Eaton Q1 Earnings and Revenues Surpass Estimates, Organic Sales Rise

Core Viewpoint - Eaton Corporation (ETN) reported strong first-quarter 2025 earnings, exceeding estimates and showing significant year-over-year growth in both earnings and revenues [1][2]. Financial Performance - First-quarter 2025 earnings per share were $2.72, surpassing the Zacks Consensus Estimate by 0.7% and increasing approximately 13.3% year over year [1] - Total quarterly revenues reached $6.4 billion, exceeding the Zacks Consensus Estimate of $6.27 billion by 2.2% and reflecting a 7.3% year-over-year increase [2] Segment Performance - Electrical Americas reported sales of $3.01 billion, up 11.9% year over year, with operating profit of $904 million, a 15% increase [3] - Electrical Global's sales were $1.6 billion, up 7% year over year, with operating profit of $300 million, a 9% increase [4] - Aerospace segment sales reached $979 million, up 12% year over year, with operating profit of $226 million, also up 12% [4] - Vehicle segment sales declined to $617 million, down 15% year over year, with operating profit decreasing to $96 million, down 17.2% [5] - eMobility segment sales were $162 million, up 2% year over year, but incurred an operating loss of $4 million due to launch costs [6] Expenses and Backlog - Selling and administrative expenses were $1,048 million, up 2.24% year over year, while research and development expenses increased to $198 million, up 10.1% [7] - The backlog of orders increased by 6% in Electrical Americas, 16% in Aerospace, and 5% in Electrical Global on a rolling 12-month basis [7] Financial Position - As of March 31, 2025, cash was $1.77 billion, up from $0.55 billion at the end of 2024, while long-term debt decreased to $7.60 billion, down 10.3% from $8.47 billion [8] Guidance - For Q2 2025, earnings are expected in the range of $2.35-$2.45 per share, with organic growth anticipated between 6-8% [10] - For the full year 2025, adjusted earnings per share are projected to be between $11.80-$12.20, indicating an 11% increase at the midpoint from the prior year, with organic sales growth expected in the range of 7.5-9.5% [11]