|
Pretax
Earnings
|
$175
|
$775
|
|
|
Margin
|
4.2 %
|
18.6 %
|
1440
bps
|
|
Adjusted Segment
EBITA4
|
$1,014
|
$1,169
|
|
|
Margin
|
24.6 %
|
28.0 %
|
340
bps
|
|
GAAP Earnings Per
Share
|
$0.29
|
$1.02
|
252 %
|
|
Adjusted Earnings Per
Share5
|
$1.22
|
$1.38
|
13 %
|
|
Operating Cash
Flow
|
$444
|
$777
|
75 %
|
|
Free Cash
Flow
|
$367
|
$694
|
89 %
|
Management Commentary
"Emerson began the fiscal year on a strong note, exceeding first
quarter expectations for incremental operating margins and earnings
per share with strong cash flow generation," said Emerson President and Chief Executive Officer
Lal Karsanbhai. "Our record gross profit margin and adjusted
segment EBITA margin reflect the strength of our transformed
industrial technology portfolio and Emerson Management System, as
well as the talent and dedication of our world-class team."
Karsanbhai continued, "We reiterate our guide for underlying
sales, earnings per share and cash flow driven by resilient demand
in process and hybrid markets, expected second half discrete
recovery and our proven ability to execute. Our team remains
energized, and we look forward to continuing the positive momentum
across our business, including progressing in the final phase of
our portfolio transformation."
2025 Outlook
The following tables summarize the fiscal year 2025 guidance
framework and does not include any impact from the recently
announced portfolio transactions6 related to AspenTech
and Safety & Productivity. The 2025 outlook assumes returning
approximately $3.2 billion to
shareholders through approximately $2.0
billion of share repurchases and approximately $1.2 billion of dividend payments. Guidance
figures are approximate.
|
2025
Q2
|
2025
|
|
Net Sales
Growth
|
(0.5%) -
0.5%
|
1.5% - 3.5%
|
|
Underlying Sales
Growth
|
1% - 2%
|
3% - 5%
|
|
Earnings Per
Share
|
$1.01 -
$1.05
|
$4.42 -
$4.62
|
|
Amortization of
Intangibles
|
~$0.31
|
~$1.21
|
|
Restructuring /
Related Costs
|
~$0.04
|
~$0.14
|
|
Acquisition /
Divestiture Fees and Related Costs
|
~$0.02
|
~$0.08
|
|
Adjusted Earnings Per
Share
|
$1.38 -
$1.42
|
$5.85 -
$6.05
|
|
Operating Cash
Flow
|
|
$3.6B -
$3.7B
|
|
Free Cash
Flow
|
|
$3.2B -
$3.3B
|
|
|
1 Results are presented on a
continuing operations basis.
|
|
2 Underlying orders do not include
AspenTech.
|
|
3 Underlying
sales excludes the impact of currency translation, and significant
acquisitions and divestitures.
|
|
4 Adjusted segment EBITA represents
segment earnings excluding restructuring and intangibles
amortization expense.
|
|
5 Adjusted EPS excludes intangibles
amortization expense, restructuring and related costs, the
amortization of acquisition-related inventory step-up,
acquisition/divestiture gains, losses, fees and related costs, and
discrete taxes.
|
|
6 Guidance includes Safety &
Productivity and assumes AspenTech at our current ownership of ~57%
outstanding shares.
|
Conference Call
Today, beginning at 7:30 a.m. Central
Time / 8:30 a.m. Eastern Time,
Emerson management will discuss the first quarter results during an
investor conference call. Participants can access a live webcast
available at www.emerson.com/investors at the time of the call. A
replay of the call will be available for 90 days. Conference call
slides will be posted in advance of the call on the company
website.
About Emerson
Emerson (NYSE: EMR) is a global technology and software company
providing innovative solutions for the world's essential
industries. Through its leading automation portfolio, including its
majority stake in AspenTech, Emerson helps hybrid, process and
discrete manufacturers optimize operations, protect personnel,
reduce emissions and achieve their sustainability goals. For more
information, visit Emerson.com.
Forward-Looking and Cautionary Statements
Statements in this press release that are not strictly
historical may be "forward-looking" statements, which involve risks
and uncertainties, and Emerson undertakes no obligation to update
any such statements to reflect later developments. These risks and
uncertainties include the scope, duration and ultimate impacts of
the Russia-Ukraine and other global conflicts, as well as
economic and currency conditions, market demand, pricing,
protection of intellectual property, cybersecurity, tariffs,
competitive and technological factors, inflation, among others, as
set forth in the Company's most recent Annual Report on Form 10-K
and subsequent reports filed with the SEC. The outlook contained
herein represents the Company's expectation for its consolidated
results, other than as noted herein.
Emerson uses our Investor Relations website,
www.Emerson.com/investors, as a means of disclosing information
which may be of interest or material to our investors and for
complying with disclosure obligations under Regulation FD.
Accordingly, investors should monitor our Investor Relations
website, in addition to following our press releases, SEC filings,
public conference calls, webcasts and social media. The information
contained on, or that may be accessed through, our website is not
incorporated by reference into, and is not a part of, this
document.
|
Investors:
|
Media:
|
|
Colleen
Mettler
|
Joseph Sala / Greg
Klassen
|
|
(314)
553-2197
|
Joele Frank, Wilkinson
Brimmer Katcher
|
|
(212)
355-4449
|
(tables attached)
|
|
|
Table
1
|
|
EMERSON AND
SUBSIDIARIES
|
|
CONSOLIDATED OPERATING
RESULTS
|
|
(AMOUNTS IN MILLIONS
EXCEPT PER SHARE, UNAUDITED)
|
|
|
|
|
|
Quarter Ended Dec
31
|
|
2023
|
|
2024
|
|
|
|
|
|
Net
sales
|
$
4,117
|
|
$
4,175
|
|
Cost and
expenses
|
|
|
|
|
Cost of sales
|
2,201
|
|
1,940
|
|
SG&A expenses
|
1,277
|
|
1,224
|
|
Other deductions,
net
|
451
|
|
228
|
|
Interest expense,
net
|
44
|
|
8
|
|
Interest income from related
party1
|
(31)
|
|
—
|
|
Earnings from
continuing operations before income taxes
|
175
|
|
775
|
|
Income taxes
|
16
|
|
182
|
|
Earnings from
continuing operations
|
159
|
|
593
|
|
Discontinued
operations, net of tax
|
(27)
|
|
—
|
|
Net
earnings
|
132
|
|
593
|
|
Less: Noncontrolling
interests in subsidiaries
|
(10)
|
|
8
|
|
Net earnings common
stockholders
|
$
142
|
|
$
585
|
|
|
|
|
|
Earnings common
stockholders
|
|
|
|
|
Earnings from
continuing operations
|
$
169
|
|
$
585
|
|
Discontinued
operations
|
(27)
|
|
—
|
|
Net earnings common
stockholders
|
$
142
|
|
$
585
|
|
|
|
|
|
Diluted avg. shares
outstanding
|
573.3
|
|
571.1
|
|
|
|
|
|
Diluted earnings per
share common stockholders
|
|
|
|
|
Earnings from
continuing operations
|
$
0.29
|
|
$
1.02
|
|
Discontinued
operations
|
(0.04)
|
|
—
|
|
Diluted earnings per
common share
|
$
0.25
|
|
$
1.02
|
|
|
|
|
|
|
|
|
|
Quarter Ended Dec
31
|
|
2023
|
|
2024
|
|
Other deductions,
net
|
|
|
|
|
Amortization of
intangibles
|
$
274
|
|
$
229
|
|
Restructuring
costs
|
83
|
|
11
|
|
Other
|
94
|
|
(12)
|
|
Total
|
$
451
|
|
$
228
|
|
|
|
|
|
1 Represents
interest on the Copeland note receivable
|
|
|
|
Table
2
|
|
EMERSON AND
SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(DOLLARS IN MILLIONS,
UNAUDITED)
|
|
|
|
|
|
|
|
|
|
Sept 30,
2024
|
|
Dec 31,
2024
|
|
Assets
|
|
|
|
|
Cash and
equivalents
|
$
3,588
|
|
$
2,834
|
|
Receivables, net
|
2,927
|
|
2,694
|
|
Inventories
|
2,180
|
|
2,200
|
|
Other current
assets
|
1,497
|
|
1,466
|
|
Total current
assets
|
10,192
|
|
9,194
|
|
Property, plant &
equipment, net
|
2,807
|
|
2,743
|
|
Goodwill
|
18,067
|
|
17,906
|
|
Other Intangibles
|
10,436
|
|
10,025
|
|
Other
|
2,744
|
|
2,742
|
|
Total
assets
|
$
44,246
|
|
$
42,610
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Short-term borrowings and
current maturities of long-term debt
|
$
532
|
|
$
1,066
|
|
Accounts payable
|
1,335
|
|
1,260
|
|
Accrued expenses
|
3,875
|
|
3,632
|
|
Total current
liabilities
|
5,742
|
|
5,958
|
|
Long-term debt
|
7,155
|
|
6,557
|
|
Other liabilities
|
3,840
|
|
3,716
|
|
Equity
|
|
|
|
|
Common stockholders'
equity
|
21,636
|
|
20,490
|
|
Noncontrolling interests in
subsidiaries
|
5,873
|
|
5,889
|
|
Total equity
|
27,509
|
|
26,379
|
|
Total liabilities
and equity
|
$
44,246
|
|
$
42,610
|
|
|
|
|
Table
3
|
|
EMERSON AND
SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS
OF CASH FLOWS
|
|
(DOLLARS IN MILLIONS,
UNAUDITED)
|
|
|
|
|
|
|
Three Months Ended Dec
31
|
|
|
2023
|
|
2024
|
|
Operating
activities
|
|
|
|
|
|
Net
earnings
|
|
$
132
|
|
$
593
|
|
Earnings from
discontinued operations, net of tax
|
|
27
|
|
—
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
422
|
|
383
|
|
Stock
compensation
|
|
74
|
|
68
|
|
Amortization of acquisition-related inventory step-up
|
|
231
|
|
—
|
|
Changes in
operating working capital
|
|
(238)
|
|
(154)
|
|
Other,
net
|
|
(204)
|
|
(113)
|
|
Cash from continuing operations
|
|
444
|
|
777
|
|
Cash from discontinued operations
|
|
(29)
|
|
—
|
|
Cash provided by operating activities
|
|
415
|
|
777
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Capital
expenditures
|
|
(77)
|
|
(83)
|
|
Purchases of
businesses, net of cash and equivalents acquired
|
|
(8,339)
|
|
(37)
|
|
Other, net
|
|
(37)
|
|
(22)
|
|
Cash from continuing operations
|
|
(8,453)
|
|
(142)
|
|
Cash from discontinued operations
|
|
1
|
|
—
|
|
Cash used in investing activities
|
|
(8,452)
|
|
(142)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Net increase in
short-term borrowings
|
|
2,647
|
|
2
|
|
Payments of long-term
debt
|
|
—
|
|
(2)
|
|
Dividends
paid
|
|
(300)
|
|
(301)
|
|
Purchases of common
stock
|
|
(175)
|
|
(899)
|
|
AspenTech purchases of
common stock
|
|
(72)
|
|
—
|
|
Other, net
|
|
(45)
|
|
(91)
|
|
Cash provided by (used in) financing activities
|
|
2,055
|
|
(1,291)
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and equivalents
|
|
7
|
|
(98)
|
|
Decrease in cash and
equivalents
|
|
(5,975)
|
|
(754)
|
|
Beginning cash and
equivalents
|
|
8,051
|
|
3,588
|
|
Ending cash and
equivalents
|
|
$
2,076
|
|
$
2,834
|
|
|
|
Table
4
|
|
EMERSON AND
SUBSIDIARIES
|
|
SEGMENT SALES AND
EARNINGS
|
|
(DOLLARS IN MILLIONS,
UNAUDITED)
|
|
|
The following tables
show results for the Company's segments on an adjusted
segment EBITA basis and are intended
to supplement the Company's results of operations, including its
segment earnings which are defined as earnings before
interest and taxes. The Company defines adjusted segment and total
segment EBITA as segment earnings excluding
intangibles amortization expense, and restructuring and related
expense. Adjusted segment and total segment EBITA,
and adjusted segment and total segment EBITA margin are measures
used by management and may be useful for
investors to evaluate the Company's segments' operational
performance.
|
|
|
|
Quarter Ended Dec
31
|
|
|
2023
|
|
2024
|
|
Reported
|
|
Underlying
|
|
|
Sales
|
|
|
|
|
|
|
|
|
|
Final
Control
|
$
940
|
|
$
976
|
|
4 %
|
|
5 %
|
|
|
Measurement &
Analytical
|
947
|
|
975
|
|
3 %
|
|
4 %
|
|
|
Discrete
Automation
|
613
|
|
580
|
|
(5) %
|
|
(4) %
|
|
|
Safety &
Productivity
|
322
|
|
312
|
|
(3) %
|
|
(3) %
|
|
|
Intelligent
Devices
|
$
2,822
|
|
$
2,843
|
|
1 %
|
|
2 %
|
|
|
|
|
|
|
|
|
|
|
|
Control Systems &
Software
|
675
|
|
690
|
|
2 %
|
|
3 %
|
|
|
Test &
Measurement
|
382
|
|
359
|
|
(6) %
|
|
(5) %
|
|
|
AspenTech
|
257
|
|
303
|
|
18 %
|
|
18 %
|
|
|
Software and
Control
|
$
1,314
|
|
$
1,352
|
|
3 %
|
|
4 %
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations
|
(19)
|
|
(20)
|
|
|
|
|
|
|
Total
|
$
4,117
|
|
$
4,175
|
|
1 %
|
|
2 %
|
|
|
|
|
|
|
|
|
Sales Growth by
Geography
|
|
|
|
|
|
|
Quarter Ended
Dec 31
|
|
|
|
|
|
Americas
|
3 %
|
|
|
|
|
|
|
Europe
|
(2) %
|
|
|
|
|
|
|
Asia, Middle East &
Africa
|
4 %
|
|
|
|
|
|
|
|
Table 4
cont.
|
|
|
Quarter Ended Dec
31
|
|
Quarter Ended Dec
31
|
|
2023
|
|
2024
|
|
As Reported
(GAAP)
|
|
Adjusted
EBITA
(Non-GAAP)
|
|
As
Reported
(GAAP)
|
|
Adjusted
EBITA
(Non-GAAP)
|
|
Earnings
|
|
|
|
|
|
|
|
|
Final
Control
|
$
194
|
|
$
223
|
|
$
236
|
|
$
260
|
|
Margins
|
20.6 %
|
|
23.6 %
|
|
24.2 %
|
|
26.6 %
|
|
Measurement &
Analytical
|
235
|
|
258
|
|
285
|
|
296
|
|
Margins
|
24.9 %
|
|
27.3 %
|
|
29.2 %
|
|
30.4 %
|
|
Discrete
Automation
|
97
|
|
116
|
|
98
|
|
112
|
|
Margins
|
15.8 %
|
|
18.9 %
|
|
16.9 %
|
|
19.3 %
|
|
Safety &
Productivity
|
68
|
|
74
|
|
67
|
|
73
|
|
Margins
|
21.1 %
|
|
23.1 %
|
|
21.6 %
|
|
23.8 %
|
|
Intelligent
Devices
|
$
594
|
|
$
671
|
|
$
686
|
|
$
741
|
|
Margins
|
21.0 %
|
|
23.8 %
|
|
24.1 %
|
|
26.1 %
|
|
|
|
|
|
|
|
|
|
Control Systems &
Software
|
149
|
|
155
|
|
193
|
|
200
|
|
Margins
|
22.1 %
|
|
23.1 %
|
|
27.9 %
|
|
28.8 %
|
|
Test &
Measurement
|
(78)
|
|
101
|
|
(13)
|
|
91
|
|
Margins
|
(20.4) %
|
|
26.5 %
|
|
(3.6) %
|
|
25.5 %
|
|
AspenTech
|
(35)
|
|
87
|
|
15
|
|
137
|
|
Margins
|
(13.7) %
|
|
33.6 %
|
|
4.8 %
|
|
45.1 %
|
|
Software and
Control
|
$
36
|
|
$
343
|
|
$
195
|
|
$
428
|
|
Margins
|
2.8 %
|
|
26.1 %
|
|
14.4 %
|
|
31.6 %
|
|
|
|
|
|
|
|
|
|
Corporate items and
interest expense, net:
|
|
|
|
|
|
|
|
|
Stock
compensation
|
(74)
|
|
(44)
|
|
(68)
|
|
(66)
|
|
Unallocated pension and
postretirement costs
|
31
|
|
31
|
|
27
|
|
27
|
|
Corporate and
other
|
(399)
|
|
(38)
|
|
(57)
|
|
(34)
|
|
Interest expense,
net
|
(44)
|
|
—
|
|
(8)
|
|
—
|
|
Interest income from
related party1
|
31
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Pretax Earnings /
Adjusted EBITA
|
$
175
|
|
$
963
|
|
$
775
|
|
$
1,096
|
|
Margins
|
4.2 %
|
|
23.4 %
|
|
18.6 %
|
|
26.3 %
|
|
|
|
|
|
|
|
|
|
Supplemental Total
Segment Earnings:
|
|
|
|
|
|
|
|
|
Adjusted Total
Segment EBITA
|
|
|
$
1,014
|
|
|
|
$
1,169
|
|
Margins
|
|
|
24.6 %
|
|
|
|
28.0 %
|
|
|
|
|
|
|
|
|
|
1 Represents
interest on the Copeland note receivable.
|
|
|
Table 4
cont.
|
|
|
Quarter Ended Dec
31
|
|
Quarter Ended Dec
31
|
|
|
2023
|
|
2024
|
|
|
Amortization
of
Intangibles1
|
|
Restructuring
and
Related
Costs2
|
|
Amortization
of
Intangibles1
|
|
Restructuring
and
Related
Costs2
|
|
|
Final
Control
|
$
22
|
|
$
7
|
|
$
22
|
|
$
2
|
|
|
Measurement &
Analytical
|
20
|
|
3
|
|
10
|
|
1
|
|
|
Discrete
Automation
|
9
|
|
10
|
|
8
|
|
6
|
|
|
Safety &
Productivity
|
6
|
|
—
|
|
6
|
|
—
|
|
|
Intelligent
Devices
|
$
57
|
|
$
20
|
|
$
46
|
|
$
9
|
|
|
|
|
|
|
|
|
|
|
|
Control Systems &
Software
|
5
|
|
1
|
|
5
|
|
2
|
|
|
Test &
Measurement
|
139
|
|
40
|
|
105
|
|
(1)
|
|
|
AspenTech
|
122
|
|
—
|
|
122
|
|
—
|
|
|
Software and
Control
|
$
266
|
|
$
41
|
|
$
232
|
|
$
1
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
—
|
|
26
|
3
|
—
|
|
3
|
|
|
Total
|
$
323
|
|
$
87
|
|
$
278
|
|
$
13
|
|
|
|
|
|
|
|
|
|
|
|
1
Amortization of intangibles includes $49 and $49 reported in cost
of sales for the three months ended December 31, 2023 and 2024,
respectively.
|
|
2
Restructuring and related costs includes $4 reported in cost of
sales for the three months ended December 31, 2023. The three
months ended December 31, 2024
includes $2 reported in selling, general and administrative
expenses.
|
|
3 Corporate
restructuring of $26 for the three months ended December 31, 2023
is comprised entirely of integration-related stock compensation
expense attributable to NI.
|
|
|
|
|
|
Quarter Ended Dec
31
|
|
Depreciation and
Amortization
|
2023
|
|
2024
|
|
Final
Control
|
$
40
|
|
$
40
|
|
Measurement &
Analytical
|
40
|
|
31
|
|
Discrete
Automation
|
22
|
|
21
|
|
Safety &
Productivity
|
14
|
|
15
|
|
Intelligent
Devices
|
116
|
|
107
|
|
|
|
|
|
Control Systems &
Software
|
21
|
|
23
|
|
Test &
Measurement
|
151
|
|
118
|
|
AspenTech
|
123
|
|
124
|
|
Software and
Control
|
295
|
|
265
|
|
|
|
|
|
Corporate
|
11
|
|
11
|
|
Total
|
$
422
|
|
$
383
|
|
|
Table
5
|
|
EMERSON AND
SUBSIDIARIES
ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL
(DOLLARS IN MILLIONS, UNAUDITED)
|
|
|
The following table
shows the Company's stock compensation and corporate and other
expenses on an adjusted basis.
The Company's definition of adjusted stock compensation excludes
integration-related stock compensation expense. The
Company's definition of adjusted corporate and other excludes
corporate restructuring and related costs, first year
purchase accounting related items and transaction fees, and certain
gains, losses or impairments. This metric is useful for
reconciling from total adjusted segment EBITA to the Company's
consolidated adjusted EBITA.
|
|
|
|
|
|
|
Quarter Ended Dec
31
|
|
|
|
|
|
2023
|
|
2024
|
|
Stock
compensation (GAAP)
|
|
|
|
|
$
(74)
|
|
$
(68)
|
|
Integration-related stock compensation
expense1
|
|
|
|
|
30
|
|
2
|
|
Adjusted stock
compensation (non-GAAP)
|
|
|
|
|
$
(44)
|
|
$
(66)
|
|
|
|
|
|
|
Quarter Ended Dec
31
|
|
|
|
|
|
2023
|
|
2024
|
|
Corporate and
other (GAAP)
|
|
|
|
|
$
(399)
|
|
$
(57)
|
|
Corporate
restructuring and related costs
|
|
|
|
|
—
|
|
3
|
|
Acquisition /
divestiture costs
|
|
|
|
|
130
|
|
20
|
|
Amortization of
acquisition-related inventory step-up
|
|
|
|
|
231
|
|
—
|
|
Adjusted
corporate and other (non-GAAP)
|
|
|
|
|
$
(38)
|
|
$
(34)
|
|
|
|
|
|
|
|
|
|
1
Integration-related stock compensation expense relates to NI and
includes $26 and $— reported as restructuring costs for the three
months ended December 31,
2023 and 2024, respectively
|
|
Table
6
|
|
EMERSON AND
SUBSIDIARIES
ADJUSTED EBITA & EPS SUPPLEMENTAL
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
|
|
|
The following tables,
which show results on an adjusted EBITA basis and diluted earnings
per share on an adjusted basis,
are intended to supplement the Company's discussion of its results
of operations herein. The Company defines adjusted
EBITA as earnings excluding interest expense, net, income taxes,
intangibles amortization expense, restructuring
expense, first year purchase accounting related items and
transaction fees, and certain gains, losses or impairments.
Adjusted earnings per share excludes intangibles amortization
expense, restructuring expense, first year purchase
accounting related items and transaction-related costs, and certain
gains, losses or impairments. Adjusted EBITA,
adjusted EBITA margin, and adjusted earnings per share are measures
used by management and may be useful for
investors to evaluate the Company's operational
performance.
|
|
|
Quarter Ended Dec
31
|
|
2023
|
|
2024
|
|
Pretax
earnings
|
$
175
|
|
$
775
|
|
Percent of
sales
|
4.2 %
|
|
18.6 %
|
|
Interest expense,
net
|
44
|
|
8
|
|
Interest income from
related party1
|
(31)
|
|
—
|
|
Amortization of
intangibles
|
323
|
|
278
|
|
Restructuring and
related costs
|
87
|
|
13
|
|
Acquisition/divestiture fees and related
costs
|
134
|
|
22
|
|
Amortization of
acquisition-related inventory step-up
|
231
|
|
—
|
|
Adjusted
EBITA
|
$
963
|
|
$
1,096
|
|
Percent of
sales
|
23.4 %
|
|
26.3 %
|
|
|
|
|
|
Quarter Ended Dec
31
|
|
2023
|
|
2024
|
|
GAAP earnings from
continuing operations per share
|
$
0.29
|
|
$
1.02
|
|
Amortization of
intangibles
|
0.36
|
|
0.31
|
|
Restructuring and
related costs
|
0.12
|
|
0.02
|
|
Acquisition/divestiture fees and related
costs
|
0.17
|
|
0.03
|
|
Amortization of
acquisition-related inventory step-up
|
0.38
|
|
—
|
|
Discrete
taxes
|
(0.10)
|
|
—
|
|
Adjusted earnings
from continuing operations per share
|
$
1.22
|
|
$
1.38
|
|
|
|
|
|
1 Represents
interest on the Copeland note receivable
|
|
|
Table 6
cont.
|
|
Quarter Ended December
31, 2024
|
|
Pretax
Earnings
|
|
Income
Taxes
|
|
Earnings from
Cont.
Ops.
|
|
Non-
Controlling
Interests3
|
|
Net
Earnings
Common
Stockholders
|
|
Diluted
Earnings
Per
Share
|
|
As reported
(GAAP)
|
$
775
|
|
$
182
|
|
$
593
|
|
$
8
|
|
$
585
|
|
$
1.02
|
|
Amortization of
intangibles
|
278
|
1
|
62
|
|
216
|
|
41
|
|
175
|
|
0.31
|
|
Restructuring and
related costs
|
13
|
2
|
—
|
|
13
|
|
—
|
|
13
|
|
0.02
|
|
Acquisition/divestiture
fees and related costs
|
22
|
|
5
|
|
17
|
|
—
|
|
17
|
|
0.03
|
|
Adjusted
(non-GAAP)
|
$
1,088
|
|
$
249
|
|
$
839
|
|
$
49
|
|
$
790
|
|
$
1.38
|
|
Interest expense,
net
|
8
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITA
(non-GAAP)
|
$
1,096
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Amortization of intangibles includes $49 reported in cost of
sales.
|
|
2
Restructuring and related costs includes $2 reported in selling,
general and administrative expenses.
|
|
3 Represents
the non-controlling interest in AspenTech applied to
AspenTech's share of each adjustment presented herein and
eliminated from Emerson's consolidated results.
|
|
Table
7
|
|
EMERSON AND
SUBSIDIARIES
ASPENTECH CONTRIBUTION TO EMERSON RESULTS SUPPLEMENTAL
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
|
|
|
The following tables
reconcile the financial results of AspenTech reported to its
shareholders with the amounts included in
Emerson's consolidated financial results. Emerson currently owns
approximately 57 percent of the common shares
outstanding of AspenTech, a separately traded public company
(NASDAQ: AZPN), and consolidates AspenTech in its
financial results. The 43 percent non-controlling interest in
AspenTech is removed from Emerson's net earnings common
stockholders through the non-controlling interest line item.
AspenTech is also one of Emerson's segments and its GAAP
segment earnings is reconciled below to its consolidated impact to
clarify that certain items are reported outside of its
segment earnings within Emerson corporate, including interest
income and stock compensation.
|
|
|
Quarter Ended December
31, 2024
|
|
Pretax
Earnings
|
|
Income
Taxes
(Benefit)
|
|
Earnings
from
Cont.
Ops.
|
|
Non-
Controlling
Interests4
|
|
Net
Earnings
Common
Stockholders
|
|
Diluted
Earnings
Per
Share
|
|
Standalone reporting
(GAAP)
|
$
17
|
1
|
$
(3)
|
|
$
20
|
|
|
|
|
|
|
|
Other
|
—
|
|
2
|
|
(2)
|
|
|
|
|
|
|
|
Reported in
Emerson
consolidation (GAAP)
|
17
|
|
(1)
|
|
18
|
|
8
|
|
10
|
|
$
0.02
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
122
|
2
|
26
|
|
96
|
|
41
|
|
55
|
|
0.09
|
|
Adjusted
(Non-GAAP)
|
$
139
|
|
$
25
|
|
$
114
|
|
$
49
|
|
$
65
|
|
$
0.11
|
|
Interest
income
|
(17)
|
3
|
|
|
|
|
|
|
|
|
|
|
Stock
compensation
|
15
|
3
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment
EBITA (non-
GAAP)
|
$
137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
Segment EBIT
|
|
Pre-tax
earnings
|
$
17
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
(17)
|
3
|
|
|
|
|
|
|
|
|
|
|
Stock
compensation
|
15
|
3
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT
(GAAP)
|
$
15
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
122
|
2
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment
EBITA (non-
GAAP)
|
$
137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Amount
reflects AspenTech's pretax earnings for the three months ended
December 31, 2024 as reported in its quarterly earnings release
8-K.
|
|
2
Amortization of intangibles includes $49 reported in cost of
sales.
|
|
3 Reported
in Emerson corporate line items.
|
|
4 Represents
the non-controlling interest in AspenTech applied to each
adjustment presented herein and eliminated from Emerson's
consolidated results.
|
|
Reconciliations of
Non-GAAP Financial Measures & Other
|
|
Table
8
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Non-GAAP measures with the most directly comparable GAAP measure
(dollars in millions,
except per share amounts). See tables 4 through 7 for
additional non-GAAP reconciliations.
|
|
|
|
|
|
|
|
|
|
|
2025 Q1 Underlying
Sales Change
|
Reported
|
(Favorable) /
Unfavorable FX
|
(Acquisitions) /
Divestitures
|
Underlying
|
|
Final
Control
|
4 %
|
1 %
|
— %
|
5 %
|
|
Measurement &
Analytical
|
3 %
|
1 %
|
— %
|
4 %
|
|
Discrete
Automation
|
(5) %
|
1 %
|
— %
|
(4) %
|
|
Safety &
Productivity
|
(3) %
|
— %
|
— %
|
(3) %
|
|
Intelligent
Devices
|
1 %
|
1 %
|
— %
|
2 %
|
|
Control Systems &
Software
|
2 %
|
1 %
|
— %
|
3 %
|
|
Test &
Measurement
|
(6) %
|
1 %
|
— %
|
(5) %
|
|
AspenTech
|
18 %
|
— %
|
— %
|
18 %
|
|
Software and
Control
|
3 %
|
1 %
|
— %
|
4 %
|
|
Emerson
|
1 %
|
1 %
|
— %
|
2 %
|
|
|
Underlying Growth
Guidance
|
2025 Q2
Guidance
|
2025
Guidance
|
|
Reported
(GAAP)
|
(0.5%) -
0.5%
|
1.5% - 3.5%
|
|
(Favorable) /
Unfavorable FX
|
~1.5 pts
|
~1.5 pts
|
|
(Acquisitions) /
Divestitures
|
-
|
-
|
|
Underlying
(non-GAAP)
|
1% -
2%
|
3% -
5%
|
|
|
2024 Q1 Adjusted
Segment EBITA
|
EBIT
|
EBIT
Margin
|
Amortization
of
Intangibles
|
Restructuring
and Related
Costs
|
Adjusted
Segment
EBITA
|
Adjusted
Segment
EBITA
Margin
|
|
Final
Control
|
$
194
|
20.6 %
|
$
22
|
$
7
|
$
223
|
23.6 %
|
|
Measurement &
Analytical
|
235
|
24.9 %
|
20
|
3
|
258
|
27.3 %
|
|
Discrete
Automation
|
97
|
15.8 %
|
9
|
10
|
116
|
18.9 %
|
|
Safety &
Productivity
|
68
|
21.1 %
|
6
|
—
|
74
|
23.1 %
|
|
Intelligent
Devices
|
$
594
|
21.0 %
|
$
57
|
$
20
|
$
671
|
23.8 %
|
|
Control Systems &
Software
|
149
|
22.1 %
|
5
|
1
|
155
|
23.1 %
|
|
Test &
Measurement
|
(78)
|
(20.4) %
|
139
|
40
|
101
|
26.5 %
|
|
AspenTech
|
(35)
|
(13.7) %
|
122
|
—
|
87
|
33.6 %
|
|
Software and
Control
|
$
36
|
2.8 %
|
$
266
|
$
41
|
$
343
|
26.1 %
|
|
|
2025 Q1 Adjusted
Segment EBITA
|
EBIT
|
EBIT
Margin
|
Amortization
of
Intangibles
|
Restructuring
and Related
Costs
|
Adjusted
Segment
EBITA
|
Adjusted
Segment
EBITA
Margin
|
|
Final
Control
|
$
236
|
24.2 %
|
$
22
|
$
2
|
$
260
|
26.6 %
|
|
Measurement &
Analytical
|
285
|
29.2 %
|
10
|
1
|
296
|
30.4 %
|
|
Discrete
Automation
|
98
|
16.9 %
|
8
|
6
|
112
|
19.3 %
|
|
Safety &
Productivity
|
67
|
21.6 %
|
6
|
—
|
73
|
23.8 %
|
|
Intelligent
Devices
|
$
686
|
24.1 %
|
$
46
|
$
9
|
$
741
|
26.1 %
|
|
Control Systems &
Software
|
193
|
27.9 %
|
5
|
2
|
200
|
28.8 %
|
|
Test &
Measurement
|
(13)
|
(3.6) %
|
105
|
(1)
|
91
|
25.5 %
|
|
AspenTech
|
15
|
4.8 %
|
122
|
—
|
137
|
45.1 %
|
|
Software and
Control
|
$
195
|
14.4 %
|
$
232
|
$
1
|
$
428
|
31.6 %
|
|
|
|
|
|
Total Adjusted
Segment EBITA
|
|
2024
Q1
|
2025
Q1
|
|
Pretax earnings
(GAAP)
|
|
$
175
|
$
775
|
|
Margin
|
|
4.2 %
|
18.6 %
|
|
Corporate items and
interest expense, net
|
|
455
|
106
|
|
Amortization of
intangibles
|
|
323
|
278
|
|
Restructuring and
related costs
|
|
61
|
10
|
|
Adjusted segment
EBITA (non-GAAP)
|
|
$
1,014
|
$
1,169
|
|
Margin
|
|
24.6 %
|
28.0 %
|
|
|
|
Free Cash
Flow
|
|
2024
Q1
|
2025
Q1
|
|
2025E
($
in billions)
|
|
|
Operating cash flow
(GAAP)
|
|
$
444
|
$
777
|
|
$3.6 - $3.7
|
|
|
Capital
expenditures
|
|
(77)
|
(83)
|
|
~(0.4)
|
|
|
Free cash flow
(non-GAAP)
|
|
$
367
|
$
694
|
|
$3.2 -
$3.3
|
|
|
|
|
|
|
|
|
|
Note 1: Underlying
sales and orders exclude the impact of currency translation and
significant acquisitions and divestitures.
|
|
Note 2: All fiscal year
2025E figures are approximate, except where range is
given.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/emerson-reports-first-quarter-2025-results-updates-2025-outlook-302368226.html
SOURCE Emerson
