Emerson Electric Co. announced it is transitioning to mark-to-market accounting for its defined benefit pension and postretirement plans, effective for fiscal year 2026. This method recognizes actuarial gains and losses immediately in the fourth quarter rather than amortizing them over time, a change management believes improves fair value transparency. To assist investors, the company provided recast financial data for fiscal years 2024, 2025, and the first nine months of 2026.
Key Highlights
- Recast net sales for the nine months ended June 30, 2026, totaled $13.78 billion.
- The accounting transition increased nine-month 2026 diluted EPS by $0.01 to $3.46 due to the reversal of amortized losses.
- Revised adjusted EPS for the nine-month period was $4.72, while the full year 2025 adjusted EPS was recast to $6.01.
- Management expects a pretax gain of less than $5 million from the initial mark-to-market adjustment in the fourth quarter of fiscal 2026.