Eaton(ETN) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 earnings per share were $2.45, a record and up 4$2.83, up 11% from Q4 2023[3][7] - For full year 2024, record earnings per share were $9.50, with adjusted earnings per share of$10.80, up 18% from 2023[7][8] - The company expects 2025 earnings per share to be between $10.60 and$11.00, representing a 14% increase at the midpoint over 2024[7][9] - The diluted earnings per share after restructuring charges was $0.14 for Q4 2024, compared to$0.02 in Q4 2023, with a full-year EPS of $0.40 versus$0.11 in 2023[36] Sales and Revenue - Sales for Q4 2024 reached $6.2 billion, a record and up 5$6,240 million, a 4.6% increase from $5,967 million in Q4 2023[24] - The Electrical Americas segment reported net sales of$2,905 million in Q4 2024, a 8.7% increase from $2,672 million in Q4 2023[24] - Aerospace segment sales were a record$971 million, up 9% from Q4 2023, with operating profits of $222 million, up 11$647 million, down 10% from Q4 2023, but achieved a record operating margin of 18.8%[16] Cash Flow - Operating cash flow for 2024 was $4.3 billion, up 19$3.5 billion, up 23% from 2023[8] - Free cash flow for Q4 2024 was $1,342 million, compared to$1,055 million in Q4 2023, marking a 27.3% increase[28] Segment Performance - Electrical Americas segment sales for Q4 2024 were $2.9 billion, up 9$918 million, up 20%[10] - The Aerospace segment achieved a net sales increase of 8.5%, reaching $971 million in Q4 2024 compared to$895 million in Q4 2023[24] - The company reported a total segment operating profit of $1,542 million for Q4 2024, an increase from$1,360 million in Q4 2023, reflecting a 13.4% growth[24] - Segment margins for 2024 were a record 24.0%, a 200-basis point improvement over 2023[6] Backlog and Demand - Backlog at the end of December 2024 was up 29% organically over December 2023, indicating strong demand[11][15] Restructuring and Charges - A new multi-year restructuring program was initiated in Q1 2024, with expected total charges of $475 million and anticipated mature year benefits of$375 million[35] - Restructuring program charges for Q4 2024 totaled $70 million, compared to$11 million in Q4 2023, with total charges for the year reaching $202 million versus$57 million in 2023[36] - Workforce reductions accounted for $42 million in Q4 2024, significantly up from$2 million in Q4 2023, with total workforce-related charges for the year at $120 million compared to$19 million in 2023[36] - The eMobility segment incurred restructuring charges of $22 million in Q4 2024, up from no charges in Q4 2023, with total charges for the year at$25 million compared to $7 million in 2023[36] - The Electrical Global segment reported$18 million in restructuring charges for Q4 2024, compared to $4 million in Q4 2023, with total charges for the year at$88 million versus $26 million in 2023[36] - Corporate restructuring charges amounted to$16 million in Q4 2024, up from $2 million in Q4 2023, with total charges for the year at$29 million compared to $8 million in 2023[36] - The Aerospace segment had restructuring charges of$2 million in both Q4 2024 and Q4 2023, with total charges for the year increasing to $9 million from$5 million in 2023[36] Intangible Assets and Tax Benefits - Intangible asset amortization expense for Q4 2024 was $107 million, consistent with Q4 2023, while total amortization for the year was$425 million, down from $450 million in 2023[37] - The total income tax benefit from intangible asset amortization was$23 million in Q4 2024, leading to an after-tax total of $84 million, slightly up from$83 million in Q4 2023[37] - The income tax benefit related to restructuring charges was $14 million in Q4 2024, leading to a total after-tax charge of$56 million, compared to $9 million and$46 million respectively in Q4 2023[36] Acquisitions - The company acquired a 49% stake in NordicEPOD AS on May 31, 2024, enhancing its capabilities in power modules for data centers[29]