Eaton Reports Record Second Quarter 2025 Results

Intelligent power management company Eaton Corporation plc (NYSE:ETN) announced record second quarter 2025 financial results, driven by strong organic growth, accelerating orders, and backlog growth.

Financial Highlights

Second quarter earnings per share (EPS) of $2.51, a record, up 1% over Q2 2024.
Record quarterly adjusted EPS of $2.95, up 8% over Q2 2024.
8% organic sales growth, at the high end of guidance.
Strong year-over-year backlog growth: 15% in Electrical and 16% in Aerospace.
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.
Aerospace order growth up 10%.
Combined Electrical sector and Aerospace segment book-to-bill ratio of 1.1 on a rolling twelve-month basis.

Full Year 2025 Guidance

For the full year 2025, Eaton 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 2024).
Adjusted earnings per share between $11.97 and $12.17 (up 12% at the midpoint over 2024).

Third Quarter 2025 Guidance

For the third quarter of 2025, Eaton 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

Electrical Americas

Record sales of $3.4 billion, up 16% from Q2 2024 (12% organic growth, 5% from acquisitions).
Record operating profits of $987 million, up 15% over Q2 2024.
Operating margins of 29.5%.
Twelve-month rolling average orders up 2% organically.
Backlog up 17% over June 2024.

Electrical Global

Record sales of $1.8 billion, up 9% from Q2 2024 (7% organic sales growth, 2% from currency translation).
Record operating profits of $353 million, up 16% over Q2 2024.
Operating margins of 20.1%, up 110 basis points over Q2 2024.
Twelve-month rolling average orders down 1% organically.
Backlog up 1% over June 2024.
Book-to-bill ratio for Electrical businesses remained greater than 1.0 on a rolling twelve-month basis.

Aerospace

Record sales of $1.1 billion, up 13% from Q2 2024 (11% organic sales growth, 2% from currency translation).
Record operating profits of $240 million, up 17% over Q2 2024.
Operating margins of 22.2%, up 70 basis points over Q2 2024.
Twelve-month rolling average orders up 10% organically.
Backlog up 16% over June 2024.
Book-to-bill ratio remained strong at 1.1 on a rolling twelve-month basis.

Vehicle

Sales of $663 million, down 8% from Q2 2024, driven by organic sales decline.
Operating profits of $113 million.
Operating margins of 17.0%.

eMobility

Sales of $182 million, down 4% from Q2 2024 (7% organic sales decline, partially offset by 3% from currency translation).
Recorded an operating loss of $10 million.

Company Overview

Eaton is an intelligent power management company dedicated to protecting the environment and improving quality of life. The company operates in data center, utility, industrial, commercial, machine building, residential, aerospace, and mobility markets. Eaton focuses on electrification and digitalization trends to address power management challenges and build a sustainable society. Founded in 1911, Eaton had revenues of nearly $25 billion in 2024 and serves customers in over 160 countries. More information is available at www.eaton.com.

Financial Statements

Consolidated Statements of Income

(In millions except for per share data)	Three months ended June 30, 2025	Three months ended June 30, 2024	Six months ended June 30, 2025	Six months ended June 30, 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
Net income per share attributable to Eaton ordinary shareholders - 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
Weighted-average number of ordinary shares outstanding - 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

Business Segment Information

(In millions)	Three months ended June 30, 2025	Three months ended June 30, 2024	Six months ended June 30, 2025	Six months ended June 30, 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

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

Notes to the Second Quarter 2025 Earnings Release

Note 1. NON-GAAP FINANCIAL INFORMATION

This earnings release includes non-GAAP financial measures such as adjusted earnings, adjusted earnings per ordinary share, and free cash flow. Management believes these measures provide useful additional financial information for investors to assess business performance and trends.

Guidance Reconciliations

Third Quarter and Full Year 2025 Guidance

	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

Year ended December 31, 2024 Reconciliation

	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

Free Cash Flow Reconciliation

(In millions)	Three months ended June 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: Acquired May 20, 2024 (U.K.-based thermal monitoring solutions), reported in Electrical Americas.
Acquisition of a 49% stake in NordicEPOD AS: Acquired May 31, 2024 (Nordic region data center power modules), accounted for using the equity method and reported in Electrical Global.
Acquisition of Fibrebond Corporation: Acquired April 1, 2025 for $1.45 billion (U.S. based modular power enclosures), reported in Electrical Americas. Includes $240 million of employee transaction and retention awards.
Agreement to Acquire Ultra PCS Limited: Signed June 16, 2025 (U.K. and U.S. based aerospace electronic controls), for $1.55 billion, expected to close in the first half of 2026. Will be reported in Aerospace.
Agreement to Acquire Resilient Power Systems Inc.: Signed July 11, 2025 (North American energy solutions), for $55 million cash at closing plus contingent consideration up to $95 million. Expected to close in Q3 2025. Will be reported in Electrical Americas.

Note 3. ACQUISITION AND DIVESTITURE CHARGES

Summary of acquisition integration, divestiture charges and transaction costs:

(In millions except for per share data)	Three months ended June 30, 2025	Three months ended June 30, 2024	Six months ended June 30, 2025	Six months ended June 30, 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

Charges in 2025 relate primarily to the acquisitions of Fibrebond and Exertherm, and include $47 million of employee transaction and retention award compensation expense for Fibrebond.

Note 4. RESTRUCTURING CHARGES

Eaton implemented a multi-year restructuring program in Q1 2024 to optimize operations. Total estimated charges are $475 million, with expected mature year benefits of $375 million. Summary of charges:

(In millions except for per share data)	Three months ended June 30, 2025	Three months ended June 30, 2024	Six months ended June 30, 2025	Six months ended June 30, 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 by segment:

(In millions)	Three months ended June 30, 2025	Three months ended June 30, 2024	Six months ended June 30, 2025	Six months ended June 30, 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

Note 5. INTANGIBLE ASSET AMORTIZATION EXPENSE

Intangible asset amortization expense:

(In millions except for per share data)	Three months ended June 30, 2025	Three months ended June 30, 2024	Six months ended June 30, 2025	Six months ended June 30, 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

Contacts

Media Relations
Jennifer Tolhurst
+1 (440) 523-4006
jennifertolhurst@eaton.com

Investor Relations
Yan Jin
+1 (440) 523-7558

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