Emerson Electric Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.87%.
Did EMR Beat Earnings? Q2 2025 Results
Emerson Electric closed its fiscal second quarter of 2025 with a clean beat on both top and bottom lines, as disciplined cost management and a landmark portfolio move combined to lift results above Wall Street's expectations. Adjusted EPS came in at $1.48, ahead of the $1.41 consensus by 4.71%, while net sales of $4.43 billion topped estimates by 1.11% and grew 1.3% year-over-year. The quarter's defining moment was the March 12 completion of the AspenTech buy-in, which closed Emerson's multi-year transformation and helped push adjusted segment EBITA margins to a record 28.0%, up 200 basis points. Control Systems and Software led segment performance with reported sales climbing 10% to $1.06 billion, partially offsetting softness in Intelligent Devices. Free cash flow rose 14% to $738 million, underscoring operational health. Looking ahead, management raised its full-year adjusted EPS guidance to $5.90 to $6.05 and now expects approximately 4% net sales growth, signaling confidence that cost discipline and the integrated AspenTech platform can sustain momentum through the back half of the fiscal year.
- Record gross profit and adjusted segment EBITA margins of 28.0%, up 200 bps YoY
- Emerson Management System driving operational improvements
- Control Systems & Software underlying sales growth of 11%
- Strong underlying orders growth of 4%
- AspenTech buy-in completed March 12, 2025, contributing to Control Systems & Software growth
“Emerson delivered strong underlying orders in the second quarter with margin expansion and adjusted earnings exceeding our expectations. We achieved another quarter of record gross profit and adjusted segment EBITA margins, supported by our Emerson Management System and demonstrating the value customers attribute to our leading technology. Our superior first half performance and ability to navigate the tariff environment give us the confidence to update our 2025 outlook.”
Emerson Electric CEO, on the earnings call
Forward Guidance & Outlook
Emerson updated its fiscal year 2025 guidance to reflect full ownership of AspenTech. Net sales growth is now expected at approximately 4%, with underlying sales growth held at the midpoint of ~4%. GAAP EPS guidance is $4.05–$4.20 (lower due to transaction-related costs), while adjusted EPS guidance increases to $5.90–$6.05 at the midpoint. Operating cash flow is expected at $3.5B–$3.6B and free cash flow at $3.1B–$3.2B, reflecting strong operational performance partially offset by ~$0.2B in transaction-related headwinds. For Q3 2025, the company guides net sales growth of 4.5%–5.5%, underlying sales growth of 3.5%–4.5%, GAAP EPS of $1.04–$1.08, and adjusted EPS of $1.48–$1.52. The company expects to return ~$2.3B to shareholders through $1.1B of share repurchases and ~$1.2B in dividends.
EMR YoY Financials
EMR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.