Eaton Corporation, Plc · NYSE:ETN
Eaton — Q2 2021 Earnings Presentation
17 slides from Eaton's earnings presentation, Aug 3, 2021
Slide 1: Second Quarter 2021 Earnings Release
Second Quarter 2021 Earnings Release August 3, 2021 Craig Arnold © 2021 Eaton. All rights reserved.
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, 2021 organic revenue growth, adjusted earnings per share, adjusted free cash flow, adjusted operating cash flo
Slide 3: Highlights
Highlights • Record Q2 adjusted earnings per share of $1.72 • Up 98% over 2Q20 and 19% over 1Q21 • Sales of $5.2B up 35% • Organic revenue up 27% • Record Q2 segment margins of 18.6%, up 390 bps versus 2Q20 • Robust order growth of more than 40% and record backlog levels for both Electrical segments
Slide 4: Strategic Growth Initiatives Recent Wins
Strategic Growth Initiatives Recent Wins Energy Electrification Digitalization Transition >> Delivered $50M in >> Won distributed >> Providing remote EV powertrain wins energy project for monitoring and for U.S. and China leading financial optimization solutions customers services company to global
Slide 5: Financial Summary
Financial Summary (M) 2Q ’21 2Q ’20 V ’20 Sales $5,215 $3,856 35% Segment Operating Profit 971 568 71% Segment Operating Margin 18.6% 14.7% 390 bps Adjusted Earnings 690 346 99% Adjusted EPS $1.72 $0.87 98% Sales Growth: Organic 27% • Record Q2 Adjusted EPS $1.72 Acquisition 5% • Record Q2 Segment O
Slide 6: Electrical Americas Segment
Electrical Americas Segment (M) 2Q ’21 2Q ’20 V ’20 Sales $1,849 $1,490 24% Operating Profit 393 308 28% Operating Margin 21.3% 20.7% 60 bps Sales Growth: Organic 15% • Q2 orders up 43% with particular strength in Acquisition 8% data center, residential and commercial & institutional markets Forex 1
Slide 7: Electrical Global Segment
Electrical Global Segment (M) 2Q ’21 2Q ’20 V ’20 Sales $1,418 $1,111 28% Operating Profit 259 178 46% Operating Margin 18.3% 16.0% 230 bps Sales Growth: Organic 22% • Q2 orders up 46% with particular strength in Forex 6% data center and residential markets Total 28% • Orders up 10% on a rolling 12
Slide 8: Aerospace Segment
Aerospace Segment (M) 2Q ’21 2Q ’20 V ’20 Sales $625 $461 36% Operating Profit 131 68 93% Operating Margin 21.0% 14.8% 620 bps Sales Growth: Organic 17% • Orders down (16)% on rolling 12 month basis Acquisition 16% driven by the downturn in commercial markets Forex 3% • Backlog flat organically y-o-
Slide 9: Vehicle Segment
Vehicle Segment (M) 2Q ’21 2Q ’20 V ’20 Sales $675 $327 106% Operating Profit (Loss) 121 (21) --- Operating Margin 17.9% (6.4)% 24 pts Sales Growth: Organic 103% • Organic growth significantly impacted by prior year Forex 3% customer shutdowns due to the pandemic Total 106% • Robust organic incremen
Slide 10: eMobility Segment
eMobility Segment (M) 2Q ’21 2Q ’20 V ’20 Sales $88 $56 57% Operating (Loss) (6) (2) --- Operating Margin (6.8)% (3.6)% 320 bps Sales Growth: Organic 54% • Organic revenues driven by growth in global markets Forex 3% • Margin decline driven by new program investments Total 57% © 2021 Eaton. All righ
Slide 11: 2021 Organic Growth Guidance
2021 Organic Growth Guidance February May August Organic Revenue Organic Revenue Organic Revenue Segment Growth Growth Growth Guidance Guidance Guidance Electrical 3 – 5% 6 – 8% 8 – 10% Americas Electrical Global 3 – 5% 7 – 9% 15 – 17% Aerospace 2 – 4% 2 – 4% 2 – 4% Vehicle 10 – 12% 16 – 18% 22 – 24
Slide 12: 2021 Segment Margin Guidance
2021 Segment Margin Guidance February May August Segment Operating Segment Operating Segment Operating Segment Margin Margin Margin Guidance Guidance Guidance Electrical 20.1% – 20.7% 20.4% – 20.8% 20.7% – 21.1% Americas Electrical Global 16.1% – 16.7% 16.8% – 17.2% 17.8% – 18.2% Aerospace 19.7% – 2
Slide 13: 2021 Guidance
2021 Guidance 2021 Full Year Outlook Adjusted Earnings Per Share* $6.58 - $6.88 Organic Revenue 11 – 13% Currency Translation $350M Acquisition & Divestiture (1)% Segment Operating Margins 18.4% - 18.8% Corporate Expenses (interest, pension, other corporate) Flat with 2020 Tax Rate on Adjusted Earni
Slide 14: Summary
Summary • Intelligent power management company with differentiated businesses in large global markets • Businesses supported by game changing secular growth trends reflected in higher organic growth targets of 4% - 6% • Several large project wins validating our strategic growth initiatives including
Slide 15: © 2021 Eaton. All rights reserved.
© 2021 Eaton. All rights reserved. 15
Slide 16: Appendix
Appendix © 2021 Eaton. All rights reserved. 16
Slide 17: Appendix
Appendix © 2021 Eaton. All rights reserved. 17