Eaton(US:ETN) Guoxin Securities·2025-08-18 13:57Investment Rating - The investment rating for Eaton (ETN.N) is "Outperform" [5] Core Insights - Eaton's revenue growth is robust, with a 9% year-over-year increase in revenue for the first half of 2025, reaching $13.4 billion. The net profit for the same period was $1.95 billion, also up 7% year-over-year [1][8] - The North American electrification business showed strong performance, with revenue of $6.36 billion in the first half of 2025, reflecting a 14% increase year-over-year [1][18] - The data center business is experiencing strong order growth, with a 23% year-over-year increase in rolling 12-month new orders [2][33] - The company has raised its 2025 revenue and EPS guidance due to strong demand in the North American data center business, adjusting the revenue growth forecast to 8.5%-9.5% [2][34] Summary by Sections Financial Performance - In the first half of 2025, Eaton achieved revenue of $13.4 billion, a 9% increase year-over-year, and a net profit of $1.95 billion, also up 7% year-over-year. The operating profit margin was 23.9%, an increase of 0.5 percentage points year-over-year [1][8] - For Q2 2025, the company reported revenue of $7.03 billion, an 11% increase year-over-year, and a net profit of $980 million, down 1% year-over-year [1][8] Business Segments - North American Electrification: Revenue of $6.36 billion in H1 2025, up 14% year-over-year, with an operating profit margin of 29.7% [1][18] - Global Electrification: Revenue of $3.36 billion in H1 2025, up 8% year-over-year, with an operating profit margin of 19.4% [1][19] - Aerospace: Revenue of $2.06 billion in H1 2025, up 13% year-over-year, with an operating profit margin of 22.6% [1][22] - Vehicle Business: Revenue of $1.28 billion in H1 2025, down 12% year-over-year, with an operating profit margin of 16.3% [1][26] - Vehicle Electrification: Revenue of $340 million in H1 2025, down 1% year-over-year, with an operating profit margin of -4.4% [1][27] Order Growth and Guidance - The company reported a 55% year-over-year increase in new orders for the North American electrification business in Q2 2025, with data center business orders up 23% year-over-year [2][33] - Eaton has revised its 2025 revenue growth guidance to 8.5%-9.5% and adjusted its EPS guidance to $11.97-$12.17 per share [2][34][35]