EX-99.1 2 a2023q3release_ex991.htm EX-99.1 Document

emrprlogo2.jpg
Emerson Reports Third Quarter 2023 Results; Updates 2023 Outlook
ST. LOUIS (August 2, 2023) - Emerson (NYSE: EMR) today reported results for its third quarter ended June 30, 2023 and updated its full year outlook for fiscal 2023, which are presented on a continuing operations basis. Emerson also declared a quarterly cash dividend of $0.52 per share of common stock payable September 11, 2023 to stockholders of record August 11, 2023.
(dollars in millions, except per share)2022 Q32023 Q3Change
Underlying Orders1
3%
Net Sales$3,465$3,94614%
Underlying Sales2
14%
Pretax Earnings$378$761
Margin10.9%19.3%840 bps
Adjusted Segment EBITA3
$806$1,060
Margin23.2%26.9%370 bps
GAAP Earnings Per Share$0.38$1.03171%
Adjusted Earnings Per Share4
$0.92$1.2940%
Operating Cash Flow$479$84276%
Free Cash Flow$420$76983%
Management Commentary
“Emerson delivered another exceptional quarter of underlying sales growth and solid financial and operational results, driven by our highly differentiated portfolio of capabilities and offerings,” said Emerson President and Chief Executive Officer Lal Karsanbhai. “We continue to advance our growth and profitability as a leading automation company, underpinned by the Emerson Management System and the world-class execution of our talented global team.”
Karsanbhai continued, “Our performance over the last nine months demonstrates the strength of our technology and the strategic benefits of our exposure to attractive end-markets. As we close out 2023 and look ahead to 2024, Emerson is uniquely positioned, based on the breadth and depth of our capabilities and long-standing customer relationships, to capture our customers' investments in energy security and affordability, sustainability and decarbonization, digital transformation, and nearshoring. We look forward to delivering continued shareholder value as we build on our momentum across our business.”
2023 Outlook
The following tables summarize the fiscal year 2023 guidance framework for continuing operations which was increased from prior guidance. The 2023 outlook includes $2 billion returned to shareholders through share repurchases completed in the first quarter and approximately $1.2 billion of dividend payments. Guidance figures are approximate.
2023
Net Sales Growth~10.5%
Underlying Sales Growth~10%
Earnings Per Share$3.54 - $3.59
Amortization of Intangibles~$0.61
Restructuring / Related Costs~$0.16
Russia Exit Costs$0.08
AspenTech Micromine Purchase Price Hedge($0.02)
Acquisition / Divestiture Fees~$0.10
NI Investment Gain~($0.07)
Interest Income on Undeployed Proceeds~($0.19)
Copeland Equity Loss~$0.19
Adjusted Earnings Per Share$4.40 - $4.45
Operating Cash Flow$2.5B - $2.6B
Free Cash Flow$2.2B - $2.3B


Page 2
1 Underlying orders does not include AspenTech.
2 Underlying sales excludes the impact of currency translation, and acquisitions and divestitures. Heritage AspenTech and Emerson's businesses contributed to AspenTech will be included in underlying sales beginning in 2023 Q4.
3 Adjusted segment EBITA represents segment earnings less restructuring and intangibles amortization expense.
4 Adjusted EPS excludes restructuring and related costs, NI investment gains, acquisition/divestiture costs, write-offs associated with Emerson's Russia exit, an AspenTech Micromine purchase price hedge, the income/loss of Emerson's 40% share of Copeland, interest income on undeployed proceeds and intangibles amortization expense. Post-Copeland transaction close, adjusted EPS now includes the interest on the Copeland note receivable valued at $0.02 and approximately $0.06 for the third quarter and fiscal year 2023, respectively.
Conference Call
Today, beginning at 8:00 a.m. Central Time / 9:00 a.m. Eastern Time, Emerson management will discuss the third quarter results during an investor conference call. Participants can access a live webcast available at www.emerson.com/investors at the time of the call. A replay of the call will be available for 90 days. Conference call slides will be posted in advance of the call on the company website.
About Emerson
Emerson (NYSE: EMR) is a global technology and software company providing innovative solutions for the world's essential industries. Through its leading automation portfolio, including its majority stake in AspenTech, Emerson helps hybrid, process and discrete manufacturers optimize operations, protect personnel, reduce emissions and achieve their sustainability goals. For more information, visit Emerson.com.
Forward-Looking and Cautionary Statements
Statements in this press release that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the Company's ability to successfully complete on the terms and conditions contemplated, and the financial impact of, the proposed National Instruments transaction, the scope, duration and ultimate impacts of the COVID-19 pandemic and the Russia-Ukraine conflict, as well as economic and currency conditions, market demand, including related to the pandemic and oil and gas price declines and volatility, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.
Contacts
Investors:Media:
Colleen MettlerJoseph Sala / Tanner Kaufman / Greg Klassen
(314) 553-2197Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449










(tables attached)


Page 3
Table 1
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
Quarter Ended
June 30
Nine Months Ended
June 30
2022202320222023
Net sales$3,465 $3,946 $9,912 $11,075 
     Cost of sales1,879 1,952 5,435 5,660 
     SG&A expenses894 1,042 2,631 3,072 
     Gain on subordinated interest— — (453)— 
     Other deductions, net264 191 330 420 
     Interest expense, net50 10 140 111 
     Interest income from related party1
— (10)— (10)
Earnings from continuing operations before income taxes378 761 1,829 1,822 
Income taxes123 158 399 390 
Earnings from continuing operations255 603 1,430 1,432 
Discontinued operations, net of tax697 8,763 1,092 11,030 
Net earnings952 9,366 2,522 12,462 
Less: Noncontrolling interests in subsidiaries31 14 31 (13)
Net earnings common stockholders$921 $9,352 $2,491 $12,475 
Earnings common stockholders
Earnings from continuing operations$226$592$1,400$1,451
Discontinued operations6958,7601,091 11,024 
Net earnings common stockholders$921$9,352$2,491$12,475
Diluted avg. shares outstanding596.2 574.0 596.9 578.1 
Diluted earnings per share common stockholders
Earnings from continuing operations$0.38 $1.03 $2.34 $2.51 
Discontinued operations1.16 15.25 1.83 19.05 
Diluted earnings per common share$1.54 $16.28 $4.17 $21.56 
Quarter Ended
June 30
Nine Months Ended
June 30
2022202320222023
Other deductions, net
     Amortization of intangibles$93 $120 $207 $357 
     Restructuring costs29 12 44 41 
     Other142 59 79 22 
          Total$264 $191 $330 $420 
1 Represents interest on the Copeland note receivable.


Page 4
Table 2
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
Quarter Ended June 30
20222023
Assets
     Cash and equivalents$2,529 $9,957 
     Receivables, net2,135 2,491 
     Inventories1,830 2,085 
     Other current assets1,357 1,227 
     Current assets held-for-sale1,524 — 
          Total current assets9,375 15,760 
     Property, plant & equipment, net2,276 2,268 
     Goodwill14,028 14,131 
     Other intangible assets6,772 6,147 
     Copeland note receivable and equity investment— 3,359 
     Other 2,353 2,508 
     Noncurrent assets held-for-sale2,238 — 
          Total assets$37,042 $44,173 
Liabilities and equity
     Short-term borrowings and current
        maturities of long-term debt$3,227 $667 
     Accounts payable1,228 1,218 
     Accrued expenses3,013 4,729 
     Current liabilities held-for-sale1,344 — 
          Total current liabilities8,812 6,614 
     Long-term debt8,367 7,642 
     Other liabilities3,385 3,504 
     Noncurrent liabilities held-for-sale191 — 
Equity
     Common stockholders' equity 10,315 20,464 
     Noncontrolling interests in subsidiaries5,972 5,949 
     Total equity16,287 26,413 
          Total liabilities and equity$37,042 $44,173 


Page 5
Table 3
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
Nine Months Ended June 30
 20222023
Operating activities  
Net earnings$2,522$12,462
Earnings from discontinued operations, net of tax(1,092)(11,030)
Adjustments to reconcile net earnings to net cash provided by operating activities:
        Depreciation and amortization571780
        Stock compensation91198
        Changes in operating working capital(361)(369)
        Gain on subordinated interest(453)
        Other, net(43)(322)
            Cash from continuing operations1,2351,719
            Cash from discontinued operations470(439)
            Cash provided by operating activities1,7051,280
Investing activities
Capital expenditures(199)(194)
Purchases of businesses, net of cash and equivalents acquired(5,615)
Proceeds from subordinated interest438 15 
Proceeds from related party note receivable918
Other, net(38)(124)
    Cash from continuing operations(5,414)615
    Cash from discontinued operations43912,485
    Cash provided by (used in) investing activities(4,975)13,100
Financing activities
Net increase (decrease) in short-term borrowings1,633(1,476)
Proceeds from short-term borrowings greater than three months1,162395
Payments of short-term borrowings greater than three months(445)(400)
Proceeds from long-term debt2,975
Payments of long-term debt(512)(744)
Dividends paid(918)(900)
Purchases of common stock(418)(2,000)
AspenTech purchases of common stock(100)
Payment of related party note payable(918)
Other, net80(159)
    Cash provided by (used in) financing activities3,557(6,302)
Effect of exchange rate changes on cash and equivalents(112)75
Increase in cash and equivalents1758,153
Beginning cash and equivalents2,3541,804
Ending cash and equivalents$2,529$9,957


Page 6
Table 4
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(AMOUNTS IN MILLIONS, UNAUDITED)
The following tables show results for the Company's segments on an adjusted segment EBITA basis and are intended to supplement the Company's results of operations, including its segment earnings which are defined as earnings before interest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excluding intangibles amortization expense, and restructuring and related expense. Adjusted segment and total segment EBITA, and adjusted segment and total segment EBITA margin are measures used by management and may be useful for investors to evaluate the Company's segments' operational performance.
Quarter Ended June 30
20222023ReportedUnderlying
Sales
Final Control$905 $1,035 14 %16 %
Measurement & Analytical788 913 16 %20 %
Discrete Automation633 668 %%
Safety & Productivity360 363 %— %
Intelligent Devices$2,686 $2,979 11 %13 %
Control Systems & Software568 663 17 %19 %
AspenTech239 320 34 %— %
Software and Control$807 $983 22 %19 %
Eliminations(28)(16)
Total$3,465 $3,946 14 %14 %


Sales Growth by Geography
Quarter Ended June 30
Americas11 %
Europe 13 %
Asia, Middle East & Africa20 %














Page 7

Table 4 cont.
Nine Months Ended June 30
20222023ReportedUnderlying
Sales
Final Control$2,606 $2,889 11 %15 %
Measurement & Analytical2,294 2,550 11 %16 %
Discrete Automation1,894 1,969 %%
Safety & Productivity1,066 1,034 (3)%(2)%
Intelligent Devices$7,860 $8,442 7 %11 %
Control Systems & Software1,711 1,892 11 %15 %
AspenTech405 793 96 %— %
Software and Control$2,116 $2,685 27 %15 %
Eliminations(64)(52)
Total$9,912 $11,075 12 %12 %


Sales Growth by Geography
Nine Months Ended June 30
Americas13 %
Europe 10 %
Asia, Middle East & Africa11 %


Page 8
Table 4 cont.
Quarter Ended June 30Quarter Ended June 30
20222023
As Reported (GAAP)Adjusted EBITA (Non-GAAP)As Reported (GAAP)Adjusted EBITA (Non-GAAP)
Earnings
Final Control$150$191$245$266
 Margins16.6 %21.2 %23.7 %25.7 %
Measurement & Analytical189197257263
 Margins23.9 %25.1 %28.1 %28.7 %
Discrete Automation115124124144
 Margins18.2 %19.6 %18.5 %21.4 %
Safety & Productivity69758288
 Margins19.3 %20.6 %22.7 %24.3 %
Intelligent Devices$523$587$708$761
 Margins19.5 %21.9 %23.7 %25.5 %
Control Systems & Software7790144151
 Margins13.5 %15.7 %21.8 %22.8 %
AspenTech5712927148
 Margins23.7 %53.8 %8.2 %46.1 %
Software and Control$134$219$171$299
 Margins16.5 %27.0 %17.4 %30.4 %
Corporate items and interest expense, net:
Stock compensation(15)(15)(56)(56)
Unallocated pension and postretirement costs25254242
Corporate and other(239)(15)(43)(19)
Copeland equity method investment loss— — (61)— 
Interest expense, net(50)— (10)— 
Interest income from related party1
— — 10— 
Pretax Earnings / Adjusted EBITA$378$801$761$1,027
 Margins10.9 %23.1 %19.3 %26.0 %
Supplemental Total Segment Earnings:
Adjusted Total Segment EBITA$806$1,060
 Margins23.2 %26.9 %
1 Represents interest on the Copeland note receivable.


Page 9
Table 4 cont.

Quarter Ended June 30Quarter Ended June 30
20222023
Amortization of
Intangibles1
Restructuring
and
Related Costs2
Amortization of
Intangibles1
Restructuring
and
Related Costs2
Final Control$23$18$22$(1)
Measurement & Analytical445
Discrete Automation81812
Safety & Productivity7(1)7(1)
Intelligent Devices$42$22$42$11
Control Systems & Software661
AspenTech71121— 
Software and Control$77$8$127$1
Corporate— 10— 1
Total$119$40$169$13
1 Amortization of intangibles includes $31 and $49 reported in cost of sales for the three months ended June 30, 2022 and 2023, respectively.
2 Restructuring and related costs includes $11 and $1 reported in cost of sales and selling, general and administrative expenses for the three months ended June 30, 2022 and 2023, respectively.
Quarter Ended June 30
20222023
Depreciation and Amortization
Final Control$53 $39 
Measurement & Analytical27 26 
Discrete Automation22 20 
Safety & Productivity15 15 
Intelligent Devices117 100 
Control Systems & Software24 22 
AspenTech72 123 
Software and Control96 145 
     Corporate12 
          Total$222 $257 








Page 10

Table 5
EMERSON AND SUBSIDIARIES
ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL
(AMOUNTS IN MILLIONS, UNAUDITED)
The following table shows the Company's corporate and other expenses on an adjusted basis. The Company's definition of adjusted corporate and other excludes corporate restructuring and related costs, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. This metric is useful for reconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.

Quarter Ended June 30
Corporate and Other20222023
 Corporate and other (GAAP)$(239)$(43)
 Corporate restructuring and related costs11
 National Instruments investment gain— (12)
 Acquisition / divestiture costs6138 
 Russia business exit162 1— 
 AspenTech Micromine purchase price hedge— (3)
 Adjusted corporate and other (Non-GAAP)$(15)$(19)
1 The Russia business exit charge includes $9 of restructuring costs.


Page 11
Table 6
EMERSON AND SUBSIDIARIES
ADJUSTED EBITA & EPS SUPPLEMENTAL
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
The following tables, which show results on an adjusted EBITA basis and diluted earnings per share on an adjusted basis, are intended to supplement the Company's discussion of its results of operations herein. The Company defines adjusted EBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction fees, gains or losses on the Copeland equity method investment, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction fees, interest income on undeployed proceeds, gains or losses on the Copeland equity method investment, and certain gains, losses or impairments. Adjusted EBITA, adjusted EBITA margin, and adjusted earnings per share are measures used by management and may be useful for investors to evaluate the Company's operational performance.

Quarter Ended June 30
20222023
Pretax earnings $378$761
Percent of sales10.9 %19.3 %
Interest expense, net5010
Interest income from related party1
(10)
Amortization of intangibles119169
Restructuring and related costs3113
Acquisition/divestiture costs6138
National Instruments investment gain(12)
Copeland equity method investment loss61
Russia business exit162
AspenTech Micromine purchase price hedge(3)
Adjusted EBITA$801$1,027
Percent of sales23.1 %26.0 %
Quarter Ended June 30
20222023
GAAP earnings from continuing operations per share$0.38$1.03
Amortization of intangibles0.120.15
Restructuring and related costs0.040.02
Acquisition/divestiture costs and pre-acquisition interest on AspenTech debt0.090.07
National Instruments investment gain(0.02)
Interest income on undeployed proceeds from Copeland transaction(0.05)
Copeland equity method investment loss0.09
Russia business exit0.29
Adjusted earnings from continuing operations per share$0.92$1.29
Less: AspenTech contribution to adjusted earnings per share(0.11)
Adjusted earnings per share excluding AspenTech contribution$1.18
1 Represents interest on the Copeland note receivable


Page 12
Table 6 cont.
Quarter Ended June 30, 2023
Pretax
Earnings
Income
Taxes
Earnings from
Cont.
Ops.
Non-Controlling
Interests3
Net
Earnings
Common
Stockholders
Diluted
Earnings
Per
Share
As reported (GAAP)$761$158$603$11$592$1.03 
Amortization of intangibles169
1
3913042880.15
Restructuring and related costs13
2
310— 100.02
Acquisition/divestiture costs38236— 360.07
National Instruments investment gain(12)(3)(9)— (9)(0.02)
Interest income on undeployed proceeds(35)(8)(27)— (27)(0.05)
Copeland equity method investment loss611051— 510.09
AspenTech Micromine purchase price hedge(3)(1)(2)(1)(1)0.00
Adjusted (Non-GAAP)$992$200$792$52$740$1.29
Interest expense, net (excluding interest income on undeployed proceeds)45 
Interest income from related party4
(10)
Adjusted EBITA (Non-GAAP)$1,027
1 Amortization of intangibles includes $49 reported in cost of sales.
2 Restructuring and related costs includes $1 reported in cost of sales.
3 Represents the non-controlling interest in AspenTech applied to AspenTech's share of each adjustment presented herein and eliminated from Emerson's consolidated results.
4 Represents interest on the Copeland note receivable.



Page 13
Table 7
EMERSON AND SUBSIDIARIES
ASPENTECH CONTRIBUTION TO EMERSON RESULTS SUPPLEMENTAL
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
The following tables reconcile the financial results of AspenTech reported to its shareholders with the amounts included in Emerson's consolidated financial results. Emerson currently owns approximately 56 percent of the common shares outstanding of AspenTech, a separately traded public company (NASDAQ: AZPN), and consolidates AspenTech in its financial results. The 44 percent non-controlling interest in AspenTech is removed from Emerson's net earnings common stockholders through the non-controlling interest line item. AspenTech is also one of Emerson's segments and its GAAP segment earnings is reconciled below to its consolidated impact to clarify that certain items are reported outside of its segment earnings within Emerson corporate, including interest income, stock compensation and the Micromine purchase price hedge.

Quarter Ended June 30, 2023
Pretax
Earnings
Income
Taxes
(Benefit)
Earnings from
Cont.
Ops.
Non-Controlling
Interests5
Net
Earnings
Common
Stockholders
Diluted
Earnings
Per
Share
Standalone reporting (GAAP)$231$(4)$27
 Interim tax reporting/Other(1)22(3)
Reported in Emerson consolidation (GAAP)22(2)2410 14$0.02
Adjustments:
Amortization of intangibles121 326

95 42530.09
AspenTech Micromine purchase price hedge(3)4(1)(2)(1)(1)0.00
Adjusted
(Non-GAAP)
$140$23$117$51$66$0.11
 Interest income(13)4
 Stock compensation214
Adjusted Segment EBITA (Non-GAAP)$148
Reconciliation to Segment EBIT
Pre-tax earnings$22
Interest income(13)4
Stock compensation214
Micromine purchase price hedge(3)4
Segment EBIT (GAAP)$27
Amortization of intangibles1213
Adjusted Segment EBITA (Non-GAAP)$148
1 Amount reflects AspenTech's pretax earnings for the three months ended June 30, 2023 as reported in its quarterly earnings release 8-K.
2 GAAP income taxes reported by AspenTech differ from the amount reflected in Emerson's consolidated financial statements due to the application of the ASC 740 tax rules at the AspenTech entity level in their stand-alone publicly reported financial statements as compared to the amount computed at the Emerson consolidated level.
3 Amortization of intangibles includes $47 reported in cost of sales.
4 Reported in Emerson corporate line items.
5 Represents the non-controlling interest in AspenTech applied to each adjustment presented herein and eliminated from Emerson's consolidated results.


Page 14
Reconciliations of Non-GAAP Financial Measures & OtherTable 8
Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts). See tables 4 through 7 for additional non-GAAP reconciliations.
Q3 FY23 Underlying Sales ChangeFinal
Control
Measurement & AnalyticalDiscrete
Automation
Safety &
Productivity
Intelligent
Devices
Reported (GAAP)14 %16 %%%11 %
(Favorable) / Unfavorable FX%%— %(1)%1 %
(Acquisitions)— %— %— %— % %
Divestitures%%— %— %1 %
Underlying (Non-GAAP)16 %20 %%— %13 %
Q3 FY23 Underlying Sales ChangeControl
Systems &
Software
AspenTechSoftware and ControlEmerson
Reported (GAAP)17 %34 %22 %14 %
(Favorable) / Unfavorable FX%— % %1 %
(Acquisitions)— %(34)%(4)%(2)%
Divestitures%1 %1 %
Underlying (Non-GAAP)19 %— %19 %14 %
Nine Months Ended June 30, 2023 Underlying Sales ChangeFinal
Control
Measurement & AnalyticalDiscrete
Automation
Safety &
Productivity
Intelligent
Devices
Reported (GAAP)11 %11 %%(3)%7 %
(Favorable) / Unfavorable FX%%%%3 %
(Acquisitions)— %— %— %— % %
Divestitures%%— %— %1 %
Underlying (Non-GAAP)15 %16 %%(2)%11 %
Nine Months Ended June 30, 2023 Underlying Sales ChangeControl
Systems &
Software
AspenTechSoftware and ControlEmerson
Reported (GAAP)11 %96 %27 %12 %
(Favorable) / Unfavorable FX%— %3 %3 %
(Acquisitions)— %(96)%(16)%(4)%
Divestitures%— %1 %1 %
Underlying (Non-GAAP)15 %— %15 %12 %
2023E August Guidance Underlying SalesFY23E
Reported (GAAP)~ 10.5%
(Favorable) / Unfavorable FX~ 1.5%
(Acquisitions) ~ (2.5)%
Divestitures~ 0.5%
Underlying (Non-GAAP)
~ 10%


Page 15
Final Control Adjusted EBITAQ3 2022Q3 2023Q3 2022Q3 2023
Business Segment EBIT / EBIT margin (GAAP)$150$24516.6 %23.7 %
Amortization of intangibles and restructuring and related costs41214.6 %2.0 %
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)$191$26621.2 %25.7 %
Measurement & Analytical Adjusted EBITAQ3 2022Q3 2023Q3 2022Q3 2023
Business Segment EBIT / EBIT margin (GAAP)$189$25723.9 %28.1 %
Amortization of intangibles and restructuring and related costs861.2 %0.6 %
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)$197$26325.1 %28.7 %
Discrete Automation Adjusted EBITAQ3 2022Q3 2023Q3 2022Q3 2023
Business Segment EBIT / EBIT margin (GAAP)$115$12418.2 %18.5 %
Amortization of intangibles and restructuring and related costs9201.4 %2.9 %
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)$124$14419.6 %21.4 %
Safety & Productivity Adjusted EBITAQ3 2022Q3 2023Q3 2022Q3 2023
Business Segment EBIT / EBIT margin (GAAP)$69$8219.3 %22.7 %
Amortization of intangibles and restructuring and related costs661.3 %1.6 %
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)$75$8820.6 %24.3 %
Intelligent Devices Adjusted EBITAQ3 2022Q3 2023Q3 2022Q3 2023
Business Segment EBIT / EBIT margin (GAAP)$523$70819.5 %23.7 %
Amortization of intangibles and restructuring and related costs64532.4 %1.8 %
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)$587$76121.9 %25.5 %
Control Systems & Software Adjusted EBITAQ3 2022Q3 2023Q3 2022Q3 2023
Business Segment EBIT / EBIT margin (GAAP)$77$14413.5 %21.8 %
Amortization of intangibles and restructuring and related costs1372.2 %1.0 %
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)$90$15115.7 %22.8 %


Page 16
AspenTech Adjusted EBITAQ3 2022Q3 2023Q3 2022Q3 2023
Business Segment EBIT / EBIT margin (GAAP)$57$2723.7 %8.2 %
Amortization of intangibles and restructuring and related costs7212130.1 %37.9 %
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)$129$14853.8 %46.1 %
Software and Control Adjusted EBITAQ3 2022Q3 2023Q3 2022Q3 2023
Business Segment EBIT / EBIT margin (GAAP)$134$17116.5 %17.4 %
Amortization of intangibles and restructuring and related costs8512810.5 %13.0 %
Adjusted Business Segment EBITA / EBITA margin (Non-GAAP)$219$29927.0 %30.4 %
Total Business Segment Adjusted EBITA MarginQ3 2022Q3 2023Q3 2022Q3 2023Change
Pretax earnings / margin (GAAP)$378$76110.9 %19.3 %840 bps
Corporate items and interest expense, net2791188.1 %3.0 %(510)bps
Total Business Segment EBIT / margin$657$87919.0 %22.3 %330 bps
Amortization of intangibles and restructuring and related costs$149$1814.2 %4.6 %40 bps
Adjusted Total Business Segment EBITA / margin (Non-GAAP)$806$1,06023.2 %26.9 %370 bps
Q3 Earnings Per ShareQ3 FY22Q3 FY23Change
Earnings per share (GAAP)$0.38$1.03171 %
Amortization of intangibles0.120.15
Restructuring and related costs0.040.02
Acquisition/divestiture costs0.090.07
National Instruments investment gain(0.02)
Interest income on undeployed proceeds(0.05)
Copeland equity method investment loss0.09
Russia business exit0.29
Adjusted earnings per share (Non-GAAP)
$0.92$1.2940 %


Page 17
2023E August Guidance Earnings Per ShareFY23E
Earnings per share (GAAP)$3.54 - $3.59
Amortization of intangibles~ 0.61
Restructuring and related costs~ 0.16
Russia business exit0.08
AspenTech Micromine purchase price hedge(0.02)
Acquisition/divestiture fees~ 0.10
National Instruments investment gain~ (0.07)
Interest income on undeployed proceeds~ (0.19)
Copeland equity loss~ 0.19
Adjusted earnings per share (Non-GAAP)
$4.40 - $4.45
Cash FlowQ3 FY22Q3 FY23ChangeFY23E
($ in billions)
Operating cash flow (GAAP)$479$84276 %$2.5 - $2.6
Capital expenditures(59)(73)%~(0.3)
Free cash flow (Non-GAAP)
$420$76983 %$2.2 - $2.3
Note 1: Underlying sales and orders exclude the impact of acquisitions, divestitures and currency translation.
Note 2: All fiscal year 2023E figures are approximate, except where range is given.