emr-20241231

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from ____________________ to __________________

Commission file number 1-278

EMERSON ELECTRIC CO.

(Exact name of registrant as specified in its charter)


Missouri		43-0259330
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


8027 Forsyth Blvd
St. Louis,	Missouri	63105
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (314) 553-2000

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock of $0.50 par value per share	EMR	New York Stock Exchange
		NYSE Chicago
1.250% Notes due 2025	EMR 25A	New York Stock Exchange
2.000% Notes due 2029	EMR 29	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. Common stock of $0.50 par value per share outstanding at December 31, 2024: 563.9 million shares.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Statements of Earnings

EMERSON ELECTRIC CO. & SUBSIDIARIES

Three months ended December 31, 2023 and 2024

(Dollars in millions, except per share amounts; unaudited)


	Three Months Ended December 31,
		2023		2024
Net sales		$	4,117	4,175

Cost of sales		2,201		1,940
Selling, general and administrative expenses		1,277		1,224
Other deductions, net		451		228
Interest expense (net of interest income of $40 and $44, respectively)		44		8
Interest income from related party		(31)		—

Earnings from continuing operations before income taxes		175		775

Income taxes		16		182

Earnings from continuing operations		159		593

Discontinued operations, net of tax of $9 and $—, respectively		(27)		—

Net earnings		132		593

Less: Noncontrolling interests in subsidiaries		(10)		8

Net earnings common stockholders		$	142	585

Earnings common stockholders:
Earnings from continuing operations		$	169	585
Discontinued operations		(27)		—
Net earnings common stockholders		$	142	585

Basic earnings per share common stockholders:
Earnings from continuing operations		$	0.30	1.03
Discontinued operations		(0.05)		—
Basic earnings per common share		$	0.25	1.03

Diluted earnings per share common stockholders:
Earnings from continuing operations		$	0.29	1.02
Discontinued operations		(0.04)		—
Diluted earnings per common share		$	0.25	1.02

Weighted average outstanding shares:
Basic		570.8		568.5
Diluted		573.3		571.1

See accompanying Notes to Consolidated Financial Statements.

Consolidated Statements of Comprehensive Income

EMERSON ELECTRIC CO. & SUBSIDIARIES

Three months ended December 31, 2023 and 2024

(Dollars in millions; unaudited)


	Three Months Ended December 31,
	2023		2024
Net earnings	$	132	593

Other comprehensive income (loss), net of tax:
Foreign currency translation	174		(492)
Pension and postretirement	(12)		3
Cash flow hedges	3		10
Total other comprehensive income (loss)	165		(479)

Comprehensive income	297		114

Less: Noncontrolling interests in subsidiaries	(8)		1
Comprehensive income common stockholders	$	305	113

See accompanying Notes to Consolidated Financial Statements.

Consolidated Balance Sheets

EMERSON ELECTRIC CO. & SUBSIDIARIES

(Dollars and shares in millions, except per share amounts; unaudited)


	Sept 30, 2024		Dec 31, 2024
ASSETS
Current assets
Cash and equivalents	$	3,588	2,834
Receivables, less allowances of $121 and $124, respectively	2,927		2,694
Inventories	2,180		2,200
Other current assets	1,497		1,466
Total current assets	10,192		9,194

Property, plant and equipment, net	2,807		2,743
Other assets
Goodwill	18,067		17,906
Other intangible assets	10,436		10,025
Other	2,744		2,742
Total other assets	31,247		30,673
Total assets	$	44,246	42,610

LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings and current maturities of long-term debt	$	532	1,066
Accounts payable	1,335		1,260
Accrued expenses	3,875		3,632
Total current liabilities	5,742		5,958

Long-term debt	7,155		6,557

Other liabilities	3,840		3,716

Equity
Common stock, $0.50 par value; authorized, 1,200.0 shares; issued, 953.4 shares; outstanding, 570.2 shares and 563.9 shares, respectively	477		477
Additional paid-in-capital	169		113
Retained earnings	40,830		41,112
Accumulated other comprehensive income (loss)	(868)		(1,340)
Cost of common stock in treasury, 383.2 shares and 389.5 shares, respectively	(18,972)		(19,872)
Common stockholders’ equity	21,636		20,490
Noncontrolling interests in subsidiaries	5,873		5,889
Total equity	27,509		26,379
Total liabilities and equity	$	44,246	42,610

See accompanying Notes to Consolidated Financial Statements.

Consolidated Statements of Equity

EMERSON ELECTRIC CO. & SUBSIDIARIES

Three months ended December 31, 2023 and 2024

(Dollars in millions; unaudited)


	Three Months Ended December 31,
	2023		2024

Common stock	$	477	477

Additional paid-in-capital
Beginning balance	62		169
Stock plans	119		(56)
AspenTech purchases of common stock	(41)		—
Ending balance	140		113

Retained earnings
Beginning balance	40,070		40,830
Net earnings common stockholders	142		585
Dividends paid (per share: $0.525 and $0.5275, respectively)	(302)		(303)
Ending balance	39,910		41,112

Accumulated other comprehensive income (loss)
Beginning balance	(1,253)		(868)
Foreign currency translation	172		(485)
Pension and postretirement	(12)		3
Cash flow hedges	3		10
Ending balance	(1,090)		(1,340)

Treasury stock
Beginning balance	(18,667)		(18,972)
Purchases	(175)		(946)
Issued under stock plans	79		46
Ending balance	(18,763)		(19,872)

Common stockholders' equity	20,674		20,490

Noncontrolling interests in subsidiaries
Beginning balance	5,909		5,873
Net earnings (loss)	(10)		8
Stock plans	11		15
AspenTech purchases of common stock	(31)		—
Other comprehensive income	2		(7)
Ending balance	5,881		5,889

Total equity	$	26,555	26,379

See accompanying Notes to Consolidated Financial Statements.

Consolidated Statements of Cash Flows

EMERSON ELECTRIC CO. & SUBSIDIARIES

Three Months Ended December 31, 2023 and 2024

(Dollars in millions; unaudited)


	Three Months Ended
	December 31,
	2023		2024
Operating activities
Net earnings	$	132	593
Earnings from discontinued operations, net of tax	27		—
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	422		383
Stock compensation	74		68
Amortization of acquisition-related inventory step-up	231		—
Changes in operating working capital	(238)		(154)
Other, net	(204)		(113)
Cash from continuing operations	444		777
Cash from discontinued operations	(29)		—
Cash provided by operating activities	415		777

Investing activities
Capital expenditures	(77)		(83)
Purchases of businesses, net of cash and equivalents acquired	(8,339)		(37)

Other, net	(37)		(22)
Cash from continuing operations	(8,453)		(142)
Cash from discontinued operations	1		—
Cash used in investing activities	(8,452)		(142)

Financing activities
Net increase in short-term borrowings	2,647		2
Payments of long-term debt	—		(2)
Dividends paid	(300)		(301)
Purchases of common stock	(175)		(899)
AspenTech purchases of common stock	(72)		—
Other, net	(45)		(91)
Cash provided by (used in) financing activities	2,055		(1,291)

Effect of exchange rate changes on cash and equivalents	7		(98)
Decrease in cash and equivalents	(5,975)		(754)
Beginning cash and equivalents	8,051		3,588
Ending cash and equivalents	$	2,076	2,834

Changes in operating working capital
Receivables	$	94	156
Inventories	(97)		(86)
Other current assets	(3)		(5)
Accounts payable	(89)

SEC Form 10-Q filed by Emerson Electric Company