Portfolio restructuring and divestitures

“We also took a key step forward in our transformation and simplification journey in Q3 as we announced a definitive agreement to sell our remaining interest in the Copeland joint venture.”

“The combination of Emerson and AspenTech would advance key initiatives, create new opportunities through full integration as a single company and further accelerate Emerson's industrial software strategy.”

“Additionally, as a single company, leveraging the proven Emerson Management System, we expect there to be immediate additional cost synergies from the transaction.”

“Second, we have commenced a process to explore strategic alternatives, including a cash sale for our Safety & Productivity business to maximize shareholder value.”

“Emerson has made a proposal to acquire the remaining shares of AspenTech for $240 per share in cash, which values AspenTech at an EBITDA multiple consistent to our original transaction.”

“Third, we announced that we are increasing our return of capital to shareholders. We plan to repurchase approximately $2 billion of common stock in fiscal 2025, and expect to complete $1 billion by the end of the fiscal first quarter.”

“The repurchase underscores Emerson's commitment to driving shareholder returns as we believe the current multiple does not accurately reflect Emerson's strong outlook, significant free cash flow generation and benefits of the strategic actions announced today.”

“This segment, which includes Emerson's legacy tools businesses, is approximately 8% of 2024 revenue and comprises the remaining businesses not related to automation in Emerson's portfolio. This business has industry-leading margins and cash flow, but does not fit our automation thematic.”

“We exited the year with a sales growth of 6% excluding the impact of the 2024 Bombardier agreement, which demonstrates the outcome of our portfolio actions and our emerging focus on innovation stemming from continued investment in R&D.”

“It was about a year ago that we announced our intention to spin off aerospace, which will result in the creation of three leading pure-play independent public companies.”

“Beginning in 2026, we reorganized Honeywell's segment into a more simplified structure focused on a cohesive, synergetic business model. Moving forward, we'll be reporting four segments: Aerospace Technologies, Building Automation, Process Automation and Technology, and Industrial Automation.”

“Finally, we concluded the strategic review of productivity solutions and services and warehouse and workflow solutions and have announced that we intend to pursue a sale of both businesses in 2026.”

“We're working diligently to rightsize our cost structure ahead of the planned aerospace spin and expect to eliminate stranded costs in twelve to eighteen months after the spin.”

“We have already neutralized the impact of Solstice stranded costs in 2025 through productivity and fixed cost reduction in the rest of the business.”

“This positions each business with the right strategic focus, organizational agility, and tailored capital allocation strategies needed to grow faster and drive incremental value for all our stakeholders.”

“You look at our portfolio, we've been migrating to high growth verticals where we can afford better pricing and we have a bigger step up in terms of revenue that is generated by NPI.”

“So you're right. We've been through and are actually getting through a very substantial restructuring program, about 75% complete. It will drag into 2025.”

“As you know, 3M has been undergoing a lot of change in the past few years following COVID, most recently with a successful spinoff of the healthcare business executing on a significant restructuring effort and working to mitigate risks, including discontinuing PFAS manufacturing by the end of 2025 and settling legal matters.”

“While no acquisitions are on the near-term horizon, I'll be taking a fresh, dispassionate look at our portfolio to determine if any assets have greater value owned by others, and along the same line, what assets might be a good fit for 3M.”

“When you look at what we have in assets and cells within these factors, we have 250 coating assets that are spread almost through half of our factories. And you have to sit back and ask, as we drive operating equipment efficiency, do we really need all those assets in all those factories, or do we have an opportunity to increase effective capacity.”

“There are potentially over time some bigger bites. If you think about the complexity of our broader network, a few years out there could be additional restructuring, but can't size it today.”

“Looking forward, we don't think we necessarily need 110. I can't decide what it exactly is and when that cadence might happen, but we're taking a hard look at it.”

“Earlier in the year, we spun off our Healthcare Business Group as Solventum and we settled two significant legal matters. We also substantially completed the largest restructuring program in company history, which focused on reducing complexity and improving margins.”