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EMERSON | 1 2026 Q4 and Full Year Earnings November 4, 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, 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, https://ir.emerson.com/. 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 Key Messages 1 Annual contract value. See end notes for definition. End-Market Demand Q4 underlying orders growth of 14% Strength in all business groups, led by Software & Systems +18% and Intelligent Devices +13% Growth in all regions, led by North America +15% and Middle East +42% Full Year 2027 Guidance Sales growth of ~5%; ~5% underlying Adjusted segment EBITA margin of ~29% Adjusted EPS of ~$7.25 Plan to return ~$3.8B to shareholders through ~$2.5B share repurchase and $0.16 dividend per share increase, +7% yoy 2026 Performance Underlying sales growth of 4% Adjusted EPS of $6.59, up 10% yoy Free cash flow of $3.5B, up 9% yoy ACV 1 of $1.7B, up 10.1% yoy Q4 Performance Exceeded Expectations Underlying sales growth of 7% Adjusted segment EBITA margin of 29.1% Adjusted EPS of $1.86, up 15% yoy
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EMERSON | 4 Delivering on Value Creation Framework November Guidance August Guidance 2026 Results Underlying Sales Growth ~4% ~3.5% 4% Adjusted Segment EBITA Margin ~28% ~28% 28.2% Adjusted EPS YoY Growth $6.35 – $6.55 ~$6.55 $6.59 10% Free Cash Flow Margin $3.5B – $3.6B >18% ~$3.6B ~19% $3.5B 18.6%
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EMERSON | 5 EMERSON | 5 Demand Led by Growth Verticals Trailing Three-Month Underlying Orders1 (2%) (0%) 2% 4% 6% 8% 10% 12% 14% 16% 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 Sep-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. Growth in all business groups Power, LNG and Aerospace & Defense led long-cycle project activity Strength in North America, SE Asia and the Middle East; China remains weak Q4 DRIVERS ~$575M Q4 project wins ~75% from growth verticals 14% Q4 ENDING PROJECT FUNNEL ~$8B Growth Verticals +$0.5B QoQ $13.0B +$0.6B QoQ
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EMERSON | 6 2027 Growth Outlook % of Sales1 Assumptions 20262 2027E Growth Verticals Power, LNG, Life Sciences, Semiconductor, Aerospace & Defense 27% Robust performance driven by secular trends of electrification, energy security and nearshoring, especially in the U.S. Broad-based strength across greenfield, modernizations and MRO +21% LDD Other Automation Markets 73% Prolonged weakness in Europe and China Improving MRO activity from pent-up demand in Energy Resiliency projects beginning to materialize in MEA Favorable trends in U.S. industrial activity and electrical equipment Flat LSD Americas ~50% of sales MSD 2026 2027E 7% Europe ~20% of sales LSD 2026 2027E (1%) Asia, Middle East & Africa ~30% of sales MSD 2026 2027E 3% 1 Based on 2026 sales. 2 GAAP sales growth in 2026.
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EMERSON | 7 $4.9B $5.2B 0 1 2 3 4 5 6 2025 2026 2026 Q4 Performance Summary 27.5% 29.1% 0.0% 5.0% 10. 0% 15. 0% 20. 0% 25. 0% 30. 0% 2025 2026 $843M $916M 0 100 200 300 400 500 600 700 800 900 1000 2025 2026 $1.62 $1.86 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2025 2026 Sales Underlying Sales Growth: Volume contributed 4 pts Price contributed 3 pts Backlog1: $8.2B; up 11% yoy Operational performance contributed $0.25 yoy Exceeded expectations due to better volume and segment mix Price-cost and cost reductions outpaced inflation Adjusted Segment EBITA Adjusted EPS Free Cash Flow 2026 FCF: $3.5B, +9% yoy, 18.6% margin 7% Underlying 15% 9% 160 bps 1 Excludes AspenTech Software & Systems Intelligent Devices Safety & Productivity 14% 4% 2% 17.4% Margin 17.6% Margin
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EMERSON | 8 EMERSON | 8 -2. 000 E urope A sia, MEA Americas 2026 Q4 Underlying Sales by Region Asia, Middle East & Africa Europe Americas +9% U.S. +11% +1% +7% Middle East & Africa +19% Mix 63% MRO 17% Modernization & Expansion 20% Greenfield $5.2B Net Sales End Market 28% Growth Verticals
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EMERSON | 9 Software & Systems Safety & Productivity Intelligent Devices 2026 Q4 Group Results Sales ($M) Underlying Growth Aug. Guide Underlying Growth Adjusted EBITA Margin Commentary $1,712 14% ~10% 32.3% Test & Measurement +15% Control Systems & Software +14% Power, LNG and Semiconductor verticals drove growth ACV +10.1% yoy $2,916 4% ~3% 28.4% Growth in North America and Middle East, partially offset by weakness in Europe and China Growth led by Power, LNG and Gas (Upstream & Midstream) $573 2% ~1% 22.9% Strength in electrical products and U.S. industrial activity Continued weakness in Europe
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EMERSON | 10 Software & Systems Safety & Productivity Intelligent Devices Emerson 2027 Group Underlying Sales Guidance Q1 Full Year Assumptions 8% – 9% 7% – 8% Broad-based strength in the United States and growth verticals HSD growth in both Test & Measurement and Control Systems & Software (Q1 & full year) ACV expected to grow ~10% for the full year 3% – 4% ~4% Strength in U.S. and growth verticals Stable MRO Status quo in the Middle East 3% – 4% 3% – 4% Favorable North America industrial activity and electric utility strength Europe remains weak ~5% ~5% Growth driven by the United States, India and Middle East & Africa Sustained momentum in Power, LNG, Life Sciences, Semiconductor and Aerospace & Defense
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EMERSON | 11 EMERSON | 11 2027 Guidance Free Cash Flow: $3.8B – $3.9B ~$3.8B returned to shareholders through ~$2.5B share repurchase and ~$1.3B of dividends – $0.16 dividend per share increase, +7% yoy Tax rate: ~21% Assumes impact of Middle East conflict is contained within the region OTHER GUIDANCE DETAILS GAAP Sales Growth Underlying Sales Growth ~5% ~5% Adjusted Segment EBITA ~29% Adjusted EPS ~$7.25 GAAP Sales Growth Underlying Sales Growth ~5% ~5% Adjusted Segment EBITA ~28% Adjusted EPS $1.58 – $1.62 Full Year Q1
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EMERSON | 12 Well on Track For 2028 Targets 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 repo and $4B dividends 1 Value Creation Framework Through-the-Cycle 2 Free Cash Flow Framework1 2026 2027E 2028 Targets Net Sales 4 – 7% Organic Growth $19B 4% Underlying ~$20B ~5% Underlying $21B ~5% ’26-’28 CAGR Adj. Segment EBITA Margin 40% Operating Leverage 28.2% ~29% 30% Adj. EPS 10% Growth $6.59 +10% ~$7.25 +10% $8.00 FCF2 Margin 18 – 20% 18.6% >19.0% 20% Cash to Shareholders $2.2B ~$3.8B $10B 2026 – 2028T
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EMERSON | 13 EMERSON | 13 Appendix
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EMERSON | 14 (in millions) 2026 Q4 Results 2026 Results 2027 Q1 Expectations 2027 Expectations Stock Compensation – GAAP Integration-Related Stock Compensation Expense Adjusted Stock Compensation – Non-GAAP ($57) $4 ($53) ($237) $15 ($222) ~($60) - ~($60) ~($240) - ~($240) Pension Income / (Expense)1 Mark-to-Market Adjustment Adjusted Pension Income / (Expense) $33 ($2) $31 $127 ($2) $125 ~$30 - ~$30 ~$125 - ~$125 Corporate & Other – GAAP Restructuring and Related Costs Acquisition/Divestiture Fees and Related Costs IEEPA Tariff Refunds, Net of Charitable Trust Contribution Adjusted Corporate & Other – Non-GAAP ($110) $10 $28 ($9) ($81) ($211) $23 $70 ($91) ($209) ~($40) - - - ~($40) ~($195) - - - ~($195) Interest Expense, Net ($76) ($334) ~($90) ~($360) Average Diluted Share Count 559.7 562.0 ~552 ~551 Corporate and Other Items 1 Includes unallocated pension and postretirement costs and pension and OPEB mark-to-market adjustments
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EMERSON | 15 Q4 Adjusted Segment EBITA and EPS Bridges 0 0.5 1 1.5 2 2025 Operations Other / Non-Operating 2026 $1.62 $1.86$0.25 15% ($0.01) Adjusted Segment EBITA Margin 27.5% 1.6 pts n/a 29.1% Software & Systems $0.19 Intelligent Devices $0.05 Safety & Productivity $0.01 FX ($0.01)
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EMERSON | 16 $18.0B $19.0B 10 12 14 16 18 20 2025 2026 2026 Full Year Performance Summary 27.6% 28.2% 0.0% 5.0% 10. 0% 15. 0% 20. 0% 25. 0% 30. 0% 2025 2026 $3.2B $3.5B 0 0.5 1 1.5 2 2.5 3 3.5 4 2025 2026 $6.01 $6.59 0 1 2 3 4 5 6 7 2025 2026 Sales Underlying Sales Growth: Price contributed 3 pts Backlog1: $8.2B; up 11% yoy Operations contributed $0.47 yoy Below-the-line items added $0.11 yoy with $0.09 from FX and $0.04 from tax offsetting ($0.02) other Exceeded expectations due to better volume and mix Price-cost and cost reductions outpaced inflation Adjusted Segment EBITA Adjusted EPS Free Cash Flow 4% Underlying 10% 9% 60 bps 1 Excludes AspenTech Software & Systems Intelligent Devices Safety & Productivity 7% 3% 2% 18.0% Margin 18.6% Margin Software & Systems Intelligent Devices Safety & Productivity $0.26 $0.19 $0.02 Strong cash generation driven by higher earnings Free cash flow margin increased 0.6 pts to 18.6%
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EMERSON | 17 2026 Adjusted Segment EBITA and EPS Bridges 2 3 4 5 6 7 8 9 2025 Operations Other / Non-Operating 2026 $6.01 $6.59$0.47 10% $0.11 Adjusted Segment EBITA Margin 27.6% 0.6 pts n/a 28.2% Software & Systems $0.26 Intelligent Devices $0.19 Safety & Productivity $0.02 Tax $0.04 FX $0.09 Other ($0.02)
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EMERSON | 18 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 Q4 2026 2027 Q1 Guidance 2027 Guidance Reported (GAAP) 7% 5% ~5% ~5% (Favorable) / Unfavorable FX - (1%) - - (Acquisitions) / Divestitures - - - - Underlying (non-GAAP) 7% 4% ~5% ~5% 2026 Q4 Underlying Sales Change Reported (GAAP) (Favorable) / Unfavorable FX (Acquisitions) / Divestitures Underlying (Non-GAAP) Software & Systems 14% - - 14% Test & Measurement 14% 1% - 15% Control Systems & Software 14% - - 14% Intelligent Devices 5% (1%) - 4% Safety & Productivity 2% - - 2% 2026 Underlying Sales Change Reported (GAAP) (Favorable) / Unfavorable FX (Acquisitions) / Divestitures Underlying (Non-GAAP) Software & Systems 8% (1%) - 7% Intelligent Devices 4% (1%) - 3% Safety & Productivity 3% (1%) - 2%
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EMERSON | 19 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. 2027E Underlying Sales Change Reported (GAAP) (Favorable) / Unfavorable FX (Acquisitions) / Divestitures Underlying (Non-GAAP) Software & Systems 7% - 8% - - 7% - 8% Test & Measurement HSD - - HSD Control Systems & Software HSD - - HSD Intelligent Devices ~4% - - ~4% Safety & Productivity 3% - 4% - - 3% - 4% 2027E Q1 Underlying Sales Change Reported (GAAP) (Favorable) / Unfavorable FX (Acquisitions) / Divestitures Underlying (Non-GAAP) Software & Systems 8% - 9% - - 8% - 9% Intelligent Devices 3% - 4% - - 3% - 4% Safety & Productivity 3% - 4% - - 3% - 4%
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EMERSON | 20 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 Q4 Adjusted Segment EBITA Margin Software & Systems Intelligent Devices Safety & Productivity EBIT margin (GAAP) 18.8% 26.2% 20.7% Amortization of intangibles & restructuring and related costs 13.5% 2.2% 2.2% Adjusted segment EBITA margin (non-GAAP) 32.3% 28.4% 22.9% Adjusted Segment EBITA 2025 Q4 2026 Q4 2025 2026 2027 Q1 Guidance 2027 Guidance Net sales $4,855 $5,201 $18,016 $18,982 Pretax earnings (GAAP) $760 $997 $2,905 $3,489 Pretax earnings margin (GAAP) 15.6% 19.2% 16.1% 18.4% ~19% ~20% Corporate items and interest expense, net 255 210 875 655 Amortization of intangibles 257 251 1,083 1,013 Restructuring and related costs 61 53 112 203 Corporate items and interest expense, net / amortization of intangibles / restructuring and related costs ~9% ~9% Adjusted segment EBITA (non-GAAP) $1,333 $1,511 $4,975 $5,360 Adjusted segment EBITA margin (non-GAAP) 27.5% 29.1% 27.6% 28.2% ~28% ~29%
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EMERSON | 21 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 Q4 2026 Q4 2025 2026 2027 Q1 Guidance 2027 Guidance Earnings per share (GAAP) $1.07 $1.33 $3.99 $4.79 $1.19 - $1.23 ~$5.70 Amortization of intangibles 0.35 0.34 1.35 1.38 ~0.35 ~1.41 Restructuring and related costs 0.11 0.14 0.23 0.36 ~0.04 ~0.14 Acquisition/divestiture fees and related costs 0.06 0.05 0.33 0.14 - - Discrete taxes (0.02) 0.02 0.06 0.05 - - Pension and OPEB mark-to-market adjustment 0.05 (0.01) 0.05 (0.01) - - IEEPA tariff refunds net of charitable trust contribution - (0.01) - (0.12) - - Adjusted earnings per share (non-GAAP) $1.62 $1.86 $6.01 $6.59 $1.58 - $1.62 ~$7.25
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EMERSON | 22 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 Q4 2026 Q4 2025 2026 2027 Guidance Net Sales $4,855 $5,201 $18,016 $18,982 ~$19.9 Operating cash flow (GAAP) $1,011 $1,075 $3,676 $3,978 $4.3 - $4.4 Capital expenditures (168) (159) (431) (443) ~(0.5) Free cash flow (non-GAAP) $843 $916 $3,245 $3,535 $3.8 - $3.9 Free cash flow margin (non-GAAP) 17.4% 17.6% 18.0% 18.6% >19.0%
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EMERSON | 23 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 June 30, 2026 September 30, 2026 Backlog (GAAP) $8.6 $9.6 $9.6 AspenTech (1.2) (1.4) (1.4) Backlog excluding AspenTech (non-GAAP) $7.4 $8.2 $8.2
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EMERSON | 24 EMERSON | 24 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.