Emerson Reports Fourth Quarter and Full Year 2025 Results; Provides Initial 2026 Outlook

ST. LOUIS, Nov. 5, 2025 /PRNewswire/ -- Emerson (NYSE: EMR) today reported results 1 for its fourth quarter and fiscal year ended September 30, 2025. Emerson also declared a 5% quarterly cash dividend increase to $0.555 per share of common stock payable December 10, 2025 to stockholders of record November 14, 2025. Additionally, Emerson announced that its Board of Directors authorized the company to repurchase up to 50 million shares of its common stock. This is in addition to the authorization approved in March 2020, to repurchase 60 million shares of common stock, which has approximately 20 million shares remaining.

(dollars in millions, except per share)

2024 Q4

2025 Q4

Change

2024

2025

Change

Underlying Orders 2

6 %

4 %

Net Sales

$4,619

$4,855

5 %

$17,492

$18,016

3 %

Underlying Sales 3

4 %

3 %

Pretax Earnings

$679

$796

$2,020

$2,934

Margin

14.7 %

16.4 %

170 bps

11.5 %

16.3 %

480 bps

Adjusted Segment EBITA 4

$1,210

$1,333

$4,552

$4,975

Margin

26.2 %

27.5 %

130 bps

26.0 %

27.6 %

160 bps

GAAP Earnings Per Share

$0.97

$1.12

15 %

$2.82

$4.03

43 %

Adjusted Earnings Per Share 5

$1.48

$1.62

9 %

$5.49

$6.00

9 %

Operating Cash Flow

$1,073

$1,011

(6) %

$3,317

$3,676

11 %

Free Cash Flow

$905

$843

(7) %

$2,898

$3,245

12 %

Management Commentary

"Emerson delivered a solid fiscal 2025, marked by continued margin expansion, robust cash generation and strong execution. The dedication of our global teams was instrumental in driving our performance and advancing Emerson's position as the leading automation company," said Emerson President and Chief Executive Officer Lal Karsanbhai. "We are proud of the meaningful progress we have made integrating AspenTech and of completing the Test & Measurement integration – delivering on our commitment to achieve $200M of run-rate cost synergies."

Karsanbhai continued, "Our portfolio is aligned with long-term secular trends positioned to drive sustainable growth into the future. These trends have driven mid-single-digit underlying orders growth for three consecutive quarters, supporting our sales expectations for 2026 and beyond. We remain confident in our operational execution and ability to return cash to shareholders, accelerating further value creation."

2026 Outlook

The following tables summarize the fiscal year 2026 guidance framework. As we pivot capital allocation to returning cash to shareholders, the 2026 outlook assumes returning ~$2.2B through ~$1B of share repurchases and ~$1.2B of dividends.

2026 Q1

2026

Net Sales Growth

~4%

~5.5%

Underlying Sales Growth

~2%

~4%

Earnings Per Share

~$0.98

$4.73 - $4.93

Amortization of intangibles

~$0.35

~$1.42

Restructuring and related costs

~$0.05

~$0.15

Acquisition/divestiture fees and related costs

~$0.02

~$0.05

Adjusted Earnings Per Share

~$1.40

$6.35 - $6.55

Operating Cash Flow

$4.0B - $4.1B

Free Cash Flow

$3.5B - $3.6B

Share Repurchase

~$1.0B

1 Results are presented on a continuing operations basis.

2 Underlying orders do not include AspenTech.

3 Underlying sales exclude the impact of currency translation, and significant acquisitions and divestitures.

4 Adjusted segment EBITA represents segment earnings less restructuring and intangibles amortization expense.

5 Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, acquisition/divestiture gains, losses, fees and related costs, and discrete taxes.

Conference Call

Today, beginning at 7:30 a.m. Central Time / 8:30 a.m. Eastern Time, Emerson management will discuss the fourth quarter and fiscal year 2025 results during an investor conference call. Participants can access a live webcast available at https://ir.emerson.com at the time of the call. A replay of the call will be available for 90 days. Conference call slides will be posted in advance of the call on the company website.

Upcoming Event

Emerson will hold an in-person and virtual investor conference on Thursday, Nov. 20 in New York City. A live webcast of the investor conference will begin at 8:00 a.m. Central Time / 9:00 a.m. Eastern Time. A link to register and attend the webcast is available at https://ir.emerson.com/. The webcast will remain available for 90 days.

About Emerson

Emerson (NYSE: EMR) is a global industrial technology leader that provides advanced automation. With an unmatched portfolio of intelligent devices, controls systems, and industrial software, Emerson delivers solutions that automate and optimize business performance. Headquartered in Saint Louis, Missouri, Emerson combines innovative technology with proven operational excellence to power the future of automation. For more information, visit Emerson.com.

Forward-Looking and Cautionary Statements

Statements in this press release that are not strictly historical may be "forward-looking" statements, which represent management's expectations, based on currently available information. Actual results, performance or achievements could differ materially from those expressed in any forward-looking statement. Any forward-looking statements in this press release speak only as of the date of this press release. Emerson undertakes no obligation to update any such statements to reflect new information or later developments. Examples of risks and uncertainties that may cause our actual results or performance to be materially different from those expressed or implied by forward looking statements include the scope, duration and ultimate impacts of the Russia-Ukraine and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

Emerson uses our Investor Relations website, https://ir.emerson.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts and social media. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Contacts

Investors:

Media:

Colleen Mettler

Joseph Sala / Greg Klassen / Connor Murphy

(314) 553-2197

Joele Frank, Wilkinson Brimmer Katcher

(212) 355-4449

(tables attached)

Table 1

EMERSON AND SUBSIDIARIES

CONSOLIDATED OPERATING RESULTS

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

Quarter Ended

September 30,

Year Ended

September 30,

2024

2025

2024

2025

Net sales

$ 4,619

$ 4,855

$ 17,492

$ 18,016

Costs and expenses:

Cost of sales

2,248

2,335

8,607

8,497

SG&A expenses

1,315

1,330

5,142

5,103

Gain on subordinated interest

—

(79)

—

Loss on Copeland note receivable

—

279

—

Other deductions, net

359

302

1,434

1,245

Interest expense, net

175

237

Interest income from related party 1

—

(86)

—

Earnings from continuing operations before income taxes

679

796

2,020

2,934

Income taxes

149

160

415

696

Earnings from continuing operations

530

636

1,605

2,238

Discontinued operations, net of tax

438

350

Net earnings

968

637

1,955

2,246

Less: Noncontrolling interests in subsidiaries

(28)

—

(13)

(47)

Net earnings common stockholders

$ 996

$ 637

$ 1,968

$ 2,293

Earnings common stockholders

Earnings from continuing operations

$ 558

$ 636

$ 1,618

$ 2,285

Discontinued operations

438

350

Net earnings common stockholders

$ 996

$ 637

$ 1,968

$ 2,293

Diluted avg. shares outstanding

573.9

565.5

574.0

566.7

Diluted earnings per share common stockholders

Earnings from continuing operations

$ 0.97

$ 1.12

$ 2.82

$ 4.03

Discontinued operations

0.76

—

0.61

0.01

Diluted earnings per common share

$ 1.73

$ 1.12

$ 3.43

$ 4.04

Quarter Ended

September 30,

Year Ended

September 30,

2024

2025

2024

2025

Other deductions, net

Amortization of intangibles

$ 266

$ 208

$ 1,077

$ 884

Restructuring costs

228

136

Other

129

225

Total

$ 359

$ 302

$ 1,434

$ 1,245

1 Represents interest on the Copeland note receivable.

Table 2

EMERSON AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(DOLLARS IN MILLIONS, UNAUDITED)

Year Ended Sept 30,

2024

2025

Assets

Cash and equivalents

$ 3,588

$ 1,544

Receivables, net

2,927

3,101

Inventories

2,180

2,213

Other current assets

1,497

1,725

Total current assets

10,192

8,583

Property, plant & equipment, net

2,807

2,871

Goodwill

18,067

18,193

Other intangible assets

10,436

9,458

Other

2,744

2,859

Total assets

$ 44,246

$ 41,964

Liabilities and equity

Short-term borrowings and current

maturities of long-term debt

$ 532

$ 4,797

Accounts payable

1,335

1,384

Accrued expenses

3,875

3,616

Total current liabilities

5,742

9,797

Long-term debt

7,155

8,319

Other liabilities

3,840

3,550

Equity

Common stockholders' equity

21,636

20,282

Noncontrolling interests in subsidiaries

5,873

Total equity

27,509

20,298

Total liabilities and equity

$ 44,246

$ 41,964

Table 3

EMERSON AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN MILLIONS, UNAUDITED)

Year Ended Sept 30,

2024

2025

Operating activities

Net earnings

$ 1,955

$ 2,246

Earnings from discontinued operations, net of tax

(350)

(8)

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

1,689

1,518

Stock compensation

260

263

Amortization of acquisition-related inventory step-up

231

—

Pension expense (income)

(79)

(12)

Pension funding

(38)

(46)

Changes in operating working capital

(151)

(9)

Gain on subordinated interest

(79)

—

Loss on Copeland note receivable

279

—

Other, net

(400)

(276)

Cash from continuing operations

3,317

3,676

Cash from discontinued operations

(578)

Cash provided by operating activities

3,332

3,098

Investing activities

Capital expenditures

(419)

(431)

Purchases of businesses, net of cash and equivalents acquired

(8,342)

(37)

Proceeds from subordinated interest

—

Other, net

(114)

(125)

Cash from continuing operations

(8,796)

(593)

Cash from discontinued operations

3,436

—

Cash used in investing activities

(5,360)

(593)

Financing activities

Net increase (decrease) in short-term borrowings

(15)

1,110

Proceeds from short-term borrowings greater than three months

322

8,008

Payments of short-term borrowings greater than three months

(327)

(4,918)

Proceeds from long-term debt

—

1,544

Payments of long-term debt

(547)

(503)

Dividends paid

(1,201)

(1,192)

Purchases of common stock

(435)

(1,167)

AspenTech purchases of common stock

(208)

—

Purchase of noncontrolling interest

—

(7,244)

Repurchase of AspenTech share awards

—

(76)

Other, net

(44)

(72)

Cash used in financing activities

(2,455)

(4,510)

Effect of exchange rate changes on cash and equivalents

(39)

Decrease in cash and equivalents

(4,463)

(2,044)

Beginning cash and equivalents

8,051

3,588

Ending cash and equivalents

$ 3,588

$ 1,544

Table 4

EMERSON AND SUBSIDIARIES

SEGMENT SALES AND EARNINGS

(AMOUNTS IN MILLIONS, UNAUDITED)

The following tables show results for the Company's segments on an adjusted segment EBITA basis and are intended to

supplement the Company's results of operations, including its segment earnings which are defined as earnings before

interest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excluding

intangibles amortization expense, and restructuring and related expense. Adjusted segment and total segment EBITA,

and adjusted segment and total segment EBITA margin are measures used by management and may be useful for

investors to evaluate the Company's segments' operational performance.

Quarter Ended Sept 30,

2024

2025

Reported

Underlying

Sales

Final Control

$ 1,167

$ 1,215

4 %

3 %

Measurement & Analytical

1,119

1,152

3 %

2 %

Discrete Automation

643

676

5 %

4 %

Safety & Productivity

352

360

2 %

1 %

Intelligent Devices

$ 3,281

$ 3,403

4 %

3 %

Control Systems & Software

995

1,067

7 %

6 %

Test & Measurement

360

408

13 %

12 %

Software and Control

$ 1,355

$ 1,475

9 %

8 %

Eliminations

(17)

(23)

Total

$ 4,619

$ 4,855

5 %

4 %

Sales Growth by Geography

Quarter Ended

Sept 30,

Americas

6 %

Europe

3 %

Asia, Middle East & Africa

2 %

Table 4 cont.

Year Ended Sept 30,

2024

2025

Reported

Underlying

Sales

Final Control

$ 4,204

$ 4,380

4 %

Measurement & Analytical

4,061

4,143

2 %

Discrete Automation

2,506

2,521

1 %

Safety & Productivity

1,390

1,356

(2) %

(3) %

Intelligent Devices

$ 12,161

$ 12,400

2 %

Control Systems & Software

3,935

4,205

7 %

Test & Measurement

1,464

1,486

2 %

1 %

Software and Control

$ 5,399

$ 5,691

5 %

Eliminations

(68)

(75)

Total

$ 17,492

$ 18,016

3 %

Sales Growth by Geography

Year Ended

Sept 30,

Americas

5 %

Europe

(2) %

Asia, Middle East & Africa

3 %

Table 4 cont.

Quarter Ended Sept 30,

2024

2025

Reported

(GAAP)

Adjusted

EBITA

(Non-

GAAP)

Reported

(GAAP)

Adjusted

EBITA

(Non-

GAAP)

Earnings

Final Control

$ 271

$ 305

$ 310

$ 335

Margins

23.2 %

26.1 %

25.6 %

27.6 %

Measurement & Analytical

295

326

317

348

Margins

26.4 %

29.2 %

27.5 %

30.2 %

Discrete Automation

144

154

134

154

Margins

22.3 %

23.9 %

19.9 %

22.9 %

Safety & Productivity

Margins

22.2 %

25.4 %

21.0 %

24.3 %

Intelligent Devices

$ 788

$ 875

$ 838

$ 926

Margins

24.0 %

26.6 %

24.6 %

27.2 %

Control Systems & Software

239

181

291

Margins

9.8 %

24.0 %

17.0 %

27.3 %

Test & Measurement

(45)

(4)

116

Margins

(12.4) %

26.7 %

(1.1) %

28.5 %

Software and Control

$ 53

$ 335

$ 177

$ 407

Margins

3.9 %

24.7 %

12.0 %

27.6 %

Corporate items and interest expense, net:

Stock compensation

$ (57)

$ (52)

$ (65)

$ (55)

Unallocated pension and postretirement costs

Corporate and other

(124)

(60)

(89)

(34)

Interest (expense) income, net

(18)

—

(92)

—

Pretax Earnings / Adjusted EBITA

$ 679

$ 1,135

$ 796

$ 1,271

Margins

14.7 %

24.6 %

16.4 %

26.2 %

Supplemental Total Segment Earnings:

Adjusted Total Segment EBITA

$ 1,210

$ 1,333

Margins

26.2 %

27.5 %

Year Ended Sept 30,

2024

2025

Reported

(GAAP)

Adjusted

EBITA

(Non-

GAAP)

Reported

(GAAP)

Adjusted

EBITA (Non-

GAAP)

Earnings

Final Control

$ 977

$ 1,081

$ 1,176

Margins

23.2 %

25.7 %

24.7 %

26.9 %

Measurement & Analytical

1,056

1,137

1,112

1,182

Margins

26.0 %

28.0 %

26.9 %

28.5 %

Discrete Automation

466

535

469

531

Margins

18.6 %

21.3 %

18.6 %

21.0 %

Safety & Productivity

308

341

291

323

Margins

22.2 %

24.5 %

21.5 %

23.8 %

Intelligent Devices

$ 2,807

$ 3,094

$ 2,953

$ 3,212

Margins

23.1 %

25.4 %

23.8 %

25.9 %

Control Systems & Software

572

1,107

895

1,388

Margins

14.5 %

28.1 %

21.3 %

33.0 %

Test & Measurement

(290)

351

(68)

375

Margins

(19.8) %

24.0 %

(4.5) %

25.3 %

Software and Control

$ 282

$ 1,458

$ 827

$ 1,763

Margins

5.2 %

27.0 %

14.5 %

31.0 %

Corporate items and interest expense, net:

Stock compensation

(260)

(202)

(263)

(216)

Unallocated pension and postretirement costs

144

109

Corporate and other

(664)

(168)

(455)

(175)

Gain on subordinated interest

—

Loss on Copeland note receivable

(279)

—

Interest (expense) income, net

(175)

—

(237)

—

Interest income from related party 1

—

Pretax Earnings / Adjusted EBITA

$ 2,020

$ 4,326

$ 2,934

$ 4,693

Margins

11.5 %

24.7 %

16.3 %

26.0 %

Supplemental Total Segment Earnings:

Adjusted Total Segment EBITA

$ 4,552

$ 4,975

Margins

26.0 %

27.6 %

1 Represents interest on the Copeland note receivable.

Table 4 cont.

Quarter Ended Sept 30,

2024

2025

Amortization of

Intangibles 1

Restructuring

and

Related Costs 2

Amortization of

Intangibles 1

Restructuring

and

Related Costs 2

Final Control

$ 22

$ 12

$ 22

$ 3

Measurement & Analytical

Discrete Automation

Safety & Productivity

Intelligent Devices

$ 49

$ 38

$ 49

$ 39

Control Systems & Software

126

101

Test & Measurement

141

—

107

Software and Control

$ 267

$ 15

$ 208

$ 22

Corporate

—

Total

$ 316

$ 64

$ 257

$ 81

1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended September 30, 2024 and 2025, respectively.

2 Restructuring and related costs includes $6 and $15 of restructuring-related costs for the three months ended September 30, 2024 and 2025, respectively.

Year Ended Sept 30,

2024

2025

Amortization of

Intangibles 1

Restructuring

and

Related Costs 2

Amortization of

Intangibles 1

Restructuring

and

Related Costs 2

Final Control

$ 87

$ 17

$ 86

$ 9

Measurement & Analytical

Discrete Automation

Safety & Productivity

Intelligent Devices

$ 202

$ 85

$ 190

$ 69

Control Systems & Software

512

468

Test & Measurement

560

425

Software and Control

$ 1,072

$ 104

$ 893

$ 43

Corporate

—

Total

$ 1,274

$ 244

$ 1,083

$ 162

1 Amortization of intangibles includes $196 and $199 reported in cost of sales for the twelve months ended September 30, 2024 and 2025, respectively.

2 Restructuring and related costs includes $16 and $26 of restructuring-related costs for the twelve months ended September 30, 2024 and 2025, respectively.

Quarter Ended Sept 30,

2024

2025

Depreciation and Amortization

Final Control

$ 39

$ 41

Measurement & Analytical

Discrete Automation

Safety & Productivity

Intelligent Devices

109

124

Control Systems & Software

150

123

Test & Measurement

153

120

Software and Control

303

243

Corporate

Total

$ 426

$ 379

Year Ended Sept 30,

2024

2025

Depreciation and Amortization

Final Control

$ 159

$ 161

Measurement & Analytical

138

140

Discrete Automation

Safety & Productivity

Intelligent Devices

442

448

Control Systems & Software

594

550

Test & Measurement

607

476

Software and Control

1,201

1,026

Corporate

Total

$ 1,689

$ 1,518

Table 5

EMERSON AND SUBSIDIARIES

ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL

(AMOUNTS IN MILLIONS, UNAUDITED)

The following table shows the Company's stock compensation and corporate and other expenses on an adjusted basis.

The Company's definition of adjusted stock compensation excludes integration-related stock compensation expense. The

Company's definition of adjusted corporate and other excludes corporate restructuring and related costs, first year

purchase accounting related items and transaction fees, and certain gains, losses or impairments. These metrics are

useful for reconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.

Quarter Ended Sept 30,

2024

2025

Stock compensation (GAAP)

$ (57)

$ (65)

Integration-related stock compensation expense

Adjusted stock compensation (non-GAAP)

$ (52)

$ (55)

Quarter Ended Sept 30,

2024

2025

Corporate and other (GAAP)

$ (124)

$ (89)

Corporate restructuring and related costs

Acquisition/divestiture fees and related costs

Loss on divestiture of business

—

Adjusted corporate and other (Non-GAAP)

$ (60)

$ (34)

Year Ended Sept 30,

2024

2025

Stock compensation (GAAP)

$ (260)

$ (263)

Integration-related stock compensation expense

Adjusted stock compensation (non-GAAP)

$ (202)

$ (216)

Year Ended Sept 30,

2024

2025

Corporate and other (GAAP)

$ (664)

$ (455)

Corporate restructuring and related costs

Loss on divestiture of businesses

—

Acquisition/divestiture fees and related costs

205

255

Amortization of acquisition-related inventory step-up

231

—

Adjusted corporate and other (Non-GAAP)

$ (168)

$ (175)

1 Integration-related stock compensation expense relates to NI and includes $2 reported as restructuring costs

2 Integration-related stock compensation expense relates to NI and includes $43 reported as restructuring costs

3 Integration-related stock compensation expense relates to NI & AspenTech and includes $4 reported as restructuring costs

4 Integration-related stock compensation expense relates to NI & AspenTech and includes $25 reported as restructuring costs

Table 6

EMERSON AND SUBSIDIARIES

ADJUSTED EBITA & EPS SUPPLEMENTAL

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

The following tables, which show results on an adjusted EBITA basis and diluted earnings per share on an adjusted basis,

are intended to supplement the Company's discussion of its results of operations herein. The Company defines adjusted

EBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense, restructuring

expense, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments.

Adjusted earnings per share excludes intangibles amortization expense, restructuring expense, first year purchase

accounting related items and transaction-related costs, and certain gains, losses or impairments. Adjusted EBITA,

adjusted EBITA margin, and adjusted earnings per share are measures used by management and may be useful for

investors to evaluate the Company's operational performance.

Quarter Ended Sept 30,

2024

2025

Pretax earnings

$ 679

$ 796

Percent of sales

14.7 %

16.4 %

Interest expense, net

Amortization of intangibles

316

257

Restructuring and related costs

Acquisition/divestiture fees and related costs

Loss on divestiture of business

—

Adjusted EBITA

$ 1,135

$ 1,271

Percent of sales

24.6 %

26.2 %

Quarter Ended Sept 30,

2024

2025

GAAP earnings from continuing operations per share

$ 0.97

$ 1.12

Amortization of intangibles

0.35

Restructuring and related costs

0.08

0.11

Acquisition/divestiture fees and related costs

0.06

Loss on divestiture of business

0.02

—

Discrete taxes

—

(0.02)

Adjusted earnings from continuing operations per share

$ 1.48

$ 1.62

Year Ended Sept 30,

2024

2025

Pretax earnings

$ 2,020

$ 2,934

Percent of sales

11.5 %

16.3 %

Interest expense, net

175

237

Interest income from related party 1

(86)

—

Amortization of intangibles

1,274

1,083

Restructuring and related costs

244

162

Acquisition/divestiture fees and related costs

220

277

Amortization of acquisition-related inventory step-up

231

—

Loss on Copeland note receivable

279

—

Loss on divestiture of businesses

—

Gain on subordinated interest

(79)

—

Adjusted EBITA

$ 4,326

$ 4,693

Percent of sales

24.7 %

26.0 %

Year Ended Sept 30,

2024

2025

GAAP earnings from continuing operations per share

$ 2.82

$ 4.03

Amortization of intangibles

1.43

1.35

Restructuring and related costs

0.33

0.23

Acquisition/divestiture fees and related costs

0.26

0.33

Discrete taxes

(0.10)

0.06

Amortization of acquisition-related inventory step-up

0.38

—

Loss on Copeland note receivable

0.38

—

Loss on divestiture of businesses

0.09

—

Gain on subordinated interest

(0.10)

—

Adjusted earnings from continuing operations per share

$ 5.49

$ 6.00

1 Represents interest on the Copeland note receivable

Table 6 cont.

Quarter Ended September 30, 2025

Pretax

Earnings

Income

Taxes

Earnings

from

Cont.

Ops.

Non-

Controlling

Interests 3

Net

Earnings

Common

Stockholders

Diluted

Earnings

Per

As reported (GAAP)

$ 796

$ 160

$ 636

$ —

$ 636

$ 1.12

Amortization of intangibles

257

198

—

198

0.35

Restructuring and related

costs

—

0.11

Acquisition/divestiture fees

and related costs

—

0.06

Discrete taxes

—

(13)

—

(13)

(0.02)

Adjusted (Non-GAAP)

$ 1,179

$ 260

$ 919

$ —

$ 919

$ 1.62

Interest expense, net

$ 92

Adjusted EBITA (Non-

GAAP)

$ 1,271

1 Amortization of intangibles includes $49 reported in cost of sales.

2 Restructuring and related costs includes $15 of restructuring-related costs.

3 Non-Controlling Interests for AspenTech ceased as of March 12, 2025 with the completion of the buy-in.

Year Ended September 30, 2025

Pretax

Earnings

Income

Taxes

Earnings

from

Cont.

Ops.

Non-

Controlling

Interests 3

Net

Earnings

Common

Stockholders

Diluted

Earnings

Per

As reported (GAAP)

$ 2,934

$ 696

$ 2,238

$ (47)

$ 2,285

$ 4.03

Amortization of intangibles

1,083

246

837

764

1.35

Restructuring and related

costs

162

133

—

133

0.23

Acquisition/divestiture fees

and related costs

277

234

186

0.33

Discrete taxes

—

(36)

—

0.06

Adjusted (Non-GAAP)

$ 4,456

$ 978

$ 3,478

$ 74

$ 3,404

$ 6.00

Interest expense, net

237

Adjusted EBITA (Non-

GAAP)

$ 4,693

1 Amortization of intangibles includes $199 reported in cost of sales.

2 Restructuring and related costs includes $26 of restructuring-related costs.

3 Represents the non-controlling interest in AspenTech applied to AspenTech's share of each adjustment presented herein and eliminated from Emerson's consolidated results. Non-Controlling Interests for AspenTech ceased as of March 12, 2025 with the completion of the buy-in.

Table 7

Reconciliations of Non-GAAP Financial Measures & Other

Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions,

except per share amounts). See tables 4 through 7 for additional non-GAAP reconciliations.

Q4 FY25 Underlying Sales Change

Reported

(Favorable) /

Unfavorable FX

(Acquisitions) /

Divestitures

Underlying

Final Control

4 %

(1) %

— %

3 %

Measurement & Analytical

3 %

(1) %

— %

2 %

Discrete Automation

5 %

(1) %

— %

4 %

Safety & Productivity

2 %

(1) %

— %

1 %

Intelligent Devices

4 %

(1) %

— %

3 %

Control Systems & Software

7 %

(1) %

— %

6 %

Test & Measurement

13 %

(1) %

— %

12 %

Software and Control

9 %

(1) %

— %

8 %

Emerson

5 %

(1) %

— %

4 %

Year Ended Sept 30, 2025 Underlying Sales Change

Reported

(Favorable) /

Unfavorable FX

(Acquisitions) /

Divestitures

Underlying

Final Control

4 %

— %

4 %

Measurement & Analytical

2 %

— %

2 %

Discrete Automation

1 %

— %

1 %

Safety & Productivity

(2) %

(1) %

— %

(3) %

Intelligent Devices

2 %

— %

2 %

Control Systems & Software

7 %

— %

7 %

Test & Measurement

2 %

(1) %

— %

1 %

Software and Control

5 %

— %

5 %

Emerson

3 %

— %

3 %

Underlying Growth Guidance

2026 Q1

Guidance

2026

Guidance

Reported (GAAP)

~4%

~5.5%

(Favorable) / Unfavorable FX

~(2) pts

~(1.5) pts

(Acquisitions) / Divestitures

Underlying (non-GAAP)

~2%

~4%

2024 Q4 Adjusted Segment EBITA

EBIT

Margin

Amortization

Intangibles

Restructuring

and Related

Costs

Adjusted

Segment

EBITA

Adjusted

Segment

EBITA

Margin

Final Control

$ 271

23.2 %

$ 22

$ 12

$ 305

26.1 %

Measurement & Analytical

295

26.4 %

326

29.2 %

Discrete Automation

144

22.3 %

154

23.9 %

Safety & Productivity

22.2 %

25.4 %

Intelligent Devices

$ 788

24.0 %

$ 49

$ 38

$ 875

26.6 %

Control Systems & Software

9.8 %

126

239

24.0 %

Test & Measurement

(45)

(12.4) %

141

—

26.7 %

Software and Control

$ 53

3.9 %

$ 267

$ 15

$ 335

24.7 %

2025 Q4 Adjusted Segment EBITA

EBIT

Margin

Amortization

Intangibles

Restructuring

and Related

Costs

Adjusted

Segment

EBITA

Adjusted

Segment

EBITA

Margin

Final Control

$ 310

25.6 %

$ 22

$ 3

$ 335

27.6 %

Measurement & Analytical

317

27.5 %

348

30.2 %

Discrete Automation

134

19.9 %

154

22.9 %

Safety & Productivity

21.0 %

24.3 %

Intelligent Devices

$ 838

24.6 %

$ 49

$ 39

$ 926

27.2 %

Control Systems & Software

181

17.0 %

101

291

27.3 %

Test & Measurement

(4)

(1.1) %

107

116

28.5 %

Software and Control

$ 177

12.0 %

$ 208

$ 22

$ 407

27.6 %

Total Adjusted Segment EBITA

2024 Q4

2025 Q4

Pretax earnings (GAAP)

$ 679

$ 796

Margin

14.7 %

16.4 %

Corporate items and interest expense, net

162

219

Amortization of intangibles

316

257

Restructuring and related costs

Adjusted segment EBITA (non-GAAP)

$ 1,210

$ 1,333

Margin

26.2 %

27.5 %

2024 Adjusted Segment EBITA

EBIT

Margin

Amortization

Intangibles

Restructuring

and Related

Costs

Adjusted

Segment

EBITA

Adjusted

Segment

EBITA

Margin

Final Control

$ 977

23.2 %

$ 87

$ 17

$ 1,081

25.7 %

Measurement & Analytical

1,056

26.0 %

1,137

28.0 %

Discrete Automation

466

18.6 %

535

21.3 %

Safety & Productivity

308

22.2 %

341

24.5 %

Intelligent Devices

$ 2,807

23.1 %

$ 202

$ 85

$ 3,094

25.4 %

Control Systems & Software

572

14.5 %

512

1,107

28.1 %

Test & Measurement

(290)

(19.8) %

560

351

24.0 %

Software and Control

$ 282

5.2 %

$ 1,072

$ 104

$ 1,458

27.0 %

2025 Adjusted Segment EBITA

EBIT

Margin

Amortization

Intangibles

Restructuring

and Related

Costs

Adjusted

Segment

EBITA

Adjusted

Segment

EBITA

Margin

Final Control

$ 1,081

24.7 %

$ 86

$ 9

$ 1,176

26.9 %

Measurement & Analytical

1,112

26.9 %

1,182

28.5 %

Discrete Automation

469

18.6 %

531

21.0 %

Safety & Productivity

291

21.5 %

323

23.8 %

Intelligent Devices

$ 2,953

23.8 %

$ 190

$ 69

$ 3,212

25.9 %

Control Systems & Software

895

21.3 %

468

1,388

33.0 %

Test & Measurement

(68)

(4.5) %

425

375

25.3 %

Software and Control

$ 827

14.5 %

$ 893

$ 43

$ 1,763

31.0 %

Total Adjusted Segment EBITA

2024

2025

Pretax earnings (GAAP)

$ 2,020

$ 2,934

Margin

11.5 %

16.3 %

Corporate items and interest expense, net

1,069

846

Amortization of intangibles

1,274

1,083

Restructuring and related costs

189

112

Adjusted segment EBITA (non-GAAP)

$ 4,552

$ 4,975

Margin

26.0 %

27.6 %

Free Cash Flow

2024 Q4

2025 Q4

Operating cash flow (GAAP)

$ 1,073

$ 1,011

Capital expenditures

(168)

Free cash flow (non-GAAP)

$ 905

$ 843

Free Cash Flow

FY24

FY25

2026E

($ in billions)

Operating cash flow (GAAP)

$ 3,317

$ 3,676

$4.0 - $4.1

Capital expenditures

(419)

(431)

~(0.45)

Free cash flow (non-GAAP)

$ 2,898

$ 3,245

$3.5 - $3.6

Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures.

Note 2: All fiscal year 2026E figures are approximate, except where range is given.

SOURCE Emerson