Eaton Q3 Earnings Beat Estimates, Organic Sales Boost Revenues

Core Insights - Eaton Corporation (ETN) reported Q3 2025 earnings of $3.07 per share, exceeding the Zacks Consensus Estimate by 0.3% and reflecting an 8.09% year-over-year increase, driven by improved organic sales volumes and sustained demand [1][8] - Total revenues for the quarter reached $6.98 billion, a 10% increase from the previous year, attributed to a 7% rise in organic sales and a 3% contribution from acquired assets, although slightly below the Zacks Consensus Estimate of $7.05 billion [3][8] Financial Performance - GAAP earnings for the quarter were $2.59 per share, up 2.4% from $2.53 in the same quarter last year, with differences attributed to charges related to intangible assets, restructuring, and acquisitions [2] - Selling and administrative expenses rose to $1.1 billion, a 7.5% increase year-over-year, while research and development expenses decreased by 1.9% to $203 million [7] Segment Performance - Electrical Americas reported sales of $3.4 billion, a 15% increase year-over-year, with operating profit at $987 million, also up 15% [4] - Electrical Global's sales were $1.72 billion, up 9.6% year-over-year, with operating profit increasing 16% to $353 million [4] - Aerospace sales reached $1.08 billion, a 14.1% increase, with operating profit at $240 million, up 17% [5] - Vehicle segment sales declined to $639 million, down 8.2% year-over-year, with operating profit decreasing 13% to $113 million [5] - eMobility segment sales fell to $136 million, an 18.6% decrease, resulting in an operating loss of $10 million [6] Backlog and Future Outlook - Eaton's backlog increased by 20% in Electrical Americas, 15% in Aerospace, and 7% in Electrical Global on a rolling 12-month basis [7] - For Q4 2025, Eaton expects earnings in the range of $2.75-$2.95 per share and anticipates organic growth of 10-12% [11] - The company projects adjusted earnings per share for 2025 to be between $11.97-$12.17, with organic sales growth expected to be 8.5-9.5% [11] Strategic Developments - Eaton has signed an agreement to acquire Boyd Thermal business for $9.5 billion, aimed at expanding its data center portfolio and aerospace capabilities [10]