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2026 Q3 Earnings August 4 , 2026 EMERSON
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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, Middle East 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 CTO Transition Announcement – Emerson Well-Positioned to Continue Accelerating Innovation and Driving Growth Peter Zornio Chief Technology Officer Rudy Sengupta Chief Technology & AI Officer Retiring after 20 years at Emerson 20+ years of experience across engineering, strategy and operations at Emerson and NI Currently VP & GM Test and Analytics Software
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EMERSON | 4 Key Messages 1 Annual contract value. See end notes for definition. End-Market Demand Q3 underlying orders growth of 7% Broad-based demand across all business groups, led by Software & Systems Strong growth in North America and Asia Raising Full Year 2026 Guidance Raising sales growth to ~5%, ~3.5% underlying Adjusted segment EBITA margin of ~28% Raising adjusted EPS to ~$6.55 Reiterating plan to return ~$2.2B to shareholders through ~$1B share repurchase and 5% dividend per share increase Middle East Update Resilient performance in enabling business continuity Constructive demand environment with repair work underway; customer operational capacity still ~75% Long-term capital outlook remains robust with near-term prioritization of resiliency projects Q3 Performance Exceeded Expectations Underlying sales growth of 6% Adjusted segment EBITA margin of 28.5% Adjusted EPS of $1.71, up 13% yoy ACV 1 of $1.68B, up 9% yoy
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EMERSON | 5 EMERSON | 5 Sustained Robust Demand Trailing Three-Month Underlying Orders1 (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 Mar-26 Jun-26 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 year 2023. Continued strength in North America, India, Japan and SE Asia Europe and China improving but soft Resilient momentum in longer-cycle project bookings, led by Power and Aerospace & Defense Q3 DRIVERS ~$400M Q3 project wins ~80% from growth verticals 7% Q3 ENDING PROJECT FUNNEL ~$7.5B Growth Verticals +$1B QoQ $12.4B +$1.2B QoQ
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EMERSON | 6 $4.6B $4.9B 0 1 2 3 4 5 6 2025 2026 2026 Q3 Performance Summary 27.1% 28.5% 0.0% 5.0% 10. 0% 15. 0% 20. 0% 25. 0% 30. 0% 2025 2026 $970M $1,323M 0 200 400 600 800 1000 1200 1400 2025 2026 $1.52 $1.71 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2025 2026 Sales Underlying Sales Growth: Price contributed 3 pts Backlog1: $8.2B; up 7% yoy Outstanding operational performance contributed $0.19 yoy Exceeded expectations due to better volume and segment mix Price-cost and cost reductions outpaced inflation Operating leverage: 48% Adjusted Segment EBITA Adjusted EPS Free Cash Flow Good operational performance; exceeded expectations due to impact of tariff refunds and the timing of tax payments YTD free cash flow up 9%; YTD margin of 19.0% 6% Underlying 13% 36% 140 bps 1 Excludes AspenTech Software & Systems Intelligent Devices Safety & Productivity 11% 5% 2% 21.3% Margin 27.1% Margin
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EMERSON | 7 EMERSON | 7 -2. 000 E urope A sia, MEA Americas 2026 Q3 Underlying Sales by Region Asia, Middle East & Africa Europe Americas +8% U.S. +10% (1%) +8% Middle East & Africa +11% China (3%) Sustained strength in the U.S. Europe remains stable but soft 2026 OUTLOOK 2026 Q3 GEOGRAPHIC MIX $4.9B 52% Americas 30% Asia, Middle East & Africa 18% Europe
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EMERSON | 8 Software & Systems Safety & Productivity Intelligent Devices 2026 Q3 Group Results Sales ($M) Underlying Growth May Guide Underlying Growth Adjusted EBITA Margin Commentary $1,644 11% ~8% 31.8% Robust underlying growth in both Test & Measurement, +23%, and Control Systems & Software, +7% Strength in growth verticals led by Power, Semiconductor and Aerospace & Defense ACV grew 9% yoy $2,677 5% ~4% 27.9% Sustained growth in North America, offset by weakness in Europe and China Strong performance in Power, LNG and Midstream Gas $552 2% ~1% 21.2% Momentum in electrical products and industrial activity in North America Persistent softness in Europe and Automotive
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EMERSON | 9 Software & Systems Safety & Productivity Intelligent Devices Emerson excluding impact of renewals 2026 Group Underlying Sales Guidance Q4 Full Year Prior Full Year Guide Assumptions ~10% T&M: ~10% CS&S: ~10% ~6% T&M: ~14% CS&S: ~3.5% ~5% T&M: Low-teens CS&S: LSD Broad-based strength in Test & Measurement and Control Systems & Software in the U.S. and growth verticals ACV expected to grow 10%+ for the full year ~3% ~2% ~2% Stable MRO with full resumption of activities in the Middle East dependent on Strait of Hormuz Strength in U.S. and growth verticals ~1% ~2% ~2% Recovering North America market and electric utility strength Automotive markets and Europe remain weak ~5% ~3.5% ~3% Growth driven by the United States and India ~0.5 pt full year impact from the conflict in the Middle East Sustained momentum in Power, LNG, Life Sciences, Semiconductor and Aerospace & Defense~4.5% ~4%
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EMERSON | 10 EMERSON | 10 2026 Guidance Free Cash Flow ~$3.6B ~$2.2B returned to shareholders through ~$1.2B dividend and ~$1B share repurchase Tax rate: ~21.5% Assumes impact of Middle East conflict is contained within the region OTHER 2026 GUIDANCE DETAILS GAAP Sales Growth Underlying Sales Growth ~5% ~3.5% Adjusted Segment EBITA ~28% Adjusted EPS ~$6.55 GAAP Sales Growth Underlying Sales Growth ~5% ~5% Adjusted Segment EBITA ~28.5% Adjusted EPS ~$1.85 Full Year Q4
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EMERSON | 11 EMERSON | 11 Appendix
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EMERSON | 12 (in millions) 2026 Q3 Results 2026 Q4 Expectations 2026 Expectations Stock Compensation – GAAP Integration-Related Stock Compensation Expense Adjusted Stock Compensation – Non-GAAP ($68) $4 ($64) ~($60) ~$3 ~($57) ~($240) ~$15 ~($225) Pension Income / (Expense) $29 ~$30 ~$115 Corporate & Other – GAAP Restructuring and Related Costs Acquisition/Divestiture Fees and Related Costs IEEPA Tariff Refunds Adjusted Corporate & Other – Non-GAAP ($1) $6 $28 ($82) ($49) ~($39) ~$2 ~$4 - ~($33) ~($140) ~$15 ~$47 ~($82) ~($160) Interest Expense, Net ($85) ~($72) ~($330) Average Diluted Share Count 561.1 ~559 ~562 Corporate and Other Items
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EMERSON | 13 Q3 Adjusted Segment EBITA and EPS Bridges 0 0.5 1 1.5 2 2025 Operations Other / Non-Operating 2026 $1.52 $1.71$0.19 13% $0.00 Adjusted Segment EBITA Margin 27.1% 1.4 pts n/a 28.5%
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EMERSON | 14 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 Q3 2026 Q4 Guidance 2026 Guidance Reported (GAAP) 7% ~5% ~5% (Favorable) / Unfavorable FX (1%) - ~(1.5%) (Acquisitions) / Divestitures - - - Underlying (non-GAAP) 6% ~5% ~3.5% 2026 Q3 Underlying Sales Change Reported (GAAP) (Favorable) / Unfavorable FX (Acquisitions) / Divestitures Underlying (Non-GAAP) Software & Systems 11% - - 11% Test & Measurement 23% - - 23% Control Systems & Software 7% - - 7% Intelligent Devices 6% (1%) - 5% Safety & Productivity 3% (1%) - 2%
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EMERSON | 15 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 ~7% (1%) - ~6% Test & Measurement ~15.5% (1.5%) - ~14% Control Systems & Software ~4.5% (1%) - ~3.5% Intelligent Devices ~3.5% (1.5%) - ~2% Safety & Productivity ~3% (1%) - ~2% 2026E Q4 Underlying Sales Change Reported (GAAP) (Favorable) / Unfavorable FX (Acquisitions) / Divestitures Underlying (Non-GAAP) Software & Systems ~10% - - ~10% Test & Measurement ~10% - - ~10% Control Systems & Software ~10% - - ~10% Intelligent Devices ~3% - - ~3% Safety & Productivity ~1% - - ~1%
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EMERSON | 16 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) 2026 Q3 Adjusted Segment EBITA Margin Software & Systems Intelligent Devices Safety & Productivity EBIT margin (GAAP) 18.0% 24.3% 16.9% Amortization of intangibles & restructuring and related costs 13.8% 3.6% 4.3% Adjusted segment EBITA margin (non-GAAP) 31.8% 27.9% 21.2% Adjusted Segment EBITA 2025 Q3 2026 Q3 2026 Q4 Guidance 2026 Guidance Net sales $4,553 $4,873 Pretax earnings (GAAP) $734 $916 Pretax earnings margin (GAAP) 16.1% 18.8% ~19.5% ~18% Corporate items and interest expense, net 211 125 Amortization of intangibles 269 253 Restructuring and related costs 18 93 Corporate items and interest expense, net / amortization of intangibles / restructuring and related costs 11.0% 9.7% ~9% ~10% Adjusted segment EBITA (non-GAAP) $1,232 $1,387 Adjusted segment EBITA margin (non-GAAP) 27.1% 28.5% ~28.5% ~28% Operating Leverage 2026 Q3 Pretax margin leverage (GAAP) 57% Corporate items and interest expense, net / amortization of intangibles / restructuring and related costs (9%) Adjusted segment EBITA leverage (non-GAAP) 48%
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EMERSON | 17 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 Q3 2026 Q3 2026 Q4 Guidance 2026 Guidance Earnings per share (GAAP) $1.03 $1.28 ~$1.45 ~$4.89 Amortization of intangibles 0.37 0.35 ~0.34 ~1.39 Restructuring and related costs 0.06 0.13 ~0.03 ~0.24 Acquisition/divestiture fees and related costs 0.06 0.05 ~0.01 ~0.09 Discrete taxes - 0.01 ~0.02 ~0.05 IEEPA tariff refunds - (0.11) - ~(0.11) Adjusted earnings per share (non-GAAP) $1.52 $1.71 ~$1.85 ~$6.55
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EMERSON | 18 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 Q3 2026 Q3 2025 YTD 2026 YTD 2026 Guidance Net Sales $4,553 $4,873 $13,161 $13,781 ~$18.9 Operating cash flow (GAAP) $1,062 $1,425 $2,664 $2,902 ~$4.1 Capital expenditures (92) (102) (263) (284) ~(0.45) Free cash flow (non-GAAP) $970 $1,323 $2,401 $2,618 ~$3.6 Free cash flow margin (non-GAAP) 21.3% 27.1% 18.2% 19.0% ~19%
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EMERSON | 19 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) June 30, 2025 March 31, 2026 June 30, 2026 Backlog (GAAP) $8.9 $9.5 $9.6 AspenTech (1.3) (1.3) (1.4) Backlog excluding AspenTech (non-GAAP) $7.6 $8.2 $8.2
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EMERSON | 20 EMERSON | 20 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.