Emerson today announced its fourth quarter and full year results for the fiscal year ended September 30, 2023, presented on a continuing operations basis. Emerson also announced a quarterly cash dividend of $0.525 per common share to shareholders of record on November 17, 2023, payable on December 11, 2023.

Emerson delivered outstanding results in fiscal 2023 with double-digit sales growth, strong operating leverage and solid adjusted earnings per share growth, and this momentum, along with our continued focus on execution, leading technology and resilient end markets, instills confidence in our guidance for fiscal 2024.

During the quarter, we also completed the acquisition of NI, which greatly facilitates our transformation into an automation leader. “Our differentiated product portfolio with NI and accelerated investment in innovation in new areas provide us with a unique opportunity to solve the tough challenges faced by many of our customers and create long-term shareholder value.”

Fourth quarter results at a glance
• Base order rate 1 increased by 5% year-over-year
• Fourth quarter net sales of $4.09 billion
• Up 5% year-over-year, underlying sales 2 up 5% year-over-year
• Fourth-quarter pretax earnings of $904 million
• Profit margin of 22.1%, up 660 basis points
• Adjusted EBITA of $31.045 billion
• Profit margin 25.5%, up 80 basis points
•GAAP earnings per share of $1.22, up 49% year-over-year
• Adjusted earnings per share of $41.29, up 21% year-over-year
• Operating cash flow of $1.07 billion, up 24% year-over-year
• Free cash flow of $838 million, up 17% year-over-year

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Full year results for fiscal year 2023
• Base order rate 1 increased by 5% year-over-year
• Full year 2023 net sales of $15.165 billion
• 10% year-over-year growth, underlying sales 2 up 10% year-over-year
• Full-year fiscal 2023 pre-tax income of $2.726 billion
• Margin 18%, up 40 basis points
• Adjusted EBITA of $33.794 billion
• 25% margin, up 220 basis points
•GAAP earnings per share of $3.72, up 18% year-over-year
• Adjusted earnings per share of $44.44, up 22% year-over-year
• Operating cash flow of $2.726 billion, up 33% year-over-year
• Free cash flow of $2.363 billion, up 35% year-over-year

Fiscal year 2024 Forecast

The table below summarizes the expected framework for fiscal year 2024 and includes, in addition to those set out below, our NI acquisition 5, which closed on October 11, 2023. In fiscal 2024, approximately $500 million is expected to be returned to shareholders through share repurchases and approximately $1.2 billion in dividends.

Note:
1. The basic order rate does not include AspenTech business.
2. Underlying sales exclude currency translation and the impact of significant business acquisitions and divestitures. Starting in the fourth quarter of fiscal 2023, underlying sales include the existing AspenTech business and the business Emerson has injected into AspenTech.
3. Adjusted profit margin before interest, tax, depreciation and amortization (EBITA) refers to earnings from operations excluding restructuring and intangible asset amortization expenses.
4. Adjusted earnings per share excludes restructuring and related costs, NI investment gains, acquisition/divestiture costs, write-offs related to Emerson’s announced exit from Russia, AspenTech and Micromine acquisition price hedges, income/loss on Emerson’s 40% stake in Vale Wheel, interest income on unutilized earnings and amortization of intangible assets. Following the completion of the Grain Wheels transaction, current adjusted earnings per share is calculated as interest on Grain Wheels notes receivable valued at $0.04 in the fourth quarter and $0.05 in fiscal year 2023.
The 2024 GAAP earnings per share estimate excludes the impact of amortization of intangible assets related to the NI transaction and other acquisition-related accounting costs. As preliminary accounting for the transaction has not been completed, Emerson is unable to estimate these amounts. Although these accounting items may have a material impact on GAAP earnings per share, these accounting items will not be included in adjusted earnings per share and will not have an impact on cash flow.