2022 Q3 Financial Results
2022 Q3 Performance Summary
Sales
$5.0B
$4.7B
Adjusted Segment EBITA*
21.3%
23.0%
7% Underlying*
2021
2022
170 bps
2021
2022
Free Cash Flow*
$1.0B
Adjusted EPS*
$1.38
$1.19
$0.6B
36%
2021
2022
$100M impact from China lockdowns;
$80M impact from electronic component
availability
• Continued strong demand and price
realization
AUTOMATION SOLUTIONS
Favorably impacted by portfolio actions;
AspenTech segment contributed +150 bps
Price less net material inflation improving,
especially within Climate Technologies but
still dilutive
Higher working capital from increased sales
and continued supply chain constraints
• Free cash flow conversion*: 90% -
excluding discrete one-time items
COMMERCIAL & RESIDENTIAL SOLUTIONS
•
•
+16%
2021
2022
Adjusted EPS* of $1.38 includes $0.08 of
net Aspen Tech impact
$2,872M
Sales
4% underlying*
Adjusted
EBITA*
21.0%
70 bps
Growth led by process markets and double-digit growth in Americas
China COVID-19 lockdowns and continued electronic component
availability issues impacting global sales and profitability
Profitability leverage and cost reductions partially offset by inflationary
margin pressure
Backlog $6.2B, up $100M versus prior quarter, despite a $132M
debooking in Russia
$1,902M
Sales
13% underlying*
ASPENTECH
Adjusted
EBITA*
22.0%
Sales
$239M
Adjusted
EBITA*
53.8%
50 bps
Strong growth across residential, commercial and industrial
•
All world areas up - China down due to lockdowns
•
Price contributed 12 points of growth
Climate Technologies price less net material inflation improving
leading to stronger incrementals
Backlog* $1.3B, flat versus prior quarter
Integration progressing well
Early synergy project wins in renewable diesel and recycled plastics
Strong sales and profitability from heritage Aspen Tech business
driven by customer investments in sustainability and
operational optimization
•
Aspen Tech's fiscal Q4 (Emerson fiscal Q3) is seasonally highest
sales quarter
Note: Underlying sales* and backlog* does not include heritage Aspen Tech, Therm-O-Disc (previously reported in Commercial & Residential Solutions) and Emerson's businesses contributed to Aspen Tech (previously reported in Automation Solutions); Automation Solutions adjusted EBITA*
excludes Emerson's businesses contributed to Aspen Tech; AspenTech segment includes full quarter of Emerson's businesses contributed to AspenTech and heritage AspenTech starting May 16
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