Emerson Electric Co.'s Stock Analysis

Emerson Electric Grants Performance-Based Stock Options to Executives

Emerson Electric Co. has approved Special Performance-based Awards for its President and CEO, Lal Karsanbhai, and Executive Vice President and COO, Ram Krishnan. These awards are intended to incentivize leadership in the company’s automation-focused transformation and align the interests of the executives with long-term shareholder value. The awards consist of 350,000 stock options each, with varying exercise prices set significantly above the market value at the time of the grant.

The stock options will vest over five years, contingent on continued employment, and must be exercised within ten years. The structure of these awards is designed to ensure that the executives will only realize their full value if there is substantial appreciation in the company's stock price. Additionally, the awards include provisions for accelerated vesting in cases of death, disability, or a change in control, along with confidentiality and non-competition obligations.

Nov 14, 2025 16:23:01

Emerson Electric Announces Share Buyback and Dividend Increase

Emerson Electric Co. reported its fourth quarter and full year results for fiscal 2025, highlighting a 5% increase in quarterly cash dividends to $0.555 per share, payable on December 10, 2025. The company also announced a new share repurchase authorization of up to 50 million shares, in addition to 20 million shares remaining from a previous authorization. These measures reflect Emerson's commitment to returning cash to shareholders and are part of its strategy to enhance shareholder value.

In fiscal 2025, Emerson experienced mid-single-digit underlying orders growth for three consecutive quarters, contributing to its sales expectations for 2026. The company reported continued margin expansion and robust cash generation, along with successful integrations of AspenTech and Test & Measurement, which are expected to deliver $200 million in cost synergies. Emerson's leadership emphasized the alignment of its portfolio with long-term growth trends and the company's operational execution as key factors in driving future performance.

Nov 05, 2025 06:55:40

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