Emerson Electric Co
EMR
$137.39 0.55%
Exchange: NYSE | Sector: Industrials | Industry: Industrial Machinery
Q3 2024
Published: Aug 7, 2024

Earnings Highlights

  • Revenue of $4.38B up 11% year-over-year
  • EPS of $0.57 decreased by 96.5% from previous year
  • Gross margin of 46.7%
  • Net income of 329.00M
  • "Ov๏ปฟation 4.0 builds a software-defined AI-ready platform for the power and water industries, bringing a unifying data fabric across the organizations to optimize operations from device to enterprise. It also offers secure generative AI models to provide prescriptive operations and maintenance guidance together in a robust solutions portfolio." - Lal Karsanbhai
EMR
Company EMR

Executive Summary

Emerson Electricโ€™s QQ3 2024 results reflect resilience in a challenging industrial environment, underpinned by margin expansion and strong cash generation. The company reported underlying orders up 3% year-over-year, led by Process and Hybrid markets with notable life sciences and energy projects, while Discrete Automation remained softer. Management highlighted a robust capital project funnel and meaningful project wins, including Nemaska Lithium and green hydrogen initiatives, signaling nascent diversification into high-growth end markets. Gross margins improved meaningfully, with Q3 commentary citing 52.8% gross margin vs. prior year (+230 bps), and operating leverage delivered a 67% improvement excluding Test & Measurement, supporting a quarterly adjusted EPS of $1.43 and free cash flow of $975 million (FCF margin 22.3%). Emerson also advanced its transformation agenda, including Ovation 4.0 (software-defined automation) and synergy-driven profitability in Test & Measurement, along with the Copeland JV monetization that generated pretax cash proceeds of $1.9 billion to de-lever. As the year progresses, management increased the midpoint of the 2024 adjusted EPS guide to $5.45-$5.50 and raised free cash flow guidance toward $2.8 billion, while signaling a cautious but constructive 2025 trajectory driven by continued capital formation in energy transition and life sciences, offset by a gradual recovery in discrete end markets.

Key Performance Indicators

Revenue
Increasing
4.38B
QoQ: 0.09% | YoY: 11.00%
Gross Profit
Increasing
2.05B
46.74% margin
QoQ: 306.98% | YoY: 2.66%
Operating Income
Increasing
793.00M
QoQ: 134.70% | YoY: 31.51%
Net Income
Decreasing
329.00M
QoQ: -34.33% | YoY: -96.48%
EPS
Decreasing
0.58
QoQ: -34.09% | YoY: -96.46%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 4,432.00 0.86 +1.3% View
Q1 2025 4,175.00 1.02 +1.4% View
Q4 2024 4,619.00 1.74 +12.9% View
Q3 2024 4,380.00 0.57 +11.0% View
Q2 2024 4,376.00 0.87 +16.5% View