01—Abstract
Summary
Summary of the 10-K filed November 10, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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 billionc, 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.
02—Key points
Key Highlights
- Net sales increased by 3% to $18.0 billion in fiscal year 2025, with underlying sales also growing by 3%.
- Earnings from continuing operations attributable to common stockholders increased significantly by 41% to $2.3 billion, or $4.03 per diluted share.
- Adjusted diluted earnings per share from continuing operations reached $6.00, up from $5.49 in the prior year, indicating strong underlying operational performance.
- Operating cash flow from continuing operations grew 11% to $3.7 billion, demonstrating robust cash generation capabilities.
- Free cash flow from continuing operations increased by 12% to $3.2 billion, supporting investments and shareholder returns.
- The company completed the full acquisition of AspenTech for approximately $7.2 billion, integrating its results into the Control Systems & Software segment.
- Emerson announced an increase in its quarterly cash dividend to an annualized rate of $2.22 per share, signaling confidence in future performance.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Emerson Electric Co kept $0.13.
- Revenue$18.02B100.0%
- Cost of revenue−$8.50B47.2%
- Gross profit$9.52B52.8%
- Operating costs−$7.23B40.2%
- Operating income$2.29B12.7%
- Interest, other & tax$8.0M0.0%
- Net income$2.29B12.7%
Where FY2025 revenue went
$18.02B- Cost of revenue: $8.50B, 47% of revenue
- SG&A: $5.10B, 28% of revenue
- Operating income: $2.29B, 13% of revenue
- R&D: $771.0M, 4.3% of revenue
- Other operating costs: $1.36B, 7.5% of revenue
Kept 13% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed November 10, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $18.02B$17.49B | +3.0% |
| Cost of Revenue | $8.50B$8.61B | −1.3% |
| Gross Profit | $9.52B$8.88B | +7.1% |
| R&D Expenses | $771.00M$781.00M | −1.3% |
| SG&A Expenses | $5.10B$5.14B | −0.8% |
| Operating Income | $2.29B$1.62B | +41.2% |
| Net Income | $2.29B$1.97B | +16.5% |
| EPS (Basic) | $4.06$3.44 | +18.0% |
| EPS (Diluted) | $4.04$3.43 | +17.8% |
| Shares Outstanding (Basic) | 564.00M571.30M | −1.3% |
| Shares Outstanding (Diluted) | 566.70M574.00M | −1.3% |
05—Questions
Frequently Asked Questions
What are the key strategic initiatives Emerson Electric pursued in fiscal year 2025?
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.
How did Emerson's major acquisitions, AspenTech and National Instruments, impact its financial results?
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.
What is Emerson Electric's outlook for fiscal year 2026?
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.
How is Emerson managing its global operations and supply chain risks?
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.
06—Continue