Eaton Corporation (ETN) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 results with sales of $7.1B, up 13% year-over-year, and strong order acceleration and backlog growth, especially in Electrical Americas and Aerospace segments.

• Adjusted EPS for Q4 was $3.33, up 18% year-over-year, with segment margins at a Q4 record of 24.9%.

• Announced strategic moves including $13B in investments, multiple acquisitions (Fibrebond, Resilient Power Systems, Ultra PCS, Boyd Thermal), and the planned spin-off of the Mobility business.

• Strategy focused on leading, investing, and executing for growth, positioning for generational demand and sustained shareholder value.

• Benefiting from global trends in digitalization, reindustrialization, and infrastructure spending.

Financial highlights

• Q4 2025 sales: $7.1B (+13% YoY); segment operating profit: $1.76B (+14% YoY); adjusted EPS: $3.33 (+18% YoY); segment margin: 24.9%, up 20 bps YoY.

• Electrical Americas sales up 21% YoY; Electrical Global up 10%; Aerospace up 14%; Vehicle down 9%; eMobility down 15%.

• Q4 operating cash flow was $2.0B and free cash flow was $1.6B, up 23% and 17% year-over-year; full-year operating cash flow was $4.5B and free cash flow was $3.6B.

• Q4 net income attributable to shareholders was $1.13B, up from $971M in Q4 2024.

• Q4 gross margin (implied): 36.8% (sales $7.1B, cost of products sold $4.46B).

Outlook and guidance

• 2026 organic growth expected at 7%-9%, with segment margins of 24.6%-25.0%.

• 2026 adjusted EPS guidance: $13.00–$13.50, up 10% from 2025; cash flow expected at $3.9B–$4.3B.

• Q1 2026 guidance: organic growth of 5%-7%, operating margins of 22.2%-22.6%, adjusted EPS $2.65–$2.85.

• Segment organic growth guidance: Electrical Americas 9–11%, Electrical Global 3.5–5.5%, Aerospace 7–9%, Mobility 5–7%.

• Long-term targets reaffirmed: 6%-9% organic growth CAGR through 2030, segment margins of 28% by 2030, and EPS growth of 12%+.