“We are expecting discrete orders to turn slightly positive in Q2 with a more meaningful orders ramp in the second half.”

In context

“Slide 3. We are excited about our Q1 performance and the outlook for the year as healthy market fundamentals and our Emerson management system have positioned us to capitalize on value creation opportunities. Our process in hybrid markets continue to demonstrate stable demand as secular drivers propel continued investment in automation technology to drive efficiency, reliability and safety. Energy security, nearshoring initiatives and energy transition commitments are driving sustained spend in LNG, life sciences, power and metals and mining. We saw sequential orders improvement in our discrete businesses although the amplitude was a little softer than expected as momentum in industrial, semiconductor and discrete MRO was offset by muted performances in automotive and factory automation. We are expecting discrete orders to turn slightly positive in Q2 with a more meaningful orders ramp in the second half. We saw robust underlying demand for our software solutions across the portfolio with 10% growth in ACV, or annual contract value, led by double digit growth from control systems and software. Emerson again executed at a world-class level and demonstrated the profitability of our transform portfolio as margin leverage, adjusted earnings per share and cash flow all exceeded our expectations. Q1 underlying sales were inside the guide. Now I'll go into more detail on the next slide. We remain confident in our ability to deliver our 2025 plans and are energized by the robust operational start to the year and sustained high level performance. We are pleased to reiterate our guidance for underlying sales, adjusted earnings per share and free cash flow with outstanding execution offsetting the pr”