EMERSON ELECTRIC CO (EMR)

Emerson Electric Co., incorporated in Missouri in 1890, is a global technology and software company providing automation solutions for process, hybrid and discrete manufacturers, generating 2025 sales split across the Americas (51%), Asia, Middle East & Africa (30%, including 10% China), and Europe (19%). Over the past three years, the Company has transformed its portfolio through significant acquisitions and divestitures to become a higher-growth, higher-margin industrial automation leader: it acquired the remaining shares of AspenTech in March 2025 for approximately $7.2 billion (now consolidated into Control Systems & Software), acquired National Instruments (NI) in October 2023 for $8.2 billion equity value (renamed Test & Measurement), sold a majority stake in its Climate Technologies business (renamed Copeland) to Blackstone in May 2023 for $14.0 billion (with the remaining stake and note receivable subsequently sold in 2024), and divested InSinkErator to Whirlpool in October 2022 for $3.0 billion. The Company now operates six segments across two business groups: Intelligent Devices (Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity) and Software and Control (Control Systems & Software, Test & Measurement).

Final Control provides valves, actuators and regulators under brands including Fisher, Crosby and Keystone; Measurement & Analytical supplies intelligent instrumentation under brands like Rosemount and Micro Motion; Discrete Automation offers pneumatic and electrical components under brands such as ASCO and Branson; Safety & Productivity delivers professional tools under brands including RIDGID and Greenlee; Control Systems & Software provides control systems, software and cybersecurity solutions (including AspenTech's asset optimization software) under brands like DeltaV; and Test & Measurement, from the NI acquisition, provides software-connected test and measurement systems. R&D and engineering spending was 8.1% of sales in both 2025 and 2024, up from 6.9% in 2023, reflecting investment in disruptive measurement technologies, software-defined automation, and sustainability solutions. The Company distributes primarily through a direct sales force supplemented by independent representatives and distributors, sources raw materials including steel, electronics, rare earth metals and aluminum from diversified suppliers, and held consolidated order backlog of $8.6 billion at September 30, 2025 (up from $8.4 billion in 2024), split between Intelligent Devices ($4.5 billion) and Software and Control ($4.1 billion).

Emerson operates in highly competitive, fragmented markets with no single competitor across all product lines, competing on product performance, quality, service and price, and believes it holds market leadership positions in many product lines. The Company employed approximately 71,000 people as of September 30, 2025, with a small portion of U.S. employees unionized and certain international employees represented by works councils or similar organizations; it reported a 2025 total recordable injury rate of 0.25 and an employee engagement score of 79%. Emerson's business is subject to environmental and other government regulations, compliance with which has not historically had a material effect on operations, though future regulatory changes could pose risks.