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Mar 31
Emerson Q2 2025 Earnings Report
Emerson reported solid Q2 results with record adjusted EBITA margins and strong free cash flow.
Key Takeaways
Emerson exceeded expectations on adjusted EPS and margins, supported by its operational excellence and AspenTech integration, despite lower GAAP EPS and compressed GAAP margins.
Adjusted EPS grew to $1.48, surpassing expectations.
Adjusted segment EBITA rose to $1.24B with a 28.0% margin, up from 26.0% last year.
Free cash flow increased 14% YoY to $738M.
AspenTech integration completed, contributing to portfolio transformation.
Emerson
Emerson
Emerson Revenue by Segment
Emerson Revenue by Geographic Location
Forward Guidance
Full-year guidance updated to reflect AspenTech acquisition and strong operational trends.
Positive Outlook
- Adjusted EPS guidance raised to $5.90–$6.05.
- Free cash flow outlook improved to $3.1B–$3.2B.
- Full ownership of AspenTech now integrated into guidance.
- Revenue growth outlook revised to ~4%.
- Strong order growth expected to continue in H2.
Challenges Ahead
- GAAP EPS guidance lowered due to transaction-related costs.
- Tariff environment remains a challenge.
- Higher interest expense and integration costs.
- Free cash flow impacted by $200M in transaction-related headwinds.
- Short-term increase in leverage due to AspenTech buy-in.
Revenue & Expenses
Visualization of income flow from segment revenue to net income