Emerson 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 Underlying Sales3 |
$4,117 |
$4,175 |
1% 2% |
|
Pretax Earnings Margin |
$175 4.2% |
$775 18.6% |
1440 bps |
|
Adjusted Segment EBITA4 Margin |
$1,014 24.6% |
$1,169 28.0% |
340 bps |
|
GAAP Earnings Per Share Adjusted Earnings Per Share5 |
$0.29 $1.22 |
$1.02 $1.38 |
252% 13% |
|
Operating Cash Flow Free Cash Flow |
$444 $367 |
$777 $694 |
75% 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% |
|
Earnings Per Share Amortization of Intangibles Adjusted Earnings Per Share |
$1.01 - $1.05 ~$0.31 $1.38 - $1.42 |
$4.42 - $4.62 ~$1.21 $5.85 - $6.05 |
|
Operating Cash Flow |
$3.6B - $3.7B |
Notes:
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.
