Eaton Corporation, Plc · NYSE:ETN
Eaton — Q1 2025 Earnings Presentation
20 slides from Eaton's earnings presentation, May 2, 2025
Slide 1: First Quarter 2025 Earnings Release
First Quarter 2025 Earnings Release Craig Arnold, Paulo Ruiz & Olivier Leonetti | May 2, 2025 © 2025 Eaton. All rights reserved. 1
Slide 2: Forward-looking statements and non-GAAP financial information
Forward-looking statements and non-GAAP financial information This presentation or the comments we make on our call today contain forward-looking statements concerning, among other matters, full year and second quarter 2025 adjusted earnings per share, organic revenue growth and segment operating ma
Slide 3: Highlights
Highlights Adjusted earnings per share of $2.72 in Q1, up 13% versus 1Q24, a Q1 record. Organic growth acceleration to 9%, driven by 13% growth in Electrical Americas and Aerospace and 9% in Electrical Global. Segment margins of 23.9%, up 80 bps versus 1Q24, a Q1 record. Total book-to-bill for the c
Slide 4: We have a generational end market opportunity
We have a generational end market opportunity Data centers & Commercial & Vehicle & distributed IT Utilities Aerospace Institutional Residential eMobility Industrial Machinery 2024 Revenue 11% 15% 14% 12% 17% 20% 6% 5% mix (%) 2024 to 2030E Market growth Secular megatrends driving generational growt
Slide 5: Completed acquisition of Fibrebond, enhancing our ability to serve data center customers
Completed acquisition of Fibrebond, enhancing our ability to serve data center, industrial, utility and communications customers Fibrebond’s outdoor modular power enclosures allow data center operators to maximize the amount of indoor space for revenue-generating IT equipment and decreases the time
Slide 6: Financial Summary
Financial Summary (M) 1Q ‘25 1Q ‘24 V ‘24 Sales $6,377 $5,943 7% Segment Operating Profit 1,522 1,371 11% Segment Operating Margin 23.9% 23.1% 80 bps Adjusted Earnings 1,070 966 11% Adjusted EPS $2.72 $2.40 13% $6,377M Record Quarterly Sales Sales Growth: Organic 9% $1,522M Q1 Record Segment operati
Slide 7: Electrical Americas Segment
Electrical Americas Segment (M) 1Q ‘25 1Q ‘24 V ‘24 Sales $3,010 $2,690 12% Operating Profit 904 785 15% Operating Margin 30.0% 29.2% 80 bps Record sales and Q1 record segment profit & margin. Sales Growth: Orders up 4% on rolling 12-month basis, excluding one Organic 13% large multi-year data cente
Slide 8: Electrical Global Segment
Electrical Global Segment (M) 1Q ‘25 1Q ‘24 V ‘24 Sales $1,610 $1,500 7% Operating Profit 300 274 9% Operating Margin 18.6% 18.3% 30bps Record sales and Q1 record segment profit. Sales Growth: Organic 9% Backlog up 5% year-over-year. Forex (2)% Total 7% Book-to-bill ratio above 1.0 on a rolling 12-m
Slide 9: Aerospace Segment
Aerospace Segment (M) 1Q ‘25 1Q ‘24 V ‘24 Sales $979 $871 12% Operating Profit 226 201 12% Operating Margin 23.1% 23.1% -- Record sales and Q1 record operating profit & margin Sales Growth: Orders up 14% on a rolling 12-month basis. Organic 13% Forex (1)% Backlog up 16% year-over-year. Total 12% Boo
Slide 10: Vehicle Segment
Vehicle Segment (M) 1Q ‘25 1Q ‘24 V ‘24 Sales $617 $724 (15)% Operating Profit 96 116 (17)% Operating Margin 15.5% 16.0% (50) bps Solid operational performance despite market Sales Growth: headwinds. Organic (11)% Forex (4)% Total (15)% © 2025 Eaton. All rights reserved. 10
Slide 11: eMobility Segment
eMobility Segment (M) 1Q ‘25 1Q ‘24 V ‘24 Sales $162 $158 2% Operating Profit / (Loss) (4) (4) -- Operating Margin (2.7)% (2.7)% -- New program launches in North America Sales Growth: partially offset by lower European customer production Organic 3% Forex (1)% Total 2% © 2025 Eaton. All rights reser
Slide 12: Expect to offset the impact of tariffs
Expect to offset the impact of tariffs Long-standing in-region-for-region strategy paired with commercial actions Supplier Sourcing & Product Capacity Risk Cost Commercial Diversification Procurement Classification Optimization & Management Containment Actions Optimization & Engineering Expansion To
Slide 13: Eaton's end market growth – 2025 Assumptions
Eaton’s end market growth – 2025 Assumptions % of Total % of Total Eaton Sales Eaton Sales Data Centers & Distributed IT 17% Commercial Aerospace 9% Utility 11% Electric Vehicles 3% Industrial Facilities 12% Defense Aerospace 6% Commercial & Institutional 20% ICE Light Vehicles 4% Machinery / MOEM 5
Slide 14: 2025 Guidance
2025 Guidance 2nd Quarter Outlook 2025 FY Outlook Adjusted Earnings Per Share $2.85 – $2.95 $11.80 – $12.20 Organic Growth 6 – 8% 7.5 – 9.5% Segment Operating Margins 23.5 – 23.9% 24.0 – 24.4% Operating Cash Flow N/A $4.6B – $5.0B Free Cash Flow N/A $3.7B – $4.1B Share Repurchases N/A $2.0B – $2.4B
Slide 15: 2025 Organic Growth and Operating Margin Guidance
2025 Organic Growth and Operating Margin Guidance Organic Growth Guidance Operating Margin Guidance Segment Electrical Americas 12 – 14% 29.3 – 29.7% Electrical Global 4.5 – 6.5% 19.2 – 19.6% Aerospace 8 – 10% 23.4 – 23.8% Vehicle (5.5) – (3.5)% 15.8 – 16.2% eMobility 8 – 12% 2 – 3% Eaton 7.5 – 9.5%
Slide 16: Summary
Summary Eaton has a strong and transformed portfolio that is positioned for growth. Strong start to the year with organic growth acceleration in the quarter, achieving all-time record quarterly revenue and Q1 record segment margins. Record backlogs result in extended visibility and reaffirms Eaton r
Slide 17: © 2025 Eaton. All rights reserved.
© 2025 Eaton. All rights reserved. 17
Slide 18: Appendix
Appendix © 2025 Eaton. All rights reserved. 18
Slide 19: 2025 Guidance – Additional Modeling Assumptions
2025 Guidance – Additional Modeling Assumptions 2nd Quarter Outlook 2025 FY Outlook Currency Translation Sales Impact – ETN ~$0M ~($85M) Fibrebond Sales – Electrical Americas ~$100M ~$400M Corporate Expenses ~$85M more than 2Q24 $875M Tax Rate on Adjusted Earnings 16.5 – 17.5% 17.5 – 18.5% Capex N/A
Slide 20: © 2025 Eaton. All rights reserved.
© 2025 Eaton. All rights reserved. 20