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

1. Emerson's Q4 2025 net sales increased 5% to $4.855 billion. 2. A quarterly cash dividend rose 5% to $0.555 per share. 3. The company authorized repurchasing 50 million shares of common stock. 4. Underlying sales growth maintained at 4% for sequential quarters. 5. 2026 sales growth expected at 5.5%, indicating strong operational outlook.

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Why Bullish?

Emerson's growth in net sales and dividends indicates positive investor sentiment, akin to past performance where increased dividends correlated with stock price hikes.

How important is it?

The combination of growing sales, increased dividends, and share buybacks suggests healthy financial health, likely to attract more investors.

Why Long Term?

Sustained growth strategies and share repurchases contribute to long-term shareholder value and confidence in future earnings.

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ASPGESI
, /PRNewswire/ -- Emerson (NYSE: EMR) today reported results1 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 Orders2 6 % 4 % Net Sales $4,619 $4,855 5 % $17,492 $18,016 3 % Underlying Sales3 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 EBITA4 $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 Share5 $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 18 92 175 237      Interest income from related party1 — — (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 1 350 8 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 1 350 8 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 58 66 228 136      Other 35 28 129 225           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 16      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 15 (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 79 — 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 20 (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 % 4 % Measurement & Analytical 4,061 4,143 2 % 2 % Discrete Automation 2,506 2,521 1 % 1 % Safety & Productivity 1,390 1,356 (2) % (3) % Intelligent Devices $         12,161 $         12,400 2 % 2 % Control Systems & Software 3,935 4,205 7 % 7 % Test & Measurement 1,464 1,486 2 % 1 % Software and Control $           5,399 $           5,691 5 % 5 % Eliminations (68) (75) Total $         17,492 $         18,016 3 % 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, Quarter Ended Sept 30, 2024 2025 As Reported (GAAP) Adjusted EBITA (Non-GAAP) As 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 78 90 77 89  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 98 239 181 291  Margins 9.8 % 24.0 % 17.0 % 27.3 % Test & Measurement (45) 96 (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 37 37 27 27 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, Year Ended Sept 30, 2024 2025 As Reported (GAAP) Adjusted EBITA (Non-GAAP) As Reported (GAAP) Adjusted EBITA (Non-GAAP) Earnings Final Control $          977 $       1,081 $       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 144 144 109 109 Corporate and other (664) (168) (455) (175) Gain on subordinated interest 79 — — — Loss on Copeland note receivable (279) — — — Interest (expense) income, net (175) — (237) — Interest income from related party1 86 — — — 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, Quarter Ended Sept 30, 2024 2025 Amortization of Intangibles1 Restructuring and Related Costs2 Amortization of Intangibles1 Restructuring and Related Costs2 Final Control $                   22 $                   12 $                   22 $                     3 Measurement & Analytical 12 19 12 19 Discrete Automation 8 2 8 12 Safety & Productivity 7 5 7 5 Intelligent Devices $                   49 $                   38 $                   49 $                   39 Control Systems & Software 126 15 101 9 Test & Measurement 141 — 107 13 Software and Control $                 267 $                   15 $                 208 $                   22 Corporate — 11 — 20 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, Year Ended Sept 30, 2024 2025 Amortization of Intangibles1 Restructuring and Related Costs2 Amortization of Intangibles1 Restructuring and Related Costs2 Final Control $                   87 $                   17 $                   86 $                     9 Measurement & Analytical 55 26 45 25 Discrete Automation 34 35 32 30 Safety & Productivity 26 7 27 5 Intelligent Devices $                 202 $                   85 $                 190 $                   69 Control Systems & Software 512 23 468 25 Test & Measurement 560 81 425 18 Software and Control $              1,072 $                 104 $                 893 $                   43 Corporate — 55 — 50 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 33 45 Discrete Automation 22 23 Safety & Productivity 15 15 Intelligent Devices 109 124 Control Systems & Software 150 123 Test & Measurement 153 120 Software and Control 303 243      Corporate 14 12           Total $              426 $              379 Year Ended Sept 30, 2024 2025 Depreciation and Amortization Final Control $              159 $              161 Measurement & Analytical 138 140 Discrete Automation 87 87 Safety & Productivity 58 60 Intelligent Devices 442 448 Control Systems & Software 594 550 Test & Measurement 607 476 Software and Control 1,201 1,026      Corporate 46 44           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 5 1 10 3 Adjusted stock compensation (non-GAAP) $                  (52) $                  (55) Quarter Ended Sept 30, 2024 2025  Corporate and other (GAAP) $                (124) $                  (89)  Corporate restructuring and related costs 9 16  Acquisition/divestiture fees and related costs 46 39  Loss on divestiture of business 9 —  Adjusted corporate and other (Non-GAAP) $                  (60) $                  (34) Year Ended Sept 30, 2024 2025  Stock compensation (GAAP) $                (260) $                (263) Integration-related stock compensation expense 58 2 47 4  Adjusted stock compensation (non-GAAP) $                (202) $                (216) Year Ended Sept 30, 2024 2025  Corporate and other (GAAP) $                (664) $                (455)  Corporate restructuring and related costs 12 25  Loss on divestiture of businesses 48 —  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 18 92 Amortization of intangibles 316 257 Restructuring and related costs 64 81 Acquisition/divestiture fees and related costs 49 45 Loss on divestiture of business 9 — 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 0.35 Restructuring and related costs 0.08 0.11 Acquisition/divestiture fees and related costs 0.06 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 party1 (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 48 — 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 PretaxEarnings IncomeTaxes Earnings fromCont. Ops. Non-Controlling Interests3 NetEarnings CommonStockholders DilutedEarningsPerShare As reported (GAAP) $       796 $       160 $          636 $            — $               636 $      1.12 Amortization of intangibles 257 1 59 198 — 198 0.35 Restructuring and related costs 81 2 19 62 — 62 0.11 Acquisition/divestiture fees and related costs 45 9 36 — 36 0.06 Discrete taxes — 13 (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 PretaxEarnings IncomeTaxes Earnings fromCont. Ops. Non-Controlling Interests3 NetEarnings CommonStockholders DilutedEarningsPerShare As reported (GAAP) $     2,934 $       696 $       2,238 $           (47) $            2,285 $      4.03 Amortization of intangibles 1,083 1 246 837 73 764 1.35 Restructuring and related costs 162 2 29 133 — 133 0.23 Acquisition/divestiture fees and related costs 277 43 234 48 186 0.33 Discrete taxes — (36) 36 — 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 EBIT Margin Amortization of 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 % 12 19 326 29.2 % Discrete Automation 144 22.3 % 8 2 154 23.9 % Safety & Productivity 78 22.2 % 7 5 90 25.4 % Intelligent Devices $               788 24.0 % $                 49 $                   38 $               875 26.6 % Control Systems & Software 98 9.8 % 126 15 239 24.0 % Test & Measurement (45) (12.4) % 141 — 96 26.7 % Software and Control $                 53 3.9 % $               267 $                   15 $               335 24.7 % 2025 Q4 Adjusted Segment EBITA EBIT EBIT Margin Amortization of  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 % 12 19 348 30.2 % Discrete Automation 134 19.9 % 8 12 154 22.9 % Safety & Productivity 77 21.0 % 7 5 89 24.3 % Intelligent Devices $               838 24.6 % $                 49 $                   39 $               926 27.2 % Control Systems & Software 181 17.0 % 101 9 291 27.3 % Test & Measurement (4) (1.1) % 107 13 116 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 53 61 Adjusted segment EBITA (non-GAAP) $              1,210 $              1,333 Margin 26.2 % 27.5 % 2024 Adjusted Segment EBITA EBIT EBIT Margin Amortization of 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 % 55 26 1,137 28.0 % Discrete Automation 466 18.6 % 34 35 535 21.3 % Safety & Productivity 308 22.2 % 26 7 341 24.5 % Intelligent Devices $           2,807 23.1 % $               202 $                  85 $           3,094 25.4 % Control Systems & Software 572 14.5 % 512 23 1,107 28.1 % Test & Measurement (290) (19.8) % 560 81 351 24.0 % Software and Control $               282 5.2 % $            1,072 $                104 $           1,458 27.0 % 2025 Adjusted Segment EBITA EBIT EBIT Margin Amortization of  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 % 45 25 1,182 28.5 % Discrete Automation 469 18.6 % 32 30 531 21.0 % Safety & Productivity 291 21.5 % 27 5 323 23.8 % Intelligent Devices $           2,953 23.8 % $               190 $                  69 $           3,212 25.9 % Control Systems & Software 895 21.3 % 468 25 1,388 33.0 % Test & Measurement (68) (4.5) % 425 18 375 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) (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

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