Emerson reported results1 for its third quarter ended June 30, 2025 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 September 10, 2025 to stockholders of record on August 15, 2025.
|
(dollars in millions, except per share) |
2024 Q3 |
2025 Q3 |
Change |
|
Underlying Orders2 |
4 % |
||
|
Net Sales |
$4,380 |
$4,553 |
4 % |
|
Underlying Sales3 |
3 % |
||
|
Pretax Earnings |
$455 |
$734 |
|
|
Margin |
10.4 % |
16.1 % |
570 bps |
|
Adjusted Segment EBITA4 |
$1,189 |
$1,232 |
|
|
Margin |
27.1 % |
27.1 % |
0 bps |
|
GAAP Earnings Per Share |
$0.60 |
$1.03 |
72 % |
|
Adjusted Earnings Per Share5 |
$1.43 |
$1.52 |
6 % |
|
Operating Cash Flow |
$1,067 |
$1,062 |
— % |
|
Free Cash Flow |
$975 |
$970 |
(1) % |
Management Commentary
"Emerson's solid third quarter results reflect our sustained momentum, delivering strong underlying growth, profitability and cash flow, which we expect to continue as we finish the fiscal year," said Emerson President and Chief Executive Officer Lal Karsanbhai. "We are experiencing positive momentum in key end markets, and our team's ability to execute in this dynamic environment demonstrates the resilience of our business model and our operational excellence."
Karsanbhai continued, "We are taking pivotal steps to advance our industrial software capabilities, launching breakthrough innovations that are transforming how our customers optimize their operations. We deliver value by unlocking productivity and efficiency, and we are seeing accelerated adoption of our digital solutions."
2025 Outlook
The following table summarizes the fiscal year 2025 guidance framework. Net and underlying sales guidance of ~3.5% growth reflects our updated expectations for pricing actions as the tariff expense exposure has reduced. GAAP EPS is now expected to be ~$4.08 and adjusted EPS guidance is now ~$6.00, an increase versus the previous midpoint. Expectations for operating cash flow and free cash flow increase to ~$3.6B and ~$3.2B, respectively. The 2025 outlook assumes returning ~$2.3B to shareholders through $1.1B of share repurchases and ~$1.2B of dividends, unchanged from the prior guidance.
|
2025 Q4 |
2025 |
|
|
Net Sales Growth |
5.5% - 6.5% |
~3.5% |
|
Underlying Sales Growth |
5% - 6% |
~3.5% |
|
Earnings Per Share |
$1.13 - $1.17 |
~$4.08 |
|
Amortization of Intangibles |
~$0.34 |
~$1.34 |
|
Restructuring / Related Costs |
~$0.10 |
~$0.22 |
|
Acquisition / Divestiture Fees and Related Costs |
~$0.01 |
~$0.27 |
|
Discrete taxes related to AspenTech transaction |
$0.09 |
|
|
Adjusted Earnings Per Share |
$1.58 - $1.62 |
~$6.00 |
|
Operating Cash Flow |
~$3.6B |
|
|
Free Cash Flow |
~$3.2B |
|
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 less restructuring and intangibles amortization expense. |
|
5 Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, acquisition/divestiture gains, losses, fees and related costs, and discrete taxes. |
Conference Call and Upcoming Events
Beginning at 6:30 a.m. Central Time / 7:30 a.m. Eastern Time, Emerson management will discuss the third quarter results during an investor conference call. Participants can access a live webcast available at https://ir.emerson.com 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.
Emerson also announces it will host an investor conference on Nov. 20, 2025 in New York City. Event details will be distributed closer to this date.
