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- **Record Growth and Momentum**: Q4 revenue up 9% organically, with Electrical Americas orders surging 200% YoY in data centers. Backlog at $19.6 billion (29% YoY growth) signals strong 2026 visibility.
- **Strategic Investments Paying Off**: $1.5 billion in capacity expansion and acquisitions (Boyd, Resilient Power) position Eaton for 32%+ segment margin by 2030.
- **2026 Guidance Beat Potential**: EPS of $13.25 (midpoint) +10% YoY, with margin expansion accelerating post-Q1 ramp costs.
- **Data Center Dominance**: 50% of 2025 data center orders from AI, driving $2.9 million/revenue per megawatt (up 17% post-Boyd).

### Core Details - Detail Page

**【CEO Summary Section】**
- **Revenue Growth and Order Momentum**: Q4 revenue reached $7.1 billion, up 9% organically, driven by Electrical Americas (15% growth) and aerospace (12%). Electrical Americas backlog hit a record $13.2 billion, up 31% YoY, with data center orders surging 200% YoY. Aerospace backlog grew 16% YoY to $4.3 billion.
- **Strategic Initiatives**: Announced the spin-off of the mobility business, expected to be accretive to growth and margins. Invested $1.5 billion to expand capacity in Electrical Americas, with 24 projects underway. Acquired Fibrebond, Resilient Power Systems, Ultra PCS, and Boyd Thermal to strengthen data center and liquid cooling capabilities.
- **2026 Guidance**: Organic growth of 7%-9%, segment margins of 24.6%-25%, and adjusted EPS of $13.25 (midpoint), up 10% YoY. Q1 2026 margins expected to be 22.2%-22.6%, with margin improvement in subsequent quarters as ramp costs subside.

**【CFO Financial Commentary】**
- **Q4 Financials**: Adjusted EPS of $3.33 (up 18% YoY), segment margin of 24.9% (20 bps YoY expansion). Electrical Americas margin of 29.8% (down 180 bps YoY due to ramp costs). Aerospace margin expanded 120 bps to 24.1%.
- **Cash Flow and Capital Allocation**: 2026 free cash flow guidance of $3.9-$4.3 billion. No share buybacks planned due to Boyd deal. 2026 capital spending of $1.5 billion, primarily for Electrical Americas capacity expansion.
- **Segment Performance**: Electrical Global grew 6% organically, with Europe up 8% YoY. Vehicle segment declined 13% organically, but e-mobility orders grew 17% YoY.

**【Q&A Highlights】**
- **Data Center Growth**: 2025 data center orders up 200% YoY, with 54% of mega project backlog in the U.S. Data center revenue per megawatt increased to $2.9 million post-Boyd acquisition. 2026 hyperscale and AI demand expected to drive 10%+ growth) in data center.
- **Margin and Ramp Dynamics**: Electrical Americas margin impact of 130 bps in 2026 (front-loaded in Q1), but still targeting 30%+ margins. 2026 segment margin guidance of 24.6%-25% reflects ramp costs and Boyd integration.
- **Long-Term Outlook**: 2030 targets of 6%-9% organic growth, 28% segment margin, and 12%+ EPS growth. Upside from data center outperformance and inorganic accretion (e.g., Boyd, Resilient Power).

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.

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