Emerson Electric Co.
EMRFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$4.6B
Q2 FY2026 · +2.93% YoY · Beat consensus by 0.04%
TTM ROIC
11%
FY2025 · NOPAT / Invested Capital (Equity + Net Debt); NOPAT = EBIT × (1 - 21% tax rate) · WACC ~9.5% · Moat spread +1.5pp
Financial Snapshot
ticker: EMR step: 04 generated: 2026-05-12 source: quick-research
Emerson Electric (EMR) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026E |
|---|---|---|---|---|---|
| Revenue | $19.6B | $15.2B | $17.5B | $18.0B | $18.7-19.0B |
| Underlying Sales Growth | +9% | +9% | +6% | +5% | +5-6% |
| Gross Margin | 41.5% | 49.4% | 50.8% | 51.5% | 52.0% |
| Adj Segment EBITDA Margin | 23.0% | 25.0% | 26.0% | 26.8% | 27.5% |
| Adj EPS | $5.16 | $4.44 | $5.49 | $5.95 | $6.20-6.40 |
| Backlog | – | – | $7.0B | $7.9B | $8.5B+ |
Note: FY2023 figures reflect Climate Technologies divestiture mid-year. FY24 record gross margin 50.8%. Q1 FY26: orders +9% YoY (4 consecutive quarters acceleration); book-to-bill 1.13.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$3.3B |
| Free Cash Flow | ~$3.0B |
| FCF Conversion | ~95% |
| Cash & Equivalents | ~$1.8B |
| Total Debt | ~$8.5B (after AspenTech debt) |
| Net Debt/EBITDA | ~1.5x |
Key Ratios (approximate)
- P/E: ~22x | EV/EBITDA: ~17x | FCF Yield: ~3.7%
- Revenue Growth (TTM): ~3% | Op Margin: ~22%
- Dividend Yield: ~1.8% | Dividend: $2.10/share
- 68-year consecutive dividend growth (Dividend King)
Growth Profile
Long-term model: 4-7% organic revenue growth + 100bps annual margin expansion + 8-10% adj EPS growth. AspenTech $200M synergies by 2027. Software mix shift toward 25%+ of revenue. Backlog growing 9% YoY = 18-24 months visibility. Margin expansion from software + automation mix.
Forward Estimates
- FY 2026 (ending Sep 2026): Revenue $18.7-19.0B; adj EPS $6.20-6.40; +5-6% underlying
- FY 2027: Revenue ~$20B; adj EPS $6.80-7.20 (AspenTech synergies + LNG cycle)
- LNG capex super-cycle + AI data center power capex + life sciences = multi-year tailwinds
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $EMR.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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