EMR (EMR)

“At this point, I continue to be relatively robust on semiconductors through 2027.”

“Exiting the year at 10% gives us confidence about a very solid 2027.”

“ACV was 9% and we feel good about exiting the year at 10% plus on ACV.”

“Through the third quarter, Emerson completed $898 million of share repurchases, and we remain committed to returning approximately $2.2 billion of capital to shareholders this fiscal year.”

“I think relatively quickly. We're seeing good activity in quotation and preparedness for some large petrochemical expansions and LNG field expansions in Qatar, so we expect that to be released relatively quickly.”

“It's early to comment specifically on 2027, but our thinking for the portfolio around long-range growth is that the control systems part of software and Test & Measurement are both in the 6% to 9% range through the cycle. That's how we are framing it.”

“China improved to minus 3% which is better than the first half and was sequentially better in Q3 over Q2. We expect China to continue to improve into low-single-digit growth levels in 2027.”

“Our guide there is 3% to 6%. We've had years of double digits, but in our long-range framework, Systems & Software is a 6% to 9% growth business, and Intelligent Devices is in the 3% to 6% range.”

“A majority of the sales impact in the Middle East is in Intelligent Devices, so youll see that suppress growth for the period, but that will unlock in Q4 and into next year.”

“China was down about 3% but is improving sequentially and we expect continued improvement into low-single-digit growth levels as we plan for 2027.”

“We've spoken about being bullish on the U.S. and the investments there; that has significant legs and we were up 10% in the U.S. in the quarter. I don't expect that to subside.”

“Power to date, which has been extremely strong, has been mostly fleet modernizations. But we are starting to see, particularly going into Q4 and the early part of next year, newer capacity coming online, particularly gas-fired in North America.”

“But right now, as we're planning, I would expect the fourth quarter and perhaps into the first quarter of our fiscal year, the conditions remain relatively the same.”

“If we look to the full year, we were tracking to about 2.5% price for the year. That's still the case; it might round to 3%, but we continue to see good price and are managing inflation, which we certainly have seen.”

“We expect adjusted segment EBITDA margin of 28.5% and adjusted EPS of approximately $1.85.”

“Moving to the fourth quarter. Sales growth is expected to be approximately 5% with minimal impact from FX.”

“There are no changes to our planned return of approximately $2.2 billion to shareholders through $1.2 billion in dividends and $1 billion of share repurchase.”

“We are guiding 2026 adjusted EPS of approximately $6.55 and free cash flow of approximately $3.6 billion.”

“Overall, Emerson expects to grow approximately 5% in Q4 and 3.5% for the full year.”

“Safety & Productivity is expected to grow 1% in Q4 and 2% for the full year.”

“We are modeling an approximately $100 million full year 2026 impact from the conflict in the Middle East as the Strait of Hormuz remains effectively closed.”

“Intelligent Devices is projected to grow 3% in Q4 and 2% for the full year.”

“ACV continues to grow on plan, and we still expect ACV growth of 10% plus in 2026.”

“We are raising full year growth guidance for Test & Measurement, now 14%, and Control Systems & Software, now 3.5%, including approximately 3 points of headwind from software renewals.”

“We are increasing our full year expectations for Software & Systems to up 6%, based on the strength of our growth verticals in this business and strength in the U.S.”

“We expect Software & Systems to be up approximately 10% in Q4, with both Test & Measurement and Control Systems & Software expected to grow 10%.”

“We expect the Q4 impact to be similar as supply chains remain complex.”

“Adjusted segment EBITDA margin is still expected to be approximately 28%, and we are raising our adjusted EPS guide to $6.55.”

“We are raising sales growth expectations to 5% with underlying growth of 3.5%.”

“The new capital formation in our five growth sectors of power, LNG, life sciences, semiconductors, and aerospace and defense continues to accelerate.”

“From an ACV perspective, yes, we continue to reiterate the 10% plus for the full year.”

“We feel very comfortable holding the 28% for the year.”

“At this point in time, we feel very confident that with our backlog support, we have the second half well sized, and then with this momentum in orders, we will be setting us up for 2027.”

“But I think mid-single-digit orders are sustainable for us as we navigate through the remainder of 2026.”

“We are on track for full-year cash flow growth of approximately 10% at greater than 18% margin.”

“we remain committed to returning approximately $2.2 billion of capital to shareholders this fiscal year.”

“We remain confident in our second-half plans for 2026 based on the orders momentum we are seeing and the visibility we have from our backlog, which is up 9% year over year.”

“I expect to see that group improve margins year over year, as they have been doing, and continue to perform very well.”

“As we move forward, that benefit will, as we talked about, be offset by other tariffs and some freight cost pressure.”

“It should be up a little bit in the second half versus where it was in the first half, but pretty consistent through the year.”

“we expect more to happen in the second half and into 2027.”

“We expect bigger greenfield activity in the half.”

“We believe we have kind of hit bottom, and that will start growing low single digits again.”

“Yes. I mean, I think the momentum in Test and Measurement is clearly led by semis and aerospace and defense. Both end markets are doing very, very well for us, and frankly, we expect continued momentum across both those sectors, whether it is new space, defense spending, and then certainly on the semi side, the RF and mixed-signal investments that are happening, data center investments.”

“And also I think that is an important addition to your statement. Sequential growth mid-single digit is consistent with year-over-year mid-single digit, and if you do the math, the leverage will be a tad better than the 30s you stated for the second half.”

“And I think you said sequential growth mid-single digits. That is correct.”

“I think from a leverage perspective, the numbers are affected by that software contract renewal dynamic and the effects there. But if you take that out, we will be over 40% leverage on the full year, which certainly means some acceleration in the back half.”

“As we look out, we are expecting about another $100 million of disruption.”

“We still expect to return approximately $2.2 billion to shareholders through $1.2 billion in dividends and $1.0 billion of share repurchase, of which we completed $542 million in the first half.”

“We are raising the bottom and midpoint of our 2026 adjusted EPS guide and now expect $6.45 to $6.55.”

“We still expect adjusted segment EBITDA margin of approximately 28% and free cash flow of $3.5 billion to $3.6 billion.”

“For the full year, we expect FX to be a tailwind to sales of approximately 1.5% and GAAP sales to increase approximately 4.5%.”

“Excluding the impact of software contract renewals, Emerson Electric Co.’s growth rate is expected to be 4% for the full year.”

“Overall, Emerson Electric Co. expects to grow approximately 5% in Q3 and 3% for the full year.”

“Safety and Productivity is expected to grow 1% in Q3 and 2% for the full year.”

“Intelligent Devices is projected to grow 4% in Q3, and we are lowering our full-year expectations to approximately 2% driven by the conflict in the Middle East.”

“We continue to see robust adoption of our software and still expect ACV growth of 10% plus in 2026.”

“The Control Systems and Software segment is expected to grow mid-single digits in Q3 and low single digits for the full year.”

“Test and Measurement is planned to grow mid-teens in Q3 and low teens for the full year, up from our prior expectations of high single-digit growth in 2026.”

“We expect Software and Systems to be up approximately 8% in Q3 and are increasing our full-year expectations to up 5% based on the strength of our growth verticals in this business and strength in the U.S.”

“We are adjusting our full-year guidance for sales to reflect the Middle East conflict and now expect full-year underlying sales growth of approximately 3%.”

“This incremental growth is offset by a slower-than-expected China, which we now expect to be down mid-single digits for the year.”

“We expect the strength in the U.S. to continue, and we now expect the U.S. to grow high single digits for the year.”

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

“We are seeing healthy growth in ACV and expect to finish the year up 10% plus.”

“we now expecting $6.45 to $6.55 per share.”

“Adjusted segment EBITDA margin is still expected to be approximately 28%, and we are raising the bottom and midpoint of our adjusted EPS guide, now expecting $6.45 to $6.55 per share.”

“We now expect sales growth of 4.5% with underlying growth of 3%.”

“We expect adjusted segment EBITDA margin of approximately 28% and adjusted EPS of $1.65 to $1.70.”

“Moving to the third quarter, sales growth is expected to be approximately 5.5% with underlying sales growth of approximately 5%.”

“So, on a cumulative fashion, the double-digit for Test and Measurement is sustainable for the next couple of quarters, and we expect that to continue into 2027.”

“Overall, we estimate a future rebuild and restart opportunity of approximately $100 million, which will play out over several quarters.”

“But I would say do not think there are revenues that are lost, and in fact, over the longer term, there should be opportunity.”

“We mentioned that there is some opportunity out there for rebuild and restart, and that has started, but that is going to take, we think, six quarters to unfold here, and we will see how that goes.”

“Now we don't expect the 18% to continue through the quarter, but I think we're very confident that high single digit growth in North America is something we would bake into the plan”

“Yes. We feel good about that leverage. You're correct, it's the expectation for the year is in that high 30s which again is affected by by the the software renewal dynamic.”

“Yes. I mean so if you looked at the phasing of the back backlog, they're very supportive of hitting our second half sales.”

“But net net for us, the margin impact from the price inflation is something very manageable. We'll manage that within the scope of our P and L.”

“we are committed to our plans to return approximately $2.2 billion of capital to shareholders.”

“But overall, still, I continue just overall concern that we'll be in a low single digit negative growth. By the time we're set and done this year.”

“2% approximately in the second half or about 2% for the full year.”

“So you you you can look at it year over year. You can look at it sequentially, and I think you'll calibrate that the second half margins will trend towards that 28% plus in terms of EBITDA margins.”

“We'll see that accelerate in the second half. As we work our way out of it, but it will be another softer quarter in Q2, and that will be largely behind us.”

“We're seeing continued flat activity in Europe for the year.”

“We still expect operations to generate about $0.50 of incremental EPS with approximately 80 basis points of margin expansion from positive price cost and the continued benefit of synergy realization from AspenTech and Test and Measurement.”

“The renewal dynamic reduces adjusted EPS by approximately $0.05 and adjusted segment EBITDA margin by approximately 40 basis points.”

“For the full year, we are raising the bottom of our EPS guide by $0.05, reflecting the good performance in Q1.”

“We continue to see robust adoption of our software and expect ACV to grow 10% plus in 2026.”

“Test and Measurement is planned to have high single-digit growth in both Q2 and the full year, while the Control Systems and Software segment is expected to be down low single digits in Q2 due to a $65 million headwind from the timing of software contract renewals.”

“We still expect to return approximately $2.2 billion to shareholders through $1.2 billion in dividends and $1 billion of share repurchase, of which we completed $250 million in Q1.”

“positioning us well for our expected full-year growth of approximately 10% at greater than 18% margin.”

“We expect growth in the mid-teens for the year.”

“We are reiterating our guidance of 5.5% sales growth, 4% underlying sales growth, and an adjusted segment EBITDA margin of approximately 28%.”

“Excluding the impact of software contract renewals, Emerson Electric Co.'s growth rate is expected to be 3% to 4% for Q2 and 5% for the full year.”

“Overall, Emerson Electric Co. expects to grow 1% to 2% in Q2 and approximately 4% for the full year.”

“Intelligent Devices is projected to grow 2% to 3% in Q2 and 4% for the full year, with stable MRO led by strength in North America.”

“We remain confident in achieving our 2028 targets: the $21 billion top line, 40% incrementals that delivered a 30% adjusted segment EBITDA margin, $8 of adjusted EPS, and a 20% free cash flow margin.”

“we plan to return $10 billion or 70% of cumulative cash to shareholders through $6 billion of share repurchase and $4 billion of dividend payout.”

“we have plans to further expand adjusted segment EBITDA margins by 240 basis points by 2028.”

“we have a high degree of confidence in what we're seeing in 3 of the 4 test and measurement markets, aerospace and defense, semiconductor and then the broad-based portfolio business.”

“Our ACV, we shared the data -- finished the year at $1.56 billion, up 10%. We expect that to continue into another double-digit year next year.”

“We haven't seen a catalyst to indicate that those will turn in Europe. So again, a plan for a flat Europe.”

“We ended 2025 with a net debt to adjusted EBITDA ratio of 2.3x and expect to end 2026 at approximately 2x.”

“We previously communicated our intention to pay down approximately $1 billion of debt in 2026. That is still the plan and reflects our commitment to maintaining our strong A2A credit ratings.”

“For 2026, we intend to return approximately $1 billion to shareholders through share repurchase, which we have planned to be ratable throughout the year.”

“In 2026, we plan to raise our full year dividend per share $0.11 or approximately 5%, which is a significant increase compared to prior years.”

“As mentioned earlier, we are expecting free cash flow of $3.5 billion to $3.6 billion in 2026, representing approximately 10% growth, which will come from higher earnings and working capital efficiency.”

“Operations is expected to generate about $0.50 of incremental EPS in 2026 with approximately 80 basis points of margin expansion from positive price/cost and the continued benefit of synergy realization from AspenTech and Test & Measurement.”

“the underlying health of our Software businesses remains robust with ACV expected to grow 10% plus in 2026, but having fewer contracts up for renewal adversely affects GAAP revenues.”

“This headwind is projected to be $120 million for the full year.”

“Our Test & Measurement segment is planned to have high single-digit growth in both the first half and full year, while the Control Systems & Software segment is expected to be down low single digits in the first half due to a $110 million headwind from a lower value of software contracts up for renewal in 2026.”

“Tax rate is modeled at 21.5% for the full year.”

“Full year adjusted segment EBITDA margin is expected to be approximately 28% reflecting strong execution and continued margin expansion.”

“Europe is expected to be flat year-over-year.”

“Asia is forecasted to be up low single digits led by robust growth in India and momentum in Southeast Asia and Japan offsetting a flat China.”

“The Americas are projected to be up mid-single digits driven by sustained strength in our growth verticals and MRO.”

“The Middle East and Africa is planned to grow high single digits, supported by a healthy capital cycle and significant greenfield investments.”

“The Americas, India and the Middle East and Africa are expected to remain strong drivers of growth in 2026 with muted demand in Europe and China.”

“We plan to return approximately $2.2 billion of capital to shareholders, $1 billion in share repurchases and $1.2 billion in dividends including a 5% dividend per share increase.”

“ACV is projected to grow 10% plus as customers further invest to advance their digital transformation ambitions.”

“I think the underlying dynamics of demand driven, of course, by data centers and by the age of the capacity that's in place today should give us a good, and we project a very good 3- to 5-year run in this segment of the business at high single digits to low double-digit growth.”

“This accounting dynamic does not affect cash flows and reverses through 2027 and 2028 when we expect to see tailwinds from renewals.”

“we now plan to achieve $100 million in run rate synergies by the end of 2026, 2 years ahead of plan.”

“But overall, we feel very, very good about the high end of the 4% to 7% range for underlying growth in our systems and software business.”

“And just to expand on that a little bit, the provisions of the One Big Beautiful bill are generally favorable for Emerson, avoiding some downsides that were in the outlook as part of TCJA and changing some rates there, that will be helpful -- modestly helpful as we move forward.”

“And then certainly, as it relates to our other businesses, the Process segment will remain pretty consistent at mid-single digits with recovering discrete.”

“No. I think from an Aspen perspective, certainly ACV continues in terms of high single-digit growth into double digits as some of the synergies come through.”

“As we look forward to fiscal 2026, we expect strong exit rates for underlying orders to support underlying sales within our growth framework.”

“but then we'll get totally green, as we call it, into Q4 and hence, Q4 margin is very solid, up 80 basis points year-over-year and sequentially flat to Q3.”

“Yes. I think for us, in the fourth quarter, as of -- if you're talking versus Q3, the fact that we're holding at that 27%, clearly is an indication of tariff-related pricing getting more favorable in the fourth quarter versus the third quarter.”

“Look, the process hybrid has remained very consistent for us in terms of outlook. We are still expecting that to exit in the mid- single digits as we were prior.”

“We are not planning for the FX pinch on margins in the fourth quarter.”

“and we continue to yield $350 million to $400 million of project wins a quarter from our $11.2 billion funnel that has been consistent with what we've experienced in the last several quarters.”

“Free cash flow was also increased to approximately $3.2 billion resulting in a margin of approximately 18%, which includes $200 million of transaction-related headwinds.”

“Adjusted EPS is increased at the midpoint to approximately $6 per share.”

“We are increasing adjusted segment EBITDA margin guidance to approximately 27.5% with operating leverage of approximately 70%.”

“Price is now expected to contribute approximately 2.5 points of growth versus 3 points in the prior guide due to decreased tariff exposure, resulting in lower surcharges.”

“For the full year, we expect underlying sales to be up approximately 3.5%.”

“We now expect approximately $115 million of price actions for the fiscal year, which equates to 50 basis points of incremental price.”

“In the fiscal year, we are now expecting a gross tariff impact to be $130 million versus our prior estimate of $245 million.”

“Emerson's annualized gross incremental tariff impact is now approximately $210 million, which is down from our prior estimate of $455 million given the recent announcements.”

“We continue to see strength in customer adoption of our subscription software and expect double-digit ACV growth for the full year.”

“Robust investment is expected to continue in the Middle East, India and Southeast Asia, and we expect China to be up slightly, supported by power and marine with improving business fundamentals in Test & Measurement markets.”

“Our discrete businesses are expected to be up double digits in the quarter, reinforced by the recovery in Test & Measurement, which is expected to be up sharply with growth in the high teens.”

“We expect fourth quarter underlying sales for our process and hybrid businesses in the mid-single digits, driven by global investment in LNG, power and life sciences.”

“we expect underlying orders growth in test and measurement to approach 20% in the fourth quarter, supporting double-digit order rates in our discrete businesses as we exit the year.”

“As expected, underlying orders in our process and hybrid businesses grew mid-single digits in the quarter and are expected to maintain similar growth in the fourth quarter.”

“North America, India and the Middle East and Africa have been strong. And we expect these regions to remain growth drivers with sustained investment across LNG, power and life sciences.”

“And we are very optimistic about the next 24 months at high rates of growth.”

“I certainly believe it can based on the visibility we have of opportunity across both markets, generation and transmission distribution. And I think it's sustainable in the high teens kind of range over the next couple of years.”

“But certainly, for the next 2 years, we feel that the funnel is very, very strong on both sides, both generation as well as transmission and distribution. And so we expect these type of growth rates to continue.”

“All 3 aspects of the business: greenfield, modernizations as well as continued MRO and competitive displacement is fueling the order growth, which will convert to sales over the next couple of years.”

“And I think the pace of business across DTM continues to be robust and I think we'll continue to accelerate in terms of momentum and the core AspenTech suites continue to perform very well.”

“Yes. We will completely cover the tariffs by the end of 2025. We'll cover it obviously as the exposure in 2025 with the programs having momentum to cover it in 2026 as well, fiscal 2025.”

“We believe that is sustained as we indicated in our materials and accelerating as we go through the year.”

“Pricing actions are underway across all of our businesses, and all increases will be completed inside the quarter, including surcharges to our backlog where applicable.”

“we have completed the integration of Test and Measurement and have executed all actions to achieve $200 million run rate cost synergies by the end of 2025.”

“We expect that trend to get positive in the second half.”

“We are in our 69th year of increased dividends per share and expect to distribute $1.2 billion to shareholders through dividend in 2025.”

“As discussed, discrete orders have turned positive and will benefit from easier sales comps resulting in a meaningful second half recovery and low single digit full year growth in our discrete businesses.”

“We expect our Process and Hybrid businesses to grow mid-single digits for the year, supported by healthy backlog and pace of business.”

“The softer demand dynamics mentioned earlier results in an approximately $0.10 headwind for the year, while the impact of the change in our FX expectation provides approximately $0.05 of upside relative to the February guide.”

“We now expect FX to be flat for the year versus the February expectation of 1.5 points of unfavorable FX.”

“In 2025, we expect the gross incremental impact to be $60 million, around 0.35% of sales.”

“These dynamics are expected to prolong weakness in Europe and China, although we expect to see sequential improvement in both regions in the second half.”

“We now see a more muted recovery for factory automation and continue to see declines in automotive.”

“The orders recovery in the second quarter and a low base of comparison support our plan for high single digit underlying sales growth in the back half.”

“We are planning for gradual improvement in China, aided by easier comps and investment momentum in power and marine.”

“We expect Process and Hybrid sales growth in the second half to remain in the mid-single digits, driven by sustained global investment in LNG, Life Sciences and Power.”

“Overall, improving underlying demand fundamentals, coupled with easier second half comps, position our discrete businesses for accelerating year-over-year growth in the back half, and we expect to hit double digits as we exit the year.”

“We are guiding underlying sales growth of approximately 4% and raising the midpoint of our adjusted EPS guide, now expecting between $5.90 to $6.05 per share.”

“These mitigation actions will completely offset the tariff headwinds in the fiscal year with carryover benefit to completely cover the full annualized impact we will encounter in 2026 under these assumptions.”

“With this plan, we expect to bring our net debt to adjusted EBITDA back to approximately two times by the end of fiscal 2027.”

“As we look beyond 2025, we expect to have available approximately $2.5 billion of free cash flow over the next two years to allocate to share repurchase and strategic bolt on M&A.”

“The decision to retain the S&P business makes debt paydown a priority over the next two years.”

“Emerson will continue these high return investments to support our 4% to 7% growth framework.”

“We expect the transaction to be modestly accretive to adjusted EPS in 2025, and we are targeting $100 million of cost synergies by 2028, primarily through the harmonization of corporate costs and G&A as well as R&D productivity.”

“we believe demand may be pressured by macro uncertainty in the second half.”

“We are pleased to reiterate our guidance for underlying sales, adjusted earnings per share and free cash flow with outstanding execution offsetting the profitability headwinds from the large movements in FX since our initial guide.”

“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.”

“Book-to-bill was greater than one and we will see our typical seasonal book-to-bill with the first half being greater than one and the back half being under one. And for the full year, I'll tell you that we're expecting book-to-bill to be about one.”

“I think price cost, which was positive in the first quarter, continues through the year. Cost reductions, which was positive in the first quarter continues through the year.”

“I think the other thing that we touched on that's important to think about is gross margin in the first quarter was particularly high due to mix and that will temper a bit as the year goes on as well.”

“Well, yes, there will be a certainly compared to the first quarter; there will be a tempering of some of that cost reduction, but the cost reduction benefits will continue throughout the year.”

“China overall to your point, I think if we can drive to a flat year in China, I think that's what's baked into a plan.”

“We're down mid-single digits in China in the quarter. We do expect it to better towards the second half, but growth is something we're going to be watching carefully there.”

“don't really have a sense today or concern about a slowdown in a sustainability funnel and would expect that to continue to be robust through the quarter.”

“Finally, regarding the AspenTech transaction, while the effect of the pending AspenTech transaction is not part of our adjusted EPS guidance today, if we had assumed a successful close in the first half of calendar 2025, the minority buy in would not have changed our current guidance range of $5.85 to $6.05.”

“Regarding AspenTech, we are expecting $0.11 in our Q2 adjusted EPS guide and $0.44 to $0.46 for the year, also the same as communicated in November.”

“For the year, we continue to expect safety and productivity to contribute approximately $0.48 of adjusted EPS and approximately $200 million of free cash flow on flat underlying sales.”

“However, discrete volumes are expected to be up sequentially and better on a year-over-year basis compared to the Q1 year-over-year change.”

“For the year, we expect to return approximately $3.2 billion to shareholders through dividends of approximately $1.2 billion and share repurchases of approximately $2 billion, of which we completed approximately $1 billion in the first quarter as planned.”

“We are reiterating our free cash flow guidance of $3.2 billion to $3.3 billion.”

“This FX movement unfavorably impacted adjusted EPS approximately $0.08, which we have predominantly offset with our strong Q1 operational performance to hold our prior guidance of $5.85 to $6.05 per share.”

“We are holding underlying sales at 3% to 5% but lowered GAAP net sales guidance to 1.5% to 3.5% due to a foreign exchange headwind of approximately $350 million as the U.S. dollar strengthened at the end of Q1.”

“Our discrete businesses have started the year slower than expected, but we expect a meaningful recovery against easier comps in the second half.”

“We have lowered our full year outlook for our discrete businesses to the low single digit range.”

“Overall, we expect our process and hybrid businesses to grow mid-single digits for the year, supported by backlog and a resilient funnel.”

“We are ready to implement price and surcharges to protect the P&L commitments of the company. And these assumptions are embedded in our guide.”

“Next, we expect the impact from Canada to also be de minimis as we do not have any material exposure there.”

“Starting with China, we do not expect a material impact based on actions taken since 2018.”

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

“Given the incremental opportunity for projects expected to move forward and our projects go, we see a potential for greater than $1 billion in Emerson orders over the next few years.”

“we continue to believe that we're seeing the early shoots, the green shoots of that market recovery, which gives us the confidence in the forecast that we put for the second half of 2025.”

“we're confident that Test & Measurement will see continued momentum going into 2025.”

“our growth platforms are aligned to underlying secular market trends, which will deliver significant growth going forward to support our 4% to 7% through-the-cycle organic growth framework.”

“As we move forward beyond 2025, we plan to maintain our A2A credit ratings.”

“Finally, we expect mid-single-digit growth in Europe from continued investments in the energy transition.”

“North America is expected to grow in the low single digits, aided by LNG life sciences and a strong outlook for power generation, transmission and distribution due to the significant demand growth for electricity related to AI and data centers.”

“We expect China to return to growth by the second half for being down low single digits in 2024 as we expect investments in self-reliance programs and sustainability to continue, coupled with recovery in discrete markets, as we begin to lap easier comps.”

“We are still looking for a meaningful recovery in discrete market demand in the first half of 2025, which we expect will lead to a second half sales recovery and mid-single-digit sales growth for the year.”

“We've seen our chemical activity in the Middle East, for example, be particularly strong. We do expect chemical and petrochemical in North America post elections, obviously, going into next year, to return.”

“Power generation represents approximately 9% of revenue in the Company today...we expect that to continue as we go forward here in 2025.”

“Three out of the four, we see good momentum that supports the recovery plan that we've laid out to drive growth in the second half of 2025 -- orders in the first half of '25.”

“we do expect a significant portion of that increased debt to be short-term debt”

“Capital returned to shareholders through the dividend and share repurchase is expected to be approximately 100% of free cash flow in 2025.”

“Finally, we expect dividend payments to be approximately $1.2 billion and our tax rate to be approximately 22% for the year.”

“AspenTech's contribution is expected to be $0.44 to $0.46 for the year, and Safety & Productivity is expected to contribute approximately $0.48.”

“Safety & Productivity growth is expected to be approximately flat for the year.”

“It's important to note that post transactions, we expect to maintain our A2A credit rating.”

“we are now targeting $200 million by year three from our previous target of $185 million due to faster execution of our overall synergy plan.”

“we remain optimistic about a recovery in this business in 2025”

“That backlog reduction for us, frankly, about $100 million, it was all in Test and Measurement. Our backlog in the base Emerson business held effectively flat. Now we typically see a backlog reduction in Q4, but it will be up year-over-year, and we feel pretty good about backlog levels as we enter 2025.”

“We guided because we still have confidence that we can hit within that guide, Nigel, I certainly don't -- wouldn't write it up to the low end of the range at this point.”

“This gives us confidence in our expectation that this portfolio will deliver greater than 50% gross margins as we look forward.”

“Yes. I would say for our discrete automation business, it will be right around in the 40s.”

“And for the full year, we expect Emerson at right around 1...”

“And we will have an increase in pension expense, all things equal, just given the way the deferral accounting works. And then we'll have a lower interest expense because of the Copeland proceeds that come in.”

“So we took the guide up to 2.8 and -- which would imply about $800 million coming through in the fourth quarter, which I think is reasonably consistent seeing a fourth quarter increase.”

“We will be in the market this quarter at, we think, roughly $125 million, which gets us back to that roughly $500 million a year pace.”

“we expect the power generation investments as well as transmission and distribution and renewable to be a very, very important growth vector for us.”

“Certainly, I believe that as we think about 2025 and start to guide that we will be probably towards the lower end of that range that we've given on our through-the-cycle expectations, but well within that.”

“We foresee sales turning positive there in the second half of 2025 with orders turning positive in the first half of 2025.”

“We certainly believe that we can get to close to positive orders in the last quarter of the year here on discrete, but that will be, of course, based on some very weak comparisons.”

“we now expect approximately $300 million of share repurchase.”

“With AspenTech's strong results in Q3, we are bringing their expected EPS contribution back up to $0.32 to $0.34.”

“For the full year, we expect Test and Measurement's adjusted segment EBITDA margin to be approximately 23%, a couple of points above the prior year benefiting from the synergy realization.”

“Test and Measurement is now expected to contribute $0.42 to $0.44.”

“We are raising the midpoint of adjusted EPS guidance and expect $5.45 to $5.50.”

“We are increasing our operating leverage expectations to the mid- to high 40s, driven by the strong leverage performance through the first 9 months and strong leverage expected in Q4.”

“We expect the equity portion to close by the end of August.”

“we are raising our free cash flow guidance to approximately $2.8 billion.”

“we are increasing the midpoint of our adjusted EPS guide to $5.45 to $5.50”

“We expect underlying sales of approximately 6% and are increasing the midpoint of our adjusted EPS guide to $5.45 to $5.50 and we are raising our free cash flow guidance to approximately $2.8 billion.”

“With softer orders, we are adjusting our full year sales to be $1.45 billion to $1.5 billion, but the accelerated synergy actions we have taken will help protect profitability and position the business well for a return to growth.”

“Due to this, we are looking into second half of 2025 for recovery in this business.”

“We now expect low single-digit underlying order growth for the second half and for the full year.”

“we are now expecting a slower recovery, though we expect Discrete Automation orders to be flat to slightly positive in Q4 on a low base of comparison.”

“exiting the year in that mid-single digit, low single-digit type of range on orders is very, very feasible.”

“We are increasing our underlying sales guidance to 5.5% to 6.5% and raising our adjusted EPS expectations to $5.40 to $5.50.”

“So we were plus 4% in Q1, down 1% in Q2. So low single digits for the first half, greater than 1 book-to-bill. And then in the second half, you are right, low single digits in the third quarter and arguably, the fourth quarter which is, at this point, baked in better than the third quarter.”

“There is still some elevated levels of inventory in our portfolio business-related channel partners' distribution that should bleed out over the next quarter, which will be helpful for order rates in the portfolio business to turn.”

“Yes, quarter-over-quarter, flat in Q3, slightly positive in Q4 is kind of how we're looking at orders.”

“So flat Q3, sequentially up in Q4.”

“No, actually -- and the way I see it is our second half versus first half will be up high single digits sequentially from a sales perspective.”

“We expect that to come back first followed by the activity in RF and mixed signal chip testing.”

“we believe it's at least 1 to 2 quarter delayed in T&M, is semiconductors and Asia.”

“Discrete, we're watching very carefully. As we said, we expect that to turn now a quarter later than originally expected.”

“But at the end of the day, we don't expect leverage rates in '25 to be materially different from what we're going to deliver in '24.”

“We'll continue to get the roughly 2% price, but it won't be the 3%, we don't believe, that we saw in the last quarter.”

“Test & Measurement is still expected to contribute $0.40 to $0.45 as we accelerate synergy activities.”

“Incremental margins are held at low to mid-40s, which suggests mid-30s incrementals for the second half.”

“We still expect underlying sales of our Discrete Automation segment to turn positive in Q4, and we are watching the orders progression, which we believe is now delayed by 1 quarter.”

“And in this fiscal year, we expect to achieve gross margins over 50%, nearly a 1,000 basis point improvement.”

“We are seeing continued softness in transportation and semiconductor demand driven by constrained CapEx environment while aerospace and defense is expected to be positive due to continued strength in government research and defense spending.”

“For the second half, we expect mid-single-digit underlying growth in orders and low single-digit to mid-single-digit growth for the full year, led by process and hybrid resilience with delayed discrete improvement.”

“And as certainly we go through the summer and approach the fall outages and STOs and turnaround opportunities, we look at, at least from this point in time, rather positively as well.”

“That may move yet another point as we go through the year.”

“No, price is 2 points in the quarter, 2 points for the year. We feel good, no change there.”

“No. We remain Joe, very positive on the environment. Obviously, we couple that with the strong execution by our teams. But in terms of the organic outlook, no change really.”

“And I think there's enough demand-driven activity that will give us confidence in the sustained mid-single-digit kind of exit rate on process on the total company orders at the end of the year.”

“So our business continues to be very robust, obviously. We continue to have confidence in the order runs and in the execution through the year.”

“We have a high degree of confidence about that based on two factors, Andy, the first being our MRO business continues to be relatively strong. It represented approximately 65% of the revenue in Q1, and we expect that to remain robust as we go through the remainder of the year.”

“The quarter performance and an acceleration of synergies provide more confidence, for our full year expectations from the business.”

“In terms of our net material inflation, I think we're seeing continued opportunities that we're driving on the direct material side. The logistics costs have come down. We don't see any impact in terms of inflation or it's de minimis from the dynamics around what's going on with -- in the Red Sea or the Panama Canal. So we see NMI or net material inflation continuing to improve as we go through the year.”

“Test and measurement is consistent with discrete. Off to a tougher start in China, but expecting a second half recovery, consistent with what we're seeing with the discrete business.”

“And we expect to continue to win in China as we go through the year.”

“And that hasn't waned yet. And I don't -- we don't foresee that as we go through the year.”

“In terms of the projects we're executing in North America, we don't see any meaningful impact to 2024 at this point in time.”

“The second part of the question, yes, I think it's not all in Q4. So you'll see evenly distributed in Q3 and Q4, it will step up from the $350 million.”

“We do also believe that there's a second half positive return on the order activity.”

“We do expect a recovery in orders into the second half, of course, between comps and obviously some demand elements there.”

“Share repurchase is expected to be approximately $500 million, of which $175 million was completed in Q1.”

“Lastly, we are maintaining our free cash flow guidance of $2.6 billion to $2.7 billion.”

“Full year discrete automation underlying sales are now expected to be down in the low single-digit range.”

“We continue to watch the discrete automation recovery closely, and we now expect sales to turn positive in Q4 consistent with test and measurement.”

“We now expect underlying sales growth of 4.5% to 6.5% driven by our process and hybrid businesses.”

“While we expect to sales to be down versus 2023, we expect modest adjusted EBITDA expansion as we recognize the cost synergies.”

“Second quarter adjusted EPS contribution is expected to be $0.07 driven by leverage on the lower seasonal sales volume, partially offset by synergy savings.”

“This includes approximately $80 million expected to be realized in 2024.”

“As you all know, orders can move around quarter to quarter, but we still expect low single digit order growth in the first half of 2024 and mid-single digit order growth for the full year, as discrete demand improves in the second half.”

“But right now, we're focused on executing the synergies by year 3. If we find good investment opportunities, we'll make that because I think 31% is the target we've set, and we feel pretty comfortable getting there.”

“And that's the reason we raised it, and we also believe we can get it done by the end of year 3.”

“That gave us confidence, not just to increase the number but to increase the time of execution -- to decrease the time of execution to 3 years.”

“These efforts put test and measurement ahead of schedule and give us the confidence to increase the cost synergy target to $185 million, which we now expect to achieve by the end of 2026, two years faster than originally expected.”

“We still expect adjusted segment EBITDA to reach approximately 31% by year five, as sales grow on the reset cost base.”

“Our planned cost to achieve these synergies increases slightly to $165 million with the majority of the spend expected in the first two years.”

“and we do expect to see a second half ‘24 positive orders for the business.”

“From an orders perspective, as Lal indicated, the last quarter, which is our fourth quarter, down 16% in orders, we expect orders to remain down for the first half and turn positive in the second half.”

“That is our expectation, yes sir.”

“So I think that disciplined capital spend plus obviously the trends that Lal identified where the sustainability investments provide that tailwind, we expect process to continue to run for a lot longer.”

“Again, obviously we're driving restructuring in the discrete business given the trend in the orders and you will see that margin expansion come through in the second half which would drive up the leverage rates.”

“So we do expect to have a little bit of balance sheet goodness in 2024.”

“Working capital for the year. Yeah, we exited working capital, trade working capital at about 20.5%, and we're expecting about 50 basis points coming off -- 20.5% of revenue.”

“What I did, I will say is that about half the synergies will be delivered in the first two years.”

“And we do expect much like in our core discrete markets, orders to flatten out as we get into the second half of the year.”

“Second, we are expecting an elevated CapEx spend related to facility expansions, which will increase our CapEx to approximately 2.5% of sales, up from our historical and future expected rate of approximately 2% of sales.”

“First, we expect approximately $200 million of acquisition-related cash payments associated with the NI and bolt-on acquisitions.”

“Taking this into consideration and starting from a foundation of approximately $2.3 billion of free cash flow, we expect approximately $300 million of contribution from NI operations and another $350 million increase from base operations.”

“NI is expected to contribute approximately $0.05.”

“Net interest expense is expected to be approximately $105 million.”

“Orders have been negative for two to three quarters but we expect this to begin to turn positive in the second half of 2024.”

“Disposing of assets with low single digit growth profiles and adding businesses we expect to grow cumulatively in the high single-digits to low double-digits.”

“and the addition of NI will further expand our gross margins.”

“Energy transition, industrial software, life sciences and metals and mining are expected to remain resilient parts of our portfolio and we are utilizing our leading technology, customer relationships, installed base and expertise to capture investments in these markets.”

“We remain committed to the $165 million of synergies by the end of year five, resulting in approximately 31% adjusted segment EBITDA when moving stock comp to corporate.”

“If we look ahead, we're expecting for the fourth quarter operating cash flow around $800 million to $900 million and CapEx around $150 million, which should put us in around $2.2 billion to $2.3 billion for the year.”

“I mean we will be green price cost, but the margin point contribution from it will be lower in '24, which will have an impact on leverage rates.”

“As we mentioned, the pricing for the full year will be about 4% relative to the five in the fourth quarter or in the third quarter rather, and the mix will also have an effect there as we close out the year.”

“Yes. We will see a decline in margin in the fourth quarter.”

“We will see deflation in '24 versus '23, but still not back to pre-COVID levels. So maybe the opportunity there for us is continued deflation over the next several quarters as the market eases.”

“So we are going to see deflation or positive NMI or favorable NMI. We are seeing that already in the second half of this year and should see that continue into next year.”