Eaton Corporation plc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.49%.
Did ETN Beat Earnings? Q4 2025 Results
Eaton capped a strong fiscal year with a fourth-quarter performance that edged past Wall Street's expectations, reporting adjusted EPS of $3.33 against a consensus estimate of $3.32, while revenue of $7.05 billion rose 13.1% year-over-year and came in fractionally ahead of forecasts. The headline driver was Electrical Americas, where record quarterly sales of $3.51 billion, up 21% year-over-year on 15% organic growth, reflected surging demand from data center customers, a trend that has drawn broad analyst attention and lifted price targets at multiple firms. Segment margins reached a quarterly record of 24.9%, while operating and free cash flows also hit quarterly records at $1.97 billion and $1.57 billion, respectively. Looking ahead, management guided full-year 2026 adjusted EPS of $13.00 to $13.50, representing roughly 10% growth at the midpoint, alongside organic revenue growth of 7-9%; the pending $9.50 billion acquisition of Boyd Thermal and the planned spin-off of the Mobility business by end of Q1 2027 are set to further reshape the portfolio.
- Data center momentum driving Electrical Americas order acceleration of 16% organically
- Strong Aerospace order growth of 11% organically
- 9% organic sales growth in Q4 2025
- Electrical sector backlog growth of 29% and Aerospace backlog growth of 16%
- Book-to-bill ratio of 1.1 for both Electrical and Aerospace businesses
- Segment margins of 24.9%, a Q4 record
“In the fourth quarter, we continued to convert strong demand into accelerated orders and organic growth. Electrical and Aerospace were standout drivers, contributing to sustained backlog growth and a book-to-bill ratio of 1.1.”
Eaton CEO, on the earnings call
Forward Guidance & Outlook
For full year 2026, Eaton expects organic growth of 7-9%, segment margins of 24.6-25.0%, GAAP EPS of $11.57 to $12.07 (up ~13% at the midpoint over 2025), and adjusted EPS of $13.00 to $13.50 (up ~10% at the midpoint over 2025). For Q1 2026, the company guides organic growth of 5-7%, segment margins of 22.2-22.6%, GAAP EPS of $2.29 to $2.49, and adjusted EPS of $2.65 to $2.85. The Boyd Thermal acquisition ($9.5 billion) is expected to close in Q2 2026, and the planned spin-off of the Mobility business is expected to be completed by the end of Q1 2027.
ETN YoY Financials
ETN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.