Eaton(US:ETN)2025-05-02 16:05Financial Performance - Eaton Corporation reported net sales of $6,377 million for the first quarter of 2025, a 7% increase from $5,943 million in the same period of 2024[76]. - The company's gross profit margin improved to 38.4% in Q1 2025, up from 37.3% in Q1 2024, driven by higher sales and operational efficiencies[78]. - Net income attributable to Eaton ordinary shareholders reached $964 million in Q1 2025, reflecting a 17% increase compared to $821 million in Q1 2024[76]. - Adjusted earnings for Q1 2025 were $1,070 million, an 11% increase from $966 million in Q1 2024[76]. Segment Performance - The Electrical Americas segment achieved net sales of $3,010 million in Q1 2025, a 12% increase from $2,690 million in Q1 2024[83]. - The Electrical Global segment reported net sales of $1,610 million in Q1 2025, a 7% increase from $1,500 million in Q1 2024[87]. - Aerospace segment net sales increased by 12% to $979 million in Q1 2025 from $871 million in Q1 2024, with operating profit also rising by 12% to $226 million[91]. - Vehicle segment net sales decreased by 15% to $617 million in Q1 2025 from $724 million in Q1 2024, with operating profit declining by 17% to $96 million[93]. - eMobility segment net sales increased by 2% to $162 million in Q1 2025 from $158 million in Q1 2024, maintaining an operating loss of $4 million[95]. Backlog and Acquisitions - Eaton's backlog in the Electrical Americas segment increased to $10,050 million, a 5% rise from $9,579 million year-over-year[83]. - Eaton made strategic acquisitions, including Exertherm and NordicEPOD AS, to enhance its portfolio and capitalize on growth opportunities[70]. - On April 1, 2025, the company acquired Fibrebond Corporation for $1.45 billion, net of cash acquired[101][109]. Expenses and Cash Flow - Total corporate expenses decreased by 7% to $345 million in Q1 2025 from $371 million in Q1 2024, primarily due to lower restructuring program charges[97]. - Net cash provided by operating activities decreased by $237 million to $238 million in Q1 2025 compared to $475 million in Q1 2024, influenced by higher working capital balances[102][103]. - Net cash provided by investing activities increased significantly by $1,200 million to $1,233 million in Q1 2025, driven by increased sales of short-term investments[104]. - Capital expenditures were $147 million in Q1 2025, with plans to increase to approximately $900 million for the full year to support production capacity expansion[106]. - Cash dividend payments increased to $397 million in Q1 2025 from $368 million in Q1 2024, with intentions to continue quarterly dividends[107]. Debt and Liquidity - As of March 31, 2025, the company had short-term debt of $805 million and long-term debt of $7,609 million, with sufficient liquidity to meet obligations[110]. - Current assets as of March 31, 2025, are $5,137 million, an increase from $5,027 million on December 31, 2024[119]. - Current liabilities increased to $5,403 million as of March 31, 2025, compared to $3,738 million on December 31, 2024[119]. - Noncurrent liabilities decreased to $9,640 million as of March 31, 2025, from $10,564 million on December 31, 2024[119]. Risks and Forward-Looking Statements - The company anticipates potential impacts from global pandemics, supply chain disruptions, and competitive pressures on sales and pricing[121]. - There have been no material changes in exposures to market risk since December 31, 2024[122]. - The company does not assume any obligation to update forward-looking statements, which are subject to various risks and uncertainties[121]. - The financial information excludes non-issuer and non-guarantor subsidiaries, with intercompany balances eliminated[119].