Eaton Corp (ETN) Company Report

CEO Paulo Ruiz Sternadt detailed Eaton’s three strategic growth pillars—Lead for Growth, Execute for Growth, and Invest for Growth—emphasizing customer centricity, operational excellence, and focused investments in high‐margin verticals.
U.S. data center capacity is set to nearly double from ~20 GW in 2023 to ~40 GW by end-2025, with a 165 GW project backlog driving Electric Americas orders up 70% YoY in Q3.
The planned acquisition of Boyd Thermal will boost Eaton’s liquid cooling portfolio and raise data center content per megawatt from $2.9 M to $3.4 M, leveraging integrated power-cooling engineering.
Investments in Electric Americas capacity are causing short‐term inefficiencies, but Eaton projects ~7% market growth in 2026 and aims for a 30% incremental margin on top of market growth, with margin recovery expected in H2 2026.

3 days ago

Transcript

Eaton outlines growth strategy and data center focus at UBS Industrials Conference

ETN

M&A

Guidance Update

New Projects/Investments

Paulo Ruiz Sternadt highlights Eaton’s three strategic pillars—Lead for Growth, Execute for Growth, and Invest for Growth—centered on customer-centricity, operational excellence, and targeted investments in electrical and aerospace sectors, focusing on data centers, utilities, and critical infrastructure.
Eaton projects robust data center demand, noting U.S. capacity increasing from ~20 GW in 2023 to near 40 GW by end-2025, with customer backlog of 165 GW and Q3 data center orders up 70% YoY, reflecting significant market momentum.
The planned acquisition of Boyd Thermal enhances Eaton’s liquid cooling capabilities and raises AI data center content per MW from $2.9 M to $3.4 M, adding ~$500 K of incremental content and strengthening end-to-end power and cooling solutions.
For 2026, Eaton expects market growth of ~7%, aims to outpace the market with ~30% incremental margins, and anticipates initial ramp inefficiencies before margin recovery in H2 2026.
Management reiterates full-year guidance, anticipates strong Q4 order growth building on Q3 performance, and maintains a data center bid pipeline of $8 B, underscoring continued demand.

3 days ago

Transcript

Eaton outlines strategic growth pillars and data center momentum at UBS Global Industrials and Transportation Conference

ETN

M&A

Guidance Update

CEO Paulo Ruiz presented three strategic pillars—Lead for growth, Execute for growth, and Invest for growth—targeting customer-centric agility, operational excellence, and focused investments in electrical and aerospace verticals.
Data center orders in Electric Americas surged 70% YoY in Q3, fueling a customer backlog of 165 GW and an $8 billion opportunity pipeline, supported by capacity expansions and shorter lead times.
The acquisitions of FiberBond, Resilient Power, and Boyd Thermal round out Eaton’s end-to-end data center offering and lift content per megawatt from $2.9 million to $3.4 million in AI applications.
For fiscal 2026, Eaton anticipates end-market growth of ~7%, plans to outperform with a ~30% incremental margin, and flags first-half inefficiencies from capacity ramps plus below-the-line pension and acquisition financing headwinds.

3 days ago

Transcript

Eaton to acquire Boyd’s thermal solutions unit for $9.5 billion

ETN

M&A

Boyd will sell its Thermal Solutions division to Eaton for $9.5 billion.
The transaction is subject to regulatory approvals and is expected to close in Q2 2026.
After closing, the Thermal Solutions unit will operate as an independent Boyd Corporation business, backed by Goldman Sachs Alternatives.
Eaton aims to integrate Boyd’s Chip-to-Ambient™ cooling architecture with its power-management portfolio to accelerate deployment of AI-driven data-centre solutions.

Nov 4, 2025, 6:56 PM

Press Release

Eaton reports Q3 2025 results

ETN

Earnings

Guidance Update

M&A

Eaton generated $7 billion in revenue with 7% organic growth, a 25% segment margin (up 70 bps), and adjusted EPS of $3.07 (+8%) in Q3 2025.
Electrical Americas achieved 9% organic sales growth (data centers +40%), 30.3% operating margin, LTM orders +7%, and backlog of $12 billion (+20%, book-to-bill 1.1).
Aerospace delivered 13% organic growth, record Q3 sales, 25.9% operating margin, LTM orders +11%, and backlog up 15% year-over-year.
Management reaffirmed full-year 2025 organic growth guidance of 8.5%–9.5%, margin guidance of 24.1%–24.5%, Q4 organic outlook of 10%–12%, and Q4 EPS of $3.23–$3.43.
Acquisition of Boyd (Voith) bolsters Eaton’s data center portfolio with leading global liquid-cooling expertise, extending solutions from chip to grid.

Nov 4, 2025, 4:00 PM

Transcript

Eaton reports Q3 2025 earnings

ETN

Earnings

Guidance Update

M&A

Eaton delivered record Q3 sales of $6,988M, up 10% year-over-year.
Adjusted EPS was $3.07, an 8% increase versus Q3 2024, with a segment operating margin of 25.0% (up 70 bps), both quarterly records.
Electrical Americas sales rose 15% to $3,410M with backlog up 20%; Aerospace sales increased 14% to $1,079M with backlog up 15%.
Reaffirmed 2025 outlook: Q4 EPS of $3.23–3.43; full-year EPS of $11.97–12.17; and organic growth of 8.5–9.5%.
Signed agreement to acquire Boyd Thermal, enhancing its liquid cooling technology portfolio.

Nov 4, 2025, 4:00 PM

Presentation

Eaton reports Q3 2025 results

ETN

Earnings

Guidance Update

M&A

In Q3, Eaton delivered $7 billion in revenue, 7% organic growth, a record 25% adjusted segment margin, and adjusted EPS of $3.07 (up 8% y/y).
Demand remained robust with Electrical Americas orders +7% LTM, backlog up 20% to $12 billion (book-to-bill 1.1); Aerospace saw 13% organic sales growth, backlog +15% and LTM orders +11%.
The company reaffirmed 2025 guidance of 8.5-9.5% organic growth, 24.1-24.5% margins and EPS of $11.97-12.17; Q4 outlook calls for 10-12% organic growth and EPS of $3.23-3.43.
Announced acquisition of Boyd’s thermal business, expected to generate $1.7 billion in 2026 sales at a 25% adjusted EBITDA margin, bolstering Eaton’s data center liquid cooling portfolio.

Nov 4, 2025, 4:00 PM

Transcript

Eaton reports Q3 2025 results

ETN

Earnings

M&A

Guidance Update

Robust demand drove rolling 12-month orders up 5% and quarterly book-to-bill of 1.2; data center orders jumped 70% and sales rose 40% vs. Q3 2024, while Latin America backlog hit a record with +20% YoY growth.
Q3 adjusted EPS increased 8% YoY and segment margins reached a record 25% (+70 bps YoY); reaffirmed 2025 organic growth guidance of 8.5–9.5% and margin range of 24.1–24.5%.
Announced acquisition of Boyd’s liquid cooling business, expected to generate $1.7 billion in 2026 sales at a 25% adjusted EBITDA margin, expanding Eaton’s data center thermal portfolio.
By segment, Electrical Americas delivered 9% organic growth with 26.6% margins and LTM orders +5% (book-to-bill 1.1); Aerospace grew 13% with 25.9% margins and LTM orders +11%; Vehicle declined 9% organically.
Q4 outlook: EPS of $3.23–3.43 (+18% YoY) and organic growth of 10–12%; full-year adjusted EPS reaffirmed at $11.97–12.17 (+12% at midpoint).

Nov 4, 2025, 4:00 PM

Transcript

Eaton posts record Q3 earnings, raises 2025 outlook

ETN

Earnings

Guidance Update

Revenue Acceleration/Inflection

Eaton delivered adjusted net income of $1.20 billion and adjusted EPS of $3.07 in Q3 2025, on a 10% revenue increase to $6.99 billion.
The Electrical Americas segment saw 15% sales growth (9% organic, 6% acquisition-driven) and achieved a record 25.0% margin.
Quarterly operating cash flow reached $1.4 billion and free cash flow hit $1.2 billion, both all-time highs.
Eaton raised its 2025 guidance to 8.5%–9.5% organic growth and full-year adjusted EPS of $11.97–$12.17; analysts maintain a buy rating with a $408 12-month target.

Nov 4, 2025, 1:09 PM

Morningstar

Eaton reports Q3 2025 results

ETN

Earnings

Guidance Update

Eaton posted Q3 2025 EPS of $2.59, and record adjusted EPS of $3.07, excluding acquisition, amortization and restructuring charges.
Quarterly sales hit a record $7.0 billion, up 10% year-over-year (7% organic, 3% acquisitions).
Achieved a record segment margin of 25.0%, alongside third-quarter operating cash flow of $1.4 billion and free cash flow of $1.2 billion, both up over 3%.
For full-year 2025, guidance raised to EPS of $10.29–$10.49, adjusted EPS of $11.97–$12.17, with organic growth of 8.5–9.5% and segment margins of 24.1–24.5%.

Nov 4, 2025, 12:01 PM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for Eaton Corp.

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