Emerson Electric Co. is a global technology and software company that delivers innovative solutions across various end markets, including process, hybrid, and discrete industries . The company operates through two main business groups: Intelligent Devices and Software and Control, offering a wide range of products such as control valves, intelligent instrumentation, solenoid valves, and asset optimization software . Emerson's fiscal 2024 sales reached $17.5 billion, with significant growth driven by its Test & Measurement acquisition and strong performance in its Intelligent Devices and Software and Control segments .
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Intelligent Devices
- Encompasses several segments including Final Control, Measurement & Analytical, Discrete Automation, and Safety & Productivity.
- Final Control - Provides control valves and regulators, crucial for process and hybrid industries.
- Measurement & Analytical - Offers intelligent instrumentation for measuring physical properties of liquids or gases.
- Discrete Automation - Includes solenoid valves and pneumatic equipment primarily for discrete industries.
- Safety & Productivity - Delivers tools for infrastructure and safety.
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Software and Control
- Comprises Control Systems & Software, Test & Measurement, and AspenTech segments.
- Control Systems & Software - Provides systems that control plant processes.
- Test & Measurement - Offers automated test and measurement systems, enhanced by the acquisition of National Instruments.
- AspenTech - Specializes in asset optimization software for industrial manufacturers.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
S. L. Karsanbhai ExecutiveBoard | President and Chief Executive Officer | None | CEO since February 2021; previously Executive President of Automation Solutions and President of Measurement & Analytical. | View Report → |
L. A. Flavin Executive | SVP, Chief Transformation and Compliance Officer | Board Member at Caleres, Inc., BJC Healthcare, and U.S. Chamber of Commerce. | Joined Emerson in 1998; Chief Compliance Officer since 2011 and Chief Transformation Officer since 2023. | |
M. H. Train Executive | SVP and Chief Sustainability Officer | Chairman of the Board of Trustees at Ranken Technical College; Member of Cornell University’s Advisory Council. | Chief Sustainability Officer since March 2021; previously President of Emerson and Executive President of Automation Solutions. | |
M. J. Baughman Executive | EVP, CFO, and Chief Accounting Officer | None | CFO since May 2023; previously VP and Controller at Emerson and held finance roles at Baxter International. | |
M. Tang Executive | SVP, Secretary, and Chief Legal Officer | Board Member of Minority Corporate Counsel Association. | Joined Emerson in January 2024; previously General Counsel at Agilent Technologies. | |
N. Piazza Executive | SVP and Chief People Officer | Board Member of Juvenile Diabetes Research Foundation (St. Louis chapter). | Chief People Officer since August 2023; previously VP of Global Talent and HR Operations. | |
P. Zornio Executive | SVP and Chief Technology Officer | Board Member of Emerson Ventures. | CTO since December 2022; joined Emerson in 2006 and led development of the Plantweb digital ecosystem and IIoT strategies. | |
R. R. Krishnan Executive | Executive Vice President and COO | None | COO since February 2021; previously President of Final Control and Flow Solutions. | |
V. Ramnath Executive | SVP and Chief Marketing Officer | None | Chief Marketing Officer since June 2023; previously President of Middle East & Africa and VP of Asia Pacific for Measurement & Analytical. | |
Calvin G. Butler Board | Director | CEO of Exelon Corporation; Chair of Cal Ripken Sr. Foundation; Vice Chair of Edison Electric Institute. | Director since August 2024; extensive leadership in utilities industry, currently CEO of Exelon. | |
Gloria A. Flach Board | Director | Board Advisor at Loyola University, Maryland. | Director since 2017; former COO of Northrop Grumman. | |
James M. McKelvey Board | Director | Co-Founder of Block, Inc.; Chair of St. Louis Federal Reserve Board; Trustee at Washington University. | Director since May 2023; entrepreneur with expertise in technology and innovation. | |
James S. Turley Board | Chair of the Board | Director at Citigroup, Northrop Grumman, and Precigen; Officer of Boy Scouts of America. | Chair of Emerson's Board since 2013; retired Chairman and CEO of Ernst & Young. | |
Leticia Goncalves Board | Director | President of ADM Ventures; Board Member at Believer Meats. | Director since May 2023; extensive experience in innovation and sustainability. | |
Lori M. Lee Board | Director | CEO of AT&T Latin America; Global Marketing Officer at AT&T. | Director since 2018; extensive experience in telecommunications and marketing. | |
Martin S. Craighead Board | Director | Director at Texas Instruments. | Director since 2019; former CEO and Chairman of Baker Hughes. | |
Matthew S. Levatich Board | Director | Member of Dean’s Advisory Council at Northwestern University. | Director since 2012; former CEO of Harley-Davidson. | |
William H. Easter III Board | Director | Director at Delta Airlines and Aurora Sustainable Lands; Board Member of Memorial Hermann Health System. | Director since 2020; extensive experience in energy and corporate governance. |
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With the announcement to fully acquire AspenTech and your expectation of immediate cost efficiencies and enhanced operational performance, what are the specific risks and challenges you anticipate in integrating AspenTech into Emerson, and how do you plan to mitigate potential disruptions to AspenTech's existing customer relationships?
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Given that nuclear represents about 20% of your overall power business, can you elaborate on any regulatory or technological challenges you face in the nuclear sector, especially as you participate globally, and how might these challenges impact your growth projections in power generation for 2025?
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You are expecting a recovery in discrete markets in the first half of 2025 leading to mid-single-digit sales growth, but with automotive markets, particularly EV, remaining weak, how confident are you in this forecast, and what strategies do you have in place if the recovery in discrete markets does not materialize as expected?
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Considering you have not baked in a significant chemical recovery in your plan and are watching China cautiously due to slowdown, how would prolonged weakness in the chemical sector and China impact your 3% to 5% growth guidance, and what contingency plans do you have in place?
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While you plan to repurchase approximately $2 billion of common stock and return about 100% of guided free cash flow to shareholders in 2025, at the same time pursuing significant acquisitions and divestitures, how do you reconcile these substantial capital allocations with maintaining your A2A credit rating, and are there risks to your balance sheet or credit metrics?
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Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Aspen Technology, Inc. | 2025 | Emerson will acquire all outstanding shares of AspenTech not already owned, valuing the company at a fully diluted market capitalization of $17.0 billion and an enterprise value of $16.8 billion, with the transaction expected to close in the first half of 2025 and financed with cash on hand and debt financing. |
National Instruments Corporation | 2023 | Emerson's acquisition of National Instruments was completed on October 11, 2023, in a deal with an equity value of $8.2 billion that expanded Emerson’s presence in automation and software-connected test and measurement systems. |
Flexim | 2023 | Emerson acquired Flexim for $705 million (net of cash acquired) to enhance its Measurement & Analytical segment, gaining clamp-on ultrasonic technology capabilities and recognizing $429 million in goodwill. |
Afag | 2023 | As part of a $705 million combined acquisition with Flexim, Emerson acquired Afag, a leader in electric linear motion and automation solutions, to strengthen its Discrete Automation segment and complement its existing motion offerings. |
Micromine | 2022 | AspenTech (an Emerson subsidiary) acquired Micromine for AU $900 million (approximately $623 million USD), announced on July 27, 2022, to incorporate advanced mining design and operational solutions in line with Emerson’s growth in automation and software markets. |
Three additional businesses | 2022 | Emerson acquired three additional businesses for $130 million (net of cash acquired), including two in the Automation Solutions segment and one in the AspenTech segment, with combined annual sales of approximately $40 million, further broadening its product and service portfolio. |
Recent press releases and 8-K filings for EMR.
- 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.
- 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.
- 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×.
- 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
- 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.
- Emerson delivered 6% underlying order growth and 4% underlying sales growth in Q4 2025; adjusted segment EBITDA margin rose to 27.5% and EPS reached $1.62 (top end of guidance).
- For fiscal 2025, underlying sales increased 3%, adjusted EPS was $6 (up 9%), and free cash flow totaled $3.24 billion (up 12%).
- Fiscal 2026 guidance includes ~5.5% sales growth (~4% underlying), an adjusted EBITDA margin of ~28%, EPS of $6.35–$6.55, and $2.2 billion of capital return via $1 billion of share repurchases and a 5% dividend increase.
- Growth verticals remained strong: test & measurement orders were up 27% and Q4 sales up 12%; LNG, Power, and Life Sciences segment sales rose 11%, while MRO accounted for 65% of total sales.
- Emerson delivered Q4 net sales of $4,855 M (+5% YoY) and FY net sales of $18,016 M (+3%), with underlying orders up 6% in Q4 and 4% in FY.
- Q4 pretax earnings rose to $796 M (margin 16.4%) from $679 M (14.7%), while adjusted EPS increased 9% to $1.62, and FY adjusted EPS grew 9% to $6.00.
- Fiscal 2025 generated $3.68 B operating cash flow and $3.25 B free cash flow, with Q4 operating cash flow of $1.01 B and free cash flow of $843 M.
- The quarterly dividend was raised by 5% to $0.555 per share, and the board authorized up to 50 M additional share repurchases, adding to 20 M shares remaining under the prior plan.
- Initial 2026 outlook calls for ~5.5% FY net sales growth, adjusted EPS of $6.35–$6.55, and $3.5 B–$3.6 B free cash flow, with ~$2.2 B planned to be returned to shareholders.
- Net sales of $4,855 M in Q4 (+5%) and $18,016 M for FY 2025 (+3%); underlying orders grew 4% in Q4 and 4% for the year.
- GAAP EPS of $1.12 in Q4 (+15%) and $4.03 FY (+43%); Adjusted EPS of $1.62 Q4 (+9%) and $6.00 FY (+9%).
- Dividend increased 5% to $0.555 per share; Board authorized repurchase of up to 50 M shares (plus ~20 M remaining under prior plan).
- 2026 outlook: net sales growth of ~5.5% for the year, GAAP EPS of $4.73–$4.93, Adjusted EPS of $6.35–$6.55, and return of
$2.2 B to shareholders ($1 B share repurchases and ~$1.2 B dividends).
- TotalEnergies delivered $4.0 billion of adjusted net income (flat year-on-year) and $7.1 billion of cash flow from operations excl. working capital (+7% vs Q2 2025) with adjusted EBITDA of $10.3 billion (+6% vs Q2 2025).
- Exploration & Production achieved $2.2 billion of adjusted net operating income (+10% vs Q2 2025) and $4.0 billion of cash flow during the quarter.
- The company repurchased 36.8 million shares for $2.3 billion in Q3 2025 under its share buyback program.
- For Q4 2025, TotalEnergies expects hydrocarbon production of 2.525–2.575 Mboe/d (+>4% vs Q4 2024) and an average LNG selling price of $8.5/Mbtu.
- Completed a 4½-year portfolio transformation, driving 1,000 bps gross margin and 700 bps EBITDA margin improvements to form a global automation leader focused on high-growth segments.
- Q4 FY25 guidance: orders up 5–7% and sales up 5–6%, likely at the lower end due to China and Europe weakness, with earnings at the upper end given strong execution.
- 2026 outlook remains in the 4–7% revenue growth framework: process mid-single-digit, discrete/TNM accelerating; target ~40% normalized incremental margins post-transformation.
- Capital allocation plan maintains 2–2.5% capex and 8% R&D spend, shifts to shareholder returns via dividends and buybacks, with free cash flow conversion improving from low-90s percent toward 100%.