Q3 2025 Emerson Electric Co Earnings Call Transcript
Key Points
- Emerson Electric Co (EMR) reported strong profitability with an adjusted earnings per share of $1.52, meeting the top end of their guidance.
- The company announced a strategic collaboration with TotalEnergies, enhancing their enterprise operations platform and showcasing their innovation in automation.
- Emerson's industrial software annual contract value (ACV) grew double digits, ending the quarter at $1.5 billion.
- The Test & Measurement segment showed significant recovery, with orders up 16%, indicating strong market demand.
- Emerson's free cash flow generation was better than expected, resulting in a margin of 21.3%.
- Sales growth was impacted by easing surcharges, resulting in underlying sales growth of only 3%, which fell short of guidance.
- The Intelligent Devices segment faced profitability challenges due to tariffs and unexpected foreign exchange impacts.
- Europe's sales were down 7%, indicating regional challenges in market performance.
- The discrete automation market, particularly in automotive and packaging in Western Europe and China, remains relatively depressed.
- The tariff environment remains dynamic, with Emerson's annualized gross incremental tariff impact now estimated at $210 million, affecting profitability.
Good morning, and welcome to the Emerson third quarter 2025 earnings conference call. (Operator Instructions) Please note that this event is being recorded.
I would now like to turn the conference over to your host, Colleen Mettler, Vice President of Investor Relations at Emerson. Please go ahead.
Good morning, and thank you for joining Emerson's third quarter 2025 earnings conference call. This morning, I am joined by 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 risk and uncertainty. Please take time to read the safe harbor statement and note on non-GAAP measures.
I will now pass the call over to Emerson's President and CEO, Lal
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
