Q1 2026 Emerson Electric Co Earnings Call Transcript
Key Points
- Emerson Electric Co (EMR) reported a robust demand with underlying orders growth of 9% in the first quarter, driven by strong performance in North America, India, and the Middle East and Africa.
- The company achieved an adjusted segment EBITDA margin of 27.7%, exceeding expectations, and reported an adjusted earnings per share of $1.46.
- Emerson Electric Co (EMR) plans to return $10 billion to shareholders through $6 billion of share repurchase and $4 billion of dividend payout by 2028.
- The company was named the 2026 Industrial IoT Company of the Year by IoT Breakthrough, marking the fourth time in five years it has received this recognition.
- Emerson Electric Co (EMR) is seeing significant growth in its Test & Measurement business, with orders up 20%, driven by semiconductor, aerospace, and defense sectors.
- Emerson Electric Co (EMR) is experiencing ongoing softness in Europe and China, with orders in these regions down.
- The company's Intelligent Devices segment faced challenges, with margins decreasing by 70 basis points year over year due to mix and FX headwinds.
- The Safety & Productivity segment's margin was down 40 basis points year over year due to lower volume, despite benefits from price and cost reductions.
- The software contract renewal dynamic adversely affected the company's Q1 year-over-year sales growth by approximately 1 percentage point.
- Emerson Electric Co (EMR) has a bearish outlook on China, expecting low single-digit declines for the year due to lackluster activity in the chemical sector.
Greetings and welcome to the Emerson first quarter 2026 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Doug Ashby, Director of Investor Relations. Thank you. You may begin.
Good afternoon, and thank you for joining Emerson's first quarter 2026 earnings conference call. For those who don't know me, my name is Doug Ashby, and I'm the Director of Investor Relations for Emerson. Today, I'm joined by Emerson's President and Chief Executive Officer, Lal Karsanbhai; Chief Financial Officer, Mike Baughman; and Chief Operating Officer, Ram Krishnan. As always, I encourage everyone to follow along with the slide presentation, which is available on our website.
Please turn to slide 2. This presentation may include forward-looking statements, which contain a degree of business risks and uncertainty. Please take time to read the safe harbor statement and not on the non-GAAP measures. I will now pass the
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