Emerson Reports 2Q 2025 Results, Updates 2025 Outlook

Emerson reported results for its second quarter ended March 31, 2025 and updated its full year outlook for fiscal 2025. Net sales were $4,432 million, up 1% from the second quarter of 2024. Adjusted segment EBITA was $1,240 million, up slightly, while free cash flow was $738 million, up 14%.

Emerson also declared a quarterly cash dividend of $0.5275 per share of common stock payable June 10, 2025 to stockholders of record on May 16, 2025.

“Emerson delivered strong underlying orders in the second quarter with margin expansion and adjusted earnings exceeding our expectations,” said Lal Karsanbhai, Emerson president and CEO. “We achieved another quarter of record gross profit and adjusted segment EBITA margins, supported by our Emerson Management System and demonstrating the value customers attribute to our leading technology. Our superior first-half performance and ability to navigate the tariff environment give us the confidence to update our 2025 outlook.

“We have also marked the conclusion of Emerson’s portfolio transformation with the completion of the AspenTech buy-in on March 12,” Karsanbhai added. “We are pleased to be making significant progress on the integration. In addition, our review of strategic alternatives for our Safety & Productivity segment concluded the best value for our shareholders is to retain the business and continue to drive the segment’s industry-leading margins and cash flow. Looking ahead, we are excited to capitalize on the growth potential of our transformed portfolio, supported by secular drivers, and to sustain the excellent operational performance we have consistently delivered since 2021.”

The fiscal year 2025 guidance framework now reflects the full ownership of AspenTech. Net sales guidance increases to ~4%, as the impact from foreign exchange is now expected to be flat, and underlying sales are held at the midpoint. Expectations for operating cash flow and free cash flow are updated to $3.5 billion to $3.6 billion and $3.1 billion to $3.2 billion, respectively, as strong operational performance partially offsets transaction-related headwinds of ~$0.2 billion.