Cash flow remains volatile, evidenced by a significant $357 million working capital drain in 2026Q1 and free cash flow margins that fluctuated between 3.5% and 22.8% over the last two years.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 3.56B | 3.1B | 3.33B | 637M | 2.92B | 3.58B | 3.08B | 3.01B | 2.89B | 1.91B | 2.88B | 2.53B | 3.69B | 3.65B | 3.05B | 3.23B | 3.29B | 3.09B | 3.29B | 3.02B | 2.51B | 2.19B | 2.22B | 1.73B | 1.82B | 1.71B | 1.84B | 1.81B | 1.65B | 1.5B | 1.32B |
| Operating CF Margin % | - | 17.2% | 19.05% | 4.2% | 21.17% | 27.64% | 18.37% | 16.36% | 16.61% | 12.53% | 19.84% | 15.56% | 20.82% | 14.79% | 12.51% | 13.35% | 15.65% | 15.35% | 13.27% | 13.63% | 12.73% | 12.64% | 14.19% | 12.4% | 13.22% | 11.15% | 11.84% | 12.69% | 12.28% | 12.19% | 11.81% |
| Operating CF Growth % | 204.54% | -7.02% | 423.08% | -78.2% | -18.27% | 15.96% | 2.56% | 3.94% | 51.26% | -33.63% | 13.92% | -31.5% | 1.18% | 19.52% | -5.57% | -1.79% | 6.68% | -6.29% | 9.18% | 20.06% | 14.86% | -1.31% | 28.02% | -4.79% | 6.46% | -7.18% | 1.62% | 9.62% | 10.21% | 13.76% | 15.31% |
| Net Income | 2.44B | 2.25B | 1.6B | 2.26B | 1.88B | 1.42B | 1.99B | 2.33B | 2.22B | 1.68B | 1.62B | 2.54B | 2.24B | 2.07B | 2.02B | 2.53B | 2.22B | 1.77B | 2.41B | 2.14B | 1.84B | 1.42B | 1.26B | 1.09B | 122M | 1.03B | 1.42B | 1.31B | 1.23B | 1.12B | 1.02B |
| Depreciation & Amortization | 1.48B | 1.52B | 1.69B | 1.05B | 842M | 762M | 854M | 822M | 758M | 636M | 568M | 573M | 569M | 819M | 823M | 867M | 816M | 727M | 707M | 656M | 607M | 562M | 557M | 534M | 541M | 709M | 678.5M | 637.5M | 562.5M | 511.6M | 464.6M |
| Stock-Based Compensation | 249M | 263M | 260M | 250M | 125M | 197M | 110M | 120M | 216M | 110M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -424M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -191M | -920M | -71M | -2.78B | 384M | 1.03B | -19M | -114M | -223M | -669M | 601M | 21M | 726M | 722M | 546M | 137M | -50M | -32M | 196M | 87M | 212M | 93M | 80M | -158M | 723M | -152M | -156.2M | -176.3M | -58.5M | -92.3M | -34.2M |
| Working Capital Changes | -419M | -9M | -151M | -148M | -312M | 167M | 148M | -150M | -83M | 160M | 93M | -181M | 159M | 42M | -340M | -301M | 309M | 620M | -22M | 137M | -152M | 110M | 322M | 266M | 432M | 119M | -104.9M | 35.7M | -81M | -42.6M | -131.6M |
| Change in Receivables | -221M | -171M | -99M | -191M | -143M | -18M | 207M | 51M | -175M | -25M | 162M | 241M | -163M | -84M | -536M | -475M | -341M | 1.01B | -293M | -349M | -246M | -261M | -134M | 8M | 155M | 135M | -235.5M | -23.1M | -76.1M | -117.3M | -124.3M |
| Change in Inventory | -185M | -1M | 122M | -160M | -334M | -11M | -6M | -87M | 17M | 32M | 58M | -11M | -103M | 83M | -49M | 12M | -160M | 580M | -90M | 96M | -274M | 8M | -8M | 161M | 265M | 99M | -167M | 69M | -27.7M | -64.4M | -18M |
| Change in Payables | 155M | 34M | -16M | -17M | 147M | 107M | -196M | -37M | 115M | 135M | -22M | -256M | 232M | 14M | 143M | 194M | 498M | -709M | 199M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -608M | -593M | -5.36B | 12.41B | -5.33B | -2.12B | -740M | -1.17B | -2.72B | 1.51B | -626M | 591M | -1.16B | -789M | -806M | -848M | -2.52B | -1.31B | -1.07B | -870M | -1.22B | -928M | -717M | -304M | -881M | -547.7M | -2.5B | -1.58B | -1.1B | -860.6M | -541M |
| Capital Expenditures | -443M | -431M | -419M | -363M | -531M | -581M | -538M | -594M | -617M | -476M | -447M | -685M | -767M | -678M | -665M | -647M | -524M | -531M | -714M | -681M | -601M | -518M | -400M | -337M | -384M | -554.2M | -692M | -591.6M | -602.6M | -575.4M | -513.5M |
| CapEx % of Revenue | 2.42% | 2.39% | 2.4% | 2.39% | 3.85% | 4.49% | 3.21% | 3.23% | 3.54% | 3.12% | 3.08% | 4.22% | 4.33% | 2.75% | 2.72% | 2.67% | 2.49% | 2.64% | 2.88% | 3.08% | 3.05% | 2.99% | 2.56% | 2.41% | 2.79% | 3.62% | 4.45% | 4.15% | 4.48% | 4.68% | 4.61% |
| Acquisitions | -74M | 0 | -8.34B | -705M | -4.66B | -1.58B | -126M | -455M | -2B | -2.95B | -132M | 1.49B | -247M | -16M | -62M | -129M | -2B | -776M | -561M | -295M | -752M | -366M | -414M | -6M | -754M | -200.1M | -1.97B | -1.2B | -572.9M | -319.2M | -299.8M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -91M | -162M | 3.32B | 12.94B | -140M | 38M | -76M | -125M | -101M | 4.94B | -47M | -212M | -145M | -95M | -79M | -72M | 4M | -2M | 203M | 106M | 137M | -44M | 97M | 39M | 257M | 206.6M | 168.6M | 215.5M | 76.2M | 34M | 272.3M |
| Cash from Financing | -3.07B | -4.51B | -2.46B | -6.82B | 2.05B | -2.42B | -509M | -1.39B | -2.09B | -3.59B | -2.04B | -2.95B | -2.56B | -1.93B | -1.9B | -1.89B | -726M | -1.95B | -1.45B | -1.99B | -1.73B | -1.37B | -889M | -1.15B | -934M | -1.08B | 704.6M | -172.7M | -555.5M | -542.8M | -750.3M |
| Debt Issued (Net) | -1.15B | 5.24B | -567M | -3.24B | 3.69B | -812M | 1.64B | 1.03B | 102M | -1.98B | -198M | 841M | 294M | 349M | 90M | 129M | 316M | -116M | 660M | -309M | -171M | -54M | -93M | -503M | -262M | 108M | 1.69B | 717.4M | 464.9M | 314.5M | -190.9M |
| Equity Issued (Net) | -663M | -1.24B | -643M | -2.21B | -500M | -500M | -942M | -1.25B | -1B | -400M | -601M | -2.5B | -1.05B | -1.11B | -797M | -935M | -100M | -718M | -1.12B | -853M | -862M | -621M | -121M | 11M | -20M | -534M | -376.2M | -323.7M | -499.4M | -376.6M | -120.3M |
| Dividends Paid | -1.22B | -1.19B | -1.2B | -1.2B | -1.22B | -1.21B | -1.21B | -1.21B | -1.23B | -1.24B | -1.23B | -1.27B | -1.21B | -1.18B | -1.17B | -1.04B | -1.01B | -998M | -940M | -837M | -730M | -694M | -675M | -661M | -652M | -654M | -613.2M | -566.4M | -521M | -480.7M | -439.1M |
| Share Repurchases | -663M | -1.24B | -643M | -2.21B | -500M | -500M | -942M | -1.25B | -1B | -400M | -601M | -2.5B | -1.05B | -1.11B | -797M | -935M | -100M | -718M | -1.12B | -853M | -862M | -621M | -121M | 0 | -20M | -534M | -376.2M | -323.7M | -499.4M | -376.6M | -120.3M |
| Other Financing | -36M | -7.32B | -44M | -169M | 80M | 100M | 2M | 39M | 35M | 27M | -19M | -19M | -595M | 9M | -21M | -42M | 67M | -116M | -54M | 5M | 32M | 0 | 0 | 0 | 0 | 200K | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -96M | -2.04B | -4.46B | 6.25B | -550M | -961M | 1.82B | 401M | -1.97B | -120M | 128M | -95M | -126M | 908M | 315M | 460M | 32M | -217M | 769M | 198M | -423M | -113M | 650M | 315M | 25M | 74.9M | 14.7M | 56.4M | -11.4M | 72.1M | 31.7M |
| Free Cash Flow | 3.12B | 2.67B | 2.91B | 274M | 2.39B | 2.99B | 2.54B | 2.41B | 2.27B | 1.44B | 2.43B | 1.84B | 2.92B | 2.97B | 2.39B | 2.59B | 2.77B | 2.56B | 2.58B | 2.33B | 1.91B | 1.67B | 1.82B | 1.39B | 1.43B | 1.15B | 1.15B | 1.22B | 1.05B | 923.2M | 803.8M |
| FCF Margin % | 17.01% | 14.8% | 16.65% | 1.81% | 17.32% | 23.15% | 15.16% | 13.13% | 13.07% | 9.41% | 16.76% | 11.35% | 16.49% | 12.04% | 9.78% | 10.68% | 13.16% | 12.71% | 10.4% | 10.55% | 9.68% | 9.64% | 11.63% | 9.99% | 10.43% | 7.53% | 7.38% | 8.54% | 7.8% | 7.51% | 7.21% |
| FCF Growth % | 12.78% | -8.44% | 963.14% | -88.54% | -20.14% | 17.64% | 5.51% | 6.02% | 58.43% | -41% | 32% | -36.96% | -1.55% | 24.41% | -7.66% | -6.58% | 8.34% | -0.93% | 10.45% | 22.19% | 14.5% | -8.09% | 30.27% | -2.79% | 24.32% | 0.5% | -5.83% | 16.2% | 13.63% | 14.85% | 11.38% |
| FCF per Share | 5.53 | 4.71 | 5.07 | 0.47 | 4.03 | 4.98 | 4.20 | 3.89 | 3.58 | 2.23 | 3.76 | 2.73 | 4.15 | 4.11 | 3.25 | 3.43 | 3.66 | 3.37 | 3.27 | 2.90 | 2.32 | 2.00 | 2.15 | 1.66 | 1.70 | 1.34 | 1.33 | 1.39 | 1.18 | 1.04 | 0.90 |
| FCF Conversion (FCF/Net Income) | 1.27x | 1.35x | 1.69x | 0.05x | 0.90x | 1.55x | 1.57x | 1.30x | 1.31x | 1.26x | 1.76x | 0.93x | 1.72x | 1.82x | 1.55x | 1.30x | 1.52x | 1.79x | 1.37x | 1.41x | 1.36x | 1.54x | 1.76x | 1.59x | 14.90x | 1.65x | 1.29x | 1.38x | 1.34x | 1.34x | 1.29x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical project cash volatility
According to quarterly financial data, Emerson's operating cash flow to net income ratio has fluctuated significantly, ranging from a low of 0.50 in 2025Q2 to a high of 3.31 in 2024Q3, highlighting the inherent volatility in converting accounting profits into realized cash flows.
The wide variance in the OCF/NI ratio suggests that reported net income is frequently impacted by non-cash charges or timing differences related to large-scale project accounting. Investors should monitor whether this inconsistency reflects the lumpy nature of percentage-of-completion revenue recognition or underlying challenges in managing working capital efficiency.
As reported in recent financial statements, Emerson's free cash flow margins have shown marked instability, swinging from a trough of 3.5% in 2025Q2 to a peak of 22.8% in 2024Q3, reflecting the company's ongoing structural transition and exposure to cyclical industrial capital expenditure cycles.
The inability to maintain a consistent FCF margin suggests that the company's cash generation remains highly sensitive to project-based milestones and the timing of major divestitures. This trajectory warrants caution, as it indicates that the firm's cash-generating engine is not yet fully decoupled from the volatility of its legacy industrial project portfolio.
Based on the provided figures, Emerson has experienced recurring working capital outflows, including a significant $357 million drain in 2026Q1, which suggests that the company is struggling to optimize its cash conversion cycle amidst its current portfolio transformation and integration of recent acquisitions.
Persistent negative working capital changes indicate that the company is likely tying up cash in inventory or experiencing delayed collections on large-scale automation projects. This trend may imply that the operational benefits of the new software-heavy business model have yet to manifest in improved cash cycle efficiency.
Data from recent filings indicates that Emerson continues to prioritize shareholder returns, with dividend payments consistently near $300 million per quarter, even as the company simultaneously manages significant share repurchases and the integration of large-scale acquisitions like National Instruments.
The commitment to dividends appears to be a core pillar of the company's capital allocation strategy, though the aggressive pace of buybacks in periods like 2025Q1 suggests a desire to offset dilution or signal confidence. Analysts should evaluate whether this level of capital return is sustainable if the company's free cash flow generation remains as volatile as recent quarters suggest.
Quick answers to the most common questions about buying EMR stock.
Emerson Electric Co. (EMR) generated $3.10B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Emerson Electric Co. (EMR) generated $2.67B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Emerson Electric Co. (EMR) spent $431.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Emerson Electric Co. (EMR) returned $1.19B to shareholders via cash dividends and spent $1.24B on share repurchases. This shows the company's commitment to returning capital to its equity investors.