Emerson’s orders rise 14 per cent in its final fiscal quarter
Emerson reported 14 per cent growth in underlying orders and 7 per cent sales growth in its final fiscal quarter. The automation group entered its new financial year projecting further sales and cash flow growth. Its initial outlook also includes share repurchases and dividends, following higher quarterly earnings and cash generation.
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Orders outpace sales
Emerson reported higher sales and earnings in its final fiscal quarter, with underlying orders increasing 14 per cent.[1], [2]
Sales from continuing operations reached 5.201 billion dollars in the quarter ended September 30, up 7 per cent. Underlying sales, which exclude currency effects and significant acquisitions and divestitures, also rose 7 per cent. The underlying order measure excludes AspenTech. Chief executive Lal Karsanbhai attributed order growth to long-cycle project activity across business groups and regions.[1]
Profit and cash improve
Quarterly pretax earnings increased from 760 million dollars to 997 million dollars, lifting the margin from 15.6 per cent to 19.2 per cent. Adjusted earnings per share rose 15 per cent to 1.86 dollars. Free cash flow increased 9 per cent to 916 million dollars. Across the full financial year, sales grew 5 per cent to 18.982 billion dollars, and free cash flow reached 3.535 billion dollars.[1]
Initial outlook for the new year
For fiscal 2027, Emerson projects approximately 5 per cent sales growth and about 7.25 dollars in adjusted earnings per share. It expects 3.8–3.9 billion dollars of free cash flow. The framework assumes approximately 2.5 billion dollars in share repurchases and 1.3 billion dollars in dividends. These are management forecasts. The quarterly dividend was raised 7 per cent to 0.595 dollars, payable on December 10.[1]
