Emerson Electric · Earnings release

Emerson Reports Fourth Quarter and Full Year

Provides Initial 2025 Outlook

ST. LOUIS (November 5, 2024) - Emerson (NYSE: EMR) today

reported results1 for its fourth quarter and fiscal year ended September 30, 2024. Emerson also declared a quarterly cash

dividend increase to $0.5275 per share of common stock payable December 10, 2024 to stockholders of record November 15, 2024.

(dollars in millions, except per share)

Change

Change

Underlying Orders2

2%

2%

Net Sales

Underlying Sales3

4%

6%

Pretax Earnings

Margin

Adjusted Segment EBITA4

Margin

GAAP Earnings Per Share

Adjusted Earnings Per Share5

Operating Cash Flow

8%

Free Cash Flow

Management Commentary

"Emerson completed an outstanding fiscal 2024, with strong underlying

sales growth, operating leverage, adjusted earnings per share and cash generation. I want to thank our employees around the world for

their commitment and passion which were integral to delivering these results," said Emerson President and Chief Executive Officer

Lal Karsanbhai. "We have done an exceptional job integrating Test & Measurement with $100 million of synergies realized in the

first year, and we remain resolute in our focus on executing at a world-class level, guided by our Emerson Management System. Emerson's

leading technology, alignment with secular trends and customer focus provide confidence for continued momentum in fiscal 2025."

Karsanbhai continued, “We have made significant progress on our

value-creation roadmap over the past three years, and the strategic actions announced today mark the final phase of our portfolio transformation

to an industrial technology leader delivering advanced automation solutions. The actions we are taking, combined with our solid fiscal

2024 financial results, demonstrate the benefits and potential of Emerson's higher growth and higher margin portfolio. We are energized

to complete our transformation and continue creating value for shareholders over the near- and long-term.”

The following tables summarize the fiscal year 2025 guidance framework

and does not include any impact from the proposed portfolio transactions announced today. The 2025 outlook assumes approximately $1.2

billion of dividend payments. Guidance figures are approximate.

Net Sales Growth

Underlying Sales Growth

Earnings Per Share

Amortization of Intangibles

Restructuring / Related Costs

Acquisition / Divestiture Fees and Related Costs

Adjusted Earnings Per Share

Operating Cash Flow

Free Cash Flow

Share Repurchase

1 Results are presented on

a continuing operations basis.

2 Underlying orders do not

include AspenTech.

Page 2

3 Underlying sales exclude

the impact of currency translation, and significant acquisitions and divestitures.

4 Adjusted segment EBITA represents

segment earnings excluding restructuring and intangibles amortization expense.

5 Adjusted EPS excludes intangibles

amortization expense, restructuring and related costs, the amortization of acquisition-related inventory step-up, acquisition/divestiture

gains, losses, fees and related costs, discrete taxes, an AspenTech Micromine purchase price hedge and write-offs associated with Emerson's

Russia exit.

Conference Call

Today, beginning at 7:00

a.m. Central Time / 8:00 a.m. Eastern Time, Emerson management will discuss the fourth quarter and fiscal year 2024 results, as well as

the strategic actions announced in a separate press release this morning, during an investor conference call. Participants can access

a live webcast available at www.emerson.com/investors at the time of the call. A replay of the call will be available for 90 days. Conference

call slides will be posted in advance of the call on the company website.

About Emerson

Emerson (NYSE: EMR) is a global technology and software company providing

innovative solutions for the world's essential industries. Through its leading automation portfolio, including its majority stake in AspenTech,

Emerson helps hybrid, process and discrete manufacturers optimize operations, protect personnel, reduce emissions and achieve their sustainability

goals. For more information, visit Emerson.com.

Forward-Looking and Cautionary Statements

Statements in this press release that are not strictly historical may

be “forward-looking” statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any

such statements to reflect later developments. These risks and uncertainties include the scope, duration and ultimate impacts of the Russia-Ukraine

and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property,

cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual

Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its

consolidated results, other than as noted herein.

Emerson uses our Investor Relations website, www.Emerson.com/investors,

as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations

under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases,

SEC filings, public conference calls, webcasts and social media. The information contained on, or that may be accessed through, our website

is not incorporated by reference into, and is not a part of, this document.

Contacts

Investors:

Media:

Colleen Mettler

Joseph Sala / Greg Klassen / Connor Murphy

Joele Frank, Wilkinson Brimmer Katcher

(tables attached)

Page 3

Table 1

EMERSON AND SUBSIDIARIES

CONSOLIDATED OPERATING RESULTS

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

Quarter Ended September 30,

Year Ended September 30,

Net sales

$

$

$

$

Costs and expenses:

Cost of sales

SG&A expenses

Gain on subordinated interest

)

—

)

)

Loss on Copeland note receivable

—

—

—

Other deductions, net

Interest expense (income), net

)

Interest income from related party1

)

—

)

)

Earnings from continuing operations before income taxes

Income taxes

Earnings from continuing operations

Discontinued operations, net of tax

)

Net earnings

Less: Noncontrolling interests in subsidiaries

(6

)

)

)

)

Net earnings common stockholders

$

$

$

$

Earnings common stockholders

Earnings from continuing operations

$

$

$

$

Discontinued operations

)

Net earnings common stockholders

$

$

$

$

Diluted avg. shares outstanding

Diluted earnings per share common stockholders

Earnings from continuing operations

$

$

$

$

Discontinued operations

)

Diluted earnings per common share

$

$

$

$

Quarter Ended September 30,

Year Ended September 30,

Other deductions, net

Amortization of intangibles

$

$

$

$

Restructuring costs

Other

(9

)

)

Total

$

$

$

$

1 Represents interest on the Copeland note receivable.

Page 4

Table 2

EMERSON AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(DOLLARS IN MILLIONS, UNAUDITED)

Year Ended Sept 30

Assets

Cash and equivalents

$

$

Receivables, net

Inventories

Other current assets

Total current assets

Property, plant & equipment, net

Goodwill

Other intangible assets

Copeland note receivable and equity investment held-for-sale

—

Other

Total assets

$

$

Liabilities and equity

Short-term borrowings and current

maturities of long-term debt

$

$

Accounts payable

Accrued expenses

Total current liabilities

Long-term debt

Other liabilities

Equity

Common stockholders' equity

Noncontrolling interests in subsidiaries

Total equity

Total liabilities and equity

$

$

Page 5

Table 3

EMERSON AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN MILLIONS, UNAUDITED)

Year Ended Sept 30

Operating activities

Net earnings

$

$

Earnings from discontinued operations, net of tax

)

)

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

Stock compensation

Amortization of acquisition-related inventory step-up

—

Pension expense

)

)

Pension funding

)

)

Changes in operating working capital

)

)

Gain on subordinated interest

)

)

Loss on Copeland note receivable

—

Other, net

)

)

Cash from continuing operations

Cash from discontinued operations

)

Cash provided by operating activities

Investing activities

Capital expenditures

)

)

Purchases of businesses, net of cash and equivalents acquired

)

)

Proceeds from subordinated interest

Proceeds from related party note receivable

—

Other, net

)

)

Cash from continuing operations

)

)

Cash from discontinued operations

Cash provided by (used in) investing activities

)

Financing activities

Net increase (decrease) in short-term borrowings

)

)

Proceeds from short-term borrowings greater than three months

Payments of short-term borrowings greater than three months

)

)

Payments of long-term debt

)

)

Dividends paid

)

)

Purchases of common stock

)

)

AspenTech purchases of common stock

)

)

Payment of related party note payable

)

—

Other, net

)

)

Cash provided by (used in) financing activities

)

)

Effect of exchange rate changes on cash and equivalents

Increase (Decrease) in cash and equivalents

)

Beginning cash and equivalents

Ending cash and equivalents

$

$

Page 6

Table 4

EMERSON AND SUBSIDIARIES

SEGMENT SALES AND EARNINGS

(AMOUNTS IN MILLIONS, UNAUDITED)

The following tables show results for the Company's segments on an adjusted

segment EBITA basis and are intended to supplement the Company's results of operations, including its segment earnings which are defined

as earnings before interest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excluding intangibles

amortization expense, and restructuring and related expense. Adjusted segment and total segment EBITA, and adjusted segment and total

segment EBITA margin are measures used by management and may be useful for investors to evaluate the Company's segments' operational performance.

Quarter Ended Sept 30

Reported

Underlying

Sales

Final Control

$

$

8

%

7

%

Measurement & Analytical

7

%

7

%

Discrete Automation

(3

)%

(4

)%

Safety & Productivity

(1

)%

(1

)%

Intelligent Devices

$

$

4

%

4

%

Control Systems & Software

9

%

9

%

Test & Measurement

—

AspenTech

)%

)%

Software and Control

$

$

%

3

%

Eliminations

)

)

Total

$

$

%

4

%

Sales Growth by Geography

Quarter Ended Sept 30

Americas

4

%

Europe

—

%

Asia, Middle East & Africa

6

%

Page 7

Table 4 cont.

Year Ended Sept 30

Reported

Underlying

Sales

Final Control

$

$

6

%

6

%

Measurement & Analytical

%

%

Discrete Automation

(5

)%

(5

)%

Safety & Productivity

—

%

—

%

Intelligent Devices

$

$

5

%

5

%

Control Systems & Software

9

%

%

Test & Measurement

—

AspenTech

5

%

5

%

Software and Control

$

$

%

8

%

Eliminations

)

)

Total

$

$

%

6

%

Sales Growth by Geography

Year Ended Sept 30

Americas

4

%

Europe

7

%

Asia, Middle East & Africa

8

%

Page 8

Table 4 cont.

Quarter Ended Sept 30

Quarter Ended Sept 30

As Reported (GAAP)

Adjusted EBITA (Non-GAAP)

As Reported (GAAP)

Adjusted EBITA (Non-GAAP)

Earnings

Final Control

$

$

$

$

Margins

%

%

%

%

Measurement & Analytical

Margins

%

%

%

%

Discrete Automation

Margins

%

%

%

%

Safety & Productivity

Margins

%

%

%

%

Intelligent Devices

$

$

$

$

Margins

%

%

%

%

Control Systems & Software

Margins

%

%

%

%

Test & Measurement

—

—

)

Margins

)%

%

AspenTech

)

)

Margins

)%

%

)%

%

Software and Control

$

$

$

$

Margins

%

%

%

%

Corporate items and interest expense, net:

Stock compensation

$

)

$

)

$

)

$

)

Unallocated pension and postretirement costs

Corporate and other

)

)

)

)

Gain on subordinated interest

—

—

—

Interest (expense) income, net

—

)

—

Interest income from related party1

—

—

—

Pretax Earnings / Adjusted EBITA

$

$

$

$

Margins

%

%

%

%

Supplemental Total Segment Earnings:

Adjusted Total Segment EBITA

$

$

Margins

%

%

1 Represents interest on the Copeland note receivable.

Page 9

Year Ended Sept 30

Year Ended Sept 30

As Reported (GAAP)

Adjusted EBITA (Non-GAAP)

As Reported (GAAP)

Adjusted EBITA (Non-GAAP)

Earnings

Final Control

$

$

$

$

Margins

%

%

%

%

Measurement & Analytical

Margins

%

%

%

%

Discrete Automation

Margins

%

%

%

%

Safety & Productivity

Margins

%

%

%

%

Intelligent Devices

$

$

$

$

Margins

%

%

%

%

Control Systems & Software

Margins

%

%

%

%

Test & Measurement

—

—

)

Margins

)%

%

AspenTech

)

)

Margins

)%

%

)%

%

Software and Control

$

$

$

$

Margins

%

%

%

%

Corporate items and interest expense, net:

Stock compensation

)

)

)

)

Unallocated pension and postretirement costs

Corporate and other

)

)

)

)

Gain on subordinated interest

—

—

Loss on Copeland note receivable

—

—

)

—

Interest (expense) income, net

)

—

)

—

Interest income from related party1

—

—

Pretax Earnings / Adjusted EBITA

$

$

$

$

Margins

%

%

%

%

Supplemental Total Segment Earnings:

Adjusted Total Segment EBITA

$

$

Margins

%

%

1 Represents interest on the Copeland note receivable.

Table 4 cont.

Quarter Ended Sept 30

Quarter Ended Sept 30

Amortization of

Intangibles1

Restructuring

and

Related Costs2

Amortization of

Intangibles1

Restructuring

and

Related Costs2

Final Control

$

$

$

$

Measurement & Analytical

Discrete Automation

7

7

8

2

Safety & Productivity

6

(1

)

7

5

Intelligent Devices

$

$

$

$

Control Systems & Software

5

2

4

7

Test & Measurement

—

—

—

AspenTech

1

8

Software and Control

$

$

3

$

$

Corporate

—

2

—

Total

$

$

$

$

1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended September 30, 2023 and 2024, respectively.

2 Restructuring and related costs includes $7 and $6 reported in cost of sales and selling, general and administrative expenses for the three months ended September 30, 2023 and 2024, respectively.

Year Ended Sept 30

Year Ended Sept 30

Amortization of

Intangibles1

Restructuring

and

Related Costs2

Amortization of

Intangibles1

Restructuring

and

Related Costs2

Final Control

$

$

$

$

Measurement & Analytical

Discrete Automation

Safety & Productivity

—

7

Intelligent Devices

$

$

$

$

Control Systems & Software

9

Test & Measurement

—

—

AspenTech

1

8

Software and Control

$

$

$

$

Corporate

—

—

Total

$

$

$

$

1 Amortization of intangibles includes $196 and $196 reported in cost of sales for the twelve months ended September 30, 2023 and 2024, respectively.

2 Restructuring and related costs includes $20 and $16 reported in cost of sales and selling, general and administrative expenses for the twelve months ended September 30, 2023 and 2024, respectively.

Quarter Ended Sept 30

Depreciation and Amortization

Final Control

$

$

Measurement & Analytical

Discrete Automation

Safety & Productivity

Intelligent Devices

Control Systems & Software

Test & Measurement

—

AspenTech

Software and Control

Corporate

Total

$

$

Year Ended Sept 30

Depreciation and Amortization

Final Control

$

$

Measurement & Analytical

Discrete Automation

Safety & Productivity

Intelligent Devices

Control Systems & Software

Test & Measurement

—

AspenTech

Software and Control

Corporate

Total

$

$

Table 5

EMERSON AND SUBSIDIARIES

ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL

(AMOUNTS IN MILLIONS, UNAUDITED)

The following table shows the Company's corporate and other expenses

on an adjusted basis. The Company's definition of adjusted corporate and other excludes corporate restructuring and related costs, first

year purchase accounting related items and transaction fees, and certain gains, losses or impairments. This metric is useful for reconciling

from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.

Quarter Ended Sept 30,

Stock compensation (GAAP)

$

)

$

)

Integration-related stock compensation expense

—

5

1

Adjusted stock compensation (non-GAAP)

$

)

$

)

Quarter Ended Sept 30

Corporate and other (GAAP)

$

)

$

)

Corporate restructuring and related costs

2

9

National Instruments investment gain

(9

)

—

Acquisition / divestiture costs

Loss on divestiture of business

—

9

Adjusted corporate and other (Non-GAAP)

$

)

$

)

Year Ended Sept 30,

Stock compensation (GAAP)

$

)

$

)

Integration-related stock compensation expense

—

2

Adjusted stock compensation (non-GAAP)

$

)

$

)

Year Ended Sept 30

Corporate and other (GAAP)

$

)

$

)

Corporate restructuring and related costs

National Instruments investment gain

)

—

Loss on divestiture of businesses

—

Acquisition / divestiture costs

Russia business exit

—

AspenTech Micromine purchase price hedge

)

—

Amortization of acquisition-related inventory step-up

—

Adjusted corporate and other (Non-GAAP)

$

)

$

)

1Integration-related stock compensation expense relates to NI and includes $2 reported as restructuring costs

2 Integration-related stock compensation expense relates to NI and includes $43 reported as restructuring costs

Table 6

EMERSON AND SUBSIDIARIES

ADJUSTED EBITA & EPS SUPPLEMENTAL

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

The following tables, which show results on an adjusted EBITA basis

and diluted earnings per share on an adjusted basis, are intended to supplement the Company's discussion of its results of operations

herein. The Company defines adjusted EBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense,

restructuring expense, first year purchase accounting related items and transaction fees, gains or losses on the Copeland equity method

investment, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles amortization expense, restructuring

expense, first year purchase accounting related items and transaction fees, interest income on undeployed proceeds, gains or losses on

the Copeland equity method investment, and certain gains, losses or impairments. Adjusted EBITA, adjusted EBITA margin, and adjusted earnings

per share are measures used by management and may be useful for investors to evaluate the Company's operational performance.

Quarter Ended Sept 30

Pretax earnings

$

$

Percent of sales

%

%

Interest expense (income), net

)

Interest income from related party1

)

—

Amortization of intangibles

Restructuring and related costs

Acquisition/divestiture fees and related costs

Gain on subordinated interest

)

—

National Instruments investment gain

(9

)

—

Loss on divestiture of business

—

9

Adjusted EBITA

$

$

Percent of sales

%

%

Quarter Ended Sept 30

GAAP earnings from continuing operations per share

$

$

Amortization of intangibles

Restructuring and related costs

Acquisition/divestiture fees and related costs

Gain on subordinated interest

)

—

National Instruments investment gain

)

—

Loss on divestiture of business

—

Interest income on undeployed proceeds from Copeland transaction

)

—

Adjusted earnings from continuing operations per share

$

$

Less: AspenTech contribution to adjusted earnings per share

)

)

Adjusted earnings per share excluding AspenTech contribution

$

$

1 Represents interest on the Copeland note receivable

Year Ended Sept 30

Pretax earnings

$

$

Percent of sales

%

%

Interest expense (income), net

Interest income from related party1

)

)

Amortization of intangibles

Restructuring and related costs

Amortization of acquisition-related inventory step-up

—

Acquisition/divestiture fees and related costs

Loss on divestiture of businesses

—

Loss on Copeland note receivable

—

Gain on subordinated interest

)

)

National Instruments investment gain

)

—

AspenTech Micromine purchase price hedge

)

—

Russia business exit charge

—

Adjusted EBITA

$

$

Percent of sales

%

%

Year Ended Sept 30

GAAP earnings from continuing operations per share

$

$

Amortization of intangibles

Restructuring and related costs

Amortization of acquisition-related inventory step-up

—

Acquisition/divestiture fees and related costs

Loss on divestiture of businesses

—

Loss on Copeland note receivable

—

Discrete taxes

—

)

Gain on subordinated interest

)

)

National Instruments investment gain

)

—

AspenTech Micromine purchase price hedge

)

—

Interest income on undeployed proceeds from Copeland transaction

)

—

Russia business exit charge

—

Adjusted earnings from continuing operations per share

$

$

Less: AspenTech contribution to adjusted earnings per share

)

)

Adjusted earnings per share excluding AspenTech contribution

$

$

1 Represents interest on the Copeland note receivable

Table 6 cont.

Pretax

Earnings

Income

Taxes

Earnings from

Cont.

Ops.

Non-Controlling

Interests3

Net

Earnings

Common

Stockholders

Diluted

Earnings

Per

Share

As reported (GAAP)

$

$

$

$

)

$

$

Amortization of intangibles

1

Restructuring and related costs

2

3

Acquisition/divestiture and related costs

—

Loss on divestitures of businesses

9

—

9

—

9

Adjusted (Non-GAAP)

$

$

$

$

$

$

Interest expense, net

$

Adjusted EBITA (Non-GAAP)

$

1 Amortization of intangibles includes $49 reported in cost of sales.

2 Restructuring and related costs includes $3 reported in cost of sales.

3 Represents the non-controlling interest in AspenTech applied to AspenTech's share of each adjustment presented herein and eliminated from Emerson's consolidated results.

Pretax

Earnings

Income

Taxes

Earnings from