Core Insights - Eaton Corporation (ETN) reported Q2 2025 earnings of $2.95 per share, exceeding the Zacks Consensus Estimate by 1.03% and reflecting an 8.05% year-over-year increase, driven by improved organic sales volumes and sustained demand [1][9] - Total revenues for Q2 reached $7.02 billion, surpassing the Zacks Consensus Estimate of $6.92 billion by 1.4%, with a year-over-year increase of 10.7% attributed to an 8% rise in organic sales, a 2% contribution from acquisitions, and a 1% boost from favorable currency translation [3][9] Financial Performance - GAAP earnings for the quarter were $2.51 per share, a 1.2% increase from $2.48 in the previous year, with differences attributed to charges related to intangible assets, restructuring, and acquisitions [2] - Selling and administrative expenses rose to $1.14 billion, up 12.5% year over year, while research and development expenses decreased by 2% to $192 million [8] Segment Performance - Electrical Americas reported sales of $3.4 billion, a 16% year-over-year increase, with operating profit at $987 million, up 15% [4] - Electrical Global's sales reached $1.8 billion, up 9% year over year, with operating profit of $353 million, reflecting a 16% increase [5] - Aerospace segment sales were $1.1 billion, up 13% year over year, with operating profit at $240 million, a 17% increase [6] - Vehicle segment sales declined to $663 million, down 8% year over year, with operating profit decreasing by 13% to $113 million [6] - eMobility segment sales were $182 million, down 4% year over year, with an operating loss of $10 million [7] Guidance and Outlook - For Q3 2025, Eaton expects earnings in the range of $2.58-$2.64 per share and anticipates organic growth of 8-9% [12] - The company projects adjusted earnings per share for 2025 to be between $11.97-$12.17, indicating a 12% increase at the midpoint from the previous year, with organic sales growth expected in the range of 8.5-9.5% [12] Backlog and Financial Position - Eaton's backlog increased by 17% in Electrical Americas, 16% in Aerospace, and 1% in Electrical Global on a rolling 12-month basis [10] - As of June 30, 2025, the company's cash decreased to $0.39 billion from $0.55 billion at the end of 2024, while long-term debt rose to $8.75 billion from $8.47 billion [11]