What does Emerson Electric do and what are its main business segments?

What is Emerson Electric's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Emerson Electric year over year?

What guidance did Emerson Electric's management provide for the next earnings period?

What were the key takeaways from Emerson Electric's earnings call?

What were the key takeaways from Emerson Electric’s earnings call?

Did Emerson Electric beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Emerson Electric next quarter?

- **Revenue Resilience**: 3% growth in 2025, driven by Test & Measurement (12% Q4) and automation tech. 
- **Profit Expansion**: 27.6% EBITDA margin, $3.24B free cash flow. 
- **2026 Outlook**: 5.5% sales growth, $6.35-$6.55 EPS, $3.5B free cash. 
- **AI Momentum**: ACV up 10% to $1.56B, with AI solutions like Guardian Virtual Adviser. 
- **Risks**: Europe/China flat, $120M software renewal headwind in 2026. 
- **Capital Return**: $2.2B total (1B buybacks, 1.2B dividends), 5% dividend hike.

**【CEO Summary Section】**
- **Revenue Growth**: Underlying sales grew 3% in 2025, driven by Test & Measurement (up 12% in Q4) and automation technologies. 
- **Profitability**: Adjusted EBITDA margin expanded to 27.6%, with $3.24 billion free cash flow (up 12% YoY). 
- **2026 Outlook**: Guiding for 5.5% sales growth, $6.35-$6.55 EPS, and $3.5B-$3.6B free cash flow. 
- **Strategic Focus**: AI-powered solutions like Guardian Virtual Adviser and AspenTech's subsurface intelligence, plus $2.2B capital return (1B buybacks, 1.2B dividends). 

**【CFO Financial Commentary】**
- **2025 Results**: 
  - Revenue: $11.1B (3% growth), with 5% from price/cost, 2.5% from mix. 
  - Margins: 27.6% EBITDA (up 160bps), 52.8% gross margin. 
  - Cash Flow: $3.24B free cash (18% margin). 
- **2026 Guidance**: 
  - Sales: 5.5% growth (4% underlying, 1.5pts from price). 
  - Earnings: $6.35-$6.55 EPS (80bps margin expansion). 
  - Synergies: $100M/year from AspenTech, $50M/year from Test & Measurement. 
- **Key Dynamics**: 
  - $120M headwind from software renewals in 2026, reversing in 2027-28. 
  - Europe/China expected flat, Americas/Middle East high-single-digit growth. 

**【Q&A Highlights】**
- **Software Renewals**: 2026 has $120M headwind, but ACV (annual contract value) grows 10%+. Free cash flow unaffected. 
- **Test & Measurement**: Aerospace/defense up 27%, semicon up 12%, broad portfolio up 10%. 
- **Geographic Risks**: Europe/China weakness offset by strength in Americas/India. 
- **Power Growth**: Ovation controls 30% of global power generation, with 18% Q4 orders in nuclear. 
- **Capital Allocation**: 5% dividend increase, $1B buybacks, $1B debt reduction. 
- **LNG Projects**: Emerson automation selected for $16.5MTPA Calcasieu LNG terminal. 
- **AI Adoption**: ACV up 10% to $1.56B, with Rule of 45 (45% cash conversion).

Emerson Electric Co. (EMR) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

EMR

EMR fundamentals

You can ask Aime