EMR
Emerson Electric Co.134.09
-3.17-2.31%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q1 '26
Orders breakdown confirms H2 strength
Q&A unpacked Q1's 9% orders surge, revealing 18% North America growth from power modernizations and behind-the-meter data centers, with backlog visibility into 2027. Power's Ovation jumped 74%, but management eyes mid-teens for the year; AI seen as software accelerator, not threat. Minimal DRAM exposure ($8M total) shrugs off chip inflation; tariff relief tops $130M baked-in costs. China outlook bearish at low-single-digit decline despite T&M/power green shoots; chemicals, autos stay weak. NA orders hit 18%—sustained high single digits expected. Backlog supports H2 acceleration. Tone stays confident on guidance.
Key Stats
Market Cap
75.40BP/E (TTM)
33.19Basic EPS (TTM)
4.04Dividend Yield
0.02%Recent Filings
8-K
New $2B 364-day facility
8-K
Shareholders reject board declassification
Emerson shareholders elected directors Craighead, Flach, and Levatich at the February 3, 2026 annual meeting, while approving executive pay and KPMG as auditors. Shareholders rejected declassifying the board, falling short of the 85% threshold with 415M for versus 5.7M against. Governance stays classified.
8-K
Q1 sales up 2% underlying
Emerson reported Q1 net sales of $4,346M, up 4% reported and 2% underlying, with pretax earnings flat at $775M but adjusted EPS rising 6% to $1.46. Strong 9% underlying orders signal demand in automation software and North America. Q2 underlying sales guide 1-2%; full-year ~4% with $6.40-$6.55 adjusted EPS. Cash flow dipped.
10-Q
Q1 FY2026 results
Emerson posted Q1 FY2026 net sales of $4.3B, up 4% y/y, with Software & Systems up 5%, Intelligent Devices up 4%, and Safety & Productivity up 3%; gross margin slipped to 53.2% from 53.5% on tariffs and software renewal timing, yet pretax earnings held flat at $775M as lower intangibles amortization offset higher interest. Diluted EPS rose 5% to $1.07 on 605M net earnings to common stockholders, reconciling to 564.1M diluted shares. Cash swelled to $1.7B q/q, operating cash flow generated $699M, and free cash flow $602M despite $97M capex; total debt climbed to $13.4B including short-term, after repaying €500M euro notes. AspenTech buyout closed March 2025 for $7.2B. Tariffs crimp margins.
8-K
Emerson unveils new segments
Emerson revamped its management structure post-transformation, rolling out five new segments—Software & Systems, Intelligent Devices, and Safety & Productivity—for fiscal 2026 reporting. Supplemental data shows Intelligent Devices driving $10.1B in 2025 sales at 25.1% Adjusted EBITA margin, while Software & Systems hit $5.8B. New structure sharpens focus. Data unaudited.
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