Eaton Reports Record Third Quarter 2025 Results, with Accelerating Orders and Continued Backlog Growth
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Twelve-month rolling average order acceleration in Electrical Americas to up
7% , driven by data center momentum, with strong Aerospace order growth, up11% -
Strong year-over-year backlog growth of
18% in Electrical sector and15% in Aerospace segment - Total book-to-bill ratio of 1.1 for both the Electrical sector and Aerospace segment on a rolling twelve-month basis
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Record segment margins of
25.0% , above the high end of guidance -
For full year 2025, earnings per share expected to be between
$10.29 $10.49 $11.97 $12
Sales in the quarter were
Segment margins were
Operating cash flow was
Paulo Ruiz, Eaton chief executive officer, said, “We continued to see strong demand in the quarter with order acceleration, as well as sustained growth in our backlog and positive book-to-bill ratio, driven primarily by our Electrical Americas and Aerospace businesses. While we continue to ramp-up significant capacity investment projects, we remain confident in our ability to deliver our commitments for the year and achieve our 2030 targets. Looking ahead, our strategy to lead, invest and execute for growth will continue to position us well to capitalize on the generational growth opportunities driven by digitalization and AI, reindustrialization, infrastructure spending and more.”
For the full year 2025, the company anticipates:
-
Organic growth of 8.5
-9.5% -
Segment margins of 24.1
-24.5% -
Earnings per share between
$10.29 $10.49 -
Adjusted earnings per share between
$11.97 $12.17
For the fourth quarter of 2025, the company anticipates:
-
Organic growth of 10
-12% -
Segment margins of 24.2
-24.6% -
Earnings per share between
$2.75 $2.95 -
Adjusted earnings per share between
$3.23 $3.43
Business Segment Results
Sales for the Electrical Americas segment were a record
The twelve-month rolling average of orders in the third quarter was up
Sales for the Electrical Global segment were a third quarter record
The twelve-month rolling average of orders in the third quarter was up
On a rolling twelve-month basis, the book-to-bill ratio for the Electrical businesses increased to 1.1.
Aerospace segment sales were a third quarter record
The twelve-month rolling average of orders in the third quarter was up
The Vehicle segment posted sales of
eMobility segment sales were
Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we’re helping to solve the world’s most urgent power management challenges and building a more sustainable society for people today and generations to come.
Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of nearly
Notice of conference call: Eaton’s conference call to discuss its third quarter results is available to all interested parties today as a live audio webcast at 11 a.m. United States Eastern time via a link on Eaton’s home page. This news release can be accessed under its headline on the home page. Also available on the website before the call will be a presentation on third quarter results, which will be covered during the call.
This news release contains forward-looking statements concerning fourth quarter and full year 2025 earnings per share, adjusted earnings per share, organic growth and segment margins; anticipated capital deployment; as well as anticipated multi-year restructuring program charges and savings. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside the company’s control. The following factors could cause actual results to differ materially from those in the forward-looking statements: a global pandemic; geopolitical tensions or war, unanticipated changes in the markets for the company’s business segments; unanticipated downturns in business relationships with customers or their purchases from us; competitive pressures on sales and pricing; supply chain disruptions, unanticipated changes in the cost of material, labor, and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest at Eaton or at our customers or suppliers; natural disasters; the performance of recent acquisitions; unanticipated difficulties completing or integrating acquisitions; new laws and governmental regulations; interest rate changes; changes in tax laws or tax regulations; stock market and currency fluctuations; and unanticipated deterioration of economic and financial conditions in
Financial Results
The company’s comparative financial results for the three months ended September 30, 2025, are available on the company’s website, http://www.eaton.com.
EATON CORPORATION plc |
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CONSOLIDATED STATEMENTS OF INCOME |
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Three months ended
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Nine months ended
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(In millions except for per share data) |
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2025 |
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2024 |
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2025 |
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|
2024 |
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Net sales |
$ |
6,988 |
|
|
$ |
6,345 |
|
|
$ |
20,393 |
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$ |
18,638 |
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Cost of products sold |
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4,313 |
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3,899 |
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12,674 |
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|
11,564 |
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Selling and administrative expense |
|
1,105 |
|
|
|
1,028 |
|
|
|
3,302 |
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|
|
3,074 |
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Research and development expense |
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203 |
|
|
|
207 |
|
|
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594 |
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593 |
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Interest expense - net |
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67 |
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|
29 |
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|
|
171 |
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|
|
88 |
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Other expense (income) - net |
|
25 |
|
|
|
(22 |
) |
|
|
15 |
|
|
|
(80 |
) |
Income before income taxes |
|
1,275 |
|
|
|
1,204 |
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|
|
3,637 |
|
|
|
3,399 |
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Income tax expense |
|
264 |
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|
|
193 |
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|
|
680 |
|
|
|
573 |
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Net income |
|
1,010 |
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|
1,011 |
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|
2,958 |
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|
2,827 |
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Less net income for noncontrolling interests |
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(1 |
) |
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(1 |
) |
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(3 |
) |
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(4 |
) |
Net income attributable to Eaton ordinary shareholders |
$ |
1,010 |
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|
$ |
1,009 |
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$ |
2,955 |
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$ |
2,823 |
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Net income per share attributable to Eaton ordinary shareholders |
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Diluted |
$ |
2.59 |
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$ |
2.53 |
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$ |
7.54 |
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$ |
7.05 |
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Basic |
|
2.60 |
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|
|
2.54 |
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|
7.57 |
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|
7.08 |
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Weighted-average number of ordinary shares outstanding |
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Diluted |
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390.1 |
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398.9 |
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391.7 |
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400.6 |
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Basic |
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388.8 |
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397.1 |
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390.4 |
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398.7 |
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Reconciliation of net income attributable to Eaton ordinary shareholders to adjusted earnings |
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Net income attributable to Eaton ordinary shareholders |
$ |
1,010 |
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$ |
1,009 |
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$ |
2,955 |
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$ |
2,823 |
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Excluding acquisition and divestiture charges (income), after-tax |
|
44 |
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(4 |
) |
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|
105 |
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|
17 |
|
Excluding restructuring program charges, after-tax |
|
43 |
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|
|
43 |
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|
|
75 |
|
|
|
104 |
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Excluding intangible asset amortization expense, after-tax |
|
102 |
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|
84 |
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|
|
287 |
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|
|
251 |
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Adjusted earnings |
$ |
1,199 |
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$ |
1,132 |
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$ |
3,423 |
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$ |
3,194 |
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Net income per share attributable to Eaton ordinary shareholders - diluted |
$ |
2.59 |
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$ |
2.53 |
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$ |
7.54 |
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$ |
7.05 |
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Excluding per share impact of acquisition and divestiture charges (income), after-tax |
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0.11 |
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(0.01 |
) |
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|
0.27 |
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0.04 |
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Excluding per share impact of restructuring program charges, after-tax |
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0.11 |
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0.11 |
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0.19 |
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0.26 |
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Excluding per share impact of intangible asset amortization expense, after-tax |
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0.26 |
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0.21 |
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0.74 |
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0.62 |
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Adjusted earnings per ordinary share |
$ |
3.07 |
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$ |
2.84 |
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$ |
8.74 |
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$ |
7.97 |
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See accompanying notes. |
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EATON CORPORATION plc |
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BUSINESS SEGMENT INFORMATION |
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Three months ended
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(In millions) |
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2025 |
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2024 |
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2025 |
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2024 |
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Net sales |
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Electrical |
$ |
3,410 |
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$ |
2,963 |
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$ |
9,770 |
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$ |
8,530 |
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Electrical Global |
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1,724 |
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1,573 |
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5,086 |
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4,678 |
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Aerospace |
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1,079 |
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946 |
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3,138 |
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2,772 |
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Vehicle |
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639 |
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696 |
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1,920 |
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2,143 |
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eMobility |
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136 |
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167 |
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479 |
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514 |
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Total net sales |
$ |
6,988 |
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$ |
6,345 |
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$ |
20,393 |
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$ |
18,638 |
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Segment operating profit (loss) |
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Electrical |
$ |
1,034 |
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$ |
892 |
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$ |
2,926 |
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$ |
2,537 |
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Electrical Global |
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330 |
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294 |
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983 |
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|
872 |
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Aerospace |
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280 |
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230 |
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746 |
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637 |
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Vehicle |
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114 |
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135 |
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323 |
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|
381 |
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eMobility |
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(9 |
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(7 |
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(24 |
) |
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(9 |
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Total segment operating profit |
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1,749 |
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1,544 |
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4,953 |
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|
4,417 |
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Corporate |
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Intangible asset amortization expense |
|
(130 |
) |
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|
(106 |
) |
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|
(365 |
) |
|
|
(319 |
) |
Interest expense - net |
|
(67 |
) |
|
|
(29 |
) |
|
|
(171 |
) |
|
|
(88 |
) |
Pension and other postretirement benefits income |
|
4 |
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|
|
9 |
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|
|
15 |
|
|
|
29 |
|
Restructuring program charges |
|
(55 |
) |
|
|
(54 |
) |
|
|
(97 |
) |
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|
(132 |
) |
Other expense - net |
|
(226 |
) |
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|
(160 |
) |
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|
(698 |
) |
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|
(508 |
) |
Income before income taxes |
|
1,275 |
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|
|
1,204 |
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|
|
3,637 |
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|
|
3,399 |
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Income tax expense |
|
264 |
|
|
|
193 |
|
|
|
680 |
|
|
|
573 |
|
Net income |
|
1,010 |
|
|
|
1,011 |
|
|
|
2,958 |
|
|
|
2,827 |
|
Less net income for noncontrolling interests |
|
(1 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(4 |
) |
Net income attributable to Eaton ordinary shareholders |
$ |
1,010 |
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|
$ |
1,009 |
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|
$ |
2,955 |
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|
$ |
2,823 |
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See accompanying notes. |
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EATON CORPORATION plc |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In millions) |
September 30, 2025 |
December 31, 2024 |
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Assets |
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Current assets |
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Cash |
$ |
328 |
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$ |
555 |
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Short-term investments |
|
237 |
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|
1,525 |
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Accounts receivable - net |
|
5,556 |
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|
4,619 |
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Inventory |
|
4,613 |
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|
|
4,227 |
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Prepaid expenses and other current assets |
|
1,397 |
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|
|
874 |
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Total current assets |
|
12,131 |
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|
|
11,801 |
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Property, plant and equipment |
|
4,068 |
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|
|
3,729 |
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Other noncurrent assets |
|
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Goodwill |
|
15,806 |
|
|
|
14,713 |
|
Other intangible assets |
|
5,136 |
|
|
|
4,658 |
|
Operating lease assets |
|
694 |
|
|
|
806 |
|
Deferred income taxes |
|
568 |
|
|
|
609 |
|
Other assets |
|
2,247 |
|
|
|
2,066 |
|
Total assets |
$ |
40,650 |
|
|
$ |
38,381 |
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Liabilities and shareholders’ equity |
|
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Current liabilities |
|
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Short-term debt |
$ |
761 |
|
|
$ |
— |
|
Current portion of long-term debt |
|
1,136 |
|
|
|
674 |
|
Accounts payable |
|
3,826 |
|
|
|
3,678 |
|
Accrued compensation |
|
680 |
|
|
|
670 |
|
Other current liabilities |
|
3,071 |
|
|
|
2,835 |
|
Total current liabilities |
|
9,474 |
|
|
|
7,857 |
|
|
|
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Noncurrent liabilities |
|
|
|
||||
Long-term debt |
|
8,756 |
|
|
|
8,478 |
|
Pension liabilities |
|
744 |
|
|
|
741 |
|
Other postretirement benefits liabilities |
|
159 |
|
|
|
164 |
|
Operating lease liabilities |
|
568 |
|
|
|
669 |
|
Deferred income taxes |
|
289 |
|
|
|
275 |
|
Other noncurrent liabilities |
|
1,775 |
|
|
|
1,667 |
|
Total noncurrent liabilities |
|
12,291 |
|
|
|
11,994 |
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|
|
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Shareholders’ equity |
|
|
|
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Eaton shareholders’ equity |
|
18,843 |
|
|
|
18,488 |
|
Noncontrolling interests |
|
42 |
|
|
|
43 |
|
Total equity |
|
18,885 |
|
|
|
18,531 |
|
Total liabilities and equity |
$ |
40,650 |
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$ |
38,381 |
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See accompanying notes. |
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EATON CORPORATION plc
NOTES TO THE THIRD QUARTER 2025 EARNINGS RELEASE
Amounts are in millions of dollars unless indicated otherwise (per share data assume dilution). Columns and rows may not add and the sum of components may not equal total amounts reported due to rounding.
Note 1. NON-GAAP FINANCIAL INFORMATION
This earnings release includes certain non-GAAP financial measures. These financial measures include adjusted earnings, adjusted earnings per ordinary share, and free cash flow, each of which differs from the most directly comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of each of these financial measures to the most directly comparable GAAP measure is included in this earnings release. Management believes that these financial measures are useful to investors because they provide additional meaningful financial information that should be considered when assessing our business performance and trends, and they allow investors to more easily compare Eaton Corporation plc's (Eaton or the Company) financial performance period to period. Management uses this information in monitoring and evaluating the on-going performance of Eaton and each business segment.
The Company's fourth quarter and full year net income per ordinary share and adjusted earnings per ordinary share guidance for 2025 is as follows:
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Three months ended December 31, 2025 |
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Year ended December 31, 2025 |
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Net income per share attributable to Eaton ordinary shareholders - diluted |
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Excluding per share impact of acquisition and divestiture charges, after tax |
0.07 |
|
0.34 |
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Excluding per share impact of restructuring program charges, after tax |
0.15 |
|
0.34 |
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Excluding per share impact of intangible asset amortization expense, after tax |
0.26 |
|
1.00 |
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Adjusted earnings per ordinary share |
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A reconciliation of operating cash flow to free cash flow is as follows:
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Three months ended September 30 |
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(In millions) |
|
2025 |
|
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|
2024 |
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Operating cash flow |
$ |
1,350 |
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|
$ |
1,308 |
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Capital expenditures for property, plant and equipment |
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(178 |
) |
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|
(183 |
) |
Free cash flow |
$ |
1,172 |
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$ |
1,126 |
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Note 2. ACQUISITIONS OF BUSINESSES
Acquisition of Exertherm
On May 20, 2024, Eaton acquired Exertherm, a
Acquisition of a
On May 31, 2024, Eaton acquired a 49 percent stake in NordicEPOD AS, which designs and assembles standardized power modules for data centers in the Nordic region. Eaton accounts for this investment on the equity method of accounting and it is reported within the Electrical Global business segment.
Acquisition of Fibrebond Corporation
On April 1, 2025, Eaton acquired Fibrebond Corporation (Fibrebond) for
As part of the acquisition, Eaton assumed
Agreement to Acquire Ultra PCS Limited
On June 16, 2025, Eaton signed an agreement to acquire Ultra PCS Limited (Ultra PCS), which is headquartered in the
Acquisition of Resilient Power Systems Inc.
On August 6, 2025, Eaton acquired Resilient Power Systems Inc. (Resilient), a leading North American developer and manufacturer of innovative energy solutions, including solid-state transformer-based technology. Resilient was acquired for
As part of the acquisition, Eaton assumed employee incentives with a maximum payout of
Agreement to Acquire Boyd Thermal
On November 2, 2025, Eaton signed an agreement to acquire Boyd Thermal, a
Note 3. ACQUISITION AND DIVESTITURE CHARGES
Eaton incurs integration charges and transaction costs to acquire and integrate businesses, and transaction, separation and other costs to divest and exit businesses. Eaton also recognizes gains and losses on the sale of businesses. A summary of these Corporate items is as follows:
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Three months ended
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(In millions except for per share data) |
2025 |
|
2024 |
|
2025 |
|
2024 |
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Acquisition integration, divestiture charges and transaction costs (income) |
$ |
55 |
|
$ |
(4 |
) |
|
$ |
135 |
|
$ |
23 |
|||
Income tax benefit |
|
11 |
|
|
— |
|
|
|
30 |
|
|
7 |
|||
Total charges (income) after income taxes |
$ |
44 |
|
$ |
(4 |
) |
|
$ |
105 |
|
$ |
17 |
|||
Per ordinary share - diluted |
$ |
0.11 |
|
$ |
(0.01 |
) |
|
$ |
0.27 |
|
$ |
0.04 |
|||
Acquisition integration, divestiture charges and transaction costs in 2025 are primarily related to the following:
- The acquisitions of Fibrebond and Exertherm, transactions completed prior to 2023, and other charges to acquire and exit businesses.
-
Employee transaction and retention award compensation expense related to the acquisition of Fibrebond of
$16 million $64 million -
Employee incentive compensation expense related to the acquisition of Resilient of
$4 million
Charges in 2025 and 2024 were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other expense (income) - net. In Business Segment Information, the charges were included in Other expense - net.
Note 4. RESTRUCTURING CHARGES
During the first quarter of 2024, Eaton implemented a multi-year restructuring program to accelerate opportunities to optimize its operations and global support structure. These actions will better align the Company's functions to support anticipated growth and drive greater effectiveness throughout the Company. Since the inception of the program, the Company has incurred charges of
A summary of restructuring program charges is as follows:
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(In millions except for per share data) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Workforce reductions |
$ |
45 |
|
$ |
10 |
|
$ |
65 |
|
$ |
78 |
||||
Plant closing and other |
|
10 |
|
|
44 |
|
|
33 |
|
|
55 |
||||
Total before income taxes |
|
55 |
|
|
54 |
|
|
97 |
|
|
132 |
||||
Income tax benefit |
|
12 |
|
|
11 |
|
|
22 |
|
|
28 |
||||
Total after income taxes |
$ |
43 |
|
$ |
43 |
|
$ |
75 |
|
$ |
104 |
||||
Per ordinary share - diluted |
$ |
0.11 |
|
$ |
0.11 |
|
$ |
0.19 |
|
$ |
0.26 |
||||
Restructuring program charges (income) related to the following segments:
|
Three months ended
|
|
Nine months ended
|
||||||||||||
(In millions) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Electrical |
$ |
3 |
|
$ |
— |
|
|
$ |
12 |
|
$ |
9 |
|||
Electrical Global |
|
20 |
|
|
42 |
|
|
|
39 |
|
|
70 |
|||
Aerospace |
|
1 |
|
|
(1 |
) |
|
|
1 |
|
|
7 |
|||
Vehicle |
|
19 |
|
|
4 |
|
|
|
23 |
|
|
32 |
|||
eMobility |
|
8 |
|
|
2 |
|
|
|
10 |
|
|
2 |
|||
Corporate |
|
5 |
|
|
6 |
|
|
|
12 |
|
|
13 |
|||
Total |
$ |
55 |
|
$ |
54 |
|
|
$ |
97 |
|
$ |
132 |
|||
These restructuring program charges were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other expense (income) - net, as appropriate. In Business Segment Information, these restructuring program charges are treated as Corporate items.
Note 5. INTANGIBLE ASSET AMORTIZATION EXPENSE
Intangible asset amortization expense is as follows:
|
Three months ended
|
|
Nine months ended September 30 |
||||||||||||
(In millions except for per share data) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Intangible asset amortization expense |
$ |
130 |
|
$ |
106 |
|
$ |
365 |
|
$ |
319 |
||||
Income tax benefit |
|
28 |
|
|
23 |
|
|
77 |
|
|
68 |
||||
Total after income taxes |
$ |
102 |
|
$ |
84 |
|
$ |
287 |
|
$ |
251 |
||||
Per ordinary share - diluted |
$ |
0.26 |
|
$ |
0.21 |
|
$ |
0.74 |
|
$ |
0.62 |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20251103318985/en/
Eaton Corporation plc
Jennifer Tolhurst
Media Relations
+1 (440) 523-4006
jennifertolhurst@eaton.com
Yan Jin
Investor Relations
+1 (440) 523-7558
Source: Eaton Corporation plc
