Eaton Corporation (ETN) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 adjusted EPS of $2.83 (up 11% YoY) and record segment margins of 24.7%, driven by strong demand and robust backlogs in key segments.

• Q4 sales reached $6.24B, up 6% organically, despite $80M in headwinds from hurricanes and aerospace strikes.

• Full-year 2024 adjusted EPS was $10.80, up 18% YoY; sales hit $24.9B, up 7% YoY.

• Backlogs in Electrical Americas and Aerospace grew 29% and 16% YoY, with book-to-bill ratios above 1.

• Positioned for structurally higher growth and margins, supported by electrification, digitalization, and infrastructure spending.

Financial highlights

• Q4 operating profit grew 13% to $1.54B; segment margin hit a record 24.7%.

• Q4 operating cash flow was $1.6B, up 23% YoY; free cash flow was $1.3B, up 27%. Full-year free cash flow was $3.5B.

• Electrical Americas posted Q4 organic sales growth of 9% and operating margin of 31.6%, up 310 bps.

• Aerospace segment posted 9% organic growth and 22.9% margin; Vehicle and eMobility segments declined in revenue but improved margins.

• Q4 net income attributable to shareholders was $971M; full-year net income was $3.79B.

Outlook and guidance

• 2025 organic growth expected at 7–9%; segment margin guidance is 24.4–24.8%.

• 2025 adjusted EPS guidance is $11.80–$12.20, up 11% at midpoint; free cash flow expected at $3.7–$4.1B.

• Operating cash flow projected at $4.6B–$5.0B; share repurchases planned at $2.0B–$2.4B.

• Q1 2025 organic growth expected at 5.5–7.5%; segment margins 23.7–24.1%; adjusted EPS $2.65–$2.75.

• Strong cash position leaves room for strategic M&A and capacity investments.