Eaton Corp plc (ETN) Earnings History

Eaton Corp plc - Q3 FY2025 Earnings

Filed at: Nov 4, 2025, 6:01 AM EST|Read from source

EXECUTIVE SUMMARY

Eaton reported record third quarter 2025 results with strong demand, accelerating orders, and sustained backlog growth, primarily driven by its Electrical Americas and Aerospace businesses. The company remains confident in its ability to meet its full-year commitments and achieve its 2030 targets, capitalizing on growth opportunities in digitalization, AI, and infrastructure.

POSITIVE HIGHLIGHTS

  • •

    Total sales were a third quarter record of $7.0 billion, up 10% year-over-year, driven by 7% organic growth and 3% from acquisitions.

    positive
  • •

    Record segment margins of 25.0%, a 70-basis point improvement over Q3 2024.

    positive
  • •

    Record operating cash flow of $1.4 billion and free cash flow of $1.2 billion, up 3% and 4% respectively.

    positive
  • •

    Strong backlog growth of 18% in the Electrical sector and 15% in Aerospace segment on a rolling twelve-month basis.

    positive

CONCERNS & RISKS

  • •

    Vehicle segment sales declined 8% year-over-year, with organic sales down 9%.

    negative
  • •

    eMobility segment sales decreased 19% year-over-year, with organic sales down 20%, and recorded an operating loss of $9 million.

    negative
  • •

    Significant charges related to acquisitions and divestitures, restructuring programs, and intangible asset amortization impacted reported EPS.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$6.99B
+10.5%
Prior year: $6.34B
Annual (YTD)
$20.39B
N/A
Prior year: $18.64B
Net Income
Quarterly
$1.01B
+0.1%
Prior year: $1.01B
Annual (YTD)
$2.96B
N/A
Prior year: $2.83B
EPS (Diluted)
Quarterly
$2.59
+2.4%
Prior year: $2.53
Annual (YTD)
$7.54
N/A
Prior year: $7.05
Operating Income
Quarterly
$1.75B
+13.3%
Prior year: $1.54B
Annual (YTD)
$4.95B
N/A
Prior year: $4.42B
EPS (Basic)
Quarterly
$2.60
+2.4%
Prior year: $2.54
Annual (YTD)
$7.57
N/A
Prior year: $7.08

MARGIN ANALYSIS

Operating Margin
Current Quarter
25.0%
Prior Year
24.3%
YoY Change
+71 bps
Net Margin
Current Quarter
14.4%
Prior Year
15.9%
YoY Change
-145 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY 2025

organic_growth
8.5—9.5
Mid-point: 9
segment_margins
24.1%—24.5%
Mid-point: 24.3%
eps_diluted
$10.29—$10.49
Mid-point: $10.39
adjusted_eps
$11.97—$12.17
Mid-point: $12.07

Q4 2025

organic_growth
10—12
Mid-point: 11
segment_margins
24.2%—24.6%
Mid-point: 24.4%
eps_diluted
$2.75—$2.95
Mid-point: $2.85
adjusted_eps
$3.23—$3.43
Mid-point: $3.33

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q3 2025
Charges related to acquisitions and divestitures, after-tax
Impacts reported EPS.
+$44M
$0.11 per share
Q3 2025
Restructuring program charges, after-tax
Impacts reported EPS.
+$43M
$0.11 per share
Q3 2025
Intangible asset amortization expense, after-tax
Impacts reported EPS.
+$102M
$0.26 per share
Total Impact
+$189M$0.48 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

CEO Paulo Ruiz highlighted strong demand, order acceleration, and sustained backlog growth driven by Electrical Americas and Aerospace.

— Eaton Corp plc, Q3 FY2025 2025 Earnings Call

Company remains confident in delivering commitments and achieving 2030 targets.

— Eaton Corp plc, Q3 FY2025 2025 Earnings Call

Strategy to lead, invest, and execute for growth positions Eaton to capitalize on digitalization, AI, reindustrialization, and infrastructure opportunities.

— Eaton Corp plc, Q3 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Aerospace Book To Bill Ratio Rolling 12m
1.1
ratio
Aerospace Order Growth Rolling 12m
11
percent
Aerospace Segment Backlog Growth
15
percent
Electrical Americas Order Growth Rolling 12m
7
percent
Electrical Book To Bill Ratio Rolling 12m
1.1
ratio
Electrical Sector Backlog Growth
20
percent

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.