EMERSON ELECTRIC CO. Net Earnings Soar 78% on Strong Q3 Performance

For the third quarter of fiscal 2025, Emerson Electric Co. reported consolidated net sales of $4.553 billion, a 4% increase from $4.380 billion in the prior year. Net earnings attributable to common stockholders reached $586 million, a significant rise from $329 million in the same quarter last year, marking a 78% increase. Diluted earnings per share from continuing operations were $1.03, up 72% compared to $0.60 in the prior year.

Financial Performance Drivers

Underlying sales growth contributed 3% to the overall sales increase, driven by a 2.5% increase in price and a 0.5% increase in volume. Foreign currency translation also had a 1% favorable impact on sales. The company's intelligent devices segment saw sales increase by $128 million, or 4%, driven by strong performance in power end markets, particularly in the Americas.

Segmental Performance and Cost Management

The Software and Control segment reported sales of $1.444 billion, a 3% increase, with underlying sales up 2%. This growth was propelled by strong performance in Control Systems & Software, including robust growth at AspenTech, and favorable demand in process and power end markets. The company's strategic cost reduction actions, particularly within Test & Measurement and AspenTech, led to a decrease of 0.8 percentage points in selling, general, and administrative expenses as a percentage of sales.

Management Outlook

For fiscal year 2025, Emerson Electric Co. expects consolidated net sales from continuing operations to increase by approximately 3.5%, with underlying sales also projected to be up around 3.5%. The company forecasts earnings per share to be approximately $4.08, with adjusted earnings per share estimated at approximately $6.00. Operating cash flow is anticipated to be around $3.6 billion, with free cash flow expected to be approximately $3.2 billion after accounting for projected capital spending.