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Emerson Reports Fourth Quarter and Full Year 2025 Results

Emerson (NYSE: EMR) has unveiled its results for the fourth quarter and the entire fiscal year ending September 30, 2025. The company has demonstrated impressive growth metrics, showcasing a solid foundation for continued success as it turns its gaze toward the upcoming fiscal year of 2026.

Financial Performance Overview

During the fourth quarter of 2025, Emerson reported a 5% increase in net sales, reaching $4,855 million compared to $4,619 million in the same period last year. Furthermore, for the entire fiscal year, net sales were $18,016 million, reflecting a 3% rise from the previous year's $17,492 million. This consistent growth in sales reinforces Emerson’s commitment to operational excellence and market demand.

The underlying orders showed a growth of 4% year-on-year, translating to even more optimistic growth, particularly in key segments such as the Intelligent Devices and Control Systems Software. Notably, pretax earnings surged from $679 million in Q4 2024 to $796 million in Q4 2025, highlighting a significant rise in profitability.

In a move to enhance shareholder value, Emerson’s Board of Directors declared a 5% increase in its quarterly cash dividend to $0.555 per share, with payments scheduled for December 10, 2025.

Capital Feedback and Share Repurchase Initiatives

A noteworthy development is the approval for stock buybacks, with Emerson authorized to repurchase up to 50 million shares, adding to the previous authorization from March 2020 for acquiring 60 million shares, of which 20 million remain. This proactive approach to returning value to shareholders marks a strategic allocation of capital aimed at boosting stock performance.

Management Insights

Lal Karsanbhai, President and CEO of Emerson, commented on the company's strong performance despite some market headwinds:
"Emerson delivered a solid fiscal 2025, marked by continued margin expansion, robust cash generation, and strong execution. Our global teams have been instrumental in driving our performance and advancing Emerson's position as the leading automation company."

Further reinforcing their operational strategy, Karsanbhai indicated that Emerson's focus on integrating AspenTech and completing the Test Measurement integration will lead to cost synergies amounting to $200 million.

Future Outlook for 2026

Looking forward, Emerson is setting ambitious targets with a projected net sales growth of approximately 5.5% for fiscal year 2026 and an anticipated earnings per share range of $4.73 to $4.93 for the year. The company plans to return around $2.2 billion to shareholders through approximately $1 billion in share repurchases and about $1.2 billion in dividends during the year.

The vision for capital allocation appears to be clear, with a shift toward increasing shareholder returns while remaining committed to sustainable growth driven by long-term trends in the automation and technology sectors. Emerson’s continued investments in innovation, particularly in their automation technologies, are expected to drive sales growth well into 2026 and beyond.

Upcoming Events

To further engage with the investor community, Emerson is scheduled to hold an in-person and virtual investor conference on November 20, which aims to provide deeper insights into the company’s strategy going forward. A live webcast will commence at 8:00 AM Central Time, available for those who wish to participate and ask questions.

About Emerson

Headquartered in St. Louis, Missouri, Emerson is recognized as a global leader in industrial technology, specializing in advanced automation solutions. The integration of innovative devices, control systems, and industrial software positions Emerson at the forefront of the market, effectively driving high-performance business operations.

For more information about Emerson and its initiatives, visit Emerson.com.