EX-99.1 2 a2024q3release_ex991.htm EX-99.1

Exhibit 99.1

Emerson Reports Third Quarter 2024 Results; Updates 2024 Outlook

ST. LOUIS (August 7, 2024) - Emerson (NYSE: EMR) today reported results1 for its third quarter ended June 30, 2024 and updated its full year outlook for fiscal 2024. Emerson also declared a quarterly cash dividend of $0.525 per share of common stock payable September 10, 2024 to stockholders of record on August 16, 2024.

(dollars in millions, except per share)						2023 Q3			2024 Q3			Change
Underlying Orders2												3%
Net Sales						$3,946			$4,380			11%
Underlying Sales3												3%
Pretax Earnings						$822			$455
Margin						20.8%			10.4%			(1040) bps
Adjusted Segment EBITA4						$1,060			$1,189
Margin						26.9%			27.1%			20 bps
GAAP Earnings Per Share						$1.12			$0.60			(46)%
Adjusted Earnings Per Share5						$1.29			$1.43			11%
Operating Cash Flow						$842			$1,067			27%
Free Cash Flow						$769			$975			27%

Management Commentary

“Emerson delivered another strong quarter, with solid underlying orders growth and with profitability and cash flow both exceeding expectations,” said Emerson President and Chief Executive Officer Lal Karsanbhai. “Demand in process and hybrid markets, led by a constructive capex cycle, continues to meet expectations. Our operating leverage performance demonstrates the benefits of our highly differentiated technology and world-class Emerson Management System, giving us the confidence to execute on our plan for 2024."

Karsanbhai continued, “In the quarter, we also took another important step to simplify our portfolio and enhance our focus as a global leader in automation with the definitive agreement to completely exit the Copeland business. Emerson is creating value for our shareholders as we execute with our higher growth and higher margin automation portfolio.”

2024 Outlook

The following tables summarize the fiscal year 2024 guidance framework for continuing operations6. The 2024 outlook assumes approximately $300 million returned to shareholders through share repurchases and approximately $1.2 billion of dividend payments. Guidance figures are approximate.

						2024
Net Sales Growth						~15%
Underlying Sales Growth						~6%
Earnings Per Share						$2.82 - $2.87
Amortization of Intangibles						~$1.42
Restructuring and Related Costs						~$0.34
Loss on Copeland Note Receivable						$0.38
Amortization of Acquisition-related Inventory Step-up						$0.38
Acquisition / Divestiture Fees and Related Costs						~$0.24
Divestiture Loss / (Gain), net						($0.03)
Discrete Tax Benefits						($0.10)
Adjusted Earnings Per Share						$5.45 - $5.50
Operating Cash Flow						~$3.2B
Free Cash Flow						~$2.8B

1 Results are presented on a continuing operations basis.

2 Underlying orders does not include AspenTech.

3 Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures.

4 Adjusted segment EBITA represents segment earnings less restructuring and intangibles amortization expense.

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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 tax benefits, an AspenTech Micromine purchase price hedge and write-offs associated with Emerson's Russia exit.

6 With the June 6, 2024 definitive agreement to completely exit its remaining interests in the Copeland joint venture, Emerson will report financial results for the Copeland equity ownership as discontinued operations for all periods presented, beginning in Q3 2024. The earnings from discontinued operations for 2024 are expected to be $0.55 to $0.60 per share, including the after-tax gain on the equity stake in Copeland. The Copeland Note Receivable interest income through June 6, 2024 remains in continuing operations. The pretax loss on the sale of the note receivable, $279M ($217M after-tax), is also reported in continuing operations but excluded from adjusted earnings per share, ($0.38).

Copeland Transaction Update

As of August 2, 2024, Emerson has completed the previously announced sale of the Copeland Note Receivable to Copeland with pretax cash proceeds of $1.9 billion. The sale of the 40% equity stake to private equity funds managed by Blackstone, with pretax cash proceeds of $1.5 billion, is expected to close by the end of August. Emerson intends to use the approximately $2.9 billion after-tax cash proceeds from both transactions to pay down its existing debt obligations. Both transactions are expected to result in a net pretax gain of approximately $0.2 billion.

Conference Call

Today, beginning at 8:00 a.m. Central Time / 9:00 a.m. Eastern Time, Emerson management will discuss the third quarter results 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.

Investors:			Media:
Colleen Mettler			Joseph Sala / Greg Klassen
(314) 553-2197			Joele Frank, Wilkinson Brimmer Katcher
			(212) 355-4449

(tables attached)

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																					Table 1
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
			Quarter Ended June 30,												Nine Months Ended June 30,
			2023						2024						2023						2024
Net sales			$	3,946					$	4,380					$	11,075					$	12,873
Cost of sales			1,952						2,066						5,660						6,359
SG&A expenses			1,042						1,254						3,072						3,827
Gain on subordinated interest			—						—						—						(79)
Loss on Copeland note receivable			—						279						—						279
Other deductions, net			130						294						359						1,075
Interest expense, net			10						56						111						157
Interest income from related party1			(10)						(24)						(10)						(86)
Earnings from continuing operations before income taxes			822						455						1,883						1,341
Income taxes			168						88						400						266
Earnings from continuing operations			654						367						1,483						1,075
Discontinued operations, net of tax			8,712						(15)						10,979						(88)
Net earnings			9,366						352						12,462						987
Less: Noncontrolling interests in subsidiaries			14						23						(13)						15
Net earnings common stockholders			$	9,352					$	329					$	12,475					$	972
Earnings common stockholders
Earnings from continuing operations			$	643					$	344					$	1,502					$	1,060
Discontinued operations			8,709						(15)						10,973						(88)
Net earnings common stockholders			$	9,352					$	329					$	12,475					$	972
Diluted avg. shares outstanding			574.0						574.8						578.1						574.1
Diluted earnings per share common stockholders
Earnings from continuing operations			$1.12						$0.60						$2.60						$1.84
Discontinued operations			15.16						(0.03)						18.96						(0.15)
Diluted earnings per common share			$16.28						$0.57						$21.56						$1.69
			Quarter Ended June 30,												Nine Months Ended June 30,
			2023						2024						2023						2024
Other deductions, net
Amortization of intangibles			$120						$264						$357						$811
Restructuring costs			12						57						41						170
Other			(2)						(27)						(39)						94
Total			$130						$294						$359						$1,075
1 Represents interest on the Copeland note receivable through June 6, 2024.

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									Table 2
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
			Sept 30, 2023						June 30, 2024
Assets
Cash and equivalents			$	8,051					$	2,298
Receivables, net			2,518						2,761
Inventories			2,006						2,303
Other current assets			1,244						1,458
Total current assets			13,819						8,820
Property, plant & equipment, net			2,363						2,688
Goodwill			14,480						17,936
Other intangible assets			6,263						10,627
Copeland note receivable and equity investment held-for-sale			3,255						2,908
Other			2,566						2,606
Total assets			$	42,746					$	45,585
Liabilities and equity
Short-term borrowings and current maturities of long-term debt			$	547					$	2,991
Accounts payable			1,275						1,251
Accrued expenses			3,210						3,350
Total current liabilities			5,032						7,592
Long-term debt			7,610						7,111
Other liabilities			3,506						4,194
Equity
Common stockholders' equity			20,689						20,799
Noncontrolling interests in subsidiaries			5,909						5,889
Total equity			26,598						26,688
Total liabilities and equity			$	42,746					$	45,585

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												Table 3
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
			Nine Months Ended June 30,
						2023						2024
Operating activities
Net earnings						$	12,462					$	987
Earnings from discontinued operations, net of tax						(10,979)						88
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization						780						1,263
Stock compensation						198						203
Amortization of acquisition-related inventory step-up						—						231
Gain on subordinated interest						—						(79)
Loss on Copeland note receivable						—						279
Changes in operating working capital						(359)						(176)
Other, net						(383)						(552)
Cash from continuing operations						1,719						2,244
Cash from discontinued operations						(439)						4
Cash provided by operating activities						1,280						2,248
Investing activities
Capital expenditures						(194)						(251)
Purchases of businesses, net of cash and equivalents acquired						—						(8,342)
Proceeds from subordinated interest						15						79
Proceeds from related party note receivable						918						—
Other, net						(124)						(86)
Cash from continuing operations						615						(8,600)
Cash from discontinued operations						12,485						36
Cash provided by (used in) investing activities						13,100						(8,564)
Financing activities
Net increase (decrease) in short-term borrowings						(1,476)						2,229
Proceeds from short-term borrowings greater than three months						395						322
Payments of short-term borrowings greater than three months						(400)						(100)
Payments of long-term debt						(744)						(547)
Dividends paid						(900)						(901)
Purchases of common stock						(2,000)						(175)
AspenTech purchases of common stock						(100)						(188)
Payment of related party note payable						(918)						—
Other, net						(159)						(57)
Cash provided by (used in) financing activities						(6,302)						583
Effect of exchange rate changes on cash and equivalents						75						(20)
Increase (decrease) in cash and equivalents						8,153						(5,753)
Beginning cash and equivalents						1,804						8,051
Ending cash and equivalents						$	9,957					$	2,298

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									Table 4
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(DOLLARS 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 June 30,
			2023						2024						Reported						Underlying
Sales
Final Control			$	1,035					$	1,046					1		%				2		%
Measurement & Analytical			913						982						8		%				9		%
Discrete Automation			668						618						(8)		%				(6)		%
Safety & Productivity			363						351						(3)		%				(3)		%
Intelligent Devices			$	2,979					$	2,997					1		%				2		%
Control Systems & Software			663						700						6		%				7		%
Test & Measurement			—						355
AspenTech			320						343						7		%				7		%
Software and Control			$	983					$	1,398					42		%				7		%
Eliminations			(16)						(15)
Total			$	3,946					$	4,380					11		%				3		%

Sales Growth by Geography
			Quarter Ended June 30,
Americas			3		%
Europe			4		%
Asia, Middle East & Africa			2		%

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									Table 4 cont.

			Nine Months Ended June 30,
			2023						2024						Reported						Underlying
Sales
Final Control			$	2,889					$	3,037					5		%				6		%
Measurement & Analytical			2,550						2,942						15		%				17		%
Discrete Automation			1,969						1,863						(5)		%				(5)		%
Safety & Productivity			1,034						1,038						—		%				—		%
Intelligent Devices			$	8,442					$	8,880					5		%				6		%
Control Systems & Software			1,892						2,062						9		%				10		%
Test & Measurement			—						1,104
AspenTech			793						878						11		%				11		%
Software and Control			$	2,685					$	4,044					51		%				10		%
Eliminations			(52)						(51)
Total			$	11,075					$	12,873					16		%				7		%

Sales Growth by Geography
			Nine Months Ended June 30,
Americas			5		%
Europe			9		%
Asia, Middle East & Africa			9		%

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									Table 4 cont.

			Quarter Ended June 30,												Quarter Ended June 30,
			2023												2024
			As Reported (GAAP)						Adjusted EBITA (Non-GAAP)						As Reported (GAAP)						Adjusted EBITA (Non-GAAP)
Earnings
Final Control			$	245					$	266					$	253					$	279
Margins			23.7		%				25.7		%				24.2		%				26.8		%
Measurement & Analytical			257						263						252						266
Margins			28.1		%				28.7		%				25.6		%				27.0		%
Discrete Automation			124						144						109						134
Margins			18.5		%				21.4		%				17.6		%				21.5		%
Safety & Productivity			82						88						79						86
Margins			22.7		%				24.3		%				22.5		%				24.7		%
Intelligent Devices			$	708					$	761					$	693					$	765
Margins			23.7		%				25.5		%				23.1		%				25.5		%
Control Systems & Software			144						151						168						178
Margins			21.8		%				22.8		%				23.9		%				25.2		%
Test & Measurement			—						—						(88)						76
Margins															(24.7)		%				21.4		%
AspenTech			27						148						49						170
Margins			8.2		%				46.1		%				14.5		%				50.0		%
Software and Control			$	171					$	299					$	129					$	424
Margins			17.4		%				30.4		%				9.2		%				30.3		%
Corporate items and interest expense, net:
Stock compensation			(56)						(56)						(56)						(47)
Unallocated pension and postretirement costs			42						42						38						38
Corporate and other			(43)						(19)						(38)						(24)
Gain on subordinated interest			—						—						—						—
Loss on Copeland note receivable			—						—						(279)						—
Interest expense, net			(10)						—						(56)						—
Interest income from related party1			10						—						24						—
Pretax Earnings / Adjusted EBITA			$	822					$	1,027					$	455					$	1,156
Margins			20.8		%				26.0		%				10.4		%				26.4		%
Supplemental Total Segment Earnings:
Adjusted Total Segment EBITA									$	1,060											$	1,189
Margins									26.9		%										27.1		%
1 Represents interest on the Copeland note receivable through June 6, 2024.

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									Table 4 cont.

			Quarter Ended June 30,												Quarter Ended June 30,
			2023												2024
			Amortization of Intangibles1						Restructuring and Related Costs2						Amortization of Intangibles1						Restructuring and Related Costs2
Final Control			$	22					$	(1)					$	21					$	5
Measurement & Analytical			5						1						11						3
Discrete Automation			8						12						9						16
Safety & Productivity			7						(1)						6						1
Intelligent Devices			$	42					$	11					$	47					$	25
Control Systems & Software			6						1						6						4
Test & Measurement			—						—						139						25
AspenTech			121						—						121						—
Software and Control			$	127					$	1					$	266					$	29
Corporate			—						1						—						6			3
Total			$	169					$	13					$	313					$	60
1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended June 30, 2023 and 2024, respectively.
2 Restructuring and related costs includes $1 and $3 reported in cost of sales and selling, general and administrative expenses for the three months ended June 30, 2023 and 2024, respectively.
3 Corporate restructuring of $6 for the three months ended June 30, 2024 includes $5 related to integration-related stock compensation expense attributable to NI.

			Quarter Ended June 30,
Depreciation and Amortization			2023						2024
Final Control			$	39					$	41
Measurement & Analytical			26						32
Discrete Automation			20						22
Safety & Productivity			15						14
Intelligent Devices			100						109
Control Systems & Software			22						26
Test & Measurement			—						150
AspenTech			123						122
Software and Control			145						298
Corporate			12						10
Total			$	257					$	417

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									Table 5

EMERSON AND SUBSIDIARIES
ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL
(DOLLARS IN MILLIONS, UNAUDITED)

The following table shows the Company's stock compensation and corporate and other expenses on an adjusted basis. The Company's definition of adjusted stock compensation excludes integration-related stock compensation expense. 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 June 30,
															2023						2024
Stock compensation (GAAP)															$	(56)					$	(56)
Integration-related stock compensation expense															—						9			1
Adjusted stock compensation (non-GAAP)															$	(56)					$	(47)

															Quarter Ended June 30,
															2023						2024
Corporate and other (GAAP)															$	(43)					$	(38)
Corporate restructuring and related costs															1						1
Acquisition / divestiture costs															38						13
National Instruments investment gain															(12)						—
AspenTech Micromine purchase price hedge															(3)						—
Adjusted corporate and other (non-GAAP)															$	(19)					$	(24)
1 Integration-related stock compensation expense relates to NI and includes $5 reported as restructuring costs.

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									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, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction-related costs, 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 June 30,
			2023						2024
Pretax earnings			$	822					$	455
Percent of sales			20.8		%				10.4		%
Interest expense, net			10						56
Interest income from related party1			(10)						(24)
Amortization of intangibles			169						313
Restructuring and related costs			13						60
Acquisition/divestiture fees and related costs			38						17
National Instruments investment gain			(12)						—
AspenTech Micromine purchase price hedge			(3)						—
Loss on Copeland note receivable			—						279
Adjusted EBITA			$	1,027					$	1,156
Percent of sales			26.0		%				26.4		%
			Quarter Ended June 30,
			2023						2024
GAAP earnings from continuing operations per share			$	1.12					$	0.60
Amortization of intangibles			0.15						0.35
Restructuring and related costs			0.02						0.08
Acquisition/divestiture fees and related costs			0.07						0.02
National Instruments investment gain			(0.02)						—
Interest income on undeployed proceeds from Copeland transaction			(0.05)						—
Loss on Copeland note receivable			—						0.38
Adjusted earnings from continuing operations per share			$	1.29					$	1.43
Less: AspenTech contribution to adjusted earnings per share			(0.11)						(0.14)
Adjusted earnings per share excluding AspenTech contribution			$	1.18					$	1.29
1 Represents interest on the Copeland note receivable through June 6, 2024.

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Table 6 cont.

Quarter Ended June 30, 2024
			Pretax Earnings						Income Taxes						Earnings from Cont. Ops.						Non-Controlling Interests3						Net Earnings Common Stockholders						Diluted Earnings Per Share
As reported (GAAP)			$	455					$	88					$	367					$	23					$	344					$	0.60
Amortization of intangibles			313			1			74						239						40						199						0.35
Restructuring and related costs			60			2			14						46						—						46						0.08
Acquisition/divestiture fees and related costs			17						2						15						—						15						0.02
Loss on Copeland note receivable			279						62						217						—						217						0.38
Adjusted (non-GAAP)			$	1,124					$	240					$	884					$	63					$	821					$	1.43
Interest expense, net			56
Interest income from related party4			(24)
Adjusted EBITA (non-GAAP)			$	1,156
1 Amortization of intangibles includes $49 reported in cost of sales.
2 Restructuring and related costs includes $3 reported in cost of sales and selling, general and administrative expenses.
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.
4 Represents interest on the Copeland note receivable through June 6, 2024.

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Table 7
EMERSON AND SUBSIDIARIES
ASPENTECH CONTRIBUTION TO EMERSON RESULTS SUPPLEMENTAL
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

The following tables reconcile the financial results of AspenTech reported to its shareholders with the amounts included in Emerson's consolidated financial results. Emerson currently owns approximately 57 percent of the common shares outstanding of AspenTech, a separately traded public company (NASDAQ: AZPN), and consolidates AspenTech in its financial results. The 43 percent non-controlling interest in AspenTech is removed from Emerson's net earnings common stockholders through the non-controlling interest line item. AspenTech is also one of Emerson's segments and its GAAP segment earnings is reconciled below to its consolidated impact to clarify that certain items are reported outside of its segment earnings within Emerson corporate, including interest income and stock compensation.

Quarter Ended June 30, 2024
			Pretax Earnings						Income Taxes (Benefit)						Earnings from Cont. Ops.						Non-Controlling Interests4						Net Earnings Common Stockholders						Diluted Earnings Per Share
Standalone reporting (GAAP)			$	53		1			$	8					$	45
Other			(1)						(5)						4
Reported in Emerson consolidation (GAAP)			52						3						49						21						28						$	0.05
Adjustments:
Amortization of intangibles			121			2			27						94						40						54						0.09
Adjusted (Non-GAAP)			$	173					$	30					$	143					$	61					$	82					$	0.14
Interest income			(14)			3
Stock compensation			11			3
Adjusted segment EBITA (non-GAAP)			$	170
Reconciliation to Segment EBIT
Pre-tax earnings			$	52
Interest income			(14)			3
Stock compensation			11			3
Segment EBIT (GAAP)			$	49
Amortization of intangibles			121			2
Adjusted segment EBITA (non-GAAP)			$	170
1 Amount reflects AspenTech's pretax earnings for the three months ended June 30, 2024 as reported in its quarterly earnings release 8-K.
2 Amortization of intangibles includes $48 reported in cost of sales.
3 Reported in Emerson corporate line items.
4 Represents the non-controlling interest in AspenTech applied to each adjustment presented herein and eliminated from Emerson's consolidated results.

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Page 14

Reconciliations of Non-GAAP Financial Measures & Other

Table 8

Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts). See tables 4 through 7 for additional non-GAAP reconciliations.

2024 Q3 Underlying Sales Change			Reported			(Favorable) / Unfavorable FX			(Acquisitions) / Divestitures			Underlying
Final Control			1		%	1		%	—		%	2		%
Measurement & Analytical			8		%	1		%	—		%	9		%
Discrete Automation			(8)		%	2		%	—		%	(6)		%
Safety & Productivity			(3)		%	—		%	—		%	(3)		%
Intelligent Devices			1		%	1		%	—		%	2		%
Control Systems & Software			6		%	1		%	—		%	7		%
Test & Measurement
AspenTech			7		%	—		%	—		%	7		%
Software and Control			42		%	1		%	(36)		%	7		%
Emerson			11		%	1		%	(9)		%	3		%

Nine Months Ended June 30, 2024 Underlying Sales Change			Reported			(Favorable) / Unfavorable FX			(Acquisitions) / Divestitures			Underlying
Final Control			5		%	1		%	—		%	6		%
Measurement & Analytical			15		%	1		%	1		%	17		%
Discrete Automation			(5)		%	—		%	—		%	(5)		%
Safety & Productivity			—		%	—		%	—		%	—		%
Intelligent Devices			5		%	1		%	—		%	6		%
Control Systems & Software			9		%	—		%	1		%	10		%
Test & Measurement
AspenTech			11		%	—		%	—		%	11		%
Software and Control			51		%	—		%	(41)		%	10		%
Emerson			16		%	1		%	(10)		%	7		%

Underlying Growth Guidance			2024 Guidance
Reported (GAAP)			~15%
(Favorable) / Unfavorable FX			~0.5 pts
(Acquisitions) / Divestitures			~(9.5) pts
Underlying (non-GAAP)			~6%

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Page 15

2023 Q3 Adjusted Segment EBITA			EBIT			EBIT Margin			Amortization of Intangibles			Restructuring and Related Costs			Adjusted Segment EBITA			Adjusted Segment EBITA Margin
Final Control			$	245		23.7		%	$	22		$	(1)		$	266		25.7		%
Measurement & Analytical			257			28.1		%	5			1			263			28.7		%
Discrete Automation			124			18.5		%	8			12			144			21.4		%
Safety & Productivity			82			22.7		%	7			(1)			88			24.3		%
Intelligent Devices			$	708		23.7		%	$	42		$	11		$	761		25.5		%
Control Systems & Software			144			21.8		%	6			1			151			22.8		%
Test & Measurement			—			—		%	—			—			—			—		%
AspenTech			27			8.2		%	121			—			148			46.1		%
Software and Control			$	171		17.4		%	$	127		$	1		$	299		30.4		%

2024 Q3 Adjusted Segment EBITA			EBIT			EBIT Margin			Amortization of Intangibles			Restructuring and Related Costs			Adjusted Segment EBITA			Adjusted Segment EBITA Margin
Final Control			$	253		24.2		%	$	21		$	5		$	279		26.8		%
Measurement & Analytical			252			25.6		%	11			3			266			27.0		%
Discrete Automation			109			17.6		%	9			16			134			21.5		%
Safety & Productivity			79			22.5		%	6			1			86			24.7		%
Intelligent Devices			$	693		23.1		%	$	47		$	25		$	765		25.5		%
Control Systems & Software			168			23.9		%	6			4			178			25.2		%
Test & Measurement			(88)			(24.7)		%	139			25			76			21.4		%
AspenTech			49			14.5		%	121			—			170			50.0		%
Software and Control			$	129		9.2		%	$	266		$	29		$	424		30.3		%

Total Adjusted Segment EBITA						2023 Q3			2024 Q3
Pretax earnings (GAAP)						$	822		$	455
Margin						20.8		%	10.4		%
Corporate items and interest expense, net						57			367
Amortization of intangibles						169			313
Restructuring and related costs						12			54
Adjusted segment EBITA (non-GAAP)						$	1,060		$	1,189
Margin						26.9		%	27.1		%

Free Cash Flow						2023 Q3			2024 Q3						2024E ($ in billions)
Operating cash flow (GAAP)						$	842		$	1,067					~$3.2
Capital expenditures						(73)			(92)						~(0.4)
Free cash flow (non-GAAP)						$	769		$	975					~$2.8

Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures.

Note 2: All fiscal year 2024E figures are approximate, except where range is given.