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Emerson's Strategic Vision for the Autonomous Future

At the 2025 Investor Conference held on November 20, Emerson (NYSE: EMR) outlined its strategic direction focused on engineering a future characterized by automation. Led by President and CEO Lal Karsanbhai, the company emphasized its transformation into a global leader in automation, dedicated to value creation across diverse sectors. This conference served as a platform to unveil new financial targets for 2028, reflecting Emerson's confidence in its growth trajectory.

Key Highlights

Karsanbhai expressed that Emerson is poised to thrive in an era where autonomy reigns. With a strategically differentiated portfolio and significant exposure to high-growth markets, Emerson is well-equipped to support clients in their transition to autonomous operations.

The updated 2028 financial projections provided during the conference showcase ambitious targets, including:

• - Net Sales Target: $21 billion with an organic compound annual growth rate (CAGR) of 5%
• - EBITA Margin: 30%, marking a 2.4 percentage point increase
• - Adjusted EPS: Expected to reach $8.00, reflecting a 10% CAGR
• - Free Cash Flow: Forecasted to generate $12 billion cumulatively from 2026 through 2028, with a plan to return $10 billion to shareholders via buybacks and increased dividends

Additionally, Emerson aims for sustainable organic sales growth with a target range of 4–7%, along with incremental margins of 40% and an adjusted EPS growth of 10%. This focus on operational excellence, price realization, and leveraging acquisition synergies is expected to enhance margins significantly.

Commitment to Shareholder Value

Within its value creation framework, Emerson prioritizes robust cash generation, aiming to return substantial capital to its shareholders. The outlook presented aligns with the continuing dedication to enhancing shareholder returns, a critical component of Emerson's long-term strategy.

Karsanbhai further reaffirmed Emerson's expectations for the upcoming quarter and full-year outlook for 2026, which were initially outlined on November 5, 2025. The company’s consistency in delivering strong financial performance underscores its commitment to shareholder value over the long haul.

Looking Ahead

Emerson's journey is characterized by its active pursuit of innovation and its commitment to customer success as industries embrace autonomous technologies. The company believes that significant organic growth will be driven by trends in key sectors such as power, LNG, life sciences, semiconductors, and aerospace and defense.

As Emerson continues to pave the way towards a future defined by autonomy, it remains focused on maximizing the benefits of its technology stack for its customers, marking a new chapter in its storied history. By successfully navigating the complexities of global operations, Emerson is not only engineering the autonomous future but also setting the benchmark for industry performance and shareholder engagement.

For more detailed information about the conference's insights and Emerson’s future plans, you can access the full webcast replay and presentation available on Emerson's Investor Relations website: Emerson Investor Relations.

About Emerson

Founded and headquartered in St. Louis, Missouri, Emerson is a leader in automation technology, constantly innovating to address the most complex technological challenges through advanced engineering solutions. As it engineers the autonomous future, Emerson is committed to enabling its customers to optimize operations and enhance innovation across industries.

Forward-Looking Statements: This article includes forward-looking statements reflecting management's expectations based on currently available information, highlighting potential risks and uncertainties that may affect actual outcomes. Emerson is under no obligation to update these statements as conditions change.