CLAIM #23069 · EMR (EMR) · 2026Q2 earnings call · May 5, 2026 · due Sep 30, 2026
“I expect to see that group improve margins year over year, as they have been doing, and continue to perform very well.”
Michael Baughman · CFO
How to check this claim
Look at: Final Control segment operating margin, year-over-year change
It came true if: Full-year segment operating margin higher than prior fiscal year's reported figure
Where: Company segment reporting (10-K / Q4 earnings release and call)
In context
“Final Control. If you can unpack that a little bit more with respect to mix and cost actions during the quarter. You do expect a step-up in the growth rate in the back half. Curious the degree to which volume then helps those margins sequentially and how mix is expected to play out as you move forward in the year. Michael J. Baughman: As we talked about, it was the strong price/cost and cost reductions. I will say we got a little bit of benefit in the quarter from not having the IEPA tariffs, and obviously as we move forward, that benefit will, as we talked about, be offset by other tariffs and some freight cost pressure. As we move into the second half, the margins will have, as you suspected, offsetting factors of volume being beneficial with some mix pressure as projects get delivered. I expect to see that group improve margins year over year, as they have been doing, and continue to perform very well. But there will be some pressures that should offset net-net. Year over year, we will see improvement in the operating margins there. Operator: Our next question is from Analyst. Analyst: Yes, thanks. Good afternoon. I wondered if you could just touch on a couple of things for me. Free cash flow came in a little light of where I thought it might end up being, so I wonder if you could talk a little bit about that and how we might think about the phasing through the back half of the year. And then secondly, just on Intelligent Devices, I think even ex–the Middle East, the business came in a little light of your guide. Is the primary driver of that weakness in China and Europe? If you could unpick that a little bit for us, that would be really helpful. Michael J. Baughman: Sure, Alex. In term”
Verify independently
SEC filings for EMR ↗ · Claim quote is verbatim from the 2026Q2 earnings call.