Emerson Electric Co. Earnings Recaps
Emerson's stock rose 4.9% following a quarter that saw broad-based demand growth and margin expansion, driven primarily by impressive performance in Software & Systems and strong order momentum. The company raised full-year guidance, supported by solid sales growth, improved margins, and robust wins across key verticals.
Key takeaways
- Underlying orders increased 7%, with Software & Systems leading at 10% growth and notable strength in semiconductor (+70%) and Test & Measurement (+19%).
- Sales grew 6%, with remarkable growth in Test & Measurement and Ovation businesses, each up 23%.
- Adjusted segment EBITDA margin expanded 140 basis points to 28.5%, reflecting operational leverage amid solid execution.
- Adjusted EPS rose 13% to $1.71, exceeding the top of the guidance range; full-year adjusted EPS guidance raised to $6.55.
- Project funnel expanded 8% to $12.4 billion, driven by a $450 million sequential increase in power and continued investments in LNG and grid modernization.
Emerson’s 2Q results outpaced expectations, driven by strong demand in Software & Systems and robust margin expansion, supporting a 9.2% stock gain post-earnings.
Key takeaways
- Underlying orders grew 5%, fueled by 18% Software & Systems growth and 41% growth in Ovation’s power segment orders.
- Adjusted segment EBITDA margin expanded to 27.6%, surpassing expectations and reinforcing operational leverage.
- Adjusted EPS of $1.54 landed near the top of guidance, enabling an upward revision of full-year EPS to $6.45–$6.55.
- Annual contract value (ACV) for software increased 9% year-over-year to $1.64 billion, with continued strength anticipated into year-end.
- Backlog rose 9% year-over-year to support second half confidence, despite a 1-point revenue headwind from the Middle East conflict.
Emerson Electric Co. delivered solid first-quarter results, showcasing a disciplined execution that led to an adjusted EPS of $1.46 and an impressive underlying orders growth of 9%, reflecting strong demand across their automation portfolio.
Key takeaways
- Underlying sales increased by 2% year-over-year, with Test and Measurement up 11%.
- Adjusted segment EBITDA margin reached 27.7%, exceeding expectations.
- Annual contract value for software grew 9% to $1.6 billion, underscoring strong demand for automation solutions.
- The company completed $250 million in share repurchases, reaffirming its commitment to returning $2.2 billion to shareholders.
- Guidance for 2026 is reiterated, with expected EPS raised to a range of $6.40 to $6.55 per share.
Emerson reported solid fourth-quarter results, with underlying sales up 4% and a notable increase in profitability, yet full-year growth fell slightly short of expectations due to softness in Europe and China.
Key takeaways
- Fourth-quarter underlying orders grew 6%, driven by a robust 27% increase in Test & Measurement segment.
- Adjusted earnings per share reached $1.62 for the quarter, at the upper end of guidance; full-year adjusted EPS increased by 9%.
- The company expects 5.5% sales growth for fiscal 2026, with adjusted EPS projected between $6.35 and $6.55.
- Free cash flow improved to $3.24 billion, up 12% year-over-year, supporting robust capital return plans of $2.2 billion to shareholders.
- Emerson's annual contract value from software grew 10%, highlighting sustained investment in digital transformation.