Emerson Electric Co.'s Stock Analysis

Emerson Electric Reports Third Quarter 2025 Financial Results

Emerson Electric Co. reported its third quarter results for the fiscal year 2025, indicating a net and underlying sales growth of approximately 3.5%. The company has revised its earnings per share (EPS) guidance to about $4.08 for GAAP EPS and $6.00 for adjusted EPS, reflecting an increase from previous estimates. Additionally, Emerson expects to generate around $3.6 billion in operating cash flow and $3.2 billion in free cash flow, with plans to return approximately $2.3 billion to shareholders through share repurchases and dividends.

The company highlighted its positive growth momentum in key markets and emphasized advancements in its industrial software capabilities. Emerson declared a quarterly cash dividend of $0.5275 per share, payable on September 10, 2025, to stockholders of record on August 15, 2025. An investor conference call to discuss the results was scheduled for August 6, 2025, with further details about an upcoming investor conference to be hosted in November 2025.

Aug 06, 2025 06:30:51

Emerson Reports Q2 2025 Results and Dividend Declaration

Emerson reported its second-quarter results for fiscal 2025, showing a slight increase in net sales to $4.432 billion, up 1% from the previous year. However, pretax earnings decreased to $629 million, resulting in a GAAP earnings per share of $0.86, down 9% year-over-year. The company declared a quarterly cash dividend of $0.5275 per share, payable on June 10, 2025, to stockholders of record on May 16, 2025. Emerson also noted strong operating cash flow of $825 million and free cash flow of $738 million, reflecting increases of 13% and 14%, respectively, compared to the same quarter last year. 

In its updated outlook for fiscal 2025, Emerson anticipates approximately 4% growth in net sales, with adjusted earnings per share expected to increase at the midpoint. The company has completed its acquisition of AspenTech and plans to return about $2.3 billion to shareholders through share repurchases and dividends. Emerson's guidance includes operating cash flow expectations of $3.5 billion to $3.6 billion and free cash flow expectations of $3.1 billion to $3.2 billion for the fiscal year.

May 07, 2025 06:53:35

Emerson Reports $775 Million Pretax Earnings in Q1 2025

Emerson's first quarter results for fiscal 2025 showed notable growth, with pretax earnings reaching $775 million, a significant increase from $175 million in the previous year. The company reported a 1% rise in net sales to $4.175 billion and a remarkable 75% increase in operating cash flow, totaling $777 million. Additionally, adjusted earnings per share rose by 13% to $1.38, and the company declared a quarterly cash dividend of $0.5275 per share, reflecting its commitment to returning value to shareholders.

However, some segments experienced declines, particularly Discrete Automation and Test & Measurement, which saw sales drop by 5% and 6%, respectively. While the overall sales growth was positive, the guidance for the second quarter suggests a potential decrease in net sales growth, ranging from -0.5% to 0.5%. The company also highlighted challenges in certain markets, particularly in Europe, where sales declined by 2%. Despite these challenges, Emerson remains focused on its ongoing portfolio transformation and operational execution.

Feb 05, 2025 06:53:35

Emerson to Acquire Remaining Shares of AspenTech for $265 Each

Emerson has announced its agreement to acquire all outstanding shares of Aspen Technology, Inc. that it does not already own for $265.00 per share in cash, valuing the minority stake at $7.2 billion and the total company at $17.0 billion. The acquisition, which follows Emerson's previous majority investment in AspenTech, was unanimously approved by both companies' boards and is seen as a significant step in Emerson's portfolio transformation, aiming to fully integrate AspenTech into its operations.

However, the transaction is subject to a condition that requires a majority of AspenTech's minority shareholders to tender their shares, which introduces uncertainty regarding its completion. Additionally, there are risks associated with potential competing offers, delays in closing, and the integration of the two companies post-acquisition. These factors could impact the anticipated benefits and financial performance of AspenTech following the merger.

Jan 27, 2025 07:02:16

Emerson Proposes $15.3 Billion Acquisition of AspenTech Shares

Emerson has announced a proposal to acquire the remaining outstanding shares of AspenTech for $240 per share, which represents a significant premium over the stock's recent trading prices. This acquisition aims to strengthen Emerson's automation portfolio and is expected to be neutral to its adjusted earnings per share in fiscal 2025. The company has also committed to repurchasing approximately $2.0 billion of its shares in fiscal 2025, demonstrating its commitment to returning capital to shareholders and confidence in its financial outlook.

On the downside, Emerson is exploring strategic alternatives for its Safety & Productivity segment, which generated $1.4 billion in sales in fiscal 2024, indicating potential restructuring or divestment in this area. Additionally, AspenTech's recent earnings report showed a miss on several key financial metrics, which may cast uncertainty on the proposed acquisition's reception among AspenTech shareholders. The outcome of the acquisition proposal depends on the approval of AspenTech's board and a special committee, adding a layer of risk to the transaction.

Nov 05, 2024 06:58:54

Net Sales Increase 15% Year Over Year for Emerson

Emerson reported a 15% increase in net sales year-over-year, rising from $15.165 billion in 2023 to $17.492 billion in 2024. The company also saw an increase in adjusted earnings per share, which rose by 24% from $4.44 to $5.49. Operating cash flow improved by 22%, indicating better cash management, and free cash flow increased by 23%, demonstrating a strong ability to generate cash from operations. Additionally, underlying sales growth was also positive, showing a steady performance across various segments.

Conversely, Emerson's pretax earnings decreased significantly from $2.903 billion in 2023 to $2.020 billion in 2024, reflecting a margin drop from 19.1% to 11.5%. The GAAP earnings per share also fell by 29%, from $3.96 to $2.82. The company experienced increased costs, including a rise in selling, general, and administrative expenses, which contributed to the decline in earnings. Additionally, losses related to certain financial instruments and the Copeland note receivable negatively impacted overall profitability.

Nov 05, 2024 06:54:32

Emerson Reports Strong Q3 2024 Results and Outlook

Emerson's Q3 2024 results showed solid growth in orders and sales, with a notable increase in operating cash flow. However, earnings per share fell by 46%, reflecting challenges in profitability. The company is exiting the Copeland business to focus on higher-margin automation. Emerson plans to return approximately $300 million to shareholders through buybacks and $1.2 billion in dividends, indicating confidence in future performance.

Aug 07, 2024 06:55:35

Emerson Electric Co. Sells Equity Stake, Gains $3.4 Billion

Emerson Electric Co. has entered into agreements to sell its equity stake in Copeland, receiving $1.5 billion from BCP Emerald and $1.9 billion from Issuer. The transactions are subject to regulatory approvals and include termination rights if not completed by December 31, 2024. The agreements involve customary conditions, representations, warranties, and covenants. Emerson cautions about forward-looking risks. The company aims to update its consolidated results accordingly.

Jun 06, 2024 16:19:44

Emerson Reports Strong Q2 Results and Raises 2024 Outlook

Emerson's Q2 results show sales growth, margin expansion, and earnings surpassing expectations. The company declares a quarterly dividend and updates its 2024 outlook, expecting significant growth in net sales and earnings per share. Management credits the strong performance to a focus on execution and a transformed portfolio. The outlook includes returning $500 million to shareholders and $1.2 billion in dividend payments. Emerson, a global technology company, aims to provide innovative solutions for essential industries, emphasizing optimization, personnel safety, emissions reduction, and sustainability.

May 08, 2024 06:52:28

Emerson Reports Strong Q1 Results and Raises 2024 Outlook

Emerson reported a strong first quarter with increases in net sales, operating cash flow, and adjusted earnings per share. The company also raised its outlook for fiscal 2024, expecting significant growth in net sales and adjusted earnings per share. The CEO highlighted the strong performance and confidence in the company's execution and demand. Emerson's focus on creating value and accelerating synergy plans in Test & Measurement was emphasized. The company will discuss the results in an investor conference call.

Feb 07, 2024 06:54:42