Eaton Corporation, Plc · NYSE:ETN

Eaton — Q4 2024 Earnings Presentation

24 slides from Eaton's earnings presentation, Jan 31, 2025

  1. Slide 1: Fourth Quarter 2024 Earnings Release

    Fourth Quarter 2024 Earnings Release Craig Arnold, Paulo Ruiz & Olivier Leonetti | January 31, 2025 © 2025 Eaton. All rights reserved. 1

  2. 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 first quarter 2025 adjusted earnings per share, organic revenue growth and segment operating mar

  3. Slide 3: Highlights

    Highlights Adjusted earnings per share of $2.83 in Q4, up 11% versus 4Q23, and $10.80 for the full year 2024, up 18% versus 2023, an all-time full year record. Record segment margins of 24.7%, up 190 bps versus 4Q23. Strong orders growth of 16% in Electrical Americas and 10% in Aerospace on a rollin

  4. Slide 4: Key drivers of Eaton's long term growth outlook

    Key drivers of Eaton’s long term growth outlook Key Markets Commercial & Data Residential Legacy Megatrends Institutional Center Industrial Buildings Utility Aerospace e-Mobility Vehicle FY2024 Organic Growth Electrification Energy Transition Digitalization Infrastructure Spending Reindustrializatio

  5. Slide 5: Announced mega projects continue to grow, with a $1.9T backlog

    Announced mega projects continue to grow, with a $1.9T backlog 4Q’24 Totals $154B 65 40% $1.7T Announced projects Announced projects (#) Growth (vs. 4Q’23) in cumulative Backlog Monthly pace Cancellation rates North America mega projects 33% | $1.9T ~$51B per month ~11% since Jan. 2021 YoY | Total A

  6. Slide 6: Eaton Data Center market continues to support robust market growth

    Eaton Data Center market continues to support robust market growth Sales Electrical Americas Orders Backlog (YoY, %) Negotiations Pipeline (trailing twelve months, %) (YoY, %) (YoY, %) +45% +65% +75% +50% U.S. Data Center construction starts Eaton Data Center organic growth In 2024, data centers nea

  7. Slide 7: Financial Summary

    Financial Summary (M) 4Q ‘24 4Q ‘23 V ‘23 Sales $6,240 $5,967 5% Segment Operating Profit 1,542 1,360 13% Segment Operating Margin 24.7% 22.8% 190 bps Adjusted Earnings 1,120 1,024 9% Adjusted EPS $2.83 $2.55 11% $6,240M Q4 Record Quarterly Sales Sales Growth: Organic 6% $1,542M Q4 Record Segment op

  8. Slide 8: Electrical Americas Segment

    Electrical Americas Segment (M) 4Q ‘24 4Q ‘23 V ‘23 Sales $2,905 $2,672 9% Operating Profit 918 763 20% Operating Margin 31.6% 28.5% 310 bps Record operating profit & margin and Q4 record sales. Sales Growth: Orders up 16% on a rolling 12-month basis. Organic 9% Acquisition -- Backlog up 29% year-ov

  9. Slide 9: Electrical Global Segment

    Electrical Global Segment (M) 4Q ‘24 4Q ‘23 V ‘23 Sales $1,569 $1,512 4% Operating Profit 277 284 (2)% Operating Margin 17.7% 18.8% (110)bps Orders up 4% on a rolling 12-month basis. Sales Growth: Backlog up 16% year-over-year. Organic 5.5% Forex (1.5)% Book-to-bill ratio of 1.1 on a rolling 12-mont

  10. Slide 10: Aerospace Segment

    Aerospace Segment (M) 4Q ‘24 4Q ‘23 V ‘23 Sales $971 $895 9% Operating Profit 222 200 11% Operating Margin 22.9% 22.4% 50 bps Record sales and Q4 record operating profit. Sales Growth: Backlog up 16% year-over-year. Organic 9% Forex -- Book-to-bill ratio of 1.1 on a rolling 12-month basis. Total 9%

  11. Slide 11: Vehicle Segment

    Vehicle Segment (M) 4Q ‘24 4Q ‘23 V ‘23 Sales $647 $723 (10)% Operating Profit 122 129 (5)% Operating Margin 18.8% 17.9% 90 bps Strong operational performance producing Sales Growth: higher margins on lower sales year-over-year. Organic (7)% Forex (3)% Total (10)% © 2025 Eaton. All rights reserved.

  12. Slide 12: eMobility Segment

    eMobility Segment (M) 4Q ‘24 4Q ‘23 V ‘23 Sales $147 $165 (11)% Operating Profit / (Loss) 3 (16) 119% Operating Margin 1.8% (9.4)% 1,120 bps Sales Growth: Organic (10)% Forex (1)% Total (11)% © 2025 Eaton. All rights reserved. 12

  13. Slide 13: Electrical and Aerospace backlogs remain robust and growing

    Electrical and Aerospace backlogs remain robust and growing Electrical Sector Historical Backlog Aerospace Segment Historical Backlog ($ blns) ($ blns) $14.00 $8.00 $12.00 $11.8 $7.00 $6.00 $10.00 $5.00 $8.00 $4.00 $3.7 $6.00 $3.00 $4.00 $2.8 $1.4 $2.00 $2.00 $1.00 $0.00 $0.00 Q4 '19 Q4 '20 Q4 '21 Q

  14. Slide 14: Our negotiations pipeline continues to show accelerating growth

    Electrical Americas negotiation pipeline ($B) Our negotiations pipeline $8.6 continues to show $6.2 accelerating growth $2.4 2019 2023 2024 © 2025 Eaton. All rights reserved. 14

  15. Slide 15: 2024 Financial Highlights

    2024 Financial Highlights Original Guidance 2024 Actual Adjusted EPS $9.95 – $10.35 $10.80 Organic Revenue 6.5 – 8.5% 8% Segment Operating Margins 22.4 – 22.8% 24.0% Free Cash Flow $3.2B – $3.6B $3.5B All-time record full year results in 2024 including segment margins and adjusted EPS © 2025 Eaton.

  16. Slide 16: 2024 Summary

    2024 Summary Eaton’s unique position continues to result in differentiated performance. Achieved record financial performance in 2024 supporting our expectations for structurally higher growth and higher margins. Continued strength in orders and record backlogs reaffirms Eaton remains well positione

  17. Slide 17: 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

  18. Slide 18: 2025 Organic Growth and Operating Margin Guidance

    2025 Organic Growth and Operating Margin Guidance Organic Growth Guidance Operating Margin Guidance Segment Electrical Americas 10.5 – 12.5% 30.1 – 30.5% Electrical Global 4.5 – 6.5% 19.2 – 19.6% Aerospace 7 – 9% 23.4 – 23.8% Vehicle (2) – (0)% 17.8 – 18.2% eMobility 8 – 12% 2 – 3% Eaton 7 – 9% 24.4

  19. Slide 19: 2025 Guidance

    2025 Guidance 1st Quarter Outlook 2025 FY Outlook Adjusted Earnings Per Share $2.65 – $2.75 $11.80 – $12.20 Organic Revenue 5.5 – 7.5% 7 – 9% Segment Operating Margins 23.7 – 24.1% 24.4 – 24.8% 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

  20. Slide 20: Investor Conference - March 11, 2025

    Investor Conference - March 11, 2025 Stay tuned for webcast registration: Eaton.com/investor Craig Arnold Paulo Ruiz Chairman and Chief Executive Officer President and Chief Operating Officer Raja Macha Olivier Leonetti Executive Vice President, Chief Executive Vice President, Chief Financial Techno

  21. Slide 21: © 2025 Eaton. All rights reserved.

    © 2025 Eaton. All rights reserved. 21

  22. Slide 22: Appendix

    Appendix © 2025 Eaton. All rights reserved. 22

  23. Slide 23: 2025 Guidance – Additional Modeling Assumptions

    2025 Guidance – Additional Modeling Assumptions 1st Quarter Outlook 2025 FY Outlook Currency Translation ~($100M) ~($200M) Corporate Expenses ~$5M more than 1Q24 $820M Tax Rate on Adjusted Earnings 17 – 18% 17.5 – 18.5% Capex N/A ~$900M © 2025 Eaton. All rights reserved. 23

  24. Slide 24: © 2025 Eaton. All rights reserved.

    © 2025 Eaton. All rights reserved. 24

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