Emerson Electric’s Bold Power Play: Tapping Into a New Energy Supercycle!

Emerson Electric Manufacturing Company concluded its fiscal year 2025 with a mixed performance, marked by both achievements and challenges. Financially, Emerson reported $1.62 in adjusted earnings per share for the fourth quarter, aligning with its expectations. For the full year, adjusted earnings per share increased by 9% to $6, while free cash flow rose 12% year-over-year, reaching $3.24 billion. These results indicate robust profitability growth, driven by a 4% increase in underlying sales for the quarter, although full-year underlying sales saw a modest 3% growth. The company reported resilient demand in sectors such as automation, driven by investments in digital transformation technologies. The growth was notably strong in Testing & Measurement, which saw orders rise by 27% in the fourth quarter. Furthermore, Emerson expanded its adjusted segment EBITDA margin to 27.6% for the year, thanks to a favorable pricing environment and cost-cutting measures, including synergies from recent acquisitions like AspenTech.