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What factors drove the changes in Eaton's revenue and profit?

Did Eaton beat or miss consensus estimates last quarter?

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- **Record Q4 Performance**: $7.1 billion revenue (9% organic growth), $3.33 EPS (18% YoY), 24.9% segment margin.
- **Strategic Spin-Off**: Mobility business to be spun off, freeing up $13 billion in 2025 investments.
- **Data Center Dominance**: 200% YoY data center order growth, 54% of Electrical Americas backlog from data centers.
- **2026 Guidance**: 7-9% organic growth, $13.25 EPS, 24.6-25% margin.
- **Challenges**: Q1 2026 margins impacted by $200bp of ramp-up costs, but 30%+ Electrical Americas margins maintained.
- **Long-Term Vision**: 6-9% CAGR through 2030, 32% Electrical Americas margin target, $17 billion cumulative free cash flow.

**【CEO Summary Section】**
- Reported record Q4 revenue of $7.1 billion, up 9% organically, driven by Electrical Americas (15% growth) and Aerospace (10% growth). 
- Announced spin-off of Mobility business, positioning Eaton to focus on higher-growth Electrical and Aerospace segments.
- Highlighted $13 billion in 2025 investments, including acquisitions of Fibrebond, Resilient Power Systems, Ultra PCS, and Boyd Thermal.
- reaffirmed 2026 guidance: 7-9% organic growth, $13.25 EPS (midpoint), and 24.6-25% segment margin.
- Electrical Americas backlog hit $13.2 billion (31% YoY), with data center orders up 200% YoY.
- Aerospace backlog reached $4.3 billion (16% YoY), with defense OEM orders up 21% on a 2-year stack basis.

**【CFO Financial Commentary】**
- Q4 2025 results: 
  - Adjusted EPS of $3.33 (18% YoY growth)
  - Segment margin of 24.9% (20bp YoY expansion)
  - Free cash flow of $1.8 billion (14% YoY growth)
- 2026 guidance: 
  - Organic growth: 7-9% (midpoint 8%)
  - Segment margin: 24.6-25% (30bp YoY expansion)
  - EPS: $13.25 (10% YoY growth)
  - Free cash flow: $3.9-4.3 billion
- Electrical Americas margin impacted by $130bp of ramp-up costs in 2026, but still expected to deliver ~30% margins.

**【Q&A Highlights】**
- **Data Center Growth**: 
  - 2025 data center orders up 200% YoY, with 54% of Electrical Americas backlog from data centers.
  - 11-year build rate for U.S. data centers, 206GW of U.S. backlog.
  - Boyd Thermal acquisition adds $1.7 billion in 2026 liquid cooling revenue.
- **Capacity Expansion**: 
  - $1.5 billion invested in 24 new Electrical Americas facilities.
  - Q1 2026 margins impacted by $200bp of ramp-up costs, but expected to improve sequentially.
  - Full-year 2026 margin guidance includes 130bp of ramp-related margin headwinds.
- **Mobility Spin-Off**: 
  - Expected to be accretive to organic growth and margin by 2026.
  - Mobility business to be standalone entity with $3 billion in revenue.
- **Long-Term Outlook**: 
  - 6-9% CAGR through 2030, driven by data center, aerospace, and utility growth.
  - 32% segment margin target by 2030 for Electrical Americas.
  - 2030 plan includes $17 billion in cumulative free cash flow and 12%+ EPS growth.

Eaton Corporation plc (ETN) Q4 2025 Earnings Call Transcript

- **Record Growth**: Q3 revenue $7B (+7% organic), EPS $3.07 (+8%), driven by Electrical Americas (9%), Aerospace (13%), and Electrical Global (10%).
- **Game-Changing Acquisition**: $1.7B Boyd deal adds liquid cooling leadership, enabling $3M/MW data center solutions and 25% EBITDA margin.
- **Data Center Dominance**: Orders +7% LTM, data center sales +40% YoY, backlog $12B (+20% YoY). Q4 EPS guide $3.23-3.43 (18% YoY growth).
- **Margin Expansion**: Electrical Americas margin 30.3%, Aerospace 25.9%. 2025 EPS guidance $11.97-12.17 (+12% YoY).
- **Execution Challenges**: Vehicle/eMobility weakness offset by 2026 capex ramp for data center and aerospace growth.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue reached $7 billion, up 7% organically, driven by Electrical Americas (9%), Aerospace (13%), and Electrical Global (10%). Adjusted EPS of $3.07 grew 8%, at the high end of guidance.
- **Strategic Acquisitions**: Announced acquisition of Boyd's liquid cooling business for $1.7 billion in 2026 sales, targeting 25% EBITDA margin. This complements Eaton's data center portfolio, enabling end-to-end solutions from chip to grid.
- **Data Center Momentum**: Electrical Americas orders accelerated 7% LTM (up from 2% Q2), with data center sales up 40% YoY. Backlog hit $12 billion, up 20% YoY.
- **Aerospace Strength**: Orders grew 11% LTM, with defense aftermarket up 16%. Operating margin expanded 150bps to 25.9%.
- **2025 Guidance**: Reaffirmed organic growth 8.5-9.5%, EPS $11.97-12.17. Q4 EPS expected $3.23-3.43 (18% YoY growth).

**【CFO Financial Commentary】**
- **Segment Performance**: Electrical Americas delivered 30.3% operating margin, up 20bps YoY. Electrical Global margin improved 40bps to 19.1%. Aerospace margin expanded 150bps to 25.9%.
- **Challenges**: Vehicle segment down 9% YoY due to truck market weakness. eMobility revenue declined 19%.
- **Cash Flow**: Generated $1.2 billion free cash flow YTD, supporting M&A and shareholder returns.
- **Tax Rate**: Q4 tax rate expected 15%, down from 17.4% YoY, contributing to EPS growth.

**【Q&A Highlights】**
- **Boyd Synergies**: Eaton expects $500 million incremental content per megawatt in data centers, raising total addressable market to $3 million/MW. Boyd's 500 engineers and global footprint enhance customer intimacy.
- **Electrical Americas Execution**: Q3 missed midpoint due to delayed orders and residential weakness, but Q4 guide implies 17-18% growth. Inefficiencies from 6 new plant openings (~100bps margin drag) expected to resolve by 2026.
- **Aerospace Margin Path**: Target 27%+ by 2030 via supply chain optimization, manufacturing excellence, and portfolio rationalization. 2025 margin guidance raised 100bps to 24.1-24.5%.
- **CapEx Outlook**: 2026 CapEx to peak at ~$1.2 billion, supporting data center and aerospace growth. 2027+ returns to historical 3-4% of revenue range.


Eaton Corporation plc (ETN) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 organic +8%, Electrical Americas +12%, data center sales +50% YoY.
- **Margin Expansion**: Segment margin 24.1% (up 20bps), Aerospace margin +70bps to 22.2%.
- **Strategic Moves**: $1.2B Ultra PCS acquisition, Resilient Power deal, NVIDIA/Siemens partnerships.
- **Guidance Raise**: 2025 EPS midpoint +12% to $12.07, organic growth 9% (midpoint +50bps).
- **Capacity Build**: 6 new factories ramping H2 2025, 100bps margin headwind in Q2.

**【CEO Opening Remarks】**
- **Q2 Highlights**: Adjusted EPS up 8% YoY, segment margins at record 23.9%, organic growth of 8% driven by Electrical Americas, Aerospace, and data centers.
- **Strategic Investments**: Acquired Ultra PCS (defense/aerospace) and Resilient Power (data center tech), partnered with NVIDIA, Siemens Energy, and ChargePoint for AI data centers and EV infrastructure.
- **Backlog Strength**: Electrical Americas backlog up 17% YoY to $11.4B, book-to-bill ratio 1.1, with 65% of $333B mega projects started.
- **Guidance Update**: Raised 2025 organic growth to 8.5-9.5% (midpoint +50bps) and EPS to $11.97-12.17 (midpoint +12%).

**【CFO Financial Commentary】**
- **Q2 Results**: Revenue $7B (record), adjusted EPS $2.95 (8% YoY), segment margin 24.1% (up 20bps).
- **Segment Performance**: 
  - **Electrical Americas**: 12% organic growth, 29.5% margin (tariff/dilution drag), orders up 11% (12M rolling basis), data center orders +55%.
  - **Electrical Global**: 9% growth (7% organic + 2% FX), 20.1% margin (up 110bps), APAC double-digit growth.
  - **Aerospace**: 11% organic growth, 22.2% margin (up 70bps), defense OEM orders +25%.
  - **Vehicle**: Down 8% (truck market weakness), margin 17% (up 150bps).
  - **eMobility**: Down 4%, operating loss $10M.
- **Margin Guidance**: 24.1-24.5% for 2025 (up 10bps), driven by Electrical Americas and Vehicle investments.

**【Q&A Highlights】**
- **Order Momentum**: Electrical Americas orders up 2% (12M rolling) vs. -4% last quarter, book-to-bill >1 for 2025.
- **Market Share**: Gaining share in North America, data center growth (+50%) outpaces market (~30% YoY).
- **Capacity Expansion**: 6 new facilities ramping H2 2025, 100bps margin headwind in Q2, leverage expected in 2026.
- **Data Center Strategy**: Modular solutions (Fibrebond), solid-state transformers (Resilient), and NVIDIA partnerships to address power density needs.
- **Margin Targets**: Long-term 40% gross margin, 400bps margin expansion over planning period.
- **Risks**: Vehicle/eMobility weakness, tariff impacts on cash flow, macro uncertainty.

Eaton Corporation plc (ETN) Q2 2025 Earnings Call Transcript

- **Q1 Growth Surge**: 9% organic sales growth, driven by data center (13% in Americas, 11% globally) and aerospace (record sales).
- **Strategic Acquisition**: Fiber Bond acquisition to accelerate modular data center deployments and capture 100kW+ rack density opportunities.
- **Tariff Resilience**: 100% offset via pricing/cost control; 2025 EPS guidance maintained at $12 midpoint (11% growth).
- **Market Leadership**: U.S. data center backlog up to 9 years; 20%+ lead times across key products.
- **Guidance Update**: Electrical Americas growth raised to 12%-14%; 2025 margin guidance lowered to 24.0%-24.4% due to tariff actions.


**【CEO Opening Remarks】**
- Highlighted strong Q1 performance with record adjusted EPS of $2.72 (13% YoY growth) and organic sales growth of 9%.
- Announced the acquisition of Fiber Bond to strengthen data center solutions, enabling faster deployment and higher revenue per square foot.
- Noted robust market trends, including U.S. data center construction backlog rising to 9 years (from 7 years) and strong activity in EMEA and APAC.
- Discussed strategic investments in U.S. manufacturing to mitigate tariff impacts, emphasizing localized sourcing and supply chain resilience.

**【CFO Financial Breakdown】**
- **Electrical Americas**: 13% organic growth driven by data center and utility markets; operating margin expanded to 30%.
- **Electrical Global**: 9% organic growth (APAC up 13%, EMEA up 11%); operating margin improved to 18.6%.
- **Aerospace**: Record sales with 13% organic growth; book-to-bill ratio of 1.1.
- **Vehicle Segment**: Down 15% due to North American ICE light vehicle weakness, but maintained 15.5% margin with strong cost control.
- **E-Mobility**: 3% organic growth; expanding opportunity pipeline for lower-cost vehicle designs.

**【Updated Guidance】**
- Raised 2025 organic growth outlook to 7.5%-9.5% (vs. prior 7%-9%), with Electrical Americas guidance increased to 12%-14%.
- Reaffirmed adjusted EPS of $11.80-$12.20, reflecting $12 midpoint (11% YoY growth).
- Segment margin guidance lowered to 24.0%-24.4% due to tariff mitigation actions.

**【Q&A Key Takeaways】**
- **Data Center Growth**: Q1 orders up 18% YoY in negotiation pipeline; Fiber Bond acquisition positions for modular solutions and higher rack density (60kW to 100kW+).
- **Tariff Mitigation**: 100% offset via pricing, cost control, and supply chain adjustments; $0.05/Q2 EPS headwind expected.
- **Global Recovery**: APAC and EMEA organics up double digits; U.S. vehicle market expected to decline 3.5%-5.5%.
- **Cash Flow**: Free cash flow and share buybacks reaffirmed; inventory builds to manage tariff impacts.
- **Competitive Position**: U.S. market leadership with localized manufacturing; 20%+ lead times across key product lines.


Eaton (ETN)-2 May 25-2025 Q1 Earnings call transcript

- **Record Q4 Performance**: $6.2B revenue, 24.7% segment margins, and $2.83 EPS beat expectations.
- **Data Center Dominance**: 75% order growth, 7-year backlog, and 17% mega project contribution.
- **2025 Growth Engine**: 7-9% organic growth, $11.80-$12.20 EPS, and $3.7B-$4.1B free cash flow.
- **China Utility Surge**: 7% consumption growth driving double-digit switchgear demand.
- **Aerospace Recovery**: 9% growth from OE recovery and 60%+ aftermarket contribution.

**【CEO Opening Remarks】**
- Q4 2024 revenue reached $6.2 billion, up 6% organically, driven by Electrical Americas and Aerospace segments.
- Adjusted EPS of $2.83, up 11% YoY, with record segment margins of 24.7% (190 bps improvement).
- Data center orders surged 75%, with a 7-year backlog based on 2024 build rates.
- 2025 guidance: 7-9% organic growth, $11.80-$12.20 EPS, and $3.7B-$4.1B free cash flow.

**【CFO Financial Highlights】**
- Q4 operating profit grew 13% to $1.5B, with Electrical Americas margins at 31.6% (310 bps YoY improvement).
- Free cash flow of $1.3B, up 27% YoY, driven by strong collections and capital discipline.
- 2024 full-year revenue $23.8B, 8% organic growth, with margins expanding 220 bps to 26%.

**【COO 2025 Guidance】**
- Electrical Americas: 11.5% midpoint growth, benefiting from $1.5B+ capacity investments.
- Aerospace: 9% organic growth, driven by military and commercial OEM recovery.
- Vehicle: 5% decline expected, but margin expansion through cost control.
- eMobility: 4% YoY growth, targeting 20%+ margin by 2030.

**【Q&A Key Takeaways】**
- **Supply Chain**: No capacity constraints; 80% of $900M CapEx is growth-oriented.
- **Data Center**: 17% of mega projects are data center-related, with 7-year backlog visibility.
- **China Utility**: 7% consumption growth driving double-digit switchgear demand.
- **Aerospace**: 60%+ of 2024 growth from aftermarket, with 2025 OE recovery.
- **M&A**: Focused on Electrical and Aerospace bolt-ons to accelerate organic growth.

Actual																	1.09	0.7	1.18	1.28	1.44	1.72	1.75	1.72	1.62	1.87	2.02	2.06	1.88	2.21	2.47	2.55	2.4	2.73	2.84	2.83	2.72	2.95	3.07	3.33
Forecast																	1.0731	0.5308	1.0468	1.2049	1.2419	1.5692	1.7273	1.7126	1.597	1.8185	2.0057	2.0479	1.7851	2.1115	2.3372	2.4704	2.2883	2.6126	2.8014	2.8087	2.7057	2.9272	3.053	3.3147
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+1.57%	+31.88%	+12.72%	+6.23%	+15.95%	+9.61%	+1.31%	+0.43%	+1.44%	+2.83%	+0.71%	+0.59%	+5.32%	+4.66%	+5.68%	+3.22%	+4.88%	+4.49%	+1.38%	+0.76%	+0.53%	+0.78%	+0.56%	+0.46%

Actual	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	4.79B	3.86B	4.53B	4.69B	4.69B	5.21B	4.92B	4.80B	4.84B	5.21B	5.31B	5.38B	5.48B	5.87B	5.88B	5.97B	5.94B	6.35B	6.34B	6.24B	6.38B	7.03B	6.99B	7.05B
Forecast	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	4.84B	3.68B	4.22B	4.62B	4.55B	5.02B	5.00B	4.90B	4.78B	5.20B	5.31B	5.34B	5.24B	5.76B	5.89B	5.91B	5.91B	6.35B	6.37B	6.32B	6.25B	6.91B	7.07B	7.09B
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-0.96%	+4.76%	+7.36%	+1.50%	+3.21%	+3.83%	-1.52%	-2.11%	+1.29%	+0.16%	+0.03%	+0.73%	+4.73%	+1.92%	-0.17%	+0.98%	+0.63%	+0.05%	-0.43%	-1.34%	+2.02%	+1.71%	-1.19%	-0.48%

ETN

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ETN Q4 2025 Earnings

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ETN

ETN fundamentals

ETN Q4 2025 Earnings

Earnings Call

ETN Earnings Call Summary for Q4/202511:00 AM on Feb 3, 2026

ETN Earnings Call Summary for Q3/202511:00 AM on Nov 4, 2025

ETN Earnings Call Summary for Q2/202511:00 AM on Aug 5, 2025

ETN Earnings Call Summary for Q1/202511:00 AM on May 2, 2025

ETN Earnings Call Summary for Q4/202411:00 AM on Jan 31, 2025

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