Emerson Electric Co.
EMRBusiness 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.