EMRMEDIUM SIGNALFINANCIAL10-K

Emerson completed its $7.2 billion acquisition of the remaining AspenTech shares, creating significant balance sheet changes including substantially higher current liabilities and increased debt levels.

The AspenTech acquisition transforms Emerson into a "global automation leader" but comes with considerable financial impact, requiring substantial funding that has altered the company's capital structure. The transaction appears to be part of a broader strategic repositioning toward higher-growth, higher-margin industrial technology markets.

Comparing 2025-11-10 vs 2024-11-12View on EDGAR →
FINANCIAL ANALYSIS

The AspenTech acquisition drove substantial increases in current liabilities (up 70.6%) while total debt grew 16.1%, indicating the company used a mix of debt and working capital financing for the deal. Cash declined 29% and current assets fell 15.8%, reflecting the significant capital deployment, though net income grew a solid 16.5% showing the underlying business remains profitable. The balance sheet changes reflect a major strategic transaction rather than operational deterioration, but investors should monitor debt service capacity and integration execution.

FINANCIAL STATEMENT CHANGES
Current Liabilities
Balance Sheet
+70.6%
$5.7B$9.8B

Current liabilities surged 70.6% — significant near-term obligations; verify ability to meet short-term debt.

Cash & Equivalents
Balance Sheet
-29%
$3.3B$2.4B

Cash decreased 29% — monitor burn rate and upcoming capital needs.

Net Income
P&L
+16.5%
$2.0B$2.3B

Net income grew 16.5% — bottom-line growth signals improving overall business health.

Total Debt
Balance Sheet
+16.1%
$7.7B$8.9B

Debt rose 16.1% — additional borrowing for investment or operations; monitor coverage ratios.

Current Assets
Balance Sheet
-15.8%
$10.2B$8.6B

Current assets declined 15.8% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2025-11-10
PRIOR — 2024-11-12
ADDED
Common stock outstanding at October 31, 2025 : 561.8 million shares.
("Emerson", "we", "us", "our" or the "Company ) is a global technology and software company that provides innovative solutions for customers in a wide range of end markets around the world.
Sales by geographic destination in 2025 were: the Americas, 51 percent; Asia, Middle East Africa, 30 percent (China, 10 percent); and Europe, 19 percent .
These actions were undertaken to create a cohesive, higher growth, higher margin industrial technology portfolio, and the Company is now a global automation leader serving a diversified set of end markets.
The Company s recent portfolio actions include the following transactions (note that all d ollars in Item 1 are in millions, except where noted) : On March 12, 2025, Emerson completed its purchase of the remaining outstanding shares of common stock of AspenTech not already owned by the Company for approximately $7.2 billion.
As a result of the transaction, AspenTech is now a wholly owned subsidiary of the Company.
AspenTech was reorganized upon completion of the transaction and now reports to Control Systems Software leadership.
AspenTech's results, which were previously reported as a separate segment, are now consolidated into the Control Systems Software segment for all periods presented.
This segment also includes the AspenTech business, which is a global leader in asset optimization software that enables industrial manufacturers to design, operate and maintain their operations for maximum performance.
Products within our Control Systems Software segment are marketed under a variety of brands including DeltaV and Ovation.
REMOVED
Common stock outstanding at October 31, 2024 : 570.2 million shares.
PART I ITEM 1 - BUSINESS Emerson ( the Company ) is a global technology and software company that provides innovative solutions for customers in a wide range of end markets around the world.
Sales by geographic destination in 2024 were: the Americas, 50 percent ; Asia, Middle East Africa, 30 percent (China, 11 percent ); and Europe, 20 percent .
The Company s recent portfolio actions include the following transactions (note that all d ollars in Item 1 are in millions, except where noted) : On October 11, 2023, the Company completed the acquisition of National Instruments Corporation ("NI") at an equity value of $8.2 billion.
On May 31, 2022 the Company completed the divestiture of its Therm-O-Disc sensing and protection technologies business to an affiliate of One Rock Capital Partners, LLC.
On May 16, 2022, the Company completed the transactions contemplated by its definitive agreement with Aspen Technology, Inc.
("Heritage AspenTech") to contribute two of Emerson's stand-alone industrial software businesses, Open Systems International, Inc.
and the Geological Simulation Software business (collectively, the Emerson Industrial Software Business ), along with approximately $6.0 billion in cash to Heritage AspenTech stockholders, to create "New AspenTech", a diversified, high-performance industrial software leader with greater scale, capabilities and technologies (defined as "AspenTech" herein).
Upon closing of the transaction, Emerson owned 55 percent of the outstanding shares of AspenTech common stock (on a fully diluted basis).
On November 5, 2024, the Company announced a proposal to acquire all outstanding shares of common stock of AspenTech not already owned by Emerson for $240 per share in cash, which implies a fully diluted market capitalization for AspenTech of $15.3 billion and an enterprise value of $15.1 billion.
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