Core Viewpoint - Eaton is well-positioned to benefit from the growing demand for electrical and cooling solutions driven by the rapid buildout of data centers, particularly in the context of artificial intelligence [1][12]. Company Overview - Eaton provides essential electrical solutions globally, focusing on products such as circuit breakers, switchgear, transformers, and power distribution units, which are crucial for managing electricity in various sectors including commercial factories and data centers [3]. - The company also serves the aerospace industry and automakers, supplying components that enhance fuel efficiency and support electric vehicle development [4]. Market Demand and Growth - The demand for data centers is a significant growth driver for Eaton, with orders in the data center vertical increasing by 70% in Q3 compared to the previous year [7]. - Eaton's backlog in the Electrical Americas segment reached a record $12 billion in Q3, reflecting a 20% increase year-over-year, indicating strong demand across its segments [6]. Strategic Acquisitions - To capitalize on the growth in data centers, Eaton announced a $9.5 billion acquisition of Boyd's thermal business, which is expected to generate $1.7 billion in sales next year, representing a 70% year-over-year growth [8][9]. - The acquisition aims to enhance Eaton's capabilities in providing cooling solutions for data centers, leveraging Boyd's expertise and existing relationships with major chip manufacturers [10]. Future Outlook - The company anticipates continued growth driven by data centers, distributed IT, and electric vehicle markets, with expectations of double-digit growth over the next several years [12]. - Eaton is expanding its domestic manufacturing capabilities by increasing production capacity across 12 facilities to meet the rising demand and fulfill its backlog [11].

Core Viewpoint - Parker-Hannifin is a Dividend King with a strong track record of dividend growth, significant backlog, and a strategic acquisition that positions it for continued success in the motion and control technologies industry [1][5][16]. Company Overview - Parker-Hannifin has raised its dividends for 69 consecutive years, making it one of the elite Dividend Kings [5]. - The stock has generated over 2,300% returns since 2000, with reinvested dividends totaling approximately 3,600% [6]. Industry Position - The company leads the motion and control technologies sector with annual sales projected at $19 billion for fiscal year 2025 [9]. - Aerospace and defense represent the largest market, contributing 35% of total revenue, with other significant markets including industrial equipment and energy [9][10]. Growth Drivers - Parker-Hannifin has a record backlog of $11 billion, with aerospace backlog reaching $7.4 billion, indicating strong future growth potential [12]. - The company is guiding for 4% to 7% sales growth in fiscal 2026, with organic sales in aerospace and defense expected to grow by nearly 9.5% [13]. Aftermarket Focus - The aftermarket segment, which includes sales of repair and replacement parts, generated 51% of total sales last fiscal year and is a key growth driver [14]. - The recent acquisition of Filtration Group for $9.25 billion will enhance Parker-Hannifin's aftermarket capabilities, as this segment accounts for 85% of Filtration Group's sales [15].

Financial Performance & Metrics - DSG's adjusted revenue reached $196 billion[12] - Adjusted EBITDA margin is approximately 97%[12] - Adjusted Free Cash Flow exceeds $160 million[12] - Q1 2025 revenue was $478 million, a 149% increase year-over-year, with organic average daily sales growth of 43%[50] - Q1 2025 adjusted EBITDA was $428 million, representing 90% of sales, compared to 87% in the prior year quarter[50] Business Segments & Focus - Industrial Technologies segment accounts for approximately 40% of sales[12] - OEM segment represents about 24% of sales[12] - MRO segment constitutes roughly 36% of total revenue with TTM Adjusted Revenue of $715 million[32] - Gexpro Services in the OEM segment has TTM Adjusted Revenue of $464 million[36] - TestEquity Group in the Industrial Technologies segment has TTM Adjusted Revenue of $781 million[41] Strategic Initiatives & Acquisitions - The company has completed 11 strategic acquisitions since 2022, with purchase price multiples ranging from 46x to 94x (weighted 83x)[22] - DSG has an authorized share repurchase program of $375 million, with $111 million and $112 million repurchased in Q1 2025, and $152 million remaining under prior authorizations[52]