Latest news with #PauloRuiz
CNBC
06-05-2025
- Business
- CNBC
Industrial name with AI ties makes a key move to boost its growing data center business
Dover , an American industrial company founded more than 70 years ago, is strengthening its foothold in a fast-growing market shaping the future of computing. The news Illinois-based Dover on Monday announced an agreement to pay more than $622 million in cash to acquire Sikora — a German firm whose technology supports the build-out of data centers. The deal, expected to close in the second quarter, gives Club name Dover a business that has experienced a double-digit organic growth rate over the last three years. Essentially, Sikora makes specialized systems that measure different parameters in the cables that go into energy-intensive data centers, which have become increasingly important as more companies adopt artificial intelligence and need ever-increasing computing power to run these heavy workloads. Sikora will soon become a part of Dover's pumps and process solutions segment, which includes Dover's thermal connectors for the liquid cooling of data centers. Big picture The announcement follows promising signs about continued data center spending. Eaton , a maker of power management solutions for AI data centers, posted a solid quarter on Friday. During the post-earnings conference call, incoming CEO Paulo Ruiz held Eaton's growth rate steady for its data center business despite macroeconomic uncertainty from President Donald Trump 's tariffs. Ruiz referred to the big tech companies that reported earnings in late April, which included portfolio names Meta Platforms , Amazon , and Microsoft, saying, "all the calls we have had this week, all the hyperscalers have confirmed the level of [capital expenditures]. So, we believe that this 15% [compound annual growth rate] for data centers is still intact." The data center market accounts for 17% of Eaton's overall revenue, which was $6.38 billion in the first quarter. Before that, Dover also had upbeat things to say about its data center exposed business when it reported first-quarter earnings last month. Management forecasted that 20% of Dover's portfolio will grow double digits in aggregate for 2025, in part, citing "strong demand" for its liquid cooling applications in AI data centers. Dover's Q1 revenue totaled $1.87 billion. Unlike Eaton, Dover does not break out its sales based on end market. Bottom line The Sikora deal is a small one for Dover, which has a $23.48 billion market capitalization, but we're happy to see it. "It's not a sexy or fancy business, but that's what Dover is. It's a collection of these niche businesses that are driving better margins and growth," Jeff Marks, the Investing Club's director of portfolio analysis, said Tuesday. "That's what they look to acquire." Sikora did nearly $114 million in sales last year. Even after the Sikora purchase, Dover will still have plenty of cash, which Jeff and Jim Cramer touted as a reason to favor Dover. Case in point: Dover ended Q1 with $2.8 billion of liquid assets — over 50% of that was excess cash. The Club sees two options: "They still have a lot of dry power and excess cash available to either look for more deal-making or maybe we see a step up in the buyback," said Jeff. DOV YTD mountain Dover YTD We continue to own this stock because of its industrial turnaround story with exposure to key mega trends. Not only the data center buildout to support AI computing, but also electrification more broadly. Dover's business in the biopharma industry is also another attractive area. We last added to our Dover position on April 9 at around $150 per share in an extremely oversold market. it was a discipline buy. The trade was shortly before President Trump froze "reciprocal" tariffs at 10% on U.S. trading partners, excluding China. On that news, the overall market surged higher, and Dover jumped 9.7% to roughly $166 apiece that day. Shares of Dover slipped Tuesday but still traded above $171 each. For the Club, we have Dover stock at a buy-equivalent 1 rating and a $210 per share price target. (Jim Cramer's Charitable Trust is long DOV, ETN, META, MSFT, AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Dover Corp.'s Steam-Thru SIP connectors in use in a biopharmaceutical setting. Dover , an American industrial company founded more than 70 years ago, is strengthening its foothold in a fast-growing market shaping the future of computing.
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
13-02-2025
- Business
- Yahoo
Eaton announces live webcast of investor conference on March 11, 2025
DUBLIN, February 13, 2025--(BUSINESS WIRE)--Intelligent power management company Eaton (NYSE:ETN) today announced it will host its 2025 investor conference on Tuesday, March 11, 2025, from 2 p.m. to 5:30 p.m. Eastern time. The purpose of the meeting is to discuss the company's business prospects with securities analysts and institutional investors. Conference presenters will include Craig Arnold, chairman and chief executive officer; Paulo Ruiz, president and chief operating officer; Olivier Leonetti, executive vice president and chief financial officer; Raja Macha, executive vice president and chief technology officer; Heath Monesmith, president and chief operating officer, Electrical Sector; and John Sapp, president, Aerospace. The conference will be available through a live webcast that can be accessed here: A replay will also be available at the same link. 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. View source version on Contacts Jennifer TolhurstMedia Relations+1 (440) 523-4006jennifertolhurst@ Yan JinInvestor Relations+1 (440) 523-7558
