Eaton Corporation plc reported record third‑quarter 2025 results, with adjusted earnings per share of $3.07 and total sales of $7.0 billion, a 10% year‑over‑year increase driven by 7% organic growth and 3% contribution from acquisitions. The company’s adjusted EPS beat the consensus estimate of $3.06, while revenue fell slightly short of the $7.06‑$7.15 billion range expected by analysts.
Segment performance was a key driver of the results. Electrical Americas and Electrical Global segments grew strongly, supported by demand from data centers and infrastructure projects, while the Aerospace segment also expanded. In contrast, Vehicle and eMobility segments experienced sales declines, which partially offset the gains in the other areas. The combined effect produced the record operating margin of 25%, operating cash flow of $1.4 billion, and free cash flow of $1.2 billion.
Backlog levels reached a record high at the end of September, providing robust revenue visibility for the remainder of the year. The company reaffirmed its full‑year 2025 guidance, projecting adjusted earnings per share between $11.97 and $12.17 and organic growth of 8.5% to 9.5%. Eaton also reiterated its confidence in maintaining strong margin performance and continued investment in capacity expansion, including the recent acquisition of Boyd Thermal for $9.5 billion to strengthen its data‑center and aerospace capabilities.
Eaton’s revenue miss relative to the $7.06‑$7.15 billion consensus was largely attributable to the declines in the Vehicle and eMobility segments. However, the company highlighted strong demand in its Electrical and Aerospace businesses, effective cost controls, and pricing power as key factors that supported the record operating margin and cash‑flow generation.
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