DUBLIN – Intelligent power management company Eaton Corporation plc today announced that third quarter 2025 earnings per share were $2.59. Excluding charges of $0.11 per share related to acquisitions and divestitures, $0.26 per share related to intangible amortization, and $0.11 per share related to a multi-year restructuring program, adjusted earnings per share of $3.07 were a quarterly record.
Sales in the quarter were $7.0 billion, a third quarter record and up 10% from the third quarter of 2024. The sales increase consisted of 7% growth in organic sales and 3% growth from acquisitions.
Segment margins were 25.0%, a quarterly record and a 70-basis point improvement over the third quarter of 2024.
Operating cash flow was $1.4 billion and free cash flow was $1.2 billion, both third quarter records and up 3% and 4%, respectively, over the same period in 2024.
Paulo Ruiz, Eaton chief executive officer, said, “We continued to see strong demand in the quarter with order acceleration, as well as sustained growth in our backlog and positive book-to-bill ratio, driven primarily by our Electrical Americas and Aerospace businesses. While we continue to ramp-up significant capacity investment projects, we remain confident in our ability to deliver our commitments for the year and achieve our 2030 targets. Looking ahead, our strategy to lead, invest and execute for growth will continue to position us well to capitalize on the generational growth opportunities driven by digitalization and AI, reindustrialization, infrastructure spending and more.”
Guidance
For the full year 2025, the company anticipates:
- Organic growth of 8.5-9.5%
- Segment margins of 24.1-24.5%
- Earnings per share between $10.29 and $10.49
- Adjusted earnings per share between $11.97 and $12.17
For the fourth quarter of 2025, the company anticipates:
- Organic growth of 10-12%
- Segment margins of 24.2-24.6%
- Earnings per share between $2.75 and $2.95
- Adjusted earnings per share between $3.23 and $3.43
Business Segment Results
Sales for the Electrical Americas segment were a record $3.4 billion, up 15% from the third quarter of 2024. The sales increase consisted of 9% growth in organic sales and 6% growth from acquisitions. Operating profits were a record $1.0 billion, up 16% over the third quarter of 2024. Operating margins of 30.3% were a third quarter record, up 20 basis points over the third quarter of 2024.
The twelve-month rolling average of orders in the third quarter was up 7% organically. Backlog at the end of September remained strong and was up 20% over September 2024.
Sales for the Electrical Global segment were a third quarter record $1.7 billion, up 10% from the third quarter of 2024. Organic sales were up 8%, and positive currency translation added 2%. Operating profits were a third quarter record $330 million, up 12% over the third quarter of 2024. Operating margins in the quarter were 19.1%, up 40 basis points over the third quarter of 2024.
The twelve-month rolling average of orders in the third quarter was up 2% organically. Backlog at the end of September was up 7% over September 2024.
On a rolling twelve-month basis, the book-to-bill ratio for the Electrical businesses increased to 1.1.
Aerospace segment sales were a third quarter record $1.1 billion, up 14% from the third quarter of 2024. Organic sales were up 13%, and positive currency translation added 1%. Operating profits were a quarterly record $280 million, up 22% over the third quarter of 2024. Operating margins of 25.9% were a quarterly record, up 150 basis points over the third quarter of 2024.
The twelve-month rolling average of orders in the third quarter was up 11% organically. The backlog at the end of September was up 15% over September 2024. On a rolling twelve-month basis, the book-to-bill ratio for the Aerospace segment remained strong at 1.1.
The Vehicle segment posted sales of $639 million, down 8% from the third quarter of 2024. Organic sales declined 9%, which was partially offset by 1% from positive currency translation. Operating profits were $114 million and operating margins in the quarter were 17.8%.
eMobility segment sales were $136 million, down 19% from the third quarter of 2024. Organic sales declined 20%, which was partially offset by 1% from positive currency translation. The segment recorded an operating loss of $9 million.
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