EMR · 10-Q · 2026Q2 · Full report

Liquidity and Debt Position

EMERSON ELECTRIC CO · 2026-08-04 · Importance 36 · Surprise 14 · In source text

At June 30, 2026, total debt-to-total capital was 39.2% and net debt-to-net capital was 34.9%, compared with 39.3% and 36.2%, respectively, at September 30, 2025. Operating working capital increased $251 million to $2.290 billion, primarily because of higher inventory, while the current ratio remained 0.9. Nine-month operating cash flow increased $238 million to $2.902 billion, and free cash flow increased $217 million to $2.618 billion after $284 million of capital expenditures. Emerson repaid €500 million of 1.25% euro notes that matured in October 2025 and entered a new $2 billion, 364-day revolving backup credit facility.

Key facts

• On February 10, 2026, the Company entered into a $2 billion, 364-day revolving backup credit facility to support commercial paper borrowings, replacing the $3 billion 364-day credit agreement entered Feb 11, 2025 which expired by its terms. source
• The $2 billion 364-day facility is in addition to the Company's existing $3.5 billion five-year revolving backup credit facility entered in February 2023. source
• Free cash flow for first nine months of fiscal 2026: $2,618 (operating cash flow $2,902 less capital expenditures $284), increased $217 compared to $2,401 in 2025. source
• Operating cash flow from continuing operations for first nine months of fiscal 2026: $2,902, an increase of $238 compared with $2,664 in prior year. source
• As of nine months ended June 30, 2026, total assets were $42 billion and common stockholders' equity was $20 billion. source
• Total debt-to-total capital as of June 30, 2026: 39.2 percent (Sept 30, 2025: 39.3 percent, June 30, 2025: 41.7 percent). source
• Net debt-to-net capital as of June 30, 2026: 34.9 percent (Sept 30, 2025: 36.2 percent, June 30, 2025: 37.7 percent). source
• Current ratio as of June 30, 2026: 0.9, remained flat compared to September 30, 2025 (0.9). source

Impact estimates