WS Investor
04 Nov 2025, 19:38
Eaton posts record Q3 2025 results with strong demand across electrical and aerospace sectors
Eaton Corporation (NYSE: ETN) reported record third-quarter 2025 results, with earnings per share of $2.59 and adjusted EPS of $3.07, marking a new quarterly high. Sales rose 10% year over year to $7.0 billion, driven by 7% organic growth and 3% from acquisitions. Segment margins reached a record 25.0%, 70 basis points higher than a year ago.
The company highlighted strong order momentum, with a 7% rise in twelve-month rolling average orders for Electrical Americas and 11% growth in Aerospace. Backlog increased 18% in Electrical and 15% in Aerospace, with a total book-to-bill ratio of 1.1 in both segments.
Eaton generated $1.4 billion in operating cash flow and $1.2 billion in free cash flow, both third-quarter records. CEO Paulo Ruiz said robust demand and capacity investments are supporting long-term growth, driven by trends such as AI, digitalization, and infrastructure spending.
For 2025, Eaton expects organic growth of 8.5–9.5%, segment margins of 24.1–24.5%, EPS between $10.29 and $10.49, and adjusted EPS between $11.97 and $12.17. For Q4 2025, the company projects EPS of $2.75–$2.95 and adjusted EPS of $3.23–$3.43.
Eaton Corporation (NYSE: ETN) reported record third-quarter 2025 results, with earnings per share of $2.59 and adjusted EPS of $3.07, marking a new quarterly high. Sales rose 10% year over year to $7.0 billion, driven by 7% organic growth and 3% from acquisitions. Segment margins reached a record 25.0%, 70 basis points higher than a year ago.
The company highlighted strong order momentum, with a 7% rise in twelve-month rolling average orders for Electrical Americas and 11% growth in Aerospace. Backlog increased 18% in Electrical and 15% in Aerospace, with a total book-to-bill ratio of 1.1 in both segments.
Eaton generated $1.4 billion in operating cash flow and $1.2 billion in free cash flow, both third-quarter records. CEO Paulo Ruiz said robust demand and capacity investments are supporting long-term growth, driven by trends such as AI, digitalization, and infrastructure spending.
For 2025, Eaton expects organic growth of 8.5–9.5%, segment margins of 24.1–24.5%, EPS between $10.29 and $10.49, and adjusted EPS between $11.97 and $12.17. For Q4 2025, the company projects EPS of $2.75–$2.95 and adjusted EPS of $3.23–$3.43.
