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• Adjusted EPS: $2.72, up 13% from the prior year.

• Organic Growth: 9%, with strength in Electrical Americas, aerospace, and Electrical Global.

• Segment Margins: Record 23.9%, in line with guidance.

• Total Company Orders: Increased 3% versus prior quarter.

• Revenue: Record quarterly revenue of $6.4 billion.

• Electrical Americas Organic Sales Growth: 13%, driven by data center and utility end markets.

• Electrical Americas Operating Margin: 30%, up 80 basis points versus prior year.

• Electrical Global Organic Growth: 9%, with strength in data center, machine OEM, and utilities end markets.

• Aerospace Organic Growth: 13%, resulting in all-time record sales.

• Aerospace Operating Margin: 23.1%.

• Vehicle Segment Revenue: Down 15%, including an 11% organic decline.

• Vehicle Segment Operating Margin: 15.5%.

• E-mobility Revenue Growth: 2%, with 3% organic growth.

• 2025 Organic Growth Outlook: Raised by 50 basis points to a range of 7.5% to 9.5%.

• 2025 Adjusted EPS Guidance: Reconfirmed at $11.80 to $12.20.

• Warning! GuruFocus has detected 5 Warning Signs with APLE.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Eaton Corp PLC (NYSE:ETN) reported a record Q1 adjusted EPS of $2.72, up 13% from the previous year.

• The company achieved 9% organic growth, with notable strength in Electrical Americas, aerospace, and Electrical Global segments.

• Eaton Corp PLC (NYSE:ETN) delivered Q1 record segment margins of 23.9%, aligning with their guidance.

• The company has a strong backlog and a book-to-bill ratio of 1.1, indicating robust future demand.

• Eaton Corp PLC (NYSE:ETN) raised its expectations for organic growth and reaffirmed its adjusted EPS, cash flow, and share repurchase guidance for 2025.

Negative Points

• The Vehicle segment experienced a 15% revenue decline, primarily due to weakness in commercial and ICE light motor vehicle markets.

• The company faces uncertainties from the dynamic global trade environment, including tariff impacts.

• Eaton Corp PLC (NYSE:ETN) lowered its 2025 segment margin guidance by 40 basis points due to commercial actions offsetting tariff impacts.

• The Electrical Americas segment saw a 4% decline in orders on a rolling 12-month basis due to tough comparisons from a large multiyear order in Q1 2024.

• The company anticipates a slight decline in internal combustion engine light vehicle growth, adjusting its forecast from slight growth.

Q & A Highlights

Q: Can you provide some color on the data center market performance in Q1 and expectations for the rest of the year? A: Paulo Sternadt, President and COO, highlighted that the data center market remains strong, with Q1 showing very strong double-digit growth, surpassing the 45% growth from last year. The fundamentals remain robust, and Eaton is optimistic about continued high-level orders and negotiation activity. The recent Fiber Bond acquisition is expected to enhance Eaton's position as a one-stop shop for data center power solutions.