Eaton Corporation (ETN) reported first-quarter 2025 earnings of $2.72 per share, which surpassed the Zacks Consensus Estimate by 0.7%. The bottom line increased around 13.3% year over year and was near the upper end of the guidance of $2.65-$2.75. (See the Zacks Earnings Calendar to stay ahead of market-making news.)GAAP earnings for the reported quarter were $2.45 per share, up 20.1% from $2.04 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to ch ...

Despite strong underlying growth, shares of Eaton Corporation plc (NYSE: ETN ) have not been a good performer over the past year, losing about 6% of their value, amid concerns about the economic outlook and potential slowing of data center spending. TheOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, j ...

FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to ______ Commission file number 000-54863 EATON CORPORATION plc (Exact name of registrant as specified in its charter) Ireland 98-1059235 (State ...

Financial Data and Key Metrics Changes - The company reported a record adjusted EPS of $2.72, up 13% from the prior year [8] - Organic growth accelerated to 9% from 6% in the prior quarter, with segment margins reaching 23.9% [8][13] - Total company orders increased by 3% compared to the prior quarter, resulting in a book-to-bill ratio of 1.1 [8] Business Line Data and Key Metrics Changes - **Electrical Americas**: Organic sales growth accelerated to 13%, with an operating margin of 30%, up 80 basis points year-over-year [14] - **Electrical Global**: Organic growth increased from 5.5% to 9%, with a 2% FX headwind impacting results [16] - **Aerospace**: Organic growth reached 13%, with a strong operating margin of 23.1% [19] - **Vehicle Segment**: Revenue declined by 15%, including an 11% organic decline, but maintained a margin of 15.5% [20] - **eMobility**: Revenue increased by 2%, with a 3% organic growth [20] Market Data and Key Metrics Changes - The U.S. data center construction backlog increased to nine years based on 2024 build rates, up from seven years [11] - Strong activity was noted in EMEA and APAC regions, with double-digit organic growth reported [16] Company Strategy and Development Direction - The company is focused on leveraging megatrends in its end markets to drive growth, particularly in data centers and utilities [10][25] - The acquisition of Fiberbond is seen as a strategic move to enhance capabilities in the data center market [10][11] - The company is committed to maintaining a localized sourcing and manufacturing strategy to mitigate tariff impacts [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects despite current economic uncertainties, raising the organic growth outlook for 2025 to a range of 7.5% to 9.5% [28][30] - The company reaffirmed its adjusted EPS guidance for 2025, projecting an 11% growth over the prior year [28] Other Important Information - The company has implemented measures to control costs and limit discretionary spending in response to dynamic market conditions [23] - Management highlighted the importance of strong relationships with customers and suppliers to minimize disruptions [23] Q&A Session Summary Question: Data center performance and expectations - Management noted strong double-digit growth in the data center market and expressed optimism for continued high levels of orders and negotiation activity [35][37] Question: Competitive positioning in the U.S. market - The company emphasized its strong local presence and ongoing investments to expand capacity, which positions it favorably against competitors [39][41] Question: Electrical Americas order outlook - Management expects strong order performance in Electrical Americas, supported by a robust backlog and negotiation pipeline [48][50] Question: Implications of data center backlog increase - The increase in backlog is expected to drive demand for modular solutions and enhance the company's competitive position [99][102] Question: Tariff impact on margins - Management discussed the dynamic nature of tariffs and the company's strategy to mitigate cost pressures through pricing and operational efficiencies [72][74] Question: Opportunities in data center orders - Management indicated that the transition to higher power density in data centers will benefit the company's offerings and drive growth [120][122]

Financial Data and Key Metrics Changes - The company reported a record adjusted EPS of $2.72, up 13% from the prior year [7] - Organic growth accelerated to 9% from 6% in the prior quarter, with total company orders increasing by 3% versus the prior quarter [7][12] - Total revenue for Q1 reached $6.4 billion, with segment margins expanding by 80 basis points to 23.9% [12] Business Line Data and Key Metrics Changes - **Electrical Americas**: Organic sales growth accelerated to 13%, with an operating margin of 30%, up 80 basis points year-over-year [13] - **Electrical Global**: Organic growth increased from 5.5% to 9%, with an operating margin of 18.6%, up 30 basis points [15] - **Aerospace**: Organic growth accelerated to 13%, with a strong operating margin of 23.1% [18] - **Vehicle Segment**: Revenue declined by 15%, including an 11% organic decline, but managed to maintain strong margins of 15.5% [19] - **eMobility**: Revenue increased by 2%, with a 3% organic growth [19] Market Data and Key Metrics Changes - The U.S. data center construction backlog now stands at nine years, up from seven years [10] - Strong activity in EMEA and APAC regions, with double-digit organic growth reported [15] - The backlog for Electrical Americas increased by 6% year-over-year, providing strong visibility for organic growth [14] Company Strategy and Development Direction - The company is focused on leveraging megatrends driving growth opportunities across its end markets [8] - The acquisition of Fiberbond is seen as a strategic move to enhance capabilities in the data center market [9] - The company is raising its 2025 organic growth outlook to a range of 7.5% to 9.5% and reaffirming its adjusted EPS guidance [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term market growth prospects despite current economic uncertainties [24] - The company is implementing strategies to mitigate tariff impacts and maintain competitiveness in the U.S. market [21][22] - Management highlighted the importance of a localized sourcing and manufacturing strategy to enhance resilience [22] Other Important Information - The company has a strong negotiation pipeline, with an 18% increase in major project negotiations compared to the prior quarter [14] - The company is committed to investing in leading technologies to enhance its utility business [50] Q&A Session Summary Question: Data center performance and expectations for the rest of the year - Management remains optimistic about the data center market, expecting strong double-digit growth and high levels of negotiation activity [34] Question: Competitive positioning in the U.S. market post-tariffs - Management believes Eaton's local manufacturing strategy provides a competitive advantage, minimizing reliance on external sources [38] Question: Outlook for Electrical Americas orders - Orders are expected to remain strong, supported by record backlogs and a robust negotiation pipeline [45] Question: Performance in the utilities market - The utilities segment is expected to continue strong growth, with high single-digit growth reported globally [51] Question: Implications of the data center backlog increase - The nine-year backlog indicates strong future demand, with opportunities for Eaton to enhance its market share through modular solutions [95] Question: Tariff impact on margins - Management is focused on mitigating tariff impacts through cost management, supply chain actions, and pricing strategies [70] Question: Opportunities for data center orders with AI advancements - The transition to higher power density in data centers is expected to increase Eaton's content per megawatt, benefiting the business [116]

Eaton (ETN) came out with quarterly earnings of $2.72 per share, beating the Zacks Consensus Estimate of $2.70 per share. This compares to earnings of $2.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.74%. A quarter ago, it was expected that this power management company would post earnings of $2.81 per share when it actually produced earnings of $2.83, delivering a surprise of 0.71%.Over the last four quarters, the comp ...

Craig Arnold, Paulo Ruiz & Olivier Leonetti | May 2, 2025 First Quarter 2025 Earnings Release © 2025 Eaton. All rights reserved. 1 Forward-looking statements and non-GAAP financial information This presentation or the comments we make on our call today contain forward-looking statements concerning, among other matters, full year and second quarter 2025 adjusted earnings per share, organic revenue growth and segment operating margins; full year 2025 cash flow, capital expenditures, end markets, and anticipat ...

Financial Performance - First quarter 2025 earnings per share reached $2.45, a record high, representing a 20% increase compared to Q1 2024[2] - Total sales for the quarter were $6.4 billion, a record, up 7% from Q1 2024, with organic sales growth of 9%[3] - Segment margins improved to 23.9%, an 80-basis point increase from Q1 2024, marking a record for the first quarter[4] - Operating cash flow was $238 million, while free cash flow stood at $91 million[5] - For full year 2025, earnings per share are expected to be between $10.29 and $10.69, reflecting a 10% increase at the midpoint over 2024[7] - The company anticipates organic growth of 7.5-9.5% and segment margins of 24.0-24.4% for the full year 2025[8] - Adjusted earnings per ordinary share guidance for the year ending December 31, 2025, is projected to be between $11.80 and $12.20[29] Segment Performance - The Electrical Americas segment reported record sales of $3.0 billion, up 12% from Q1 2024, with operating profits of $904 million, a 15% increase[9] - Aerospace segment sales reached a record $979 million, up 12% from Q1 2024, with operating profits of $226 million, also a record[13] - The Vehicle segment experienced a decline in sales to $617 million, down 15% from Q1 2024, driven by an 11% organic sales decline[15] - eMobility segment sales were a record $162 million, up 2% from Q1 2024, despite an operating loss of $4 million due to launch costs[16] Asset and Liability Management - Total assets increased to $39,206 million as of March 31, 2025, up from $38,381 million at December 31, 2024, representing a growth of 2.15%[26] - Cash and cash equivalents rose significantly to $1,777 million, compared to $555 million at the end of 2024, marking an increase of 219.64%[26] - Accounts receivable increased to $5,094 million, up from $4,619 million, reflecting a growth of 10.3%[26] - Current liabilities increased to $9,522 million as of March 31, 2025, compared to $7,857 million at the end of 2024, an increase of 21.14%[26] - Total equity for Eaton shareholders was $18,506 million as of March 31, 2025, slightly up from $18,488 million at the end of 2024[26] Acquisitions and Restructuring - Eaton acquired Fibrebond Corporation for $1.45 billion on April 1, 2025, which had sales of approximately $378 million for the twelve months ended February 28, 2025[32] - The restructuring program initiated in 2024 has incurred charges of $220 million to date, with total estimated charges expected to reach $475 million by completion in 2026[34] Other Financial Metrics - The company reported free cash flow of $91 million for the three months ended March 31, 2025, after capital expenditures of $147 million[29] - Intangible asset amortization expense remained stable at $106 million for the three months ended March 31, 2025, consistent with the same period in 2024[36]

Wall Street analysts forecast that Eaton (ETN) will report quarterly earnings of $2.70 per share in its upcoming release, pointing to a year-over-year increase of 12.5%. It is anticipated that revenues will amount to $6.27 billion, exhibiting an increase of 5.4% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 0.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their ...

Eaton Corporation (ETN) is expected to report an improvement in its top and bottom lines when it reports first-quarter 2025 results on May 2, before market open. (See the Zacks Earnings Calendar to stay ahead of market-making news)The Zacks Consensus Estimate for ETN’s first-quarter revenues is pegged at $6.27 billion, indicating a 5.4% increase from the year-ago reported figure.The consensus estimate for earnings is pegged at $2.7 per share. The Zacks Consensus Estimate for ETN’s first-quarter earnings ind ...