EMERSON ELECTRIC (EMR) Company Report

At its 2025 Investor Conference, Emerson positioned itself as a global automation leader focused on engineering the autonomous future through innovation and a software-defined technology stack.
Introduced a through-the-cycle value creation framework targeting 4–7% organic sales growth, 40% incremental margins, 10% adjusted EPS growth, and 18–20% free cash flow margin.
Set 2028 financial targets of $21 billion in net sales (5% organic CAGR), 30% adjusted segment EBITA margin, $8.00 adjusted EPS (10% CAGR), and $12 billion cumulative free cash flow, with plans to return $10 billion to shareholders.
Reiterated its 2026 Q1 and full-year outlook as previously provided on November 5, 2025.

Nov 20, 2025, 6:00 PM

Press Release

Emerson outlines strategic framework and guidance for 2026–2028

EMR

Guidance Update

Dividends

Share Buyback

Emerson has completed its portfolio transformation, with about 90% of sales in automation and 10% in safety & productivity, reorganized into three groups—Software & Systems, Intelligent Devices, and Safety & Productivity—effective Q1 2026.
The company targets revenue growth from $18 billion in 2025 to $21 billion by 2028 at 4–7% organic CAGR, driven by mid-single digit growth in core automation and low double-digit growth in software ACV.
Plans to expand adjusted segment EBITDA margin to 30% by 2028, delivering 40 bps of annual incremental margin through pricing, footprint optimization, digital transformation, and deal synergies.
Financial objectives include reaching $8 adjusted EPS (10% CAGR), a 20% free cash flow margin, and returning $10 billion to shareholders via dividend increases ($0.11 in 2026, $0.10 in 2027–28) and $6 billion of share repurchases.

Nov 20, 2025, 2:00 PM

Transcript

Emerson unveils automation-led transformation and 2028 financial targets

EMR

Guidance Update

M&A

Emerson has completed its portfolio transformation into five segments across three groups—Software & Systems, Intelligent Devices, and Safety & Productivity—driving 90% of sales from automation products and solutions.
The company ended 2025 with $18 billion in revenues, 52.8% gross margin, 27.6% adjusted segment EBITDA margin, and 14% software mix ($1.56 billion ARR growing 10%).
Emerson targets $21 billion in revenues, 30% adjusted segment EBITDA margin, $8 EPS, and 20% free cash flow margin by 2028, while returning $10 billion to shareholders in dividends and buybacks.
Key growth markets include US power generation (adding 400 GW by 2030), the third wave of LNG build-out (585 MTPA), and a 20% increase in life sciences automation in 2025.

Nov 20, 2025, 2:00 PM

Transcript

Emerson outlines 2026–2028 growth, margin and capital allocation plan

EMR

Guidance Update

Dividends

Share Buyback

Emerson has completed its portfolio transformation into a global automation leader, with ~90% of sales from automation and a simplified three-group, five-segment structure beginning Q1 2026.
Targets 4–7% organic growth through the cycle, leveraging a full automation tech stack; revenues to grow from $18 billion in 2025 to $21 billion by 2028.
Plans to expand adjusted segment EBITDA margin to 30% by 2028 with 40% incremental margins, driven by pricing actions, footprint optimization, digital initiatives and full realization of NI and AspenTech synergies.
Expects to generate $14 billion of cash flow over 2026–28, reach a 20% free cash flow margin, and return $10 billion to shareholders via dividends and share buybacks.

Nov 20, 2025, 2:00 PM

Transcript

Emerson Electric updates segment reporting and provides supplemental historical results

EMR

Management Change

Accounting Changes

Emerson revised its management organization and will report five new segments as of FY 2026, grouped into Software & Systems and Intelligent Devices to align with its transformation.
The Software & Systems group combines Control Systems & Software (DeltaV™, Ovation™, AspenTech) and Test & Measurement (NI brand) delivering automation, software and AI-enabled test solutions.
The Intelligent Devices group merges Sensors (Rosemount, Micro Motion) with Final Control (Fisher, ASCO, Bettis) providing sensing, valves and actuation products.
Unaudited supplemental historical results for fiscal years 2021–2025, including Q4 2025 segment sales and margins, were disclosed to facilitate investor understanding of the new reporting structure.

Nov 20, 2025, 11:55 AM

8-K

Emerson selected to automate South32’s Hermosa mine project

EMR

New Projects/Investments

Emerson will deploy its DeltaV™ automation platform and integrated remote operations systems at South32’s Hermosa zinc-silver-lead mine in Arizona, marking the company’s first “next generation mine” project.
The multi-million-dollar engagement aims to enhance safety, efficiency and environmental performance by centralizing control software, asset management and smart field devices.
A new remote operations center, Centro, located 30 miles from the mine, will house approximately 200 full-time staff to monitor and operate underground and surface equipment digitally.
The project supports production of critical minerals for transportation infrastructure, battery manufacturing, renewable energy and low-carbon technologies while minimizing environmental impact.

Nov 17, 2025, 2:00 PM

Press Release

Emerson to Automate Thacker Pass Lithium Project

EMR

New Projects/Investments

Emerson (NYSE: EMR) was selected by Lithium Americas to deliver its comprehensive automation portfolio and technical services for the Thacker Pass lithium project in northern Nevada.
Thacker Pass, the world’s largest known measured lithium resource and reserve, is projected in Phase 1 to produce up to 40,000 tonnes of battery-quality lithium carbonate per year—enough for batteries powering up to 800,000 electric vehicles.
Emerson’s integrated automation architecture—including intelligent field instrumentation, process control hardware and software, valves, and reliability technologies—will optimize production, enhance safety, and reduce downtime.
Caltrol, Emerson’s regional Impact Partner, will provide local valve and instrument repair, rapid response, and maintenance support; construction is already underway.

Nov 11, 2025, 2:00 PM

Press Release

Emerson reports Q4 and full year 2025 results

EMR

Earnings

Guidance Update

Dividends

Emerson delivered 6% order growth in Q4 and full-year Ovation orders rose 18% in Q4 and 30% for 2025, driven by power greenfield and modernization projects.
FY 2025 underlying sales grew 3%, led by software & control up 5% and intelligent devices up 2%; year-end backlog was $7.4 B, up 3%.
Achieved record gross profit margin of 52.8% and adjusted segment EBITDA margin of 27.6% in 2025; adjusted EPS was $6.00 and free cash flow reached $3.24 B.
2026 guidance calls for ~5.5% sales growth, adjusted segment EBITDA margin of 28%, EPS of $6.35–$6.55, and free cash flow of $3.5–$3.6 B.
Capital allocation includes a $0.11 dividend increase (~5%) marking the 70th consecutive annual hike, $1 B in planned share repurchases, and $1 B debt reduction to target net debt/EBITDA of ~2×.

Nov 5, 2025, 1:30 PM

Transcript

Emerson reports Q4 and full year 2025 results

EMR

Earnings

Guidance Update

Dividends

Q4 2025 underlying orders grew 6%, underlying sales increased 4%, adjusted segment EBITDA margin expanded to 27.5% (+130 bps), and adjusted EPS was $1.62 in line with guidance
FY 2025 underlying sales rose 3%, adjusted EPS reached $6 (+9%), free cash flow totaled $3.24 billion (+12%), annual contract value hit $1.56 billion (+10%), and backlog ended at $7.4 billion (+3%)
Order strength was broad based in the Americas, India and Middle East & Africa, led by 27% growth in test & measurement, while Europe and China demand remained soft
Integration synergies: realized $50 million from AspenTech in 2025, target $100 million run-rate by end-2026, and completed $200 million in test & measurement synergies ahead of plan
FY 2026 guidance: sales growth ~5.5% (underlying ~4%), adjusted EBITDA margin ~28%, adjusted EPS $6.35–6.55, free cash flow $3.5–3.6 billion, and ~$2.2 billion capital return including a 5% dividend increase

Nov 5, 2025, 1:30 PM

Transcript

Emerson reports Q4 and full year 2025 results

EMR

Earnings

Guidance Update

Q4 underlying orders grew 6% and underlying sales grew 4%, with adjusted EPS of $1.62, up 9% year-over-year.
Q4 adjusted segment EBITA margin was 27.5%, an increase of 1.3 percentage points year-over-year.
Full year 2025 underlying sales grew 3%, adjusted EPS was $6.00 (up 9% yoy), and free cash flow reached $3.24 B (up 12% yoy).
2026 guidance calls for GAAP sales growth of ~5.5% (~4% underlying) and adjusted EPS of $6.35–$6.55.