Latest news with #EatonCorporationplc
Yahoo
20-05-2025
- Business
- Yahoo
Eaton Corporation plc (ETN) Dropped Due to Concerns Over Impact on AI Supply Chain from Slower Data Centre Expansion
Carillon Tower Advisers, an investment management company, released its 'Carillon Eagle Growth & Income Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index ended Q1 down 4.3%, marking a turbulent start to 2025. The volatility that began in February was triggered by factors including policy uncertainties, economic deceleration, and AI investment sustainability concerns. The market's first intra-quarter drawdown exceeded 10% in 28 months. Adding to the uncertainty, the 10-year U.S. Treasury yield declined from 4.8% to 4.25%, leading to an equity market rotation favoring defensive sectors, quality stocks, and dividend-yielding equities over growth and momentum-driven investments, with top-performing sectors like energy, healthcare, and consumer staples. Moreover, the quarter saw market participation broaden, with index leadership shifting from mega-cap technology companies to a more diverse base of stocks, as evidenced by the S&P 500® Equal Weight Index's outperformance. Additionally, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Carillon Eagle Growth & Income Fund highlighted stocks such as Eaton Corporation plc (NYSE:ETN). Eaton Corporation plc (NYSE:ETN) is a global power management company. The one-month return of Eaton Corporation plc (NYSE:ETN) was 23.37%, and its shares lost 2.21% of their value over the last 52 weeks. On May 19, 2025, Eaton Corporation plc (NYSE:ETN) stock closed at $329.29 per share with a market capitalization of $128.85 billion. Carillon Eagle Growth & Income Fund stated the following regarding Eaton Corporation plc (NYSE:ETN) in its Q1 2025 investor letter: "Pressure on Eaton Corporation plc (NYSE:ETN) shares stemmed from concerns about the possibility that reduced capital spending in the data center market could affect the entire AI supply chain. As a critical supplier of power connection products, the company's multi-year growth prospects are affected by overall data center capital spending trends that continue to be favorable." A technician standing in the middle of a power station, inspecting a power distribution system. Eaton Corporation plc (NYSE:ETN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 88 hedge fund portfolios held Eaton Corporation plc (NYSE:ETN) at the end of the fourth quarter, compared to 90 in the third quarter. Eaton Corporation plc (NYSE:ETN) reported revenue of $6.4 billion and adjusted EPS of $2.72 representing a 13% increase from the previous year. While we acknowledge the potential of Eaton Corporation plc (NYSE:ETN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Eaton Corporation plc (NYSE:ETN) and shared the list of stocks Jim Cramer got misjudged. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Business Wire
02-05-2025
- Business
- Business Wire
Eaton Reports Record First Quarter 2025 Results, with Accelerating Organic Growth; Raises Full-Year Organic Growth Guidance
DUBLIN--(BUSINESS WIRE)--Intelligent power management company Eaton Corporation plc (NYSE:ETN) today announced that first quarter 2025 earnings per share were $2.45, a first quarter record and up 20% over the first quarter of 2024. Excluding charges of $0.21 per share related to intangible amortization, $0.04 per share related to a multi-year restructuring program, and $0.02 per share related to acquisitions and divestitures, adjusted earnings per share of $2.72 were a first quarter record and up 13% over the first quarter of 2024. Sales in the quarter were $6.4 billion, a quarterly record and up 7% from the first quarter of 2024. Organic sales were up 9%, which was partially offset by 2% from negative currency translation. Segment margins were 23.9%, a first quarter record and an 80-basis point improvement over the first quarter of 2024. Operating cash flow was $238 million and free cash flow was $91 million. Paulo Ruiz, Eaton president and chief operating officer, said, 'We're pleased with our performance in the quarter, which reflects our team's high standards and focus on delivering on our commitments. Demand in our end markets continues to drive strong organic growth. As we look ahead, we're confident, even amid broader macroeconomic volatility, we're prepared to meet that demand with a proven strategy to invest in our businesses, drive operational excellence and continue our path of growth." Guidance For the full year 2025, the company anticipates: Organic growth of 7.5-9.5% Segment margins of 24.0-24.4% Earnings per share between $10.29 and $10.69, up 10% at the midpoint over the prior year Adjusted earnings per share between $11.80 and $12.20, up 11% at the midpoint over the prior year For the second quarter of 2025, the company anticipates: Organic growth of 6-8% Segment margins of 23.5-23.9% Earnings per share between $2.35 and $2.45 Adjusted earnings per share between $2.85 and $2.95 Business Segment Results Sales for the Electrical Americas segment were a record $3.0 billion, up 12% from the first quarter of 2024. Organic sales were up 13%, which was partially offset by 1% from negative currency translation. Operating profits were a first quarter record $904 million, up 15% over the first quarter of 2024. Operating margins were a first quarter record 30.0%, up 80 basis points over the first quarter of 2024. The twelve-month rolling average of orders in the first quarter was down 4% organically and up 4% on a rolling 12-month basis, excluding one large multi-year data center order in the first quarter of 2024. Backlog at the end of March remained strong, up 6% organically over March 2024. Sales for the Electrical Global segment were a quarterly record $1.6 billion, up 7% from the first quarter of 2024. Organic sales were up 9%, which was partially offset by 2% from negative currency translation. Operating profits were a first quarter record $300 million, up 9% over the first quarter of 2024. Operating margins in the quarter were 18.6%, up 30 basis points over the first quarter of 2024. The twelve-month rolling average of orders in the first quarter was flat organically. Backlog at the end of March was up 5% organically over March 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 $979 million, up 12% from the first quarter of 2024. Organic sales were up 13%, which was partially offset by 1% from negative currency translation. Operating profits were a first quarter record $226 million, up 12% over the first quarter of 2024, and operating margins in the quarter were 23.1%, a first quarter record. The twelve-month rolling average of orders in the first quarter was up 14% organically. The backlog at the end of March was up 16% organically over March 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 $617 million, down 15% from the first quarter of 2024, driven by organic sales decline of 11% and negative currency translation of 4%. Operating profits were $96 million and operating margins in the quarter were 15.5%. eMobility segment sales were a first quarter record $162 million, up 2% over the first quarter of 2024. Organic sales were up 3%, which was partially offset by 1% from negative currency translation. The segment recorded an operating loss of $4 million due to launch costs incurred related to new programs expected to ramp up over the upcoming quarters. 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 first 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 first quarter results, which will be covered during the call. This news release contains forward-looking statements concerning second quarter and full year 2025 earnings per share, adjusted earnings per share, organic growth and segment margins; 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. Our guidance reflects the expected impacts of announced tariff rates as of April 28, 2025, and assumes the current 90-day pause on reciprocal tariffs are maintained through the end of the year. For purposes of this earnings release and accompanying information, tariff rates on April 28, 2025, include, but are not limited to existing Chapter 1-97 tariffs; Section 301 tariffs; IEEPA tariffs (20% China; 25% Mexico and Canada; 0% USMCA); Section 232 Steel, Aluminum and derivative tariffs (25%); Reciprocal tariffs (125% China; 10% Rest of World; and exceptions for Section 232 and Mexico and Canada goods). The company's comparative financial results for the three months ended March 31, 2025, are available on the company's website, EATON CORPORATION plc BUSINESS SEGMENT INFORMATION Three months ended March 31 (In millions) 2025 2024 Net sales Electrical Americas $ 3,010 $ 2,690 Electrical Global 1,610 1,500 Aerospace 979 871 Vehicle 617 724 eMobility 162 158 Total net sales $ 6,377 $ 5,943 Segment operating profit (loss) Electrical Americas $ 904 $ 785 Electrical Global 300 274 Aerospace 226 201 Vehicle 96 116 eMobility (4 ) (4 ) Total segment operating profit 1,522 1,371 Corporate Intangible asset amortization expense (106 ) (106 ) Interest expense - net (33 ) (30 ) Pension and other postretirement benefits income 5 12 Restructuring program charges (18 ) (63 ) Other expense - net (193 ) (184 ) Income before income taxes 1,177 1,001 Income tax expense 212 179 Net income 965 822 Less net income for noncontrolling interests (1 ) (1 ) Net income attributable to Eaton ordinary shareholders $ 964 $ 821 See accompanying notes. Expand EATON CORPORATION plc (In millions) March 31, 2025 December 31, 2024 Assets Current assets Cash $ 1,777 $ 555 Short-term investments 162 1,525 Accounts receivable - net 5,094 4,619 Inventory 4,392 4,227 Prepaid expenses and other current assets 1,009 874 Total current assets 12,434 11,801 Property, plant and equipment 3,765 3,729 Other noncurrent assets Goodwill 14,851 14,713 Other intangible assets 4,586 4,658 Operating lease assets 813 806 Deferred income taxes 609 609 Other assets 2,148 2,066 Total assets $ 39,206 $ 38,381 Liabilities and shareholders' equity Current liabilities Short-term debt $ 805 $ — Current portion of long-term debt 1,666 674 Accounts payable 3,654 3,678 Accrued compensation 489 670 Other current liabilities 2,908 2,835 Total current liabilities 9,522 7,857 Noncurrent liabilities Long-term debt 7,609 8,478 Pension liabilities 733 741 Other postretirement benefits liabilities 162 164 Operating lease liabilities 669 669 Deferred income taxes 267 275 Other noncurrent liabilities 1,696 1,667 Total noncurrent liabilities 11,136 11,994 Shareholders' equity Eaton shareholders' equity 18,506 18,488 Noncontrolling interests 41 43 Total equity 18,547 18,531 Total liabilities and equity $ 39,206 $ 38,381 See accompanying notes. Expand EATON CORPORATION plc NOTES TO THE FIRST 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 second quarter and full year net income per ordinary share and adjusted earnings per ordinary share guidance for 2025 is as follows: A reconciliation of net income attributable to Eaton ordinary shareholders per share to adjusted earnings per ordinary share is as follows: A reconciliation of operating cash flow to free cash flow is as follows: 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 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: 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. 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 $220 million. This restructuring program is expected to be completed in 2026 and is expected to incur additional expenses related to workforce reductions of $171 million and plant closing and other costs of $84 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: Restructuring program charges related to the following segments: 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:
Yahoo
08-04-2025
- Automotive
- Yahoo
Jim Cramer Was Stunned by Eaton's (ETN) Drop – And Still Wants You to Buy
We recently published a list of . In this article, we are going to take a look at where Eaton Corporation plc (NYSE:ETN) stands against other stocks that Jim Cramer discussed 1 year ago. On Tuesday, April 1 , the host of Mad Money opened the show by focusing on President Trump's tariffs and the economic risks ahead of 'Liberation Day'. While Cramer expressed sympathy for the President's goals, he warned viewers that the consequences could be severe for both consumers and the broader economy: 'Now as someone who's been a huge critic of unrestrained free trade, I am very sympathetic to what President Trump is trying to accomplish with these tariffs. Every other country on earth tries to protect its own domestic industries except America which has spent decades letting foreign competitors steamroll our guys in exchange for cheaper stuff. President Trump is justifiably furious about this he wants to do something about it but solving the problem is going to hurt. We don't know how much our prices will go up for just about everything, but we do know those tariffs will be used as an excuse to raise prices across the board. It's been very hard to get a sense of the overall damage.' READ ALSO: , and . But despite understanding the motivation behind the policy, Cramer was blunt about the scale of economic disruption that a proposed 20% tariff on all imports would cause: 'Speaking as someone who's not a fan of free trade I have to be honest here, a 20% across the board tariff on almost all imports that would be horrendous for the economy. That's a 20% increase on everything we buy from overseas and we import a huge amount of foreign goods in America, and those goods are cheap because that's the deal. There's plenty of competition from these companies but with the exception of the auto industry and those that contribute to it -mainly steel – it doesn't matter anymore. The truth is the jobs that are meant to be protected by tariffs were automated out of existence a long time ago.' Cramer mentioned that even the industries that stand to benefit in theory, like autos and steel, aren't necessarily helping the average American: 'The tariffs aren't protecting us from anything because we barely make anything anymore. The horses left the barn ages ago. Ford and GM will be able to make more money by raising prices but who does that help besides their shareholders and union members? What's good for General Motors is not necessarily good for America anymore. All people know is that cars will be more expensive; they don't care about who makes them.' He also criticized the administration's execution, calling out the lack of clarity and coordination behind the policy rollout and questioning whether any American companies will actually be spared from the impact: 'I wish the White House were more serious about making the tariffs work. Our country's been crushed by foreign imports that are typically made by cheap labor and often subsidized so they destroy our jobs. But the jobs are gone. We had almost a million seamstresses in this country four decades ago now we have almost none; they aren't bringing back those jobs. Sure, some companies thought they'd be buying immunity by building new factories here, but there's nothing on paper that suggests that the president will spare them. Is there really no sanctuary?' Wrapping up the opening segment, Cramer reminded viewers that while many Americans may support a 'tough-on-trade' agenda, their real fear is inflation; and it's inflation that the tariffs will likely exacerbate: 'Finally, most Americans are worried about inflation; not tariffs. That's what got Trump elected for heaven's sake. As much as I rail against the devil's bargain that gave our country the cheap stuff at the cost of domestic jobs, cheap stuff is what America wanted. […] Here's the bottom line when the book is written on this moment I think we'll question what we were liberated from on Liberation Day and again I think Trump is totally justified in cracking down on our trading partners but that doesn't mean it will be good for the economy.' For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during Mad Money episodes that aired 1 year ago between April 5 and April 12. We then calculated their performance for the past 12 months, until April 2nd, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey's Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them. Please note that this article mentions Jim Cramer's previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A technician standing in the middle of a power station, inspecting a power distribution Corporation plc (NYSE:ETN) is a power management company deeply embedded in industrial electrification and data center infrastructure. Cramer had called it one of his Charitable Trust's top picks last year, citing its role in reshoring and U.S. industrial revival at the time. 'As for Eaton, it's my Charitable Trust favorite industrial because it's involved in the reindustrialization reshoring of so many industries and it dominates the non-tech part of the data centers.' However, the stock has slipped 18.7% since then, as industrial demand slowed and capital expenditure plans were dialled back across key sectors. During a show that aired on the 4th of March, Jim Cramer expressed his disbelief at the company's disappointing performance, saying: 'It's unbelievable… It is unbelievable. That quarter was not that bad. I can't believe what's happened to the stock. I was talking with Jeff Marks today. We think it should be bought and bought right now.' Overall, ETN ranks 6th on our list of stocks that Jim Cramer discussed 1 year ago. While we acknowledge the potential of ETN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ETN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
31-01-2025
- Business
- Yahoo
Eaton Reports Record Fourth Quarter 2024 Results, with Strong Orders and Backlog Growth, and Issues Guidance on 2025 Outlook
Fourth quarter earnings per share of $2.45, a fourth quarter record and up 4% over 2023, and record fourth quarter adjusted earnings per share of $2.83, up 11% over 2023 Record segment margins of 24.7%, 190 basis points above the fourth quarter of 2023 Strong backlog growth of 27% in Electrical and 16% in Aerospace Order growth of 16% in Electrical Americas with 1.2 book-to-bill ratio on a rolling twelve-month basis For full year 2024, record earnings per share of $9.50 with 8% organic growth and record adjusted earnings per share of $10.80, up 18% over 2023 For full year 2025, earnings per share expected to be between $10.60 and $11.00, up 14% at the midpoint over 2024, and adjusted earnings per share expected to be between $11.80 and $12.20, up 11% at the midpoint over 2024 DUBLIN, January 31, 2025--(BUSINESS WIRE)--Intelligent power management company Eaton Corporation plc (NYSE:ETN) today announced that fourth quarter 2024 earnings per share were $2.45, a fourth quarter record and up 4% over the fourth quarter of 2023. Excluding charges of $0.22 per share related to intangible amortization, $0.14 per share related to a multi-year restructuring program, and $0.02 per share related to acquisitions and divestitures, adjusted earnings per share of $2.83 were a fourth quarter record and up 11% over the fourth quarter of 2023. Sales in the quarter were $6.2 billion, a fourth quarter record and up 5% from the fourth quarter of 2023. Organic sales were up 6%, which was partially offset by 1% from negative currency translation. Hurricane Helene and labor strikes in the aerospace industry negatively impacted sales by approximately $80 million, or 130 basis points. Segment margins were 24.7%, a quarterly record, above the high end of the latest guidance range and a 190-basis point improvement over the fourth quarter of 2023. Operating cash flow was $1.6 billion and free cash flow was $1.3 billion, both quarterly records and up 23% and 27%, respectively, over the same period in 2023. Craig Arnold, Eaton chairman and chief executive officer, said, "Once again, we delivered on our commitments in the quarter, reporting record segment margins and strong earnings per share. We continue to see positive market activity with orders at high levels and ongoing backlog strength." For the full year 2024, sales were a record $24.9 billion, up 7% from 2023. Organic sales were up 8%, which was partially offset by 1% from negative currency translation. Segment margins of 24.0% for 2024 were a record and above the high end of the latest guidance range. This represents a 200-basis point improvement over the full year 2023. Earnings per share for 2024 were a record $9.50. Excluding charges of $0.84 per share related to intangible amortization, $0.40 per share related to a multi-year restructuring program, and $0.06 per share related to acquisitions and divestitures, adjusted earnings per share were a record $10.80, up 18% over 2023. Operating cash flow for 2024 was $4.3 billion and free cash flow was $3.5 billion, both records and up 19% and 23%, respectively, over the same period in 2023. On full year results, Arnold continued, "Our strong performance in 2024 was a result of robust demand and our team's successful execution. We're confident in that continued momentum into 2025 as Eaton is in a unique position to deliver differentiated performance amid powerful megatrends driving higher growth in our markets." Guidance For the full year 2025, the company is issuing the following guidance: Organic growth of 7-9% Segment margins of 24.4-24.8% Earnings per share between $10.60 and $11.00, up 14% at the midpoint over the prior year Adjusted earnings per share between $11.80 and $12.20, up 11% at the midpoint over the prior year For the first quarter of 2025, the company anticipates: Organic growth of 5.5-7.5% Segment margins of 23.7-24.1% Earnings per share between $2.30 and $2.40 Adjusted earnings per share between $2.65 and $2.75 Business Segment Results Sales for the Electrical Americas segment were a fourth quarter record $2.9 billion, up 9% from the fourth quarter of 2023, driven entirely by organic sales growth. Operating profits were a record $918 million, up 20% over the fourth quarter of 2023. Operating margins in the quarter were a record 31.6%, up 310 basis points over the fourth quarter of 2023. The twelve-month rolling average of orders in the fourth quarter was up 16% organically. Backlog at the end of December remained at record levels, up 29% organically over December 2023. Sales for the Electrical Global segment were a fourth quarter record $1.6 billion, up 4% from the fourth quarter of 2023. Organic sales were up 5.5%, which was partially offset by 1.5% from negative currency translation. Operating profits were $277 million and operating margins in the quarter were 17.7%. The twelve-month rolling average of orders in the fourth quarter was up 4% organically. Backlog at the end of December was up 16% organically over December 2023. On a rolling twelve-month basis, the book-to-bill ratio for the Electrical businesses remained strong at 1.1. Aerospace segment sales were a record $971 million, up 9% from the fourth quarter of 2023, driven entirely by organic sales growth. Operating profits were a fourth quarter record $222 million, up 11% over the fourth quarter of 2023, and operating margins in the quarter were 22.9%, up 50 basis points over the fourth quarter of 2023. The twelve-month rolling average of orders in the fourth quarter was up 10% organically. The backlog at the end of December was up 16% organically over December 2023. 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 $647 million, down 10% from the fourth quarter of 2023, driven by organic sales decline of 7% and negative currency translation of 3%. Operating profits were $122 million and operating margins were a fourth quarter record 18.8%, up 90 basis points over the fourth quarter of 2023. eMobility segment sales were $147 million, down 11% over the fourth quarter of 2023, driven by organic sales decline of 10% and negative currency translation of 1%. The segment recorded an operating profit of $3 million and operating margins in the quarter were 1.8%. 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 accelerating the planet's transition to renewable energy sources, 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 fourth 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 fourth quarter results, which will be covered during the call. This news release contains forward-looking statements concerning first quarter and full year 2025 earnings per share, adjusted earnings per share, organic growth and segment margins; 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 December 31, 2024, are available on the company's website, EATON CORPORATION plc CONSOLIDATED STATEMENTS OF INCOME Three months endedDecember 31 Year endedDecember 31 (In millions except for per share data) 2024 2023 2024 2023 Net sales $ 6,240 $ 5,967 $ 24,878 $ 23,196 Cost of products sold 3,811 3,732 15,375 14,762 Selling and administrative expense 1,003 956 4,077 3,795 Research and development expense 201 201 794 754 Interest expense - net 42 27 130 151 Other expense (income) - net 16 (37 ) (64 ) (93 ) Income before income taxes 1,167 1,088 4,566 3,827 Income tax expense 195 141 768 604 Net income 972 947 3,798 3,223 Less net income for noncontrolling interests (1 ) (1 ) (4 ) (5 ) Net income attributable to Eaton ordinary shareholders $ 971 $ 946 $ 3,794 $ 3,218 Net income per share attributable to Eaton ordinary shareholders Diluted $ 2.45 $ 2.35 $ 9.50 $ 8.02 Basic 2.46 2.37 9.54 8.06 Weighted-average number of ordinary shares outstanding Diluted 396.0 401.8 399.4 401.1 Basic 394.1 399.6 397.6 399.1 Reconciliation of net income attributable to Eaton ordinary shareholders to adjusted earnings Net income attributable to Eaton ordinary shareholders $ 971 $ 946 $ 3,794 $ 3,218 Excluding acquisition and divestiture charges (income), after-tax 9 (15 ) 26 39 Excluding restructuring program charges, after-tax 56 9 160 46 Excluding intangible asset amortization expense, after-tax 84 83 335 353 Adjusted earnings $ 1,120 $ 1,024 $ 4,314 $ 3,657 Net income per share attributable to Eaton ordinary shareholders - diluted $ 2.45 $ 2.35 $ 9.50 $ 8.02 Excluding per share impact of acquisition and divestiture charges (income), after-tax 0.02 (0.04 ) 0.06 0.10 Excluding per share impact of restructuring program charges, after-tax 0.14 0.02 0.40 0.11 Excluding per share impact of intangible asset amortization expense, after-tax 0.22 0.22 0.84 0.89 Adjusted earnings per ordinary share $ 2.83 $ 2.55 $ 10.80 $ 9.12 See accompanying notes. EATON CORPORATION plc BUSINESS SEGMENT INFORMATION Three months endedDecember 31 Year endedDecember 31 (In millions) 2024 2023 2024 2023 Net sales Electrical Americas $ 2,905 $ 2,672 $ 11,436 $ 10,098 Electrical Global 1,569 1,512 6,248 6,084 Aerospace 971 895 3,744 3,413 Vehicle 647 723 2,790 2,965 eMobility 147 165 662 636 Total net sales $ 6,240 $ 5,967 $ 24,878 $ 23,196 Segment operating profit (loss) Electrical Americas $ 918 $ 763 $ 3,455 $ 2,675 Electrical Global 277 284 1,149 1,176 Aerospace 222 200 859 780 Vehicle 122 129 502 482 eMobility 3 (16 ) (7 ) (21 ) Total segment operating profit 1,542 1,360 5,959 5,093 Corporate Intangible asset amortization expense (107 ) (107 ) (425 ) (450 ) Interest expense - net (42 ) (27 ) (130 ) (151 ) Pension and other postretirement benefits income 10 13 40 46 Restructuring program charges (70 ) (11 ) (202 ) (57 ) Other expense - net (166 ) (141 ) (675 ) (654 ) Income before income taxes 1,167 1,088 4,566 3,827 Income tax expense 195 141 768 604 Net income 972 947 3,798 3,223 Less net income for noncontrolling interests (1 ) (1 ) (4 ) (5 ) Net income attributable to Eaton ordinary shareholders $ 971 $ 946 $ 3,794 $ 3,218 See accompanying notes. EATON CORPORATION plc CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) December 31, 2024 December 31, 2023 Assets Current assets Cash $ 555 $ 488 Short-term investments 1,525 2,121 Accounts receivable - net 4,619 4,475 Inventory 4,227 3,739 Prepaid expenses and other current assets 874 851 Total current assets 11,801 11,675 Property, plant and equipment - net 3,729 3,530 Other noncurrent assets Goodwill 14,713 14,977 Other intangible assets 4,658 5,091 Operating lease assets 806 648 Deferred income taxes 609 458 Other assets 2,066 2,052 Total assets $ 38,381 $ 38,432 Liabilities and shareholders' equity Current liabilities Short-term debt $ — $ 8 Current portion of long-term debt 674 1,017 Accounts payable 3,678 3,365 Accrued compensation 670 676 Other current liabilities 2,835 2,680 Total current liabilities 7,857 7,747 Noncurrent liabilities Long-term debt 8,478 8,244 Pension liabilities 741 768 Other postretirement benefits liabilities 164 180 Operating lease liabilities 669 533 Deferred income taxes 275 402 Other noncurrent liabilities 1,667 1,489 Total noncurrent liabilities 11,994 11,616 Shareholders' equity Eaton shareholders' equity 18,488 19,036 Noncontrolling interests 43 33 Total equity 18,531 19,069 Total liabilities and equity $ 38,381 $ 38,432 See accompanying notes. EATON CORPORATION plcNOTES TO THE FOURTH QUARTER 2024 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 first quarter and full year net income per ordinary share and adjusted earnings per ordinary share guidance for 2025 is as follows: Three months ended March 31, 2025 Year ended December 31, 2025 Net income per share attributable to Eaton ordinary shareholders - diluted $2.30 - $2.40 $10.60 - $11.00 Excluding per share impact of acquisition and divestiture charges, after tax 0.01 0.04 Excluding per share impact of restructuring program charges, after tax 0.13 0.32 Excluding per share impact of intangible asset amortization expense, after tax 0.21 0.84 Adjusted earnings per ordinary share $2.65 - $2.75 $11.80 - $12.20 Reconciliations of operating cash flow to free cash flow are as follows: Three months endedDecember 31 (In millions) 2024 2023 Operating cash flow $ 1,597 $ 1,298 Capital expenditures for property, plant and equipment (255 ) (243 ) Free cash flow $ 1,342 $ 1,055 Year endedDecember 31 (In millions) 2024 2023 Operating cash flow $ 4,327 $ 3,624 Capital expenditures for property, plant and equipment (808 ) (757 ) Free cash flow $ 3,518 $ 2,867 Note 2. ACQUISITIONS AND DIVESTITURE OF BUSINESSES 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 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 Jiangsu Ryan Electrical Co. Ltd. On April 23, 2023, Eaton acquired a 49 percent stake in Jiangsu Ryan Electrical Co. Ltd., a manufacturer of power distribution and sub-transmission transformers in China. Eaton accounts for this investment on the equity method of accounting and it is reported within the Electrical Global business segment. Acquisition of Green Motion SA On March 22, 2021, Eaton acquired Green Motion SA, a leading designer and manufacturer of electric vehicle charging hardware and related software based in Switzerland. Green Motion SA was acquired for $106 million, including $49 million of cash paid at closing and an initial estimate of $57 million for the fair value of contingent future consideration based on 2023 and 2024 revenue performance. The fair value of contingent consideration liabilities is estimated by discounting contingent payments expected to be made, and may increase or decrease based on changes in revenue estimates and discount rates, with a maximum possible undiscounted value of $113 million. As of December 31, 2024, the fair value of the contingent future payments has been reduced to $6 million based primarily on lower revenue in 2023 and 2024 compared to the initial estimates at closing. This reduction is presented in Other expense (income) - net on the Consolidated Statements of Income. 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 endedDecember 31 Year endedDecember 31 (In millions except for per share data) 2024 2023 2024 2023 Acquisition integration, divestiture charges and transaction costs (income) $ 13 $ (14 ) $ 36 $ 54 Income tax benefit 4 1 10 15 Total after income taxes $ 9 $ (15 ) $ 26 $ 39 Per ordinary share - diluted $ 0.02 $ (0.04 ) $ 0.06 $ 0.10 Acquisition integration, divestiture charges and transaction costs are primarily related to acquisitions completed prior to 2023, including other charges and income to acquire and exit businesses, and the reduction in fair value of contingent future consideration from the Green Motion SA acquisition. Costs in 2023 also included certain indemnity claims associated with the sale of 50% interest in the commercial vehicle automated transmission business in 2017. These charges 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 In the second quarter of 2020, Eaton initiated a multi-year restructuring program to reduce its cost structure and gain efficiencies in its business segments and at corporate in order to initially respond to declining market conditions brought on by the COVID-19 pandemic. Since the inception of the program, the Company incurred expenses of $199 million for workforce reductions and $184 million for plant closing and other costs, resulting in total charges of $382 million through December 31, 2023. This restructuring program was substantially complete at the end of 2023 and mature year benefits from the program of approximately $265 million were realized in 2024. During the first quarter of 2024, Eaton implemented a new 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. Restructuring charges incurred under this program were $202 million in 2024. This restructuring program is expected to be completed in 2026 and is expected to incur additional expenses related to workforce reductions of $183 million and plant closing and other costs of $90 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 endedDecember 31 Year endedDecember 31 (In millions except for per share data) 2024 2023 2024 2023 Workforce reductions $ 42 $ 2 $ 120 $ 19 Plant closing and other 28 9 83 38 Total before income taxes 70 11 202 57 Income tax benefit 14 2 43 11 Total after income taxes $ 56 $ 9 $ 160 $ 46 Per ordinary share - diluted $ 0.14 $ 0.02 $ 0.40 $ 0.11 Restructuring program charges related to the following segments: Three months endedDecember 31 Year endedDecember 31 (In millions) 2024 2023 2024 2023 Electrical Americas $ 4 $ 2 $ 12 $ 5 Electrical Global 18 4 88 26 Aerospace 2 2 9 5 Vehicle 8 2 40 6 eMobility 22 — 25 7 Corporate 16 2 29 8 Total charges $ 70 $ 11 $ 202 $ 57 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 endedDecember 31 Year endedDecember 31 (In millions except for per share data) 2024 2023 2024 2023 Intangible asset amortization expense $ 107 $ 107 $ 425 $ 450 Income tax benefit 23 23 91 98 Total after income taxes $ 84 $ 83 $ 335 $ 353 Per ordinary share - diluted $ 0.22 $ 0.22 $ 0.84 $ 0.89 View source version on Contacts Eaton Corporation plcJennifer TolhurstMedia Relations+1 (440) 523-4006jennifertolhurst@ Yan JinInvestor Relations+1 (440) 523-7558 Sign in to access your portfolio
