EMR · 10-Q · 2026Q2 · Full report
Interest Rate and Refinancing Exposure
EMERSON ELECTRIC CO · 2026-08-04 · Importance 83 · Surprise 82 · In source text
Net interest expense increased $113 million year over year to $258 million for the first nine months of fiscal 2026. The increase was attributed to higher short-term borrowings and long-term debt used to fund the AspenTech transaction in March 2025. On February 10, 2026, Emerson entered into a $2 billion, 364-day revolving backup credit facility for commercial paper borrowings, in addition to its existing $3.5 billion five-year facility.
Key facts
- During Q1 FY2026 the Company repaid €500 of 1.25% euro notes that matured in October 2025. source
- Nine months interest expense, net: $258, an increase of $113 compared with 2025 due to increased short-term borrowings and long-term debt to fund the AspenTech transaction in March 2025. source
- Interest coverage ratio for 12 months ended June 30, 2026: 8.2X, decreased from 9.6X for 12 months ended June 30, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -2.3% | Nine months interest expense, net: $258, an increase of $113 compared with 2025 due to increased short-term borrowings and long-term debt… |
| liability | positive | realized | — | During Q1 FY2026 the Company repaid €500 of 1.25% euro notes that matured in October 2025. |
| cash | negative | realized | — | During Q1 FY2026 the Company repaid €500 of 1.25% euro notes that matured in October 2025. |