“The situation remains challenging, and we expect it to impact the full-year 2026 underlying sales by one point.”

In context

“also operated at less than 50% of pre-conflict levels. Emerson Electric Co. maintains a strong regionalized manufacturing strategy in the Middle East, but components for instruments and valves are imported into the region. Additionally, the closure of the Strait of Hormuz caused significant disruptions to ocean, air, and ground logistics, which restricted our ability to import necessary components, instruments, and valves. Our customers experienced a varying degree of impact, with 47 customer sites identified as having been damaged in some capacity. We saw a slowdown of MRO and project activity in the quarter as some facilities restricted personnel. But we saw an improvement in activity in April. We are encouraged by the efforts of our employees and customers to drive business continuity. The situation remains challenging, and we expect it to impact the full-year 2026 underlying sales by one point. Customer sites were largely operational by mid-April, although running at around 75% capacity due to their inability to move product out of the Strait of Hormuz. Emerson Electric Co.’s manufacturing facilities are both operational, and our field service engineers are now operating at 80% of pre-conflict levels. The dedication and service levels of our employees is deepening customer relationships, and we are working proactively with our customers to ensure we can meet their needs as they begin to work to repair damaged infrastructure. We have already seen rehabilitation activity, and we expect to have additional opportunities as customers continue to assess their facilities. Overall, we estimate a future rebuild and restart opportunity of approximately $100 million, which will play out ov”