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Emerson Electric — May 7, 2025 release

Fiscal 2025 second-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0000032604-25-000061
Open on SEC.gov ↗
Showing in the filing
Amortization of Intangibles
“~$0.36”
Period
Q3 FY2025
Measure
Company-defined measure
Source
Guidance table
All guidance in this release · 21
Quarterly cash dividend for FY2025
“$0.5275 per share”
Capital Return to Shareholders for FY2025
“~$2.3B”
Returning to shareholders for FY2025
“~$2.3B”
Share repurchases for FY2025
“$1.1B”
Dividends for FY2025
“~$1.2B”
Net Sales Growth for Q3 FY2025
“4.5% - 5.5%”
Underlying Sales Growth for FY2025
“~4%”
Underlying Sales Growth for Q3 FY2025
“3.5% - 4.5%”
Earnings Per Share for Q3 FY2025
“$1.04 - $1.08”
Earnings Per Share for FY2025
“$4.05 - $4.20”
Amortization of Intangibles for Q3 FY2025
“~$0.36”
Amortization of Intangibles for FY2025
“~$1.34”
Restructuring / Related Costs for Q3 FY2025
“~$0.06”
Restructuring / Related Costs for FY2025
“~$0.20”
Acquisition / Divestiture Fees and Related C… for Q3 FY2025
“~$0.02”
Acquisition / Divestiture Fees and Related C… for FY2025
“~$0.22”
Discrete taxes related to AspenTech transact… for FY2025
“$0.09”
Adjusted Earnings Per Share for Q3 FY2025
“$1.48 - $1.52”
Adjusted Earnings Per Share for FY2025
“$5.90 - $6.05”
Operating cash flow for FY2025
“$3.5B - $3.6B”
Free cash flow for FY2025
“$3.1B - $3.2B”
Exhibit 99.1 · full document
Exhibit 99.1 Emerson Reports Second Quarter 2025 Results; Updates 2025 Outlook ST. LOUIS (May 7, 2025) - Emerson (NYSE: EMR) today reported results 1 for its second quarter ended March 31, 2025 and updated its full year outlook for fiscal 2025. Emerson also declared a quarterly cash dividend of $0.5275 per share of common stock payable June 10, 2025 to stockholders of record on May 16, 2025. (dollars in millions, except per share) 2024 Q2 2025 Q2 Change Underlying Orders 2 4% Net Sales $4,376 $4,432 1% Underlying Sales 3 2% Pretax Earnings $711 $629 Margin 16.3% 14.2% (210) bps Adjusted Segment EBITA 4 $1,139 $1,240 Margin 26.0% 28.0% 200 bps GAAP Earnings Per Share $0.95 $0.86 (9)% Adjusted Earnings Per Share 5 $1.36 $1.48 9% Operating Cash Flow $733 $825 13% Free Cash Flow $651 $738 14% Management Commentary “Emerson delivered strong underlying orders in the second quarter with margin expansion and adjusted earnings exceeding our expectations,” said Emerson President and Chief Executive Officer Lal Karsanbhai. “We achieved another quarter of record gross profit and adjusted segment EBITA margins, supported by our Emerson Management System and demonstrating the value customers attribute to our leading technology. Our superior first half performance and ability to navigate the tariff environment give us the confidence to update our 2025 outlook." Karsanbhai continued, “We have also marked the conclusion of Emerson's portfolio transformation with the completion of the AspenTech buy-in on March 12. We are pleased to be making significant progress on the integration. In addition, our review of strategic alternatives for our Safety & Productivity segment concluded the best value for our shareholders is to retain the business and continue to drive the segment's industry leading margins and cash flow. Looking ahead, we are excited to capitalize on the growth potential of our transformed portfolio, supported by secular drivers, and to sustain the excellent operational performance we have consistently delivered since 2021.” 2025 Outlook The fiscal year 2025 guidance framework now reflects the full ownership of AspenTech. Net sales guidance increases to ~4%, as the impact from foreign exchange is now expected to be flat, and underlying sales are held at the midpoint. GAAP EPS decreases due to transaction-related costs, while adjusted EPS guidance increases at the midpoint. Expectations for operating cash flow and free cash flow are updated to $3.5B - $3.6B and $3.1B - $3.2B, respectively, as strong operational performance partially offsets transaction-related headwinds of ~$0.2B. The 2025 outlook assumes returning ~$2.3B to shareholders through $1.1B of share repurchases and ~$1.2B of dividend. Guidance figures are approximate. 2025 Q3 2025 Net Sales Growth 4.5% - 5.5% ~4% Underlying Sales Growth 3.5% - 4.5% ~4% Earnings Per Share $1.04 - $1.08 $4.05 - $4.20 Amortization of Intangibles ~$0.36 ~$1.34 Restructuring / Related Costs ~$0.06 ~$0.20 Acquisition / Divestiture Fees and Related Costs ~$0.02 ~$0.22 Discrete taxes related to AspenTech transaction $0.09 Adjusted Earnings Per Share $1.48 - $1.52 $5.90 - $6.05 Operating Cash Flow $3.5B - $3.6B Free Cash Flow $3.1B - $3.2B Page 2 1 Results are presented on a continuing operations basis. 2 Underlying orders do not include AspenTech. 3 Underlying sales excludes 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, acquisition/divestiture gains, losses, fees and related costs, and discrete taxes. Conference Call Today, beginning at 7:00 a.m. Central Time / 8:00 a.m. Eastern Time, Emerson management will discuss the second 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 industrial technology leader that provides advanced automation. With an unmatched portfolio of intelligent devices, controls systems, and industrial software, Emerson delivers solutions that automate and optimize business performance. Headquartered in Saint Louis, Missouri, Emerson combines innovative technology with proven operational excellence to power the future of automation. 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) Page 3 Table 1 EMERSON AND SUBSIDIARIES CONSOLIDATED OPERATING RESULTS (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) Quarter Ended March 31, Six Months Ended March 31, 2024 2025 2024 2025 Net sales $ 4,376  $ 4,432  $ 8,493  $ 8,608       Cost of sales 2,092  2,061  4,293  4,002       SG&A expenses 1,296  1,283  2,573  2,506       Gain on subordinated interest (79) —  (79) —       Other deductions, net 330  418  781  646       Interest expense, net 57  41  101  50       Interest income from related party 1 (31) —  (62) —  Earnings from continuing operations before income taxes 711  629  886  1,404  Income taxes 162  199  178  382  Earnings from continuing operations 549  430  708  1,022  Discontinued operations, net of tax (46) —  (73) —  Net earnings 503  430  635  1,022  Less: Noncontrolling interests in subsidiaries 2  (55) (8) (48) Net earnings common stockholders $ 501  $ 485  $ 643  $ 1,070  Earnings common stockholders Earnings from continuing operations $ 547  $ 485  $ 716  $ 1,070  Discontinued operations (46) —  (73) —  Net earnings common stockholders $ 501  $ 485  $ 643  $ 1,070  Diluted avg. shares outstanding 574.1  565.4  573.7  568.2  Diluted earnings per share common stockholders Earnings from continuing operations $ 0.95  $ 0.86  $ 1.24  $ 1.88  Discontinued operations (0.08) —  (0.12) —  Diluted earnings per common share $ 0.87  $ 0.86  $ 1.12  $ 1.88  Quarter Ended March 31, Six Months Ended March 31, 2024 2025 2024 2025 Other deductions, net      Amortization of intangibles $ 273  $ 229  $ 547  $ 457       Restructuring costs 30  21  113  32       Other 27  168  121  157            Total $ 330  $ 418  $ 781  $ 646  1 Represents interest on the Copeland note receivable. Page 4 Table 2 EMERSON AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (DOLLARS IN MILLIONS, UNAUDITED) Sept 30, 2024 Mar 31, 2025 Assets      Cash and equivalents $ 3,588  $ 1,887       Receivables, net 2,927  2,901       Inventories 2,180  2,216       Other current assets 1,497  1,623  Total current assets 10,192  8,627       Property, plant & equipment, net 2,807  2,757       Goodwill 18,067  17,999       Other intangible assets 10,436  9,823       Other 2,744  2,772  Total assets $ 44,246   $ 41,978   Liabilities and equity      Short-term borrowings and current maturities of long-term debt $ 532  $ 6,187       Accounts payable 1,335  1,340       Accrued expenses 3,875  3,319  Total current liabilities 5,742  10,846       Long-term debt 7,155  8,176       Other liabilities 3,840  3,690  Equity      Common stockholders' equity 21,636  19,249       Noncontrolling interests in subsidiaries 5,873  17  Total equity 27,509  19,266  Total liabilities and equity $ 44,246   $ 41,978   Page 5 Table 3 EMERSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN MILLIONS, UNAUDITED) Six Months Ended March 31,   2024 2025 Operating activities     Net earnings $ 635  $ 1,022  Earnings from discontinued operations, net of tax 73  —  Adjustments to reconcile net earnings to net cash provided by operating activities:         Depreciation and amortization 846  767          Stock compensation 147  127          Amortization of acquisition-related inventory step-up 231  —          Gain on subordinated interest (79) —          Changes in operating working capital (347) (203)         Other, net (329) (110)             Cash from continuing operations 1,177 1,603             Cash from discontinued operations (19) (585)             Cash provided by operating activities 1,158 1,018 Investing activities Capital expenditures (159) (170) Purchases of businesses, net of cash and equivalents acquired (8,342) (36) Proceeds from subordinated interest 79  —  Other, net (68) (58)     Cash from continuing operations (8,490) (264)     Cash from discontinued operations 1  —      Cash used in investing activities (8,489) (264) Financing activities Net increase in short-term borrowings 2,464  2,628  Proceeds from short-term borrowings greater than three months 99  2,496  Proceeds from long-term debt —  1,544  Dividends paid (600) (598) Purchases of common stock (175) (1,122) AspenTech purchases of common stock (129) —  Purchase of noncontrolling interest —  (7,171) Settlement of AspenTech share awards —  (76) Other, net (46) (83)     Cash provided by (used in) financing activities 1,613  (2,382) Effect of exchange rate changes on cash and equivalents (15) (73) Decrease in cash and equivalents (5,733) (1,701) Beginning cash and equivalents 8,051  3,588  Ending cash and equivalents $ 2,318   $ 1,887   Page 6 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 March 31, 2024 2025 Reported Underlying Sales Final Control $ 1,051  $ 1,073  2  % 3  % Measurement & Analytical 1,013  1,002  (1) % —  % Discrete Automation 632  615  (3) % (1) % Safety & Productivity 365  339  (7) % (6) % Intelligent Devices $ 3,061   $ 3,029   (1) % —   % Control Systems & Software 1 965  1,062  10  % 11  % Test & Measurement 367  359  (2) % (1) % Software and Control $ 1,332   $ 1,421   7   % 7   % Eliminations (17) (18) Total $ 4,376   $ 4,432   1   % 2   % Sales Growth by Geography Quarter Ended March 31, Americas 3  % Europe (1) % Asia, Middle East & Africa 3  % 1 AspenTech was fully acquired on March 12, 2025 and is now an independent business unit inside of the Control Systems & Software reporting segment. Page 7 Table 4 cont. Six Months Ended March 31, 2024 2025 Reported Underlying Sales Final Control $ 1,991  $ 2,049  3  % 4  % Measurement & Analytical 1,960  1,977  1  % 2  % Discrete Automation 1,245  1,195  (4) % (3) % Safety & Productivity 687  651  (5) % (5) % Intelligent Devices $ 5,883   $ 5,872   —   % 1   % Control Systems & Software 1,897  2,055  8  % 9  % Test & Measurement 749  718  (4) % (3) % Software and Control $ 2,646   $ 2,773   5   % 6   % Eliminations (36) (37) Total $ 8,493   $ 8,608   1   % 2   % Sales Growth by Geography Six Months Ended March 31, Americas 3  % Europe (2) % Asia, Middle East & Africa 3  % Page 8 Table 4 cont. Quarter Ended March 31, Quarter Ended March 31, 2024 2025 As Reported (GAAP) Adjusted EBITA (Non-GAAP) As Reported (GAAP) Adjusted EBITA (Non-GAAP) Earnings Final Control $ 259 $ 274 $ 267 $ 290  Margins 24.7  % 26.1  % 24.9  % 27.0  % Measurement & Analytical 274  287  266  279   Margins 27.0  % 28.3  % 26.6  % 27.8  % Discrete Automation 116  131  117  130   Margins 18.4  % 20.9  % 19.0  % 21.2  % Safety & Productivity 83  91  75  82   Margins 22.7  % 24.7  % 22.2  % 24.3  % Intelligent Devices $ 732 $ 783 $ 725 $ 781  Margins 23.9   % 25.6   % 23.9   % 25.8   % Control Systems & Software 143  278  239  372   Margins 14.8  % 28.8  % 22.5  % 35.0  % Test & Measurement (79) 78  (24) 87   Margins (21.7) % 21.4  % (6.8) % 24.2  % Software and Control $ 64 $ 356 $ 215 $ 459  Margins 4.7   % 26.7   % 15.1   % 32.3   % Corporate items and interest expense, net : Stock compensation (73) (59) (59) (50) Unallocated pension and postretirement costs 38  38  27  27  Corporate and other (103) (46) (238) (74) Gain on subordinated interest 79  —  —  —  Interest expense, net (57) —  (41) —  Interest income from related party 1 31  —  —  —  Pretax Earnings / Adjusted EBITA $ 711 $ 1,072 $ 629 $ 1,143  Margins 16.3   % 24.5   % 14.2   % 25.8   % Supplemental Total Segment Earnings: Adjusted Total Segment EBITA $ 1,139 $ 1,240  Margins 26.0   % 28.0   % 1 Represents interest on the Copeland note receivable. Page 9 Table 4 cont. Quarter Ended March 31, Quarter Ended March 31, 2024 2025 Amortization of Intangibles 1 Restructuring and Related Costs 2 Amortization of Intangibles 1 Restructuring and Related Costs 2 Final Control $ 22  $ (7) $ 21  $ 2  Measurement & Analytical 12  1  11  2  Discrete Automation 8  7  8  5  Safety & Productivity 7  1  6  1  Intelligent Devices $ 49   $ 2   $ 46   $ 10   Control Systems & Software 132  3  127  6  Test & Measurement 141  16  105  6  Software and Control $ 273   $ 19   $ 232   $ 12   Corporate —  12  3 —  5  3 Total $ 322   $ 33   $ 278   $ 27   1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended March 31, 2024 and 2025, respectively. 2 Restructuring and related costs includes $3 and $6 reported in cost of sales and selling, general and administrative expenses for the three months ended March 31, 2024 and 2025, respectively. 3 Corporate restructuring of $5 for the three months ended March 31, 2025 includes $1 related to integration-related stock compensation expense attributable to AspenTech. Corporate restructuring of $12 for the three months ended March 31, 2024 includes $10 related to integration-related stock compensation expense attributable to NI. Quarter Ended March 31, Depreciation and Amortization 2024 2025 Final Control $ 39  $ 41  Measurement & Analytical 33  31  Discrete Automation 21  22  Safety & Productivity 15  14  Intelligent Devices 108   108   Control Systems & Software 152  146  Test & Measurement 153  119  Software and Control 305   265   Corporate 11  11  Total $ 424   $ 384   Page 10 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 March 31, 2024 2025  Stock compensation (GAAP) $ (73) $ (59)  Integration-related stock compensation expense 14  1 9  2  Adjusted stock compensation (non-GAAP) $ (59) $ (50) Quarter Ended March 31, 2024 2025  Corporate and other (GAAP) $ (103) $ (238)  Corporate restructuring and related costs 2  4   Acquisition / divestiture costs 16  160   Loss on divestiture of business 39  —   Adjusted corporate and other (non-GAAP) $ (46) $ (74) 1 Integration-related stock compensation expense for the three months ended March 31, 2024 relates to NI and includes $10 reported as restructuring costs. 2 Integration-related stock compensation expense for the three months ended March 31, 2025 relates to AspenTech and includes $1 reported as restructuring costs. Page 11 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 March 31, 2024 2025 Pretax earnings $ 711 $ 629 Percent of sales 16.3  % 14.2  % Interest expense, net 57 41 Interest income from related party 1 (31) — Amortization of intangibles 322 278 Restructuring and related costs 33 27 Acquisition/divestiture fees and related costs 20 168 Loss on divestiture of business 39 — Gain on subordinated interest (79) — Adjusted EBITA $ 1,072 $ 1,143 Percent of sales 24.5  % 25.8  % Quarter Ended March 31, 2024 2025 GAAP earnings from continuing operations per share $ 0.95 $ 0.86 Amortization of intangibles 0.36 0.32 Restructuring and related costs 0.05 0.04 Discrete taxes related to AspenTech transaction — 0.09 Acquisition/divestiture fees and related costs 0.03 0.17 Loss on divestiture of business 0.07 — Gain on subordinated interest (0.10) — Adjusted earnings from continuing operations per share $ 1.36 $ 1.48 1 Represents interest on the Copeland note receivable Page 12 Table 6 cont. Quarter Ended March 31, 2025 Pretax Earnings Income Taxes Earnings from Cont. Ops. Non-Controlling Interests 3 Net Earnings Common Stockholders Diluted Earnings Per Share As reported (GAAP) $ 629   $ 199   $ 430   $ (55) $ 485   $ 0.86   Amortization of intangibles 278 1 63 215 32 183 0.32 Restructuring and related costs 27 2 5 22 —  22 0.04 Acquisition/divestiture fees and related costs 168 22 146 48  98 0.17 Discrete taxes related to AspenTech transaction — (49) 49 —  49 0.09 Adjusted (non-GAAP) $ 1,102   $ 240   $ 862   $ 25   $ 837   $ 1.48   Interest expense, net 41  Adjusted EBITA (non-GAAP) $ 1,143   1 Amortization of intangibles includes $49 reported in cost of sales. 2 Restructuring and related costs includes $6 reported in cost of sales and selling, general and administrative expenses. 3 Non-Controlling Interests for AspenTech ceased as of March 12, 2025 with the completion of the buy-in. Page 13 Reconciliations of Non-GAAP Financial Measures & Other Table 7 Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts). See tables 4 through 6 for ad ditional non-GAAP reconciliations. 2025 Q2 Underlying Sales Change Reported (Favorable) / Unfavorable FX (Acquisitions) / Divestitures Underlying Final Control 2  % 1  % —  % 3  % Measurement & Analytical (1) % 1  % —  % —  % Discrete Automation (3) % 2  % —  % (1) % Safety & Productivity (7) % 1  % —  % (6) % Intelligent Devices (1) % 1   % —   % —   % Control Systems & Software 10  % 1  % —  % 11  % Test & Measurement (2) % 1  % —  % (1) % Software and Control 7   % —   % —   % 7   % Emerson 1   % 1   % —   % 2   % Six Months Ended March 31, 2025 Underlying Sales Change Reported (Favorable) / Unfavorable FX (Acquisitions) / Divestitures Underlying Final Control 3  % 1  % —  % 4  % Measurement & Analytical 1  % 1  % —  % 2  % Discrete Automation (4) % 1  % —  % (3) % Safety & Productivity (5) % —  % —  % (5) % Intelligent Devices —   % 1   % —   % 1   % Control Systems & Software 8  % 1  % —  % 9  % Test & Measurement (4) % 1  % —  % (3) % Software and Control 5   % 1   % —   % 6   % Emerson 1   % 1   % —   % 2   % Underlying Growth Guidance 2025 Q3 Guidance 2025 Guidance Reported (GAAP) 4.5% - 5.5% ~4% (Favorable) / Unfavorable FX ~1 pt - (Acquisitions) / Divestitures - - Underlying (non-GAAP) 3.5% - 4.5% ~4% 2024 Q2 Adjusted Segment EBITA EBIT EBIT Margin Amortization of Intangibles Restructuring and Related Costs Adjusted Segment EBITA Adjusted Segment EBITA Margin Final Control $ 259  24.7  % $ 22  $ (7) $ 274  26.1  % Measurement & Analytical 274  27.0  % 12  1  287  28.3  % Discrete Automation 116  18.4  % 8  7  131  20.9  % Safety & Productivity 83  22.7  % 7  1  91  24.7  % Intelligent Devices $ 732   23.9   % $ 49   $ 2   $ 783   25.6   % Control Systems & Software 143  14.8  % 132  3  278  28.8  % Test & Measurement (79) (21.7) % 141  16  78  21.4  % Software and Control $ 64   4.7   % $ 273   $ 19   $ 356   26.7   % Page 14 2025 Q2 Adjusted Segment EBITA EBIT EBIT Margin Amortization of Intangibles Restructuring and Related Costs Adjusted Segment EBITA Adjusted Segment EBITA Margin Final Control $ 267  24.9  % $ 21  $ 2  $ 290  27.0  % Measurement & Analytical 266  26.6  % 11  2  279  27.8  % Discrete Automation 117  19.0  % 8  5  130  21.2  % Safety & Productivity 75  22.2  % 6  1  82  24.3  % Intelligent Devices $ 725   23.9   % $ 46   $ 10   $ 781   25.8   % Control Systems & Software 239  22.5  % 127  6  372  35.0  % Test & Measurement (24) (6.8) % 105  6  87  24.2  % Software and Control $ 215   15.1   % $ 232   $ 12   $ 459   32.3   % Total Adjusted Segment EBITA 2024 Q2 2025 Q2 Pretax earnings (GAAP) $ 711 $ 629 Margin 16.3  % 14.2  % Corporate items and interest expense, net 85 311 Amortization of intangibles 322 278 Restructuring and related costs 21 22 Adjusted segment EBITA (non-GAAP) $ 1,139 $ 1,240 Margin 26.0  % 28.0  % Free Cash Flow 2024 Q2 2025 Q2 2025E ($ in billions) Operating cash flow (GAAP) $ 733  $ 825   $3.5 - $3.6 Capital expenditures (82) (87) ~(0.4) Free cash flow (non-GAAP) $ 651   $ 738   $3.1 - $3.2 Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures. Note 2: All fiscal year 2025E figures are approximate, except where range is given.
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.