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Eaton Corporation ETN reported first-quarter 2025 earnings of $2.72 per share, which surpassed the Zacks Consensus Estimate by 0.7%. The bottom line increased around 13.3% year over year and was near the upper end of the guidance of $2.65-$2.75. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
GAAP earnings for the reported quarter were $2.45 per share, up 20.1% from $2.04 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 21 cents for intangible assets amortization, 4 cents for the restructuring program and 2 cents of gains from acquisitions and divestitures.
Eaton’s Q1 Revenues
Total quarterly revenues were $6.4 billion, which surpassed the Zacks Consensus Estimate of $6.27 billion by 2.2%. The figure increased 7.3% year over year. The first-quarter year-over-year revenue growth was driven by an organic sales rise and partially offset by negative currency translation.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote
ETN’s Segmental Details
Electrical Americas’ total first-quarter sales were $3.01 billion, up 11.9% year over year. The rise was due to increased organic sales, marginally offset by negative currency translation. Operating profit was $904 million, up 15% year over year.
Electrical Global’s total sales were $1.6 billion, up 7% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 9%. The metric was offset by negative currency translation of 2%. Operating profit was $300 million, up 9% year over year.
Aerospace’s total sales were $979 million, up 12% year over year, driven by organic sales growth of 13%. The metric was offset by negative currency translation of 1%. Operating profit was $226 million, up 12% year over year.
Vehicle’s total sales were $617 million, down 15% year over year, due to an 11% decline in organic sales and negative currency translation of 4%. Operating profit was $96 million, down 17.2% year over year.
eMobility segment’s total sales were $162 million, up 2% year over year, caused by an increase in organic sales of 3%. The metric was offset by negative currency translation of 1%. Operating loss was $4 million due to launch costs incurred related to new programs expected to ramp up over the upcoming quarters.
Highlights of ETN’s Q1 Release
Selling and administrative expenses were $1,048 million, up 2.24% year over year.
Research and development expenses were $198 million, up 10.1% from the year-ago quarter’s level.
Interest expenses were $33 million, up 10% year over year.
Eaton’s backlog, with orders, at the end of first-quarter 2025, increased 6% in Electrical Americas, 16% in Aerospace and 5% in Electric Global on a rolling 12-month basis.