Emerson Electric (EMR) Barclays 43rd Annual Industrial Select Conference summary

Order and revenue trends

• Trailing three-month orders grew 9%, with 12-month orders up 6% and backlog rising 9% in the quarter.

• Growth was led by power generation, LNG, semiconductors, life sciences, and aerospace/defense, with strength in the U.S., Arabian Peninsula, Brazil, Japan, and Southeast Asia.

• MRO order rates are in the mid-single-digit range, supporting ongoing business.

• Test & Measurement markets are rebounding as expected, contributing to strong vertical performance.

• No recovery is expected in China or Europe, and forecasts do not rely on improvement in these regions.

Market and industry dynamics

• U.S. industrial economy is robust, with significant modernization and data center work in power generation.

• Semiconductor and aerospace/defense markets are expanding, with innovation and customer-driven design as key differentiators.

• Automotive and bulk chemicals remain weak globally, with overcapacity in chemicals expected to persist for 6-12 months.

• Industrial policy in the U.S. aligns well with prioritized growth verticals.

• Capital project funnel remains active, with strong backfilling of lost projects.

Innovation and technology strategy

• Leading position in Test & Measurement for aerospace/defense, with customer-driven innovation and LabVIEW/Nigel software tools.

• Semiconductor opportunities extend beyond T&M to valves, instruments, and control systems in fabs.

• AI is being embedded in software products, with three new AI-enabled offerings and over $100 million in Ovation Virtual Advisor quotations.

• Software business is protected by vertical specialization, mission-critical applications, and usage-based pricing models.

• Customers are demanding AI within existing products, leveraging deep domain expertise.