| Metric               | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Backlog (USD Billion)| **7.8** **[0000032604-23-000010_emr-20221231.htm:7]** | **8.1** **[0000032604-23-000030_emr-20230331.htm:7]** | **8.2** **[0000032604-23-000037_emr-20230630.htm:8]** | **7.8** **[0000032604-23-000044_emr-20230930.htm:65]** | **8.8** **[0000032604-24-000008_emr-20231231.htm:6]** | **8.8** **[0000032604-24-000024_emr-20240331.htm:6]** | **8.7** **[0000032604-24-000036_emr-20240630.htm:8]** | **8.4** **[0000032604-24-000041_emr-20240930.htm:66]** |

487cbed705a5fb17b3203c6e8dd5daad15593f2d0c4b69c065eb6fddcac97dc6

Consolidated Order Backlog (USD billions)

Order Backlog for AspenTech (USD billions)

Backlog for Intelligent Devices (USD millions)

Backlog for Software and Control (USD millions)

Total Backlog (USD millions)

3cabc716e793060c067db5ba2937217045791026939f0302cd6ebfa2e1c7efc5

Adjustments for Non-Cash Items (USD, M)

Stock-Based Compensation (USD, M)

Changes in Working Capital (USD, M)

Capital Expenditures (USD, M)

Proceeds from / Repayments of Debt (USD, M)

Share Repurchases (USD, M)

Dividend Payments (USD, M)

Net Change in Cash (USD, M)

b7e80ae01a02f4ebad1ae2204f538a4e3f23ef035425f0212a4f57995d160794

| Business Segment / Quarter | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Final Control** ($ million) | N/A     | 992  **[0000032604-23-000030_emr-20230331.htm:24]**  | 1,035  **[0000032604-23-000037_emr-20230630.htm:27]**  | N/A     | 940  **[0000032604-24-000008_emr-20231231.htm:19]**  | 1,051  **[0000032604-24-000024_emr-20240331.htm:23]**  | 1,046  **[0000032604-24-000036_emr-20240630.htm:25]**  | 1,167  **[0000950103-24-015969_dp220300_ex9901.htm:4]**  |
| **Measurement & Analytical** ($ million) | N/A     | 888  **[0000032604-23-000030_emr-20230331.htm:24]**  | 913  **[0000032604-23-000037_emr-20230630.htm:27]**  | N/A     | 947  **[0000032604-24-000008_emr-20231231.htm:19]**  | 1,013  **[0000032604-24-000024_emr-20240331.htm:23]**  | 982  **[0000032604-24-000036_emr-20240630.htm:25]**  | 1,119  **[0000950103-24-015969_dp220300_ex9901.htm:4]**  |
| **Discrete Automation** ($ million) | N/A     | 683  **[0000032604-23-000030_emr-20230331.htm:24]**  | 668  **[0000032604-23-000037_emr-20230630.htm:27]**  | N/A     | 613  **[0000032604-24-000008_emr-20231231.htm:19]**  | 632  **[0000032604-24-000024_emr-20240331.htm:23]**  | 618  **[0000032604-24-000036_emr-20240630.htm:25]**  | 643  **[0000950103-24-015969_dp220300_ex9901.htm:4]**  |
| **Safety & Productivity** ($ million) | N/A     | 361  **[0000032604-23-000030_emr-20230331.htm:24]**  | 363  **[0000032604-23-000037_emr-20230630.htm:27]**  | N/A     | 322  **[0000032604-24-000008_emr-20231231.htm:19]**  | 365  **[0000032604-24-000024_emr-20240331.htm:23]**  | 351  **[0000032604-24-000036_emr-20240630.htm:25]**  | 352  **[0000950103-24-015969_dp220300_ex9901.htm:4]**  |
| **Intelligent Devices Total** ($ million) | 2,500  **[0000032604-23-000010_emr-20221231.htm:25]**  | 2,924  **[0000032604-23-000030_emr-20230331.htm:24]**  | 2,979  **[0000032604-23-000037_emr-20230630.htm:27]**  | 2,635  **[0000032604-23-000044_emr-20230930.htm:39]**  | 2,822  **[0000032604-24-000008_emr-20231231.htm:19]**  | 3,061  **[0000032604-24-000024_emr-20240331.htm:23]**  | 2,997  **[0000032604-24-000036_emr-20240630.htm:25]**  | 3,281  **[0000950103-24-015969_dp220300_ex9901.htm:4]**  |
| **Control Systems & Software** ($ million) | N/A     | 623  **[0001193125-23-133091_d476266dex991.htm:4]**  | 663  **[0000032604-23-000037_emr-20230630.htm:20]**  | N/A     | 675  **[0000032604-24-000008_emr-20231231.htm:14]**  | 687  **[0000032604-24-000021_a2024q2release_ex991.htm:4]**  | 700  **[0000032604-24-000036_emr-20240630.htm:18]**  | 780  **[0000950103-24-015969_dp220300_ex9901.htm:4]**  |
| **Test & Measurement** ($ million) | N/A     | N/A     | N/A     | N/A     | 382  **[0000032604-24-000008_emr-20231231.htm:14]**  | 367  **[0000032604-24-000021_a2024q2release_ex991.htm:4]**  | 355  **[0000032604-24-000036_emr-20240630.htm:18]**  | 360  **[0000950103-24-015969_dp220300_ex9901.htm:4]**  |
| **AspenTech** ($ million) | N/A     | 230  **[0001193125-23-133091_d476266dex991.htm:4]**  | 320  **[0000032604-23-000037_emr-20230630.htm:20]**  | N/A     | 257  **[0000032604-24-000008_emr-20231231.htm:14]**  | 278  **[0000032604-24-000021_a2024q2release_ex991.htm:4]**  | 343  **[0000032604-24-000036_emr-20240630.htm:18]**  | 215  **[0000950103-24-015969_dp220300_ex9901.htm:4]**  |
| **Software and Control Total** ($ million) | N/A     | 853  **[0001193125-23-133091_d476266dex991.htm:4]**  | 983  **[0000032604-23-000037_emr-20230630.htm:20]**  | 1,455  **[0000032604-23-000044_emr-20230930.htm:39]**  | 1,314  **[0000032604-24-000008_emr-20231231.htm:14]**  | 1,332  **[0000032604-24-000021_a2024q2release_ex991.htm:4]**  | 1,398  **[0000032604-24-000036_emr-20240630.htm:18]**  | 1,355  **[0000950103-24-015969_dp220300_ex9901.htm:4]**  |

7fd50bd3a7f9c9e42cc3c35c1991387ff57fe41306a6af777b1f7afeeb213b90

32b6998a4cca900be81a801edabe47fe0b9b01caef083e28af47ce9342eefb9c

454ebabf79b7bdc8e04e650948d7569f290e87e325b62cd1e44987d6f7276d14

Emerson Electric Co. is a global technology and software company that delivers innovative solutions across various end markets, including process, hybrid, and discrete industries **[0000032604-24-000041_emr-20240930.htm:2]** **[0000032604-24-000041_emr-20240930.htm:3]**. 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 **[0000032604-24-000041_emr-20240930.htm:93]** **[0000032604-24-000029_exhibit101.htm:1]**. 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 **[0000032604-24-000041_emr-20240930.htm:34]** **[EMR_3405714_2]**.

1. **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.

2. **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.

03cae93853e38e8558774dc6dd18a7e42f5c438a4d765dc9cc4f1b8a55c00622

1. 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?  **[EMR_3405714_4]** 

2. 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?  **[EMR_3405714_15]** 

3. 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?  **[EMR_3405714_7]** 

4. 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?  **[EMR_3405714_20]** 

5. 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?  **[EMR_3405714_2]** 

3d839144b321714d1a82fa39cedd186bc6b21824e578f9b47fe95326a5d72f7b

4eb441d2fc0b58794f49515cfcee8582bb2eba05d8824424cd1218b5dfad7446

Americas

AMEA

Europe

- United States

- China

United States and Canada

Asia

Latin America

Middle East/Africa

Total Revenue

ccadc11a6fab65b5abb2c3086fa212313a5081207a351ea89e823c7ae94f1a59

Backlog (USD Billion)

7d701dfee0d3dc6f116291e5c11cbf7c1b92fe6c92cef632443a1dc70321f8d4

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025 and Q1 2025
- **Guidance**:
  1. **Underlying Sales Growth**: 3% to 5% for FY 2025  **[EMR_3405714_8]** .
  2. **Operating Leverage**: Mid-40s for FY 2025  **[EMR_3405714_8]** .
  3. **Adjusted EPS**: $5.85 to $6.05 for FY 2025  **[EMR_3405714_8]** .
  4. **AspenTech Contribution**: $0.44 to $0.46 for FY 2025  **[EMR_3405714_8]** .
  5. **Safety & Productivity Contribution**: Approximately $0.48 for FY 2025  **[EMR_3405714_8]** .
  6. **Free Cash Flow**: $3.2 billion to $3.3 billion for FY 2025  **[EMR_3405714_8]** .
  7. **First Quarter Underlying Sales Increase**: 2% to 3% for Q1 2025  **[EMR_3405714_8]** .
  8. **First Quarter Adjusted EPS**: $1.25 to $1.30 for Q1 2025  **[EMR_3405714_8]** .
  9. **Share Repurchase**: Approximately $2 billion for FY 2025  **[EMR_3405714_8]** .
  10. **Dividend Payments**: Approximately $1.2 billion for FY 2025  **[EMR_3405714_8]** .
  11. **Tax Rate**: Approximately 22% for FY 2025  **[EMR_3405714_8]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Sales Growth**: Approximately 15% for FY 2024  **[EMR_3396959_5]** .
  2. **Adjusted EPS**: $5.45 to $5.50 for FY 2024  **[EMR_3396959_5]** .
  3. **Test & Measurement Contribution**: $0.42 to $0.44 to EPS for FY 2024  **[EMR_3396959_5]** .
  4. **AspenTech Contribution**: $0.32 to $0.34 to EPS for FY 2024  **[EMR_3396959_5]** .
  5. **Free Cash Flow**: Approximately $2.8 billion for FY 2024  **[EMR_3396959_5]** .
  6. **Share Repurchase**: Approximately $300 million for FY 2024  **[EMR_3396959_5]** .
  7. **Adjusted Segment EBITDA Margin for Test & Measurement**: Approximately 23% for FY 2024  **[EMR_3396959_5]** .
  8. **Underlying Sales Growth**: Approximately 6% for FY 2024  **[EMR_3396959_4]** .
  9. **Operating Leverage**: Mid- to high 40s for FY 2024  **[EMR_3396959_5]** .
  10. **Test & Measurement Sales**: $1.45 billion to $1.5 billion for FY 2024  **[EMR_3396959_1]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  1. **Underlying Sales Growth**: 5.5% to 6.5% for FY 2024  **[EMR_3387279_5]** .
  2. **Reported Net Sales Growth**: 15% to 16% for FY 2024  **[EMR_3387279_5]** .
  3. **Adjusted EPS**: $5.40 to $5.50 for FY 2024  **[EMR_3387279_5]** .
  4. **Test & Measurement Contribution to EPS**: $0.40 to $0.45 for FY 2024  **[EMR_3387279_5]** .
  5. **AspenTech Contribution to EPS**: $0.30 to $0.32 for FY 2024  **[EMR_3387279_5]** .
  6. **Free Cash Flow**: Approximately $2.7 billion for FY 2024  **[EMR_3387279_5]** .
  7. **Incremental Margins**: Low to mid-40s for FY 2024  **[EMR_3387279_5]** .
  8. **Synergies Realized**: $100 million for FY 2024  **[EMR_3387279_2]** .
  9. **Discrete Automation Segment**: Positive in Q4 2024  **[EMR_3387279_5]** .
  10. **Test & Measurement Orders**: Positive in H1 2025  **[EMR_3387279_2]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  1. **Adjusted EPS**: $5.30 to $5.45 for FY 2024  **[EMR_3372170_5]** .
  2. **Sales**: Underlying sales growth of 4.5% to 6.5% for FY 2024  **[EMR_3372170_5]** .
  3. **Discrete Automation Sales**: Down in low single-digit range for FY 2024  **[EMR_3372170_5]** .
  4. **FX Impact**: Approximately flat versus 2023 for FY 2024  **[EMR_3372170_5]** .
  5. **Operating Leverage**: Low to mid-40s for FY 2024  **[EMR_3372170_5]** .
  6. **Free Cash Flow**: $2.6 billion to $2.7 billion for FY 2024  **[EMR_3372170_5]** .
  7. **Share Repurchase**: Approximately $500 million for FY 2024  **[EMR_3372170_5]** .
  8. **Second Quarter Underlying Sales Growth**: 3.5% to 5.5% for Q2 2024  **[EMR_3372170_5]** .
  9. **Second Quarter Adjusted EPS**: $1.22 to $1.26 for Q2 2024  **[EMR_3372170_5]** .
  10. **Test and Measurement Segment Full Year Sales**: $1.5 billion to $1.6 billion for FY 2024  **[EMR_3372170_5]** .
  11. **AspenTech Contribution**: $0.32 to $0.34 to adjusted EPS for FY 2024  **[EMR_3372170_5]** .

561f2f5a439e6e6253eb9a77e0e6d0c4ecfd16da6497b818542f17be76df21e9

| Name              | Position                                                      | Start Date       | Short Bio                                                                                                                                                                                                 |
|-------------------|---------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| S. L. Karsanbhai  | President and Chief Executive Officer                         | February 5, 2021 | **Surendralal (Lal) L. Karsanbhai** has been serving as the President and CEO of Emerson Electric Co. since February 5, 2021. He was previously Executive President of Automation Solutions  **[0000032604-24-000041_emr-20240930.htm:26]** **[0000032604-23-000044_emr-20230930.htm:23]** .                                           |
| R. R. Krishnan    | Executive Vice President and Chief Operating Officer          | February 2021    | **Ram R. Krishnan** is the Executive Vice President and COO at Emerson Electric Co. since February 2021. He was previously President of Final Control  **[0000032604-24-000041_emr-20240930.htm:26]** **[0000032604-23-000044_emr-20230930.htm:23]** .                                                                                   |
| M. J. Baughman    | Executive Vice President, Chief Financial Officer, and Chief Accounting Officer | May 10, 2023     | **Michael J. Baughman** was appointed as Executive Vice President and CFO on May 10, 2023, and has served as Chief Accounting Officer since February 2018  **[0000032604-24-000041_emr-20240930.htm:26]** **[0000032604-23-000044_emr-20230930.htm:23]** .                                                                               |
| M. H. Train       | Senior Vice President and Chief Sustainability Officer        | March 2021       | **Michael H. Train** was appointed as Senior Vice President and Chief Sustainability Officer in March 2021. He previously served as President from October 2018 to March 2021  **[0000032604-24-000041_emr-20240930.htm:26]** **[0000032604-23-000044_emr-20230930.htm:23]** **[0000032604-22-000041_emr-20220930.htm:29]** .                                                        |
| L. A. Flavin      | Senior Vice President, Chief Transformation and Chief Compliance Officer | March 2021       | **Lisa A. Flavin** is the Senior Vice President, Chief Transformation and Chief Compliance Officer. She was appointed as Senior Vice President and Chief Compliance Officer in March 2021  **[0000032604-24-000041_emr-20240930.htm:26]** **[0000032604-23-000044_emr-20230930.htm:23]** .                                               |
| P. Zornio         | Senior Vice President and Chief Technology Officer            | December 2022    | **Peter Zornio** was appointed as Senior Vice President and Chief Technology Officer in December 2022. He was previously the CTO for the Automation Solutions Group  **[0000032604-24-000041_emr-20240930.htm:26]** **[0000032604-23-000044_emr-20230930.htm:23]** .                                                                     |
| V. Ramnath        | Senior Vice President and Chief Marketing Officer             | June 2023        | **Vidya Ramnath** was appointed as Senior Vice President and Chief Marketing Officer in June 2023. She previously served as President of Middle East & Africa  **[0000032604-24-000041_emr-20240930.htm:26]** **[0000032604-23-000044_emr-20230930.htm:24]** .                                                                           |
| N. Piazza         | Senior Vice President and Chief People Officer                | August 2023      | **Nick Piazza** was appointed as Senior Vice President and Chief People Officer in August 2023. He was previously Vice President of Global Talent and Human Resource Operations  **[0000032604-24-000041_emr-20240930.htm:27]** **[0000032604-23-000044_emr-20230930.htm:24]** .                                                         |
| M. Tang           | Senior Vice President, Secretary, and Chief Legal Officer     | January 2024     | **Michael Tang** was appointed as Senior Vice President, Secretary, and Chief Legal Officer in January 2024. He previously served as Senior Vice President, General Counsel, and Secretary at Agilent Technologies, Inc.  **[0000032604-24-000041_emr-20240930.htm:27]** **[0000032604-24-000041_emr-20240930.htm:26]** .                |

e4dc9f6366c8d89022f509beb7a8922d676425d52a0c0964ce75df3cade33d44

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | March 2020  **[0000032604-24-000041_emr-20240930.htm:46]** **[0000032604-24-000041_emr-20240930.htm:29]**  |
| End Date/Duration        | Ongoing  **[0000032604-24-000041_emr-20240930.htm:46]** **[0000032604-24-000041_emr-20240930.htm:29]**   |
| Total additional amount  | 60 million shares  **[0000032604-24-000041_emr-20240930.htm:46]** **[0000032604-24-000041_emr-20240930.htm:29]**  |
| Remaining authorization  | 28.9 million shares  **[0000032604-24-000041_emr-20240930.htm:46]** **[0000032604-24-000041_emr-20240930.htm:29]**  |
| Details                  | Aims to return capital to shareholders, with a plan to repurchase approximately $2 billion of common stock in fiscal 2025.  **[EMR_3405714_8]** **[EMR_3405714_2]**  |

e14bc439dea396033729f6e7f6b31c35b29aadca96e9e8d0b865af906e1ba21b

**Quarterly guidance for Q1 2025:**
- **Underlying Sales Increase**: 2% to 3%  **[EMR_3405714_8]**  (no prior guidance)  
- **Adjusted EPS**: $1.25 to $1.30  **[EMR_3405714_8]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Underlying Sales Growth**: 3% to 5%  **[EMR_3405714_8]**  (lowered from 6%  **[EMR_3396959_4]** )  
- **Operating Leverage**: Mid-40s  **[EMR_3405714_8]**  (lowered from mid- to high 40s  **[EMR_3396959_5]** )  
- **Adjusted EPS**: $5.85 to $6.05  **[EMR_3405714_8]**  (raised from $5.45 to $5.50  **[EMR_3396959_5]** )  
- **AspenTech Contribution**: $0.44 to $0.46  **[EMR_3405714_8]**  (raised from $0.32 to $0.34  **[EMR_3396959_5]** )  
- **Free Cash Flow**: $3.2 billion to $3.3 billion  **[EMR_3405714_8]**  (raised from $2.8 billion  **[EMR_3396959_5]** )  
- **Share Repurchase**: Approximately $2 billion  **[EMR_3405714_8]**  (raised from $300 million  **[EMR_3396959_5]** )  
- **Safety & Productivity Contribution**: Approximately $0.48  **[EMR_3405714_8]**  (no prior guidance)  
- **Dividend Payments**: Approximately $1.2 billion  **[EMR_3405714_8]**  (no prior guidance)  
- **Tax Rate**: Approximately 22%  **[EMR_3405714_8]**  (no prior guidance)  

5cae7cf935dda8bbefd5c20ee4ceb0e812e21ccb17e0aa23cf64157bfa1cefe7

| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | 1938  **[0000032604-24-000041_emr-20240930.htm:102]**    | Present  | Current auditor   |

94cbd62926381d8d81afbf4c98f3d01944c1f3898b1b5728700ef0e622e18f3b

186f3e487e33116cd635dc066eaab6c7227ab18696c1e4b7ceecc491b0a4dc1f

- Total Revenue: $4,619 million (+13% YoY)  **[0000032604-24-000041_emr-20240930.htm:54]** **[0000032604-23-000044_emr-20230930.htm:52]**   
- Software and Control: $1,355 million (**+41% YoY**)  **[0000032604-24-000041_emr-20240930.htm:95]** **[0000032604-23-000044_emr-20230930.htm:93]**   
  • Control Systems & Software: $78 million (**-89% YoY**)  **[0000032604-24-000041_emr-20240930.htm:95]** **[0000032604-23-000044_emr-20230930.htm:93]**   
  • AspenTech: $215 million (-14% YoY)  **[0000032604-24-000041_emr-20240930.htm:95]** **[0000032604-23-000044_emr-20230930.htm:93]**   
- Europe Sales: $864 million (+15% YoY)  **[0000032604-24-000041_emr-20240930.htm:96]** **[0000032604-23-000044_emr-20230930.htm:94]**   
- Operating Income: $679 million (-25% YoY)  **[0000032604-24-000041_emr-20240930.htm:54]** **[0000032604-23-000044_emr-20230930.htm:52]**   
- Net Income: $968 million (**+31% YoY**)  **[0000032604-24-000041_emr-20240930.htm:54]** **[0000032604-23-000044_emr-20230930.htm:52]**   
- EPS (Diluted): $1.74 (+31% YoY)  **[0000032604-24-000041_emr-20240930.htm:54]** **[0000032604-23-000044_emr-20230930.htm:52]**   

57faa4de1dd46624703c3d469786b101972cf4b8bcd79f2bcedd5d443ab0f7a5

853986ea2ebd77dfcce27e051ca798ec312149b7f2fba05145602e69ed579ec7

fcda8a5db7c9eccecf094483b762d50e762a954f0090c78d188be927b4bb1dd0

| Year | Amount Due (in millions) | Debt Type            | Interest Rate (%) | % of Total Debt |
|----------|------------------------------|--------------------------|-----------------------|---------------------|
| 2025     | $1,062 **[0000032604-24-000041_emr-20240930.htm:79]**               | 3.15% Notes, Other       | 3.15 **[0000032604-24-000041_emr-20240930.htm:79]**          | 13.8% = (1,062 / 7,687) * 100 **[0000032604-24-000041_emr-20240930.htm:47]** **[0000032604-24-000041_emr-20240930.htm:79]** |
| 2026     | $750 **[0000032604-24-000041_emr-20240930.htm:79]**                 | 0.875% Notes             | 0.875 **[0000032604-24-000041_emr-20240930.htm:79]**         | 9.8% = (750 / 7,687) * 100 **[0000032604-24-000041_emr-20240930.htm:47]** **[0000032604-24-000041_emr-20240930.htm:79]** |
| 2027     | $500 **[0000032604-24-000041_emr-20240930.htm:79]**                 | 1.8% Notes               | 1.8 **[0000032604-24-000041_emr-20240930.htm:79]**           | 6.5% = (500 / 7,687) * 100 **[0000032604-24-000041_emr-20240930.htm:47]** **[0000032604-24-000041_emr-20240930.htm:79]** |
| 2028     | $1,000 **[0000032604-24-000041_emr-20240930.htm:79]**               | 2.0% Notes               | 2.0 **[0000032604-24-000041_emr-20240930.htm:79]**           | 13.0% = (1,000 / 7,687) * 100 **[0000032604-24-000041_emr-20240930.htm:47]** **[0000032604-24-000041_emr-20240930.htm:79]** |
| 2029     | $529 **[0000032604-24-000041_emr-20240930.htm:79]**                 | 2.0% Euro Notes          | 2.0 **[0000032604-24-000041_emr-20240930.htm:79]**           | 6.9% = (529 / 7,687) * 100 **[0000032604-24-000041_emr-20240930.htm:47]** **[0000032604-24-000041_emr-20240930.htm:79]** |
| 2030     | $500 **[0000032604-24-000041_emr-20240930.htm:79]**                 | 1.95% Notes              | 1.95 **[0000032604-24-000041_emr-20240930.htm:79]**          | 6.5% = (500 / 7,687) * 100 **[0000032604-24-000041_emr-20240930.htm:47]** **[0000032604-24-000041_emr-20240930.htm:79]** |
| 2031     | $1,000 **[0000032604-24-000041_emr-20240930.htm:79]**               | 2.2% Notes               | 2.2 **[0000032604-24-000041_emr-20240930.htm:79]**           | 13.0% = (1,000 / 7,687) * 100 **[0000032604-24-000041_emr-20240930.htm:47]** **[0000032604-24-000041_emr-20240930.htm:79]** |
| 2032     | $250 **[0000032604-24-000041_emr-20240930.htm:79]**                 | 6.0% Notes               | 6.0 **[0000032604-24-000041_emr-20240930.htm:79]**           | 3.3% = (250 / 7,687) * 100 **[0000032604-24-000041_emr-20240930.htm:47]** **[0000032604-24-000041_emr-20240930.htm:79]** |
| 2039     | $550 **[0000032604-24-000041_emr-20240930.htm:79]**                 | 6.125% & 5.25% Notes     | 6.125, 5.25 **[0000032604-24-000041_emr-20240930.htm:79]**   | 7.2% = (550 / 7,687) * 100 **[0000032604-24-000041_emr-20240930.htm:47]** **[0000032604-24-000041_emr-20240930.htm:79]** |
| 2050     | $500 **[0000032604-24-000041_emr-20240930.htm:79]**                 | 2.75% Notes              | 2.75 **[0000032604-24-000041_emr-20240930.htm:79]**          | 6.5% = (500 / 7,687) * 100 **[0000032604-24-000041_emr-20240930.htm:47]** **[0000032604-24-000041_emr-20240930.htm:79]** |
| 2051     | $1,000 **[0000032604-24-000041_emr-20240930.htm:79]**               | 2.8% Notes               | 2.8 **[0000032604-24-000041_emr-20240930.htm:79]**           | 13.0% = (1,000 / 7,687) * 100 **[0000032604-24-000041_emr-20240930.htm:47]** **[0000032604-24-000041_emr-20240930.htm:79]** |

91f545ea1bf27e94e895dfaf58d9c2e7c8d5f9ca1ad1456b7d949bd1978d0d1e

1. **Discrete Automation Recovery**  
   **Q:** When will discrete automation and Test & Measurement recover?  
   **A:** The discrete automation recovery has been slower than expected, but Emerson expects orders to turn positive in the last quarter of the year, leading to a sales recovery in the first half of **2025**. For Test & Measurement, sales are anticipated to turn positive in the second half of **2025**, with orders improving in the first half. The company is monitoring customer activity closely, especially in markets like semiconductors and EVs.  **[EMR_3396959_7]** **[EMR_3396959_20]** **[EMR_3396959_25]** 

2. **Operating Leverage Sustainability**  
   **Q:** Can you sustain operating leverage in the 40% range in FY'25?  
   **A:** Emerson believes it can maintain operating leverage in the **40%** range next year, similar to this year. This confidence stems from a significantly higher margin portfolio, with a **1,000 basis point** improvement due to the transformation to a **50%+** gross profit portfolio.  **[EMR_3396959_18]** 

3. **Capital Allocation and M&A Capacity**  
   **Q:** Do you have capacity for M&A while integrating National Instruments?  
   **A:** Emerson feels great about its balance sheet and maintains its investment-grade rating. While focusing on integrating National Instruments, the company has the capacity for M&A and will evaluate opportunities, including its majority position in AspenTech. Share buybacks remain a priority, targeting about **$500 million** per year.  **[EMR_3396959_10]** **[EMR_3396959_14]** **[EMR_3396959_17]** 

4. **Process vs. Discrete Market Outlook**  
   **Q:** Is weakness confined to discrete automation, or is process also affected?  
   **A:** Weakness is primarily in discrete automation, particularly in semiconductors and EVs. Process and hybrid markets, such as energy, power generation, life sciences, and metals and mining, continue to show strong capital formation with mid-single-digit order growth. No slowdown is observed in these areas.  **[EMR_3396959_20]** 

5. **Cash Flow Guidance**  
   **Q:** How should we think about cash flow in Q4 and next year?  
   **A:** Emerson raised its cash flow guidance to **$2.8 billion** for the year, implying about **$800 million** in the fourth quarter, consistent with prior years. The strong third quarter included a **$50 million** benefit from Test & Measurement. For next year, no significant changes are expected outside normal operating dynamics.  **[EMR_3396959_15]** **[EMR_3396959_16]** 

6. **Plans for AspenTech**  
   **Q:** Are there plans to act on your AspenTech position in FY'25?  
   **A:** Emerson is continuing to evaluate its position in AspenTech but has no specific comments regarding actions in fiscal **2025**.  **[EMR_3396959_17]** 

7. **Impact of Mega Projects**  
   **Q:** How does your funnel overlap with North American mega projects?  
   **A:** Emerson is actively participating in large North American projects in LNG, energy, life sciences, semiconductors, and EVs, with very good win rates. The company's funnel reflects automation content within these projects.  **[EMR_3396959_12]** **[EMR_3396959_13]** 

8. **Ovation 4.0 Upgrade**  
   **Q:** How significant is the Ovation 4.0 upgrade?  
   **A:** Ovation 4.0 is a significant step change, incorporating technology from AspenTech, including AI models for optimization and predictive maintenance. It positions Emerson well to capture growth in power generation, transmission, distribution, and renewables.  **[EMR_3396959_6]** **[EMR_3396959_11]** **[EMR_3396959_22]** 

9. **Backlog Levels Entering FY'25**  
   **Q:** Are you confident about backlog growth entering fiscal 2025?  
   **A:** Yes, Emerson feels confident about backlog levels entering **2025**. Despite a small reduction in backlog due to Test & Measurement, the base Emerson business backlog held flat. The company expects a book-to-bill ratio around **1** for the full year.  **[EMR_3396959_21]** 

10. **Synergy Progress with T&M**  
    **Q:** Is synergy progress in Test & Measurement ahead of plan?  
    **A:** Emerson continues to execute on synergy plans with Test & Measurement but is not raising the synergy guidance at this time. Progress is on pace to deliver the expected results.  **[EMR_3396959_25]** 

11. **MRO Trends**  
    **Q:** How did MRO sales perform, and are there any concerns?  
    **A:** MRO sales remained consistent at **64%** of revenue. Europe showed strong MRO performance, while North America was softer. There are no alarming trends, and the company is not heavily affected by customer inventory rebalancing.  **[EMR_3396959_24]** 

7ae391b0bbcdbeb54d1d79890a2204eb4d237afbed00617d503f3105970bd9d9

- **Emerson expects continued high single-digit sales growth in China**, anticipating mid- to high single-digit growth for the year, driven by strong performance in the core process hybrid business, particularly in power and chemical sectors.  **[EMR_3372170_23]**
- **Confidence in achieving the 31% margin target for test and measurement by year 5**, with accelerated synergy actions increasing cost synergies by **$20 million** to **$185 million**, with no offsets anticipated.  **[EMR_3372170_13]**
- **Recovery in discrete automation markets expected in the second half**, with orders and sales turning positive in Q3 and Q4 respectively, indicating improved performance and growth in this segment.  **[EMR_3372170_9]**

7a5d27e773e9c9eceafdaebe883c54946553434cfe75beade9f7aaa1f72be71c

- **Emerson experienced better-than-expected backlog conversion** due to improved supply chains and plant output, particularly in their **Measurement Solutions** and **Test & Measurement** businesses, leading to higher profitability since these are higher gross profit businesses.  **[EMR_3387279_13]**
- **Emerson is accelerating cost synergies**, expecting to realize **$185 million** in committed cost-outs ahead of schedule, improving efficiency and competitiveness without needing to add back costs when revenues recover.  **[EMR_3387279_7]**
- **Emerson anticipates recovery in key businesses**, such as **Discrete Automation** turning positive in Q4 and **Test & Measurement** recovery into first half of 2025, with strength in the defense sector and battery testing projects, positioning the company for future growth.  **[EMR_3387279_18]** **[EMR_3387279_22]** **[EMR_3387279_14]**

62eec292f971c4ab450f24bc22cdafae938574d508ed2ceb54f7780a9ccf5563

1. **NI Acquisition Synergies and Margins**  
   **Q:** Why accelerate NI synergies and impact on margins?  
   **A:** Emerson increased cost synergies from the NI acquisition by **$20 million**, accelerating the time frame from **5 years to 3 years**.  **[EMR_3372170_12]**  Despite higher synergies, the **31% margin target** remains unchanged, as they may invest in growth opportunities.  **[EMR_3372170_14]** **[EMR_3372170_15]**  Management is confident in faster execution due to cultural similarities and effective integration.  **[EMR_3372170_12]** 

2. **Organic Order Visibility and Growth Outlook**  
   **Q:** Can you sustain mid-single-digit organic order growth?  
   **A:** Emerson expects to finish the year with **mid-single-digit order growth**, supported by a strong MRO business (about **65%** of Q1 revenue) and a robust project funnel.  **[EMR_3372170_6]**  They booked approximately **$400 million** across over **90 projects** in Q1, with continued activity in energy transition, sustainability, and metals and mining.  **[EMR_3372170_6]** 

3. **Discrete Market Recovery Outlook**  
   **Q:** When will discrete markets recover?  
   **A:** Emerson anticipates a recovery in discrete orders in the second half of the year, with orders improving in Q3 and Q4 and sales turning positive in Q4 due to easier comps.  **[EMR_3372170_6]** **[EMR_3372170_9]** 

4. **Process and Hybrid Markets Strength**  
   **Q:** Are process markets lagging discrete softness?  
   **A:** Management believes process and hybrid markets are supported by robust secular drivers like energy security and sustainability, and are not expected to follow discrete market softness.  **[EMR_3372170_15]**  They did not experience a boom-bust cycle and see disciplined capital spending by customers.  **[EMR_3372170_15]** 

5. **Impact of LNG Export Permitting Decision**  
   **Q:** How does halted LNG export permitting affect you?  
   **A:** Although disappointed by the U.S. decision to hold LNG export permits, Emerson doesn't foresee a meaningful impact on 2024 projects.  **[EMR_3372170_10]**  Global activities in Qatar, Mozambique, and Guyana provide ample opportunities, and current North American projects have necessary approvals.  **[EMR_3372170_10]** **[EMR_3372170_11]** 

6. **China Sales and Outlook**  
   **Q:** What is the outlook for China sales?  
   **A:** Emerson grew China sales by high single digits in the quarter and expects mid- to high single-digit growth for the year.  **[EMR_3372170_23]**  They remain robust due to secular drivers, with power and chemical sectors driving growth.  **[EMR_3372170_23]** 

7. **Margin Expectations and Incrementals**  
   **Q:** Why did incremental margin guidance lower despite beat?  
   **A:** The full-year incremental margin guidance decreased due to foreign exchange impacts, which added **one point** with lower profitability.  **[EMR_3372170_21]**  Core drivers like volume leverage and price/cost remain the same.  **[EMR_3372170_21]** 

8. **Free Cash Flow Guidance**  
   **Q:** Why maintain free cash flow guidance despite better outlook?  
   **A:** Emerson maintained its free cash flow guidance at **$2.6 to $2.7 billion**.  **[EMR_3372170_7]**  While earnings and sales increased, yielding about **$50 million** more cash flow, it still falls within the guided range.  **[EMR_3372170_7]**  Acquisition-related costs and elevated CapEx are tracking as expected.  **[EMR_3372170_7]** 

9. **Supply Chain Normalization**  
   **Q:** Are supply chains normalized now?  
   **A:** Supply chains have normalized, improving Emerson's ability to procure electronics and increase production.  **[EMR_3372170_25]**  The Measurement and Analytical business is the last to normalize, with overdue backlog shipping through Q2.  **[EMR_3372170_25]** 

10. **R&D Transformation at Test and Measurement**  
    **Q:** How are you transforming R&D at Test and Measurement?  
    **A:** Emerson is prioritizing projects to focus on critical growth opportunities in key markets like EVs and semiconductors.  **[EMR_3372170_16]**  By bringing discipline to resource allocation, they aim to drive more innovation at a better cost.  **[EMR_3372170_16]** 

11. **Revenue Synergies from NI Acquisition**  
    **Q:** What are expectations for NI revenue synergies?  
    **A:** Emerson is exploring revenue synergies in markets like EV batteries and semiconductors, leveraging customer overlap and joint capabilities from R&D through production.  **[EMR_3372170_22]**  While not ready to quantify, they are actively working on opportunities.  **[EMR_3372170_22]** 

12. **Project Funnel and Profitability**  
    **Q:** Any differences in profitability or service attachment?  
    **A:** There are no significant differences in profitability between growth platforms and traditional projects.  **[EMR_3372170_26]**  Emerson manages a **$150 billion** installed base, with service contracts and commitments for replacements and maintenance.  **[EMR_3372170_26]** 

13. **Price/Cost Expectations and Material Inflation**  
    **Q:** Has price/cost expectation changed for the year?  
    **A:** Price contribution remains at **2 points** for both the quarter and the year, with no change expected.  **[EMR_3372170_27]**  Net material inflation is improving due to opportunities on direct materials and lower logistics costs.  **[EMR_3372170_27]** 

14. **Measurement and Analytical Business Growth**  
    **Q:** What's driving strong growth in Measurement and Analytical?  
    **A:** The **28%** sales growth is driven by supply chain normalization and easier comparisons due to prior challenges.  **[EMR_3372170_15]**  Orders are up high single digits, reflecting a healthy demand environment.  **[EMR_3372170_25]** 

15. **Impact of Foreign Exchange on Margins**  
    **Q:** How did FX affect margin guidance?  
    **A:** Foreign exchange assumptions added **one point** to the leverage number with lower profitability, leading to a lower incremental margin guidance despite a Q1 beat.  **[EMR_3372170_21]** 

16. **National Instruments Sales Guidance**  
    **Q:** Is NI turning slower than expected?  
    **A:** The full-year NI sales guidance remains at **$1.5 to $1.6 billion**, consistent with prior guidance.  **[EMR_3372170_20]**  The previously mentioned $1.6 billion was rounded, and there's no indication of slower performance.  **[EMR_3372170_20]** 

17. **Backlog and Order Activity**  
    **Q:** How is your backlog and order activity trending?  
    **A:** Backlog stands at **$7.6 billion**, up significantly.  **[EMR_3372170_6]**  Emerson booked about **$400 million** in projects in Q1 and continues to see strong order activity supported by MRO business and project funnel growth.  **[EMR_3372170_6]** 

18. **Sales Synergies Timeline from NI**  
    **Q:** When will you realize sales synergies from NI?  
    **A:** Emerson is working on customer-specific sales synergies but is likely **3 to 6 months** away from publicly detailing plans.  **[EMR_3372170_22]**  Focus is currently on integrating cost synergies.  **[EMR_3372170_22]** 

19. **Outlook on Last 9 Months Organic Growth**  
    **Q:** Any change in organic growth expectations?  
    **A:** No change in organic outlook; Emerson remains positive due to a strong environment and execution.  **[EMR_3372170_24]** 

20. **SAF Win with DG Fuels Scope**  
    **Q:** What is included in the DG Fuels SAF win?  
    **A:** The win includes the entire automation stack: final control elements, sensing elements, DeltaV control system, and analytics packages—a holistic, full-package **100% Emerson** solution.  **[EMR_3372170_17]** 

21. **Second Quarter EPS Guidance**  
    **Q:** Why is Q2 EPS only slightly up sequentially?  
    **A:** The modest increase in Q2 EPS is due to lower test and measurement earnings sequentially, with no significant changes in the base business mix or trajectory.  **[EMR_3372170_19]** 

de388c007e179f3e8eac691bf8c9afe662333a87b5b10a4646d599c1a856985a

- **Emerson has raised its adjusted EPS guidance to $5.45 to $5.50** and expects free cash flow to be **approximately $2.8 billion**, demonstrating strong financial performance.  **[EMR_3396959_2]** **[EMR_3396959_4]**
- The company achieved **operating leverage of 67%**, significantly stronger than expected, and plans to sustain **incremental margins in the 40% range into 2025** due to higher profitability and operational excellence.  **[EMR_3396959_4]** **[EMR_3396959_17]**
- Emerson maintains a **healthy backlog of $7.4 billion**, with continued strength in **process and hybrid markets**, driven by robust capital project investments and strong order levels.  **[EMR_3396959_20]** **[EMR_3396959_19]**

d1e46a65908a0edce1d5b4857e94ed92442bbbdf0a913eab426bb57664eb82bc

- The transition to software-defined automation is a multi-phase journey that could take **3 to 5 years per phase**, depending on customer adoption rates, introducing uncertainty and potential delays in achieving strategic objectives.  **[EMR_3405714_19]**
- **Test & Measurement sales** growth is expected to **ramp in the second half of 2025** after consuming backlog this year, indicating potential **near-term weakness in demand** and reliance on future orders growth.  **[EMR_3405714_21]**
- The shift towards software-defined automation may face challenges in **brownfield environments**, as implementing new systems in existing facilities can be complex, potentially hindering adoption rates.  **[EMR_3405714_19]**

f035c339fc9c4dd00bdc1135de4d31d160b8bbe147d3633a59a7a054eb27aa32

- Emerson's operating leverage is expected to decrease in the second half due to a mix change, with the Maintenance, Repair, and Operations (MRO) mix drifting down from **65%** in the second quarter.  **[EMR_3387279_10]**  Prices contributed to growth earlier in the year but are expected to be lower in the back half, and there is an expected moderation in contribution from AspenTech.  **[EMR_3387279_10]**
- Recovery in the Discrete Automation and Test & Measurement segments is delayed, with positive orders in Test & Measurement now expected in the first half of **2025**, two quarters later than originally anticipated, due to continued softness in transportation and semiconductor demand and slower recovery in China.  **[EMR_3387279_2]** **[EMR_3387279_22]**
- AspenTech lowered its guidance, impacting Emerson's earnings expectations, with AspenTech now expected to contribute **$0.30 to $0.32** for the year versus the **$0.32 to $0.34** in prior guidance.  **[EMR_3387279_5]**

1ba940e94c25ea94cebae6d9cc6985982f6e3b99533fb20a0961e80190626209

1. **Order Growth Outlook**  
   **Q:** How is order growth shaping up for the second half?  
   **A:** Order growth is starting strong in Q3, with April orders up **10%** year-over-year.  **[EMR_3387279_11]**  The trailing three-month orders have turned positive to low single digits.  **[EMR_3387279_11]**  We expect mid-single-digit order growth in the second half, driven by the process and hybrid markets, and are optimistic about the developing opportunities in discrete automation.  **[EMR_3387279_11]** 

2. **National Instruments Integration and Recovery**  
   **Q:** When will National Instruments' business recover, and can you push cost savings further?  
   **A:** The recovery in National Instruments (NI) is delayed by six months, primarily due to softness in semiconductors and Asia.  **[EMR_3387279_12]**  Despite this, we're seeing positive signs in defense and battery testing for electric vehicles.  **[EMR_3387279_12]**  North America and Europe have turned positive, and we're cautiously optimistic about transportation.  **[EMR_3387279_12]**  We're committed to our **$185 million** cost savings target and continue to invest in growth initiatives.  **[EMR_3387279_12]** 

3. **Operating Leverage and Margins**  
   **Q:** Can you maintain over 40% operating leverage amid changing mix?  
   **A:** In the back half of the year, our operating leverage will be in the mid-30% range due to a meaningful mix change.  **[EMR_3387279_9]**  The MRO mix is expected to drift down from **65%** as we progress, and we're also seeing a geographic shift with U.S. growth moderating.  **[EMR_3387279_9]**  Price benefits will normalize, and while AspenTech contributed significantly this quarter, its impact will moderate in the second half.  **[EMR_3387279_9]**  We don't expect leverage rates in 2025 to be materially different from 2024.  **[EMR_3387279_10]** 

4. **Supply Chain Improvements and Backlog Conversion**  
   **Q:** How did supply chain improvements affect backlog conversion?  
   **A:** Our supply chains responded better than expected, leading to higher-than-planned shipments.  **[EMR_3387279_13]**  Plant output improved, especially in our Measurement Solutions business, and lead times are down to pre-COVID levels.  **[EMR_3387279_13]**  This improved backlog conversion contributed to higher profitability, particularly in our high gross profit businesses.  **[EMR_3387279_13]** 

5. **Discrete Automation Recovery**  
   **Q:** When will the Discrete Automation business recover?  
   **A:** We expect the Discrete Automation orders to be flat in Q3 and turn slightly positive in Q4.  **[EMR_3387279_22]**  Green shoots are emerging, especially in Western Europe and Germany among machine makers.  **[EMR_3387279_11]** **[EMR_3387279_22]**  Recovery is anticipated into the first half of 2025, considering our exposure to semiconductors and China.  **[EMR_3387279_22]** 

6. **AspenTech's Fourth Quarter Outlook**  
   **Q:** Why is AspenTech's Q4 EBITDA expected to decline?  
   **A:** AspenTech's performance is inherently lumpy due to ASC 606 accounting.  **[EMR_3387279_19]**  We anticipate EBITDA to be down approximately **$20 million** year-over-year in Q4, and forecast it to be lower than Q3.  **[EMR_3387279_19]** 

7. **Measurement & Analytical vs. Final Control Growth**  
   **Q:** Why is Measurement & Analytical growing faster than Final Control?  
   **A:** Measurement Solutions is expected to grow in the low double digits this year because it was most impacted by backlog builds due to extended lead times.  **[EMR_3387279_18]**  As the backlog reduces, sales accelerate. Final Control grows at mid-single digits, and both have similar order rates in the mid- to high single digits.  **[EMR_3387279_18]** 

8. **Power Franchise Opportunities**  
   **Q:** What are the revenue opportunities in the power business?  
   **A:** For a 1,200-megawatt combined cycle plant, there's approximately **$20 million** in project opportunities—**$5 million** in control systems and **$15 million** in instrumentation and valves.  **[EMR_3387279_20]**  An additional **$20 million** over a decade is expected from MRO upgrades.  **[EMR_3387279_20]**  We see significant potential in both new builds and retrofits, including nuclear plant life extensions.  **[EMR_3387279_20]** 

9. **Sustainability and Decarbonization Projects**  
   **Q:** Are decarbonization projects nearing final investment decisions?  
   **A:** We're seeing considerable global activity in segments like biofuels and carbon capture.  **[EMR_3387279_25]**  While large hydrogen projects are progressing slower, the pace varies by segment.  **[EMR_3387279_25]**  We continue to engage in these opportunities, especially in Europe and North America.  **[EMR_3387279_25]** 

10. **Channel Inventory Levels**  
    **Q:** How are inventory levels in your distribution channels?  
    **A:** Inventory levels have normalized in our Discrete Automation channel.  **[EMR_3387279_21]**  In the Test & Measurement business at NI, elevated inventory levels among channel partners are expected to normalize over the next quarter.  **[EMR_3387279_21]**  Overall, we don't see any major inventory dynamics affecting our order momentum.  **[EMR_3387279_21]** 

11. **Impact of MRO Mix on Margins**  
    **Q:** Is the high MRO mix affecting margins significantly?  
    **A:** The MRO mix remains strong at **64%**, slightly down from **65%** in 2023.  **[EMR_3387279_16]**  We anticipate it may shift by another point this year.  **[EMR_3387279_16]**  The strength in MRO supports our process and hybrid businesses, and we're positive about upcoming maintenance opportunities.  **[EMR_3387279_16]** 

12. **National Instruments Demand and Orders**  
    **Q:** Did you miss any orders in the NI business due to demand issues?  
    **A:** We did not miss any orders; they came in as expected.  **[EMR_3387279_14]**  Even with flat orders, we anticipate improvement in the second half and a positive turn in 2025.  **[EMR_3387279_14]**  We're encouraged by growth in defense and EV battery testing projects.  **[EMR_3387279_14]** 

13. **AspenTech Capital Deployment Plans**  
    **Q:** Any changes expected in AspenTech's capital plans or acquisitions?  
    **A:** We remain excited about our partnership with AspenTech and believe in the value of our combined technology offerings.  **[EMR_3387279_23]**  Currently, there are no changes to their capital deployment plans, and we're focused on operating within the existing structure.  **[EMR_3387279_23]** 

14. **Order Pull-Forward Effects**  
    **Q:** How did order pull-forwards impact recent quarters?  
    **A:** Orders were up **4%** in Q1 and down **1%** in Q2, resulting in low single-digit growth for the first half.  **[EMR_3387279_24]**  We anticipate low single-digit order growth in Q3, with a stronger fourth quarter.  **[EMR_3387279_24]** 

15. **Cost Synergies and Profit Potential**  
    **Q:** How are cost synergies affecting future profitability?  
    **A:** We're ahead on our cost-takeout initiatives and have accelerated actions planned for 2025 into this year.  **[EMR_3387279_7]**  We've identified **$185 million** in cost savings without needing to add back expenses later.  **[EMR_3387279_7]** **[EMR_3387279_12]**  This positions us to be more efficient and competitive going forward.  **[EMR_3387279_7]** 

16. **Integration of DGM and Ovation**  
    **Q:** Do DGM and Ovation integrate, and what are the benefits?  
    **A:** While there are no direct technology synergies between DGM and Ovation, there are significant customer synergies.  **[EMR_3387279_8]**  Our credibility with utilities through Ovation helps us expand into transmission and distribution software markets.  **[EMR_3387279_8]**  Additionally, optimization software opportunities between Ovation and AspenTech present untapped potential.  **[EMR_3387279_8]** 

092fbc62de8eb693bded71f1ff4598d09182c261236378f66eba40d8616b718d

1. **AspenTech Acquisition Impact**  
   **Q:** Will AspenTech be EPS neutral in FY '25?  
   **A:** Management expects the acquisition of AspenTech to be EPS neutral in fiscal 2025, considering synergies and the seasonality of AspenTech's business, which is weighted toward the back half of the year.  **[EMR_3405714_12]** **[EMR_3405714_16]** 

2. **Discrete Recovery Outlook**  
   **Q:** Are you confident in discrete recovery in FY '25?  
   **A:** Discrete automation orders turned positive in Q4, indicating a bottoming out and setting up for recovery in 2025. Test & Measurement orders were down **7%** last quarter but showed sequential improvement. Management sees early signs of market recovery, giving confidence for the second half of 2025.  **[EMR_3405714_12]** 

3. **China Growth Expectations**  
   **Q:** What are your assumptions for China's recovery?  
   **A:** The power segment in China is performing well. Management anticipates low to mid-single-digit growth in China next year, expecting chemical recovery in the first half and discrete recovery in the second half of 2025, aided by economic stimulus and green shoots in the chemical space.  **[EMR_3405714_11]** 

4. **Power Business Growth**  
   **Q:** Can you provide details on power business outlook?  
   **A:** Power generation represents approximately **9%** of company revenue. They've seen order acceleration into the mid- to high single digits over the year. Growth is driven by data center power demands, extending life of existing facilities, reactivating mothballed nuclear plants, and building new combined cycle facilities. Nuclear constitutes about **20%** of the power business.  **[EMR_3405714_15]** 

5. **Test & Measurement Guidance**  
   **Q:** What is embedded for Test & Measurement in FY '25?  
   **A:** Test & Measurement sales are expected to grow mid-single digits in 2025, with orders growing at a higher rate. The plan includes high single-digit order growth and sales ramping in the second half, following backlog consumption this year.  **[EMR_3405714_21]** 

6. **Customer Delays and Project Approvals**  
   **Q:** Have you seen any customer delays or hesitancy?  
   **A:** Management has not observed any delays or hesitancy from customers in the Middle East, North America, or Europe. All project shipments planned for Q4 were shipped, and the capital cycle remains strong in energy, energy transition, power, and LNG sectors.  **[EMR_3405714_11]** 

7. **Backlog and Book-to-Bill**  
   **Q:** How are you thinking about backlog and book-to-bill for '25?  
   **A:** The backlog decreased from Q3 due to seasonality but remains at a healthy level of **$7.2 billion**, supporting the guidance for next year. Management expects book-to-bill to remain stable going into 2025.  **[EMR_3405714_9]** 

8. **Software-Defined Automation Evolution**  
   **Q:** What's the timeline for software-defined automation?  
   **A:** Management outlines a three-phase, multi-year journey toward software-defined automation, starting at the site level and progressing to enterprise-wide implementation. Each phase may take **3 to 5 years**, depending on adoption rates. Solutions will be applicable to both brownfield and greenfield environments.  **[EMR_3405714_19]** 

9. **Safety & Productivity Exit Options**  
   **Q:** Any updates on exploring exit options for Safety & Productivity?  
   **A:** Management is considering all opportunities, including a cash sale and other creative options, but won't comment further on the structure at this time.  **[EMR_3405714_17]** 

10. **Megaprojects and Chemical Sector**  
    **Q:** Any acceleration in large project starts, especially in chemicals?  
    **A:** Chemical activity is strong in the Middle East and expected to return in North America post-elections. While China is watched cautiously, economic stimulus may boost chemical activity there and in Southeast Asia. The current plan doesn't heavily rely on chemical recovery but would benefit if it materializes, particularly in Europe and China.  **[EMR_3405714_20]** 

890e086c8a875a1b551b7800df99df279222a8cbb2d12465b614332e64a988e6

- **Emerson is evolving towards software-defined automation** with a **three-phase approach** over a **3 to 5-year journey**, applicable to both **brownfield and greenfield** environments, opening significant growth opportunities.  **[EMR_3405714_19]**
- **Power generation represents approximately 9% of Emerson's revenue**, experiencing **order acceleration into the mid to high single digits**, driven by investments in data centers, grid infrastructure, and rejuvenation of nuclear facilities, with expectations for continued growth in **2025**.  **[EMR_3405714_15]**
- Emerson's **backlog remains strong at $7.2 billion**, providing a healthy level to support next year's guidance, indicating confidence in the **order and sales environment** going into **2025**.  **[EMR_3405714_9]**

66003d31a80157c1404ec46f13bac1396c819abb160fedf8e4304341628867be

- **Delayed recovery in the discrete automation business**, with sales not expected to improve until the first half of 2025. This indicates **prolonged weakness in this segment** and could impact overall revenue growth.  **[EMR_3396959_25]**
- **Uncertainty in China and discrete markets** may limit revenue growth to the low end of the company's 4% to 7% guidance. The company is closely watching the **pace of discrete recovery and the situation in China**, which are critical for achieving higher growth rates.  **[EMR_3396959_18]**
- **Potential revenue headwinds in the Test & Measurement business**, with revenue growth not anticipated until the second half of next year. There is a risk that the company may only achieve the lower end of its revenue guidance range for T&M in Q4, indicating **continued softness in key markets like semiconductors and EVs**.  **[EMR_3396959_8]**

dd42297e73724355b72d224b19dc8b033fd83846a11b960b2f28ceb4b281a6de

Emerson Electric Co (EMR)

Financials