Emerson Electric Company ( EMR ) shares dipped premarket after the company reported mixed fourth-quarter fiscal 2025 results.

Details

The company reported adjusted earnings per share came in at $1.62, up 9% year over year (Y/Y), in line with the consensus estimate. GAAP EPS rose 15% Y/Y to $1.12 in the quarter.

Revenue increased 5% Y/Y to $4.86 billion, falling short of the $4.91 billion analyst estimate.

Pretax earnings climbed to $796 million from $679 million a year ago quarter, with margins expanding 170 bps to 16.4% in the quarter.

Adjusted segment EBITA rose to $1.33 billion from $1.21 billion a year ago, with a 27.5% margin (+130 bps Y/Y).

Operating cash flow totaled $1.01 billion, declined from $1.07 billion a year ago, in the quarter. Free cash flow declined 7% Y/Y to $843 million.

Emerson ended the year with $1.54 billion in cash and cash equivalents.

Emerson’s Board has approved a new share repurchase program of up to 50 million common shares, supplementing the March 2020 authorization of 60 million shares, of which roughly 20 million remain available.

Segment Performance

Performance was strongest in the Intelligent Devices segment, which generated $3.40 billion in revenue, up 4% Y/Y, with an adjusted EBITA margin of 27.2% (versus 26.6% in the year-ago quarter).

The Software and Control segment reported $1.48 billion in revenue, a 9% Y/Y increase, with a margin of 27.6% (versus 24.7 % in the year-ago quarter).

By segment, Final Control sales rose 4% Y/Y to $1.22 billion, Measurement & Analytical grew 3% Y/Y to $1.15 billion, Discrete Automation was up 5% Y/Y at $676 million, and Safety & Productivity rose 2% Y/Y to $360 million.

Geographically, sales in the Americas increased by 6% Y/Y, Europe rose by 3% Y/Y, and the Asia, Middle East & Africa region grew by 2% Y/Y.

Management Commentary

“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,” said CEO and president Lal Karsanbhai.  

“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.”

Outlook

Emerson Electric ( EMR ) projects fiscal 2026 adjusted EPS of $6.35–$6.55, above the $6.00 consensus estimate and sales of $19.01 billion versus the consensus of $18.07 billion.

In the first quarter, Emerson expects adjusted EPS of $1.40, compared to the $1.50 analyst estimate and revenue of $4.34 billion compared to the $4.45 billion consensus.

The fiscal year 2026 guidance reflects a capital allocation shift toward returning cash to shareholders, with an expected $2.2 billion to be returned via share repurchases (~$1 billion) and dividends (~$1.2 billion).

Price Action: EMR shares were trading lower by 6.71% to $128.50 premarket at last check Wednesday.

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