Emerson Electric Reports 4% Sales Increase and 68% Earnings Surge in Q3 Fiscal 2025

Emerson Electric Co. reported a consolidated net sales increase of 4% for the third quarter of fiscal 2025, reaching $4.6 billion, compared to $4.4 billion in the same period last year. The company's earnings from continuing operations attributable to common stockholders surged 68% to $580 million, translating to diluted earnings per share of $1.03, up from $0.60 in the prior year. The increase in profitability was bolstered by a favorable foreign currency translation impact of 1% and a strong operational performance, with adjusted diluted earnings per share rising 6% to $1.52.

In the nine months ending June 30, 2025, Emerson's net sales totaled $13.2 billion, reflecting a 2% increase from $12.9 billion in the previous year. The company reported a significant rise in earnings from continuing operations, which reached $1.65 billion, a 56% increase compared to $1.06 billion in the prior year. The diluted earnings per share for the nine-month period also rose to $2.91 from $1.84, while adjusted diluted earnings per share increased by 9% to $4.38.

Strategically, Emerson completed the acquisition of Aspen Technology, Inc. on March 12, 2025, for approximately $7.2 billion, consolidating it into the Control Systems & Software segment. This acquisition is expected to enhance Emerson's capabilities in software and control solutions. Additionally, the company acquired National Instruments Corporation in October 2023, further expanding its portfolio in automated test and measurement systems. These acquisitions are part of Emerson's strategy to strengthen its position in key markets and drive future growth.

Operationally, Emerson's Intelligent Devices segment reported a 4% increase in sales, driven by strong demand in power end markets, particularly in the Americas. The Software and Control segment also saw a 3% increase in sales, with Control Systems & Software sales rising 4%. The company’s total assets decreased to $42.5 billion as of June 30, 2025, from $44.2 billion at the end of the previous fiscal year, primarily due to increased short-term borrowings and a decline in cash and equivalents.

Looking ahead, Emerson anticipates consolidated net sales from continuing operations to increase by approximately 3.5% for fiscal year 2025, with earnings per share projected at around $4.08. The company expects to generate operating cash flow of approximately $3.6 billion and free cash flow of about $3.2 billion, while planning to return approximately $2.3 billion to shareholders through share repurchases and dividends. Emerson remains focused on maintaining its investment-grade ratings and improving its leverage ratios through strong operational cash flows.