Core Insights - Eaton Corporation (ETN) reported fourth-quarter 2025 earnings of $3.33 per share, matching the Zacks Consensus Estimate, with a year-over-year increase of 17.7% [1][8] - Total quarterly revenues reached $7.05 billion, reflecting a 13.1% increase from the previous year, driven by organic sales growth and contributions from acquired assets [3][8] Financial Performance - GAAP earnings for the quarter were $2.91 per share, a 19% increase from $2.45 in the same quarter last year, with adjusted earnings per share for 2025 at $12.07, up 12% year over year [2] - Selling and administrative expenses were $1.01 billion, up 0.6% year over year, while research and development expenses increased by 1% to $203 million [7] Segment Performance - Electrical Americas reported sales of $3.5 billion, up 21% year over year, with operating profit at $1.04 billion, a 14% increase [4] - Electrical Global's sales were $1.73 billion, up 10% year over year, with an operating profit of $340 million, up 23% [5] - Aerospace segment sales reached $1.11 billion, a 14% increase year over year, with operating profit at $268 million, up 21% [5] - Vehicle segment sales declined by 9% to $586 million, with operating profit down 21% to $96 million [6] - eMobility segment sales were $125 million, down 15% year over year, but operating income improved to $10 million from $3 million in the previous year [6] Backlog and Debt - Eaton's backlog increased by 31% in Electrical Americas, 16% in Aerospace, and 19% in Electrical Global on a rolling 12-month basis [7] - As of December 31, 2025, the company's cash was $0.62 billion, up from $0.55 billion a year earlier, while long-term debt rose to $8.75 billion from $8.47 billion [9] Strategic Developments - On January 23, 2026, Eaton completed the acquisition of Ultra PCS Limited for $1.55 billion, which will be integrated into its Aerospace segment [10] - On January 26, 2026, the company announced plans to spin off its Mobility business into an independent, publicly traded company, expected to be completed by the end of Q1 2027 [11] Guidance - For the first quarter of 2026, Eaton expects earnings in the range of $2.65-$2.85 per share, with organic growth projected at 5-7% [12] - The company anticipates adjusted earnings per share for 2026 to be in the range of $13-$13.50, with organic sales growth expected to be 7-9% [12]