FTSE 100 Live: BP Beats Earnings Estimates, Announces Buyback
The maker of Johnnie Walker whisky said it expects organic net sales growth to be at a similar level to fiscal 2025 due the challenging market. The company also raised its cost savings target.
Diageo added that growth will be weighted more to the second half of the year, with organic net sales down slightly in the first half. Likewise its organic operating profit growth is expected to be mid-single-digit and also skewed to the second half.
The drinks maker's shares have struggled this year, down 28% on worries over tariffs and a slowdown in demand for tequila in the US. The company is also replacing its CEO Debra Crew, with CFO Nik Jhangiani stepping in on an interim basis.
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16 minutes ago
- Yahoo
US market avoids tariff impacts as outlook improves
Sales Summary According to preliminary estimates, US Light Vehicle (LV) sales grew by 7.3% YoY in July, to 1.39 million units. July 2025 had one additional selling day as compared to July 2024, meaning that sales were up by 4.1% YoY on a selling day-adjusted basis. The daily selling rate was measured at 53.6k units/day in July, up from 52.7k units/day in June. The annualized selling rate was estimated at 16.6 million units/year in July, up from 15.2 million units/year in June. Retail sales were estimated at 1.19 million units, up by 10.8% YoY, while fleet sales were thought to total 206k units, down by 4.5% YoY. OEM Analysis GM was once again the bestselling OEM in the market, with total sales of 237k units, and a market share of 17.0%. Despite a seemingly impressive monthly volume, GM's market share has now declined for three straight months. Toyota Group ranked second in July sales, on 218k units, for a 15.6% share, with the group's sales jumping by 19.9% YoY. Ford Group was in third place, on 182k units, but after a stellar Q2, the OEM's share fell back to a modest 13.1% in July. At a brand level, Toyota outsold Ford, by 187k units to 176k units. While it has been typical in recent times for Toyota to sell higher volumes than Ford, the reverse had been the case in June. Chevrolet was third, on 153k units. Model Analysis Despite a slightly quiet month for Ford overall, the F-150 was the nation's bestselling model once again in July, on 44.2k units – the F-150 has now held the top spot for four consecutive months. The Toyota RAV4 was in second on 39.8k units, while the Chevrolet Silverado came in third on 35.4k units. The ranking of the top three models was unchanged from June. The Chevrolet Equinox sold 31.8k units in July, its highest volume since March. Segment Analysis According to initial estimates, Compact Non-Premium SUV's market share was 21.5% in July, the segment's highest share since March. To some extent, however, this performance was upstaged by Midsize Non-Premium SUV, which achieved a market share of 17.2%, up by 2.0 pp on June's result, and the highest for the segment since May 2022. The segment was boosted by robust volumes from models such as the Toyota 4Runner and Hyundai Palisade. After two stronger months in May and June, the Large Pickup segment saw its market share ease back to 13.8% in July. David Oakley, Manager, Americas Sales Forecasts, GlobalData, said: 'There was little sign of tariffs negatively impacting the market in July. Automakers have made a point of absorbing the higher costs they are seeing, and some have even extended offers that were previously due to expire at the beginning of the July. Therefore, from the consumer's point-of-view, there was perhaps little to dissuade buyers from making purchases as normal. At the present time, OEMs are still vying for market share, rather than being overly concerned with protecting inventory. We should also bear in mind that for the majority of the month of July, the landscape regarding tariff rates in the longer-term was highly unclear. Automakers have therefore largely tried to maintain a business-as-usual approach, while mostly avoiding knee-jerk reactions in the face of uncertainty. The announcement that the tax credits available for Electric Vehicles (EVs) will be discontinued from September 30th appeared to notably boost sales of some EVs in July, an effect that we would expect to continue as we move through the next two months and the deadline looms larger'. Forecast Updates While OEMs have thus far largely adopted a 'holding pattern' approach to tariff uncertainty, this is not necessarily a strategy they can maintain indefinitely. Several automakers reported either outright financial losses in Q2, or large reductions in profitability due to the cost of absorbing tariffs. Recent trade deals with various countries have given greater clarity to the industry, as it appears that the benchmark rate will be 15% for countries outside of North America. Although the Trump administration raised tariffs on some Canadian goods to 35%, vehicles compliant with the USMCA trade agreement – which covers the vast majority of models sourced from Canada – will still be subject to 25% tariffs on the non-US content of the vehicle, and the same applies to Mexico. Nevertheless, the prospect remains of some vehicles sourced from the US's neighbors potentially incurring higher tariffs than a model imported from Japan, for example. In the longer-term, this seems unlikely to be sustained, but negotiations with Mexico, and particularly Canada, have been difficult. With an earlier-than-expected lowering of tariff rates, we now see US sales at around 15.7 million units in 2025, still down from almost 16.0 million units in 2024, but a considerably better outlook than would have been the case had the original tariffs remained in place without mitigation. This article was first published on GlobalData's dedicated research platform, the . "US market avoids tariff impacts as outlook improves – GlobalData" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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16 minutes ago
- Yahoo
Can XRP Hit $4 by 2026?
Key Points If Bitcoin rallies significantly by the end of the year, XRP could go along for the ride. XRP has a growing number of potential catalysts to send it higher during the next few months. Tariffs could be the one factor that puts the brake on XRP's upward momentum. 10 stocks we like better than XRP › In 2025, XRP (CRYPTO: XRP) has come tantalizingly close to hitting a new all-time high of $4 on two occasions. Heading into Inauguration Day, XRP soared in value and peaked at about $3.40. Then, after a long, disastrous slide, XRP suddenly regained momentum and hit a new 52-week high of $3.65 on July 17. But now XRP is back down to a price of about $3. To hit a price of $4 by 2026, XRP will need to rally by 33% or more. Is that possible? Let's do the math. As Bitcoin goes, so goes XRP If history is any guide, the broader crypto market will move higher in the second half of 2025 only if Bitcoin (CRYPTO: BTC) moves higher. And right now, Bitcoin is having tremendous difficulty holding on to the $120,000 price level. That's despite constant cheerleading from Wall Street analysts, who are convinced that Bitcoin will hit $200,000 by the end of the year. Investment firm Bernstein has doubled and even tripled down on its $200,000 forecast. Standard Chartered has doubled down on its $200,000 price forecast, as well. And Citigroup (NYSE: C) recently chimed in with a price forecast of $199,000. So, let's do some quick back-of-the-envelope math. If Bitcoin moves from its current price of $114,000 to $200,000, it's a virtual lock that XRP can hit $4. A move from $114,000 to $200,000 is a gain of about 75%, and XRP needs to post a gain of only 33% to hit $4. Here, it's useful to look at cryptocurrency correlations. In other words, how closely is the price of XRP correlated with the price of Bitcoin? According to the Correlations Matrix from DeFiLlama, the 1-year correlation between XRP and Bitcoin is 0.88, and the 1-month correlation is 0.86. Both over the short term and long term, then, XRP is highly correlated with Bitcoin. So, it's safe to say that as Bitcoin goes, so goes XRP. The new XRP catalyst that could change everything Every few months, it seems the XRP investor community rallies behind a new catalyst that is supposed to send XRP higher. Last year, it was the election of a pro-crypto president. Then, there was the promise of regulatory and legal clarity, as the Securities and Exchange Commission (SEC) moved to drop its long-standing case against Ripple, the company behind the XRP token. Then, there was the suggestion that XRP might be added to the U.S. government's crypto strategic reserve. Then, it was the imminent launch of a new spot XRP exchange-traded fund (ETF). It's safe to say that all these catalysts have now been priced into XRP. That's what enabled XRP to soar from $0.50 in November 2024 to its current price of about $3. So, the search is now on for a new catalyst capable of sending XRP to $4 or higher. One new catalyst that could have staying power is the recent adoption of XRP as a treasury asset by a growing list of companies. These companies are reinventing themselves as crypto treasury companies in the mold of Strategy (NASDAQ: MSTR), the Bitcoin treasury company formerly known as MicroStrategy. Treasury companies raise capital to buy crypto and hold it on their balance sheets. The latest speculation is that Ripple is going to go all-in on the XRP treasury company model. Theoretically, if Ripple becomes the Strategy of XRP, that might create enough buying pressure to force XRP higher. What do the prediction markets think? According to the Kalshi prediction market, XRP has a 42% chance of hitting $4 by 2026. In other words, it's basically a coin flip. Nearly half the market thinks XRP will hit $4, and the other half doesn't. Interestingly, the Kalshi prediction market also thinks XRP has a 32% chance of hitting $5 by 2026. That lines up with a recent price prediction from Standard Chartered, which believes XRP is going to $5.50 this year. Should you buy XRP? At the end of the day, XRP's ability to hit a price of $4 may come down to President Donald Trump's new tariffs. Heading into August, it looked like XRP was finally gaining some price momentum. But then came the phasing in of the Trump tariffs on Aug. 1, and now XRP is headed back down as part of a broader market sell-off. Until there is more clarity on tariffs and their potential impact on the U.S. economy, it's hard to see XRP climbing substantially higher, no matter how many new catalysts it may have. For that reason, I'm putting my faith in Bitcoin and not XRP. If there's any cryptocurrency that can shake off the tariff malaise, it's Bitcoin. Should you buy stock in XRP right now? Before you buy stock in XRP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and XRP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Citigroup is an advertising partner of Motley Fool Money. Dominic Basulto has positions in Bitcoin and XRP. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool has a disclosure policy. Can XRP Hit $4 by 2026? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
16 minutes ago
- Yahoo
Eaton Reports Record Second Quarter 2025 Results, with Strong Organic Growth, Accelerating Orders and Backlog Growth
Second quarter earnings per share of $2.51, a second quarter record and up 1% over 2024, and record quarterly adjusted earnings per share of $2.95, up 8% over 2024 8% organic sales growth, at the high end of guidance, and strong year-over-year backlog growth of 15% in Electrical and 16% in Aerospace Second quarter record segment margins of 23.9%, at the high end of guidance Twelve-month rolling average orders acceleration in Electrical Americas to up 2%, driven by data center momentum, with strong Aerospace order growth, up 10% Total book-to-bill ratio of 1.1 for the combined Electrical sector and Aerospace segment on a rolling twelve-month basis For full year 2025, earnings per share expected to be between $10.41 and $10.61, up 11% at the midpoint over 2024, and adjusted earnings per share expected to be between $11.97 and $12.17, up 12% at the midpoint over 2024 DUBLIN, August 05, 2025--(BUSINESS WIRE)--Intelligent power management company Eaton Corporation plc (NYSE:ETN) today announced that second quarter 2025 earnings per share were $2.51, a second quarter record and up 1% over the second quarter of 2024. Excluding charges of $0.25 per share related to intangible amortization, $0.14 per share related to acquisitions and divestitures, and $0.05 per share related to a multi-year restructuring program, adjusted earnings per share of $2.95 were a quarterly record and up 8% over the second quarter of 2024. Sales in the quarter were $7.0 billion, a quarterly record and up 11% from the second quarter of 2024. The sales increase consisted of 8% growth in organic sales, 2% growth from acquisitions, and 1% from positive currency translation. Segment margins were 23.9%, a second quarter record and a 20-basis point improvement over the second quarter of 2024. Operating cash flow was $918 million and free cash flow was $716 million. Paulo Ruiz, Eaton chief executive officer, said, "I'm proud to share Eaton's strong second quarter results, reflecting our team's commitment to leading and executing on our strategy to become the world's premier power management company. We see sustained demand in the acceleration of orders and increase in our backlog, powering our organic growth. We continue this momentum by investing for growth in technology, acquisitions and partnerships in fast-growing, high-margin markets. We are confident in our strategy and remain well positioned to capitalize on megatrends including digitalization, electrification, reindustrialization and increased defense spending." Guidance 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 $10.41 and $10.61, up 11% at the midpoint over the prior year Adjusted earnings per share between $11.97 and $12.17, up 12% at the midpoint over the prior year For the third quarter of 2025, the company anticipates: Organic growth of 8-9% Segment margins of 24.1-24.5% Earnings per share between $2.58 and $2.64 Adjusted earnings per share between $3.01 and $3.07 Business Segment Results Sales for the Electrical Americas segment were a record $3.4 billion, up 16% from the second quarter of 2024. The sales increase consisted of 12% growth in organic sales and 5% growth from acquisitions, which was partially offset by 1% from negative currency translation. Operating profits were a record $987 million, up 15% over the second quarter of 2024, and operating margins in the quarter were 29.5%. The twelve-month rolling average of orders in the second quarter was up 2% organically. Backlog at the end of June remained strong and was up 17% over June 2024. Sales for the Electrical Global segment were a quarterly record $1.8 billion, up 9% from the second quarter of 2024. Organic sales were up 7%, and positive currency translation added 2%. Operating profits were a quarterly record $353 million, up 16% over the second quarter of 2024. Operating margins of 20.1% were a second quarter record, up 110 basis points over the second quarter of 2024. The twelve-month rolling average of orders in the second quarter was down 1% organically. Backlog at the end of June was up 1% over June 2024. On a rolling twelve-month basis, the book-to-bill ratio for the Electrical businesses remained greater than 1.0. Aerospace segment sales were a record $1.1 billion, up 13% from the second quarter of 2024. Organic sales were up 11%, and positive currency translation added 2%. Operating profits were a quarterly record $240 million, up 17% over the second quarter of 2024. Operating margins in the quarter were 22.2%, up 70 basis points over the second quarter of 2024. The twelve-month rolling average of orders in the second quarter was up 10% organically. The backlog at the end of June was up 16% over June 2024. On a rolling twelve-month basis, the book-to-bill ratio for the Aerospace segment remained strong at 1.1. The Vehicle segment posted sales of $663 million, down 8% from the second quarter of 2024, driven entirely by organic sales decline. Operating profits were $113 million and operating margins in the quarter were 17.0%. eMobility segment sales were $182 million, down 4% from the second quarter of 2024. Organic sales declined 7%, which was partially offset by 3% from positive currency translation. The segment recorded an operating loss of $10 million. 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 $25 billion in 2024, the company serves customers in more than 160 countries. For more information, visit Follow us on LinkedIn. Notice of conference call: Eaton's conference call to discuss its second 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 second quarter results, which will be covered during the call. This news release contains forward-looking statements concerning third 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 the United States and around the world. We do not assume any obligation to update these forward-looking statements. Financial Results The company's comparative financial results for the three months ended June 30, 2025, are available on the company's website, EATON CORPORATION plc CONSOLIDATED STATEMENTS OF INCOME Three months endedJune 30 Six months endedJune 30 (In millions except for per share data) 2025 2024 2025 2024 Net sales $ 7,028 $ 6,350 $ 13,404 $ 12,293 Cost of products sold 4,431 3,940 8,361 7,665 Selling and administrative expense 1,149 1,021 2,197 2,046 Research and development expense 192 196 390 385 Interest expense - net 71 29 103 59 Other income - net (1 ) (32 ) (10 ) (58 ) Income before income taxes 1,186 1,195 2,363 2,195 Income tax expense 203 201 415 379 Net income 982 994 1,947 1,816 Less net income for noncontrolling interests (1 ) (1 ) (2 ) (2 ) Net income attributable to Eaton ordinary shareholders $ 982 $ 993 $ 1,945 $ 1,814 Net income per share attributable to Eaton ordinary shareholders Diluted $ 2.51 $ 2.48 $ 4.96 $ 4.52 Basic 2.52 2.49 4.97 4.54 Weighted-average number of ordinary shares outstanding Diluted 391.4 401.0 392.5 401.5 Basic 390.3 399.2 391.2 399.6 Reconciliation of net income attributable to Eaton ordinary shareholders to adjusted earnings Net income attributable to Eaton ordinary shareholders $ 982 $ 993 $ 1,945 $ 1,814 Excluding acquisition and divestiture charges, after-tax 54 8 61 20 Excluding restructuring program charges, after-tax 18 12 33 61 Excluding intangible asset amortization expense, after-tax 101 83 185 167 Adjusted earnings $ 1,155 $ 1,096 $ 2,225 $ 2,062 Net income per share attributable to Eaton ordinary shareholders - diluted $ 2.51 $ 2.48 $ 4.96 $ 4.52 Excluding per share impact of acquisition and divestiture charges, after-tax 0.14 0.02 0.16 0.05 Excluding per share impact of restructuring program charges, after-tax 0.05 0.03 0.08 0.15 Excluding per share impact of intangible asset amortization expense, after-tax 0.25 0.20 0.47 0.42 Adjusted earnings per ordinary share $ 2.95 $ 2.73 $ 5.67 $ 5.14 See accompanying notes. EATON CORPORATION plc BUSINESS SEGMENT INFORMATION Three months endedJune 30 Six months endedJune 30 (In millions) 2025 2024 2025 2024 Net sales Electrical Americas $ 3,350 $ 2,877 $ 6,360 $ 5,567 Electrical Global 1,753 1,606 3,362 3,105 Aerospace 1,080 955 2,059 1,826 Vehicle 663 723 1,280 1,447 eMobility 182 189 343 348 Total net sales $ 7,028 $ 6,350 $ 13,404 $ 12,293 Segment operating profit (loss) Electrical Americas $ 987 $ 859 $ 1,891 $ 1,644 Electrical Global 353 305 653 578 Aerospace 240 206 466 407 Vehicle 113 130 209 246 eMobility (10 ) 2 (15 ) (2 ) Total segment operating profit 1,682 1,502 3,204 2,873 Corporate Intangible asset amortization expense (129 ) (106 ) (235 ) (212 ) Interest expense - net (71 ) (29 ) (103 ) (59 ) Pension and other postretirement benefits income 5 9 10 20 Restructuring program charges (24 ) (15 ) (42 ) (78 ) Other expense - net (277 ) (166 ) (471 ) (349 ) Income before income taxes 1,186 1,195 2,363 2,195 Income tax expense 203 201 415 379 Net income 982 994 1,947 1,816 Less net income for noncontrolling interests (1 ) (1 ) (2 ) (2 ) Net income attributable to Eaton ordinary shareholders $ 982 $ 993 $ 1,945 $ 1,814 See accompanying notes. EATON CORPORATION plc CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) June 30, 2025 December 31, 2024 Assets Current assets Cash $ 398 $ 555 Short-term investments 186 1,525 Accounts receivable - net 5,486 4,619 Inventory 4,581 4,227 Prepaid expenses and other current assets 1,246 874 Total current assets 11,897 11,801 Property, plant and equipment 4,032 3,729 Other noncurrent assets Goodwill 15,790 14,713 Other intangible assets 5,227 4,658 Operating lease assets 709 806 Deferred income taxes 621 609 Other assets 2,230 2,066 Total assets $ 40,507 $ 38,381 Liabilities and shareholders' equity Current liabilities Short-term debt $ 1,111 $ — Current portion of long-term debt 1,134 674 Accounts payable 3,762 3,678 Accrued compensation 529 670 Other current liabilities 3,058 2,835 Total current liabilities 9,594 7,857 Noncurrent liabilities Long-term debt 8,751 8,478 Pension liabilities 758 741 Other postretirement benefits liabilities 161 164 Operating lease liabilities 587 669 Deferred income taxes 280 275 Other noncurrent liabilities 1,728 1,667 Total noncurrent liabilities 12,265 11,994 Shareholders' equity Eaton shareholders' equity 18,606 18,488 Noncontrolling interests 41 43 Total equity 18,647 18,531 Total liabilities and equity $ 40,507 $ 38,381 See accompanying notes. EATON CORPORATION plcNOTES TO THE SECOND 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 third quarter and full year net income per ordinary share and adjusted earnings per ordinary share guidance for 2025 is as follows: Three months ended September 30, 2025 Year ended December 31, 2025 Net income per share attributable to Eaton ordinary shareholders - diluted $2.58 - $2.64 $10.41 - $10.61 Excluding per share impact of acquisition and divestiture charges, after tax 0.06 0.26 Excluding per share impact of restructuring program charges, after tax 0.11 0.31 Excluding per share impact of intangible asset amortization expense, after tax 0.26 0.99 Adjusted earnings per ordinary share $3.01 - $3.07 $11.97 - $12.17 A reconciliation of net income attributable to Eaton ordinary shareholders per share to adjusted earnings per ordinary share is as follows: Year ended December 31, 2024 Net income per share attributable to Eaton ordinary shareholders - diluted $ 9.50 Excluding per share impact of acquisition and divestiture charges, after tax 0.06 Excluding per share impact of restructuring program charges, after tax 0.40 Excluding per share impact of intangible asset amortization expense, after tax 0.84 Adjusted earnings per ordinary share $ 10.80 A reconciliation of operating cash flow to free cash flow is as follows: (In millions) Three months endedJune 30, 2025 Operating cash flow $ 918 Capital expenditures for property, plant and equipment (202 ) Free cash flow $ 716 Note 2. ACQUISITIONS OF BUSINESSES Acquisition of Exertherm On May 20, 2024, Eaton acquired Exertherm, a U.K.-based provider of thermal monitoring solutions for electrical equipment. Exertherm is reported within the Electrical Americas business segment. Acquisition of a 49% stake in NordicEPOD AS 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 $1.45 billion, net of cash acquired. Fibrebond is a U.S. based designer and builder of pre-integrated modular power enclosures for data center, industrial, utility and communications customers. Fibrebond had sales of approximately $378 million for the twelve months ended February 28, 2025, and is reported within the Electrical Americas business segment. As part of the acquisition, Eaton assumed $240 million of employee transaction and retention awards. Awards vest in six equal annual installments starting in the second quarter of 2025, subject to continued employment with Eaton. Forfeited employee awards are paid to former Fibrebond shareholders annually. Eaton recognizes compensation expense for the awards over the requisite service period and any employee forfeitures owed to former Fibrebond shareholders are expensed immediately in Other income - net. During the second quarter of 2025, compensation expense of $34 million, $11 million and $2 million were included in Costs of products sold, Selling and administrative expense, and Other income - net, respectively. 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 United Kingdom with operations in the U.K. and the United States. Ultra PCS produces electronic controls, sensing, stores ejection and data processing solutions, enabling mission success for global aerospace customers in the air and on the ground. Under the terms of the agreement, Eaton will pay $1.55 billion for Ultra PCS. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2026. Ultra PCS will be reported within the Aerospace business segment. Agreement to Acquire Resilient Power Systems Inc. On July 11, 2025, Eaton signed an agreement to acquire Resilient Power Systems Inc., a leading North American developer and manufacturer of innovative energy solutions, including solid-state transformer-based technology. Under the terms of the agreement, Eaton will pay $55 million of cash at closing and contingent future consideration and other payments that could reach $95 million based on 2025 through 2028 revenue performance, achievement of technology-based milestones, and in certain cases subject to management's continued employment with Eaton. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2025. Resilient Power Systems Inc. will be reported within the Electrical Americas business segment. 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: Three months endedJune 30 Six months endedJune 30 (In millions except for per share data) 2025 2024 2025 2024 Acquisition integration, divestiture charges and transaction costs $ 70 $ 10 $ 80 $ 27 Income tax benefit 16 3 19 7 Total after income taxes $ 54 $ 8 $ 61 $ 20 Per ordinary share - diluted $ 0.14 $ 0.02 $ 0.16 $ 0.05 Acquisition integration, divestiture charges and transaction costs in 2025 are primarily related to the acquisitions of Fibrebond and Exertherm, transactions completed prior to 2023, and other charges to acquire and exit businesses. Costs in 2025 include $47 million of employee transaction and retention award compensation expense related to the acquisition of Fibrebond. Acquisition integration, divestiture charges and transaction costs in 2024 are primarily related to acquisitions completed prior to 2023, and include other charges and income to acquire and exit businesses. These charges were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other 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 $244 million. This restructuring program is expected to be completed in 2026 and is expected to incur additional expenses related to workforce reductions of $164 million and plant closing and other costs of $67 million, resulting in total estimated charges of $475 million for the entire program. The Company expects mature year benefits of $375 million when the multi-year program is fully implemented. A summary of restructuring program charges is as follows: Three months endedJune 30 Six months endedJune 30 (In millions except for per share data) 2025 2024 2025 2024 Workforce reductions $ 7 $ 9 $ 19 $ 68 Plant closing and other 17 7 23 11 Total before income taxes 24 15 42 78 Income tax benefit 5 3 9 18 Total after income taxes $ 18 $ 12 $ 33 $ 61 Per ordinary share - diluted $ 0.05 $ 0.03 $ 0.08 $ 0.15 Restructuring program charges related to the following segments: Three months endedJune 30 Six months endedJune 30 (In millions) 2025 2024 2025 2024 Electrical Americas $ 9 $ 1 $ 10 $ 8 Electrical Global 5 4 19 27 Aerospace — — — 8 Vehicle 2 4 4 27 eMobility 2 — 2 — Corporate 6 7 7 7 Total $ 24 $ 15 $ 42 $ 78 These restructuring program charges were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other 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 endedJune 30 Six months ended June 30 (In millions except for per share data) 2025 2024 2025 2024 Intangible asset amortization expense $ 129 $ 106 $ 235 $ 212 Income tax benefit 28 23 50 45 Total after income taxes $ 101 $ 83 $ 185 $ 167 Per ordinary share - diluted $ 0.25 $ 0.20 $ 0.47 $ 0.42 View source version on Contacts Eaton Corporation plcJennifer TolhurstMedia Relations+1 (440) 523-4006jennifertolhurst@ Yan JinInvestor Relations+1 (440) 523-7558 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
