Emerson reported results1 for its fourth quarter and fiscal year ended September 30, 2025. Emerson also declared a 5% quarterly cash dividend increase to $0.555 per share of common stock payable December 10, 2025 to stockholders of record November 14, 2025. Additionally, Emerson announced that its Board of Directors authorized the company to repurchase up to 50 million shares of its common stock. This is in addition to the authorization approved in March 2020, to repurchase 60 million shares of common stock, which has approximately 20 million shares remaining.
|
(dollars in millions, except per share) |
2024 Q4 |
2025 Q4 |
Change |
2024 |
2025 |
Change |
|
Underlying Orders2 |
6 % |
4 % |
||||
|
Net Sales |
$4,619 |
$4,855 |
5 % |
$17,492 |
$18,016 |
3 % |
|
Underlying Sales3 |
4 % |
3 % |
||||
|
Pretax Earnings |
$679 |
$796 |
$2,020 |
$2,934 |
||
|
Margin |
14.7 % |
16.4 % |
170 bps |
11.5 % |
16.3 % |
480 bps |
|
Adjusted Segment EBITA4 |
$1,210 |
$1,333 |
$4,552 |
$4,975 |
||
|
Margin |
26.2 % |
27.5 % |
130 bps |
26.0 % |
27.6 % |
160 bps |
|
GAAP Earnings Per Share |
$0.97 |
$1.12 |
15 % |
$2.82 |
$4.03 |
43 % |
|
Adjusted Earnings Per Share5 |
$1.48 |
$1.62 |
9 % |
$5.49 |
$6.00 |
9 % |
|
Operating Cash Flow |
$1,073 |
$1,011 |
(6) % |
$3,317 |
$3,676 |
11 % |
|
Free Cash Flow |
$905 |
$843 |
(7) % |
$2,898 |
$3,245 |
12 % |
Management Commentary
"Emerson delivered a solid fiscal 2025, marked by continued margin expansion, robust cash generation and strong execution. The dedication of our global teams was instrumental in driving our performance and advancing Emerson's position as the leading automation company," said Emerson President and Chief Executive Officer Lal Karsanbhai. "We are proud of the meaningful progress we have made integrating AspenTech and of completing the Test & Measurement integration – delivering on our commitment to achieve $200M of run-rate cost synergies."
Karsanbhai continued, "Our portfolio is aligned with long-term secular trends positioned to drive sustainable growth into the future. These trends have driven mid-single-digit underlying orders growth for three consecutive quarters, supporting our sales expectations for 2026 and beyond. We remain confident in our operational execution and ability to return cash to shareholders, accelerating further value creation."
2026 Outlook
The following tables summarize the fiscal year 2026 guidance framework. As we pivot capital allocation to returning cash to shareholders, the 2026 outlook assumes returning ~$2.2B through ~$1B of share repurchases and ~$1.2B of dividends.
|
2026 Q1 |
2026 |
|
|
Net Sales Growth |
~4% |
~5.5% |
|
Underlying Sales Growth |
~2% |
~4% |
|
Earnings Per Share |
~$0.98 |
$4.73 - $4.93 |
|
Amortization of intangibles |
~$0.35 |
~$1.42 |
|
Restructuring and related costs |
~$0.05 |
~$0.15 |
|
Acquisition/divestiture fees and related costs |
~$0.02 |
~$0.05 |
|
Adjusted Earnings Per Share |
~$1.40 |
$6.35 - $6.55 |
|
Operating Cash Flow |
$4.0B - $4.1B |
|
|
Free Cash Flow |
$3.5B - $3.6B |
|
|
Share Repurchase |
~$1.0B |
|
1 Results are presented on a continuing operations basis. |
|
2 Underlying orders do not include AspenTech. |
|
3 Underlying sales exclude 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
Today, beginning at 7:30 a.m. Central Time / 8:30 a.m. Eastern Time, Emerson management will discuss the fourth quarter and fiscal year 2025 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.
Upcoming Event
Emerson will hold an in-person and virtual investor conference on Thursday, Nov. 20 in New York City. A live webcast of the investor conference will begin at 8:00 a.m. Central Time / 9:00 a.m. Eastern Time. A link to register and attend the webcast is available at https://ir.emerson.com/. The webcast will remain available for 90 days.
