Eaton(ETN) - 2025 Q1 - Quarterly Results

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]