10-KPeriod: FY2025

EMERSON ELECTRIC CO Annual Report, Year Ended Sep 30, 2025

Filed November 10, 2025For Securities:EMR

Summary

Emerson Electric Co. (EMR) reported a solid fiscal year 2025, demonstrating resilience and strategic execution through significant portfolio transformations. The company's revenue grew 3% to $18.0 billion, with underlying sales also up 3%, driven by a 2.5% increase in price and 0.5% in volume. This growth was achieved despite ongoing integration of major acquisitions, including AspenTech and National Instruments (NI), which are now consolidated into the Software and Control segment. The company has successfully shifted its focus towards higher-growth, higher-margin industrial technology and software solutions, positioning itself as a global automation leader. Financial performance saw a significant rebound in earnings from continuing operations, which increased 41% to $2.3 billion, or $4.03 per diluted share. Adjusted diluted EPS from continuing operations also rose to $6.00, reflecting strong operational execution. Emerson generated substantial operating cash flow of $3.7 billion, enabling continued investment in innovation and shareholder returns, including a 12% increase in free cash flow to $3.2 billion. The company also announced an increase in its quarterly cash dividend to an annualized rate of $2.22 per share, underscoring its commitment to shareholder value.

Financial Highlights

57 data points
Beta

Revenue

$18.02B

52.8% Gross Margin

Net Income

$2.29B

12.7% Net Margin

EPS (Diluted)

$4.04

Total Assets

$41.96B

Cash & Equivalents

$1.54B

Free Cash Flow

$2.67B

Financial Statements
Beta
Revenue$18.02B
Cost of Revenue$8.50B
Gross Profit$9.52B
R&D Expenses$771.00M
SG&A Expenses$5.10B
Operating Income$2.29B
Net Income$2.29B
EPS (Basic)$4.06
EPS (Diluted)$4.04
Shares Outstanding (Basic)564.00M
Shares Outstanding (Diluted)566.70M

Key Highlights

  • 1Net sales increased by 3% to $18.0 billion in fiscal year 2025, with underlying sales also growing by 3%.
  • 2Earnings from continuing operations attributable to common stockholders increased significantly by 41% to $2.3 billion, or $4.03 per diluted share.
  • 3Adjusted diluted earnings per share from continuing operations reached $6.00, up from $5.49 in the prior year, indicating strong underlying operational performance.
  • 4Operating cash flow from continuing operations grew 11% to $3.7 billion, demonstrating robust cash generation capabilities.
  • 5Free cash flow from continuing operations increased by 12% to $3.2 billion, supporting investments and shareholder returns.
  • 6The company completed the full acquisition of AspenTech for approximately $7.2 billion, integrating its results into the Control Systems & Software segment.
  • 7Emerson announced an increase in its quarterly cash dividend to an annualized rate of $2.22 per share, signaling confidence in future performance.

Frequently Asked Questions

Emerson's key strategic initiatives in fiscal year 2025 focused on accelerating its portfolio transformation towards higher growth and higher margin industrial technology and software. This included the full acquisition of AspenTech, strengthening its Software and Control segment, and continued integration of the National Instruments (NI) acquisition. The company also emphasized investing in innovation and developing new technologies across its automation portfolio to drive organic growth and meet sustainability goals.

The full acquisition of AspenTech for $7.2 billion was completed in March 2025, and its results are now consolidated into the Control Systems & Software segment. The National Instruments (NI) acquisition, completed in October 2023, is now reported as the Test & Measurement segment. While these acquisitions involved significant upfront costs and integration efforts, they are expected to contribute to higher growth and margins, particularly within the Software and Control business group. The financial statements reflect the consolidation of AspenTech and the ongoing operational and financial impacts of NI, including amortization expenses.

For fiscal year 2026, Emerson Electric anticipates consolidated net sales from continuing operations to increase by approximately 5.5%, with underlying sales expected to grow around 4%, excluding foreign currency translation effects. Earnings per share are projected to be between $4.73 and $4.93, with adjusted earnings per share expected to range from $6.35 to $6.55. The company also forecasts operating cash flow between $4.0 and $4.1 billion and free cash flow between $3.5 and $3.6 billion, with plans to return approximately $2.2 billion to shareholders through share repurchases and dividends.

Emerson operates globally with a majority of its manufacturing facilities located outside the United States. The company addresses risks associated with its international operations by seeking multiple sources of supply for raw materials and components to avoid dependence on single suppliers. Management actively monitors market prices and attempts to mitigate price exposure through hedging activities. Furthermore, the company has processes in place, with oversight from the Board of Directors, to assess and mitigate risks related to cybersecurity, compliance, legal matters, and other operational factors. While the company aims to diversify its supply chain, disruptions from natural disasters, geopolitical events, or health epidemics remain potential risks.