Electrical equipment maker Eaton cuts 2025 profit forecast on tariff woes
May 2 (Reuters) - Power management company Eaton Corp (ETN.N), opens new tab trimmed its 2025 profit forecast on Friday, citing an impact from the imposition of sweeping U.S. tariffs, sending its shares down 3% in premarket trading.
The on-again, off-again tariff policy has spooked businesses across the world, forcing them to reconsider spending on products and look for alternative vendors to avoid added costs.
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Eaton — which makes electrical components for data centers, EV charging, hydraulic motors, valves and pumps — said its new forecast reflects the impact of tariffs on steel and aluminum imports, 125% levy on China and the baseline 10% duty rate on all imports, among others.
It, however, assumes that the 90-day pause on reciprocal tariffs will be maintained throughout the year.
The Ireland-based company expects 2025 profit to be between $10.29 and $10.69 per share, compared with its previous forecast of $10.60 and $11 per share.
Eaton, which counts companies in the aerospace, vehicle, machine building and utility industries among its customers, also lowered its 2025 segment margins forecast to 24%-24.4% from 24.4%-24.8% projected previously.
It reported an adjusted profit per share of $2.72 during the first quarter, compared with analysts' average estimate of $2.71, according to data compiled by LSEG.
Total revenue for the quarter ended March 31 was $6.38 billion, up 7.3% from a year earlier. Analysts estimated $6.26 billion.
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