Emerson Electric (EMR) investor relations material

Global business environment and regional impacts

• Middle East and Africa account for 9% of sales, with 1,500 employees in the region; operational continuity and employee safety are top priorities amid recent disruptions.

• Logistics in the Middle East remain challenging, but operations in Dubai and Saudi Arabia are running; impact is manageable if disruptions resolve soon.

• Higher oil prices could benefit the region but pose modeling challenges for Europe and China; expectation is for transitory effects with normalization in the second half of the year.

Business performance and growth outlook

• Q1 saw strong order growth: overall up 9%, North America up 18%, India up 20%+, Asia up 13%, and Middle East activity strong.

• Project pipeline stands at $11 billion, with $6.4 billion in growth verticals (life sciences, aerospace/defense, semi, LNG, power); MRO business remains strong.

• Weakness persists in Europe and China, especially in automotive and chemicals, but North America, Middle East, India, and test & measurement (T&M) are robust.

• Power and Ovation orders have a two-year lead time, translating to revenue in 2026–2028.

• LNG and life sciences verticals show continued momentum, with significant U.S. LNG capacity expansion opportunities.

Segment and product trends

• T&M business is strong, led by aerospace and semiconductors; automotive testing remains muted, especially in Europe.

• Book-to-bill ratio in T&M is above 1, supporting growth into 2027.

• Discrete business remains sluggish, with China and Europe still muted.