Emerson Electric Co.
EMR
Market Cap$67.15B
Close$
Earnings Call Q2 2025
May 7, 2025 - AI Summary
Strong Financial Performance: Emerson reported strong underlying orders growth of 4% in Q2 2025, with adjusted earnings per share of $1.48, a 9% increase year-over-year. This performance was driven by a record gross profit margin of 53.5% and an adjusted segment EBITDA margin of 28%, matching record highs.
Forecast and Guidance: The company raised its adjusted EPS guidance for the year to a range of $5.90 - $6.05 per share, and is guiding for underlying sales growth of approximately 4%. The outlook for the third quarter projects a sales increase of 3.5% to 4.5%, supported by strong demand in Process and Hybrid markets.
Deal and Integration Updates: Emerson completed the acquisition of AspenTech, now operated as an independent business unit. The integration is expected to be modestly accretive to adjusted EPS in FY 2025, with a target of achieving $100 million in cost synergies by 2028. This positions Emerson for double-digit annual contract value (ACV) growth moving forward.
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$53.17
55.5% downside
Current Fair Value
55.5% downsideOvervalued by 55.5% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $67.15 Billion |
|---|---|
| Enterprise Value | $81.38 Billion |
| Dividend Yield | $2.1075 (1.76537108393366%) |
| Earnings per Share | $3.44 |
| Beta | 1.25 |
| Outstanding Shares | 563,000,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 28.06 |
|---|---|
| PEG | -878.72 |
| Price to Sales | 3.85 |
| Price to Book Ratio | 3.51 |
| Enterprise Value to Revenue | 4.62 |
| Enterprise Value to EBIT | 32.45 |
| Enterprise Value to Net Income | 33 |
| Total Debt to Enterprise | 0.2 |
| Debt to Equity | 0.84 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Emerson Electric Co.
CEO: David Farr