Emerson Electric Co.

EMR
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$4.6B
Q2 FY2026 · 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
Margin Profile
Gross 52.8%
Operating 24.5%
FCF 14.8%
FY2025
Net Debt
$6.7B
Cash $1.8B · Debt $8.5B · FY2024
Diluted Shares
560M
FY2025

Business Overview

ticker: EMR step: 01 generated: 2026-05-12 source: quick-research

Emerson Electric Co. (EMR) — Business Overview

Business Description

Emerson Electric is a global technology and software company focused on industrial automation — the controls, sensors, valves, and software that run power plants, LNG terminals, life sciences facilities, refineries, chemicals plants, and AI data centers. Under CEO Lal Karsanbhai (since 2021), Emerson has spent 5 years dismantling its conglomerate and rebuilding into a pure-play automation leader via divestitures + AspenTech + NI acquisitions.

Revenue Model

~$18B FY2024 revenue across two business groups: Intelligent Devices (Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity) + Software and Control (Control Systems & Software, Test & Measurement / NI, AspenTech). Long-cycle process automation orders → backlog $7.9B (up 9% YoY). 74% Ovation power control orders growth in Q1 FY26. Software mix increasing margin profile.

Products & Services

  • Final Control + Sensors — Valves, regulators, instruments for process industries (largest sales)
  • Discrete Automation — PLCs, drives, motion control
  • Control Systems (DeltaV, Ovation) — Distributed control systems for process + power
  • Test & Measurement (NI) — Automated test + measurement platform; $8.2B acquisition completed 2023
  • AspenTech — Industrial AI software + digital twins + process optimization; full ownership completed March 2025 ($6.6B remaining shares)
  • Project Beyond — Software-defined OT-ready digital platform (next-gen automation)
  • Safety & Productivity — Industrial safety products (divested portfolio)

Customer Base & Go-to-Market

Diverse industrial end-markets: chemicals, oil & gas/LNG (~25%), power generation (~15%), life sciences (~15%), data centers, mining, water/wastewater. Globally distributed (~45% North America, ~30% Europe/MEA, ~25% Asia/LatAm). Sells through direct sales + channel partners + system integrators.

Competitive Position

Top 5 global industrial automation player. Competes with Honeywell (HON), Schneider Electric (SU), Rockwell Automation (ROK), ABB, Siemens. Differentiation: AspenTech + NI = unique combination of hardware + AI software + test platforms. LNG + power generation + life sciences exposure provides cyclical balance.

Key Facts

  • Founded: 1890
  • Headquarters: St. Louis, MO
  • Employees: ~67,000
  • Exchange: NYSE (EMR)
  • Sector / Industry: Industrials / Electrical Equipment & Automation
  • Market Cap: ~$80B
  • CEO: Lal Karsanbhai (since Feb 2021)

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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