Emerson Electric's Q3 2025 Earnings Call: Contradictions Surface in Automotive Performance, Tariff Impacts, and Segment Recoveries

Automotive market performance, tariff impact on Intelligent Devices segment, test and measurement segment recovery, discrete business recovery, and tariff impacts on Intelligent Devices are the key contradictions discussed in Emerson Electric Co.'s latest 2025Q3 earnings call.



Strong Performance and Business Growth:
- Emerson posted adjusted earnings per share of $1.52, aligning with the top guidance, and delivered a free cash flow margin of 21.3%.
- The growth was driven by resilience in process and hybrid markets, sustained demand in Test & Measurement, and strong profitability.

Automation and Software Innovations:
- Emerson's industrial software ACV grew to $1.5 billion, marking double-digit growth over the prior year.
- Key developments included the introduction of AI-enabled advisors and the deployment of an enterprise operations platform, enhancing Emerson's technology portfolio.

Geographic Market Drivers:
- The Americas and Asia regions saw significant growth, particularly in North America, India, and the Middle East, while Europe experienced a decline.
- The growth was fueled by strong demand in LNG, power, and life sciences, with robust activity in North American MRO and greenfield projects.

Test & Measurement Recovery:
- The Test & Measurement segment reported a 16% increase in orders, driven by a broad-based recovery across all segments and world areas.
- Recovery was particularly strong in the portfolio business and aerospace and defense, with notable contributions from improved market conditions.