EMR EMERSON ELECTRIC CO

Overview and Growth

In fiscal 2025, EMERSON ELECTRIC CO recorded $18.02B of revenue, net income of $2.29B, and an operating cash inflow of $3.10B. The $18.02B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $17.49B in fiscal 2024, revenue recorded a 3.0% year-over-year increase. Diluted earnings per share were $4.04, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $3.43 in fiscal 2024, the current result was 17.8% higher. The revenue-to-assets relationship was 0.43x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $9.52B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 52.8% of revenue, showing how much of the top line remained after direct costs. The bottom-line result was net income of $2.29B, after the operating, financing, tax, and other items recognized for the period. The final earnings result represented 12.7% of revenue, connecting the absolute net income figure with the company’s top-line scale. Before income taxes, the company reported $2.93B of earnings, providing a bridge between the operating result and final net income. Pretax income represented 16.3% of revenue, placing earnings before tax in the context of the company’s operating scale. Income tax expense totaled $696.00M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 23.7%, without assuming a statutory-rate comparison. Net income equaled 11.3% of period-end equity, showing the earnings generated on shareholders’ book capital.

Liquidity and Capital Structure

At period end, the $41.96B asset base was financed through $21.67B of liabilities and $20.30B of equity. At period end, current assets of $8.58B compared with current liabilities of $9.80B, defining the company’s short-term resource position. The current ratio was 0.88x; current liabilities exceeded current assets, leaving a short-term liquidity deficit. Cash and equivalents totaled $1.54B, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 15.8%, excluding receivables and other current assets. The company carried $13.12B of total debt at period end, which frames its leverage and debt-service burden. The debt-to-equity relationship was 0.65x, showing how much debt the company carried for each unit of book equity. Debt represented 31.3% of total assets, placing borrowing in the context of the company’s full resource base. The liabilities-to-assets relationship was 51.6%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 3.7%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 5.2% lower than fiscal 2024 assets of $44.25B, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $3.10B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Against net income, operating cash flow measured 1.35x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $431.00M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 13.9% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $2.67B, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 14.8% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 6.4% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Sep 30, 2025. Analysis generated Oct 21, 2026.