Q2 2025 Emerson Electric Co Earnings Call Transcript
Key Points
- Emerson Electric Co (EMR) delivered strong second-quarter results with underlying orders growth of 4%, exceeding expectations.
- The company reported record margin performance, with gross profit margin improving by 130 basis points year-over-year.
- Adjusted earnings per share exceeded guidance by $0.06, reflecting strong operational performance.
- Emerson Electric Co (EMR) completed the buy-in of AspenTech, which is expected to be modestly accretive to adjusted EPS in 2025.
- The company is confident in its plans for the year, raising the midpoint of its adjusted EPS guidance to between $5.90 and $6.05 per share.
- Emerson Electric Co (EMR) is operating in a period of unusual volatility, which poses risks to its business outlook.
- The company faces a gross exposure of $245 million in 2025 due to tariffs, although it expects to fully mitigate this impact.
- There is a muted recovery expected in factory automation, with continued declines in the automotive sector.
- The company noted pockets of reduced demand outlook, including muted expectations in China and weakened demand in safety and productivity.
- Emerson Electric Co (EMR) expects the second half of the year to have lower profitability due to the effect of tariffs and segment mix.
Good morning and welcome to the Emerson second quarter 2025 earnings conference call. All participants will be in listen only mode. (Operator Instrcuctions) After today's presentation, there will be an opportunity to ask questions. Please note 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 second 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 the
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