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EMERSON | 1 2026 Q1 Earnings February 3, 2026
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EMERSON | 2 EMERSON | 2 Safe Harbor Statement Statements in this presentation and our commentary and responses to questions that are not strictly historical may be “forward-looking” statements, which represent management’s expectations, based on currently available information. Actual results, performance or achievements could differ materially from those expressed in any forward-looking statement. Any forward-looking statements in this presentation speak only as of the date of this presentation. Emerson undertakes no obligation to update any such statements to reflect new information or later developments. Examples of risks and uncertainties that may cause our actual results or performance to be materially different from those expressed or implied by forward-looking statements include the scope, duration and ultimate impacts of the Russia- Ukraine and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein. Non-GAAP Measures In this presentation we will discuss certain non-GAAP measures in talking about our company’s performance, and the reconciliation of those measures to the most comparable GAAP measures is contained within this presentation or available at our website, www.Emerson.com, under Investors. While we believe these non-GAAP financial measures are useful in evaluating our company’s performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Further, these non-GAAP financial measures may differ from similarly titled measures presented by other companies. The reasons management believes that these non-GAAP financial measures provide useful information are set forth in the Company’s most recent Form 10-K filed with the Securities and Exchange Commission and in the press release furnished on Form 8-K on the date of this presentation. Continuing Operations All financial metrics in this presentation are on a continuing operations basis, unless otherwise noted.
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EMERSON | 3 Incremental Margins Organic Sales Growth Adjusted EPS Growth Free Cash Flow Margin VALUE CREATION FRAMEWORK THROUGH-THE-CYCLE 2028 TARGETS 2026 – 2028T $10B Returned to Shareholders $12B $21B Net Sales 30% Adjusted Segment EBITA Margin $8.00 Adjusted EPS 20% Free Cash Flow Margin 4 – 7% 40% 10% 18 – 20% Cumulative Free Cash Flow 1 Organic Growth Aligning with secular tailwinds and delivering on industry- leading innovation 2 Operational Excellence Driving 2.4 pts margin expansion and increasing cash generation (2025 – 2028T) 3 Capital Allocation Increasing cash returns to shareholders through $6B share repurchase and $4B dividends Emerson’s Value Creation Framework November 2025 Investor Conference
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EMERSON | 4 Test & Measurement Is Celebrating 50 Years of Unlocking Productivity Through Innovation Product Award Nigel AI named to Electronic Product Design & Test’s 2025 Product of the Year list Accelerating Innovation Released new Nigel AI capabilities today, enabling automated workflows in a step towards autonomous test Nigel AI Assistant Nigel AI Agent Nigel AI Author Optimized Semi-Autonomous
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EMERSON | 5 Key Messages 1 Annual contract value. See end notes for definition. End-Market Demand Q1 underlying orders growth of 9% Significant demand in Software & Systems as our growth verticals continue to see strong investment Sustained momentum in North America, India and the Middle East & Africa Technology & Innovation Emerson named 2026 Industrial IoT Company of the Year Advanced enterprise operations platform and software-defined automation vision with release of DeltaV v16 DeltaV collaboration with Roche to deliver faster innovation in Life Sciences Full Year 2026 Guidance Sales growth of ~5.5%; ~4% underlying Adjusted segment EBITA margin of ~28% Raising midpoint of adjusted EPS, now $6.40 – $6.55 Reiterating plan to return ~$2.2B to shareholders through ~$1B share repurchase and 5% dividend per share increase Q1 Performance Underlying sales growth of 2% Adjusted segment EBITA margin of 27.7% Adjusted EPS of $1.46 ACV 1 of $1.6B, up 9% yoy
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EMERSON | 6 EMERSON | 6 (2%) (0%) 2% 4% 6% 8% 10% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Robust Orders Driven by Longer-Cycle Project Bookings in Growth Verticals Note: Lines represent smoothed trailing three-month on quarter end points. 1 Excludes AspenTech. Orders data includes Test & Measurement results on a pro forma basis for fiscal years 2022-2023. Trailing Three-Month Underlying Orders1 9% Continued strength in North America, India and the Middle East & Africa, offset by ongoing softness in Europe and China Q1 DRIVERS Broad-based momentum in longer-cycle project bookings, led by Power and LNG Q1 ENDING PROJECT FUNNEL Growth Verticals ~$6B$11.1B ~$450M Q1 project wins ~80% from growth verticals
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EMERSON | 7 $4.2B $4.3B 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 2025 2026 2026 Q1 Performance Summary 28.0% 27.7% 0.0% 5.0% 10. 0% 15. 0% 20. 0% 25. 0% 30. 0% 2025 2026 $694M $602M 0 100 200 300 400 500 600 700 800 2025 2026 $1.38 $1.46 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 2025 2026 Sales Underlying Sales Growth: Price contributed 3 pts Backlog1: $7.9B; up 9% yoy Solid operational performance offset by ($0.06) impact from software contract renewal dynamic Non-operating items contributed $0.04 yoy Exceeded expectations Price-cost and cost reductions outpaced inflation Software contract renewal dynamic was a 70-bps headwind Adjusted Segment EBITA Adjusted EPS Free Cash Flow Exceeded expectations and on- track for full year growth of ~10% with >18% margin Higher interest expense and timing of working capital weighed on Q1 yoy comparison 2% Underlying 6% 13% 30 bps 1 Excludes AspenTech Software & Systems Intelligent Devices Safety & Productivity 3% 2% 1% 16.6% Margin 13.9% Margin
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EMERSON | 8 EMERSON | 8 -2. 000 A sia, MEA E urope Americas 2026 Q1 Underlying Sales by Region Europe Asia, Middle East & Africa Americas +3% U.S. +6% +3% Growth Verticals ~$1B $4.3B +14% Growth Verticals yoy flat Middle East & Africa +9% China (5%) LNG Power Life Sciences Semiconductor Aerospace & Defense Q1 2026 NET SALES
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EMERSON | 9 Software & Systems Safety & Productivity Intelligent Devices 2026 Q1 Group Results Sales ($M) Underlying Growth Adjusted EBITA Margin Commentary $1,453 3% 31.3% Broad-based strength in Test & Measurement, +11% underlying Significant performance in growth verticals led by Power, Semiconductor, Life Sciences and Aerospace & Defense Lower available software renewals impacted underlying growth by 3 pts and adjusted EBITA margin expansion by 2 pts ACV grew 9% yoy $2,390 2% 26.9% Strength in North America MRO, offset by weakness in China Robust performance in Power and LNG Benefitted from timing of projects in Europe $503 1% 20.9% Strength in electrical products and stable project activity in North America Lingering softness in Europe and Automotive
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EMERSON | 10 Q1 Adjusted Segment EBITA and EPS Bridges 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2025 Operations Impact of Renewals Other / Non-Operating 2026 $1.38 $1.46$0.10 6% Share Count $0.02 Tax $0.02 FX $0.01 Other ($0.01) $0.04($0.06) Adjusted Segment EBITA Margin 28.0% 0.4 pts (0.7 pts) n/a 27.7%
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EMERSON | 11 EMERSON | 11 2026 Guidance Free Cash Flow $3.5B – $3.6B Price expected to contribute ~2.5 pts Tax rate: ~21.5% ~$2.2B returned to shareholders through ~$1.2B dividend and ~$1B share repurchase OTHER 2026 GUIDANCE DETAILS GAAP Sales Growth Underlying Sales Growth ~5.5% ~4% Adjusted Segment EBITA ~28% Adjusted EPS $6.40 – $6.55 GAAP Sales Growth Underlying Sales Growth 3% – 4% 1% – 2% Adjusted Segment EBITA ~27% Adjusted EPS $1.50 – $1.55 Full Year Q2
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EMERSON | 12 Software & Systems Safety & Productivity Intelligent Devices Emerson excluding impact of renewals 2026 Group Underlying Sales Guidance Q2 X Full Year Assumptions ~flat T&M: HSD CS&S: (LSD) ~4% T&M: HSD CS&S: LSD Broad-based strength in Test & Measurement Lower available software renewals results in an ~$65M Q2 headwind; impacts Software & Systems full year growth by ~2 pts ACV expected to grow 10%+ for the full year 2% – 3% ~4% Stable MRO Backlog phasing and timing of project shipments support H2 growth 1% – 2% 2% – 3% Recovering North America market and electric utility strength Automotive markets and Europe remain weak 1% – 2% ~4% Growth in Americas, India and the Middle East & Africa expected to continue Sustained momentum in Power, LNG, Life Sciences, Semiconductor and Aerospace & Defense Ongoing weakness expected in Europe and China 3% – 4% ~5%
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EMERSON | 13 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Q2 2025 Operations Impact of Renewals Other / Non-Operating Q2 2026E $1.48 ~$0.05 (~$0.09) $1.50 – $1.55~$0.09 2026 Adjusted Segment EBITA Margin and EPS Bridges 5.5 5.7 5.9 6.1 6.3 6.5 6.7 2025 Operations Impact of Renewals Other / Non-Operating 2026E $6.00 Q2 2025 Operations included favorable mix Impact of renewals is (~0.9 pts) for Adjusted Segment EBITA; ($0.09) for Adjusted EPS Full Year ~$0.50 (~$0.15) $6.40 – $6.55~$0.10 Q2 Impact of renewals is (~0.4 pts) for Adjusted Segment EBITA; (~$0.15) for Adjusted EPS Operations expected to improve Adjusted Segment EBITA by 80 bps driven from price-cost and cost reductions Adjusted EPS Adjusted Segment EBITA Margin 28.0% (~0.2 pts) (~0.9 pts) ~27%n/a Adjusted EPS Adjusted Segment EBITA Margin 27.6% ~0.8 pts (~0.4 pts) ~28%n/a
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EMERSON | 14 EMERSON | 14 Appendix
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EMERSON | 15 (in millions) 2026 Q1 Results 2026 Q2 Expectations 2026 Expectations Stock Compensation – GAAP Integration-Related Stock Compensation Expense Adjusted Stock Compensation – Non-GAAP ($55) $4 ($51) ~($60) ~$5 ~($55) ~($235) ~$20 ~($215) Pension $29 ~$30 ~$110 Corporate & Other – GAAP Restructuring and Related Costs Acquisition/Divestiture Fees and Related Costs Adjusted Corporate & Other – Non-GAAP ($49) $2 $7 ($40) ~($50) ~$5 ~$10 ~($35) ~($210) ~$10 ~$25 ~($175) Interest Income / (Expense) ($90) ~($85) ~($330) Average Diluted Share Count 564.1 ~563 ~562 Corporate and Other Items
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EMERSON | 16 Reconciliation of Non-GAAP Measures Underlying Sales Growth This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) References to underlying orders and underlying sales in this presentation exclude the impact of significant acquisitions, divestitures and currency translation. Underlying Sales Growth 2026 Q1 2026 Q2 Guidance 2026 Guidance Reported (GAAP) 4% 3% - 4% ~5.5% (Favorable) / Unfavorable FX (2%) ~(2%) ~(1.5%) (Acquisitions) / Divestitures - - - Underlying (non-GAAP) 2% 1% - 2% ~4% Impact of Software Contract Renewals ~2% ~1% Underlying Sales Excluding Impact of Software Contract Renewals (non-GAAP) 3% - 4% ~5% 2026 Q1 Underlying Sales Change Reported (GAAP) (Favorable) / Unfavorable FX (Acquisitions) / Divestitures Underlying (Non-GAAP) Software & Systems 5% (2%) - 3% Intelligent Devices 4% (2%) - 2% Safety & Productivity 3% (2%) - 1% 2026 Q1 Underlying Sales Change Reported (GAAP) (Favorable) / Unfavorable FX (Acquisitions) / Divestitures Underlying (Non-GAAP) Test & Measurement 14% (3%) - 11%
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EMERSON | 17 Reconciliation of Non-GAAP Measures Underlying Sales Growth This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) References to underlying orders and underlying sales in this presentation exclude the impact of significant acquisitions, divestitures and currency translation. 2026E Underlying Sales Change Reported (GAAP) (Favorable) / Unfavorable FX (Acquisitions) / Divestitures Underlying (Non-GAAP) Software & Systems ~5.5% ~(1.5%) - ~4% Intelligent Devices ~5.5% ~(1.5%) - ~4% Safety & Productivity 3.5% - 4.5% ~(1.5%) - 2% - 3% 2026E Q2 Underlying Sales Change Reported (GAAP) (Favorable) / Unfavorable FX (Acquisitions) / Divestitures Underlying (Non-GAAP) Software & Systems ~2% ~(2%) - ~flat Intelligent Devices 4% - 5% ~(2%) - 2% - 3% Safety & Productivity 3% - 4% ~(2%) - 1% - 2%
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EMERSON | 18 Reconciliation of Non-GAAP Measures Adjusted Segment EBITA This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) Adjusted Segment EBITA Margin 2026 Q2 Guidance 2026 Guidance Pretax earnings margin (GAAP) ~17% ~19% Corporate items and interest expense, net / amortization of intangibles / restructuring and related costs ~10% ~9% Adjusted segment EBITA margin (non-GAAP) ~27% ~28% 2026 Q1 Adjusted Segment EBITA Margin Software & Systems Intelligent Devices Safety & Productivity EBIT margin (GAAP) 17.0% 25.0% 19.2% Amortization of intangibles & restructuring and related costs 14.3% 1.9% 1.7% Adjusted segment EBITA margin (non-GAAP) 31.3% 26.9% 20.9% Adjusted Segment EBITA 2025 Q1 2025 Q2 2026 Q1 2025 Net sales $4,175 $4,432 $4,346 $18,016 Pretax earnings (GAAP) $775 629 $775 2,934 Pretax earnings margin (GAAP) 18.6% 14.2% 17.8% 16.3% Corporate items and interest expense, net 106 311 165 846 Amortization of intangibles 278 278 254 1,083 Restructuring and related costs 10 22 9 112 Adjusted segment EBITA (non-GAAP) $1,169 $1,240 $1,203 $4,975 Adjusted segment EBITA margin (non-GAAP) 28.0% 28.0% 27.7% 27.6%
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EMERSON | 19 Reconciliation of Non-GAAP Measures Adjusted EPS This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) 2025 Q1 2025 Q2 2026 Q1 2026 Q2 Guidance 2025 2026 Guidance Earnings per share (GAAP) $1.02 $0.86 $1.07 $1.06 - $1.11 $4.03 $4.78 - $4.93 Amortization of intangibles 0.31 0.32 0.35 ~0.35 1.35 ~1.38 Restructuring and related costs 0.02 0.04 0.02 ~0.06 0.23 ~0.14 Acquisition/divestitures fees and related costs 0.03 0.17 0.01 ~0.02 0.33 ~0.06 Discrete taxes - 0.09 0.01 ~0.01 0.06 ~0.04 Adjusted earnings per share (non-GAAP) $1.38 $1.48 $1.46 $1.50 - $1.55 $6.00 $6.40 - $6.55
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EMERSON | 20 Reconciliation of Non-GAAP Measures Free Cash Flow This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts) $ in billions 2025 Q1 2026 Q1 2026 Guidance Net Sales $4,175 $4,346 ~$19.0 Operating cash flow (GAAP) $777 $699 $4.0 - $4.1 Capital expenditures (83) (97) ~(0.45) Free cash flow (non-GAAP) $694 $602 $3.5 - $3.6 Free cash flow margin (non-GAAP) 16.6% 13.9% >18.0%
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EMERSON | 21 Reconciliation of Non-GAAP Measures Other This information reconciles non-GAAP measures with the most directly comparable GAAP measure (dollars in billions, except per share amounts) September 30, 2025 December 31, 2025 Backlog (GAAP) $8.6 $9.2 AspenTech (1.2) (1.3) Backlog excluding AspenTech (non-GAAP) $7.4 $7.9
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EMERSON | 22 EMERSON | 22 Endnotes Annual Contract Value (ACV): ACV is an estimate of the annual value of our portfolio of term license and software maintenance and support (SMS) contracts, the annual value of SMS agreements purchased with perpetual licenses and the annual value of standalone SMS agreements purchased with certain legacy AspenTech term license agreements. Because software revenue recognition rules require upfront recognition of a significant portion of agreements, comparisons of revenue across periods is primarily impacted by the timing of term license renewals. ACV approximates the estimated annual billings associated with our recurring term license and SMS agreements at a point in time, and management finds this business metric useful in evaluating the growth and performance of our industrial software business. For agreements denominated in other currencies, a fixed historical rate is used to calculate ACV in U.S. dollars in order to eliminate the impact of currency fluctuations.