Eaton Tops Estimates With $8.9 Billion Sales and $3.68 Adjusted EPS

Eaton (NYSE: ETN) reported third-quarter sales of $8.9 billion, above the $8.52 billion analysts expected, and adjusted earnings per share of $3.68 against the $3.55 consensus estimate, in an 8-K filed Tuesday. GAAP diluted EPS was $2.77. Sales rose 28% from $6.99 billion a year earlier. Organic growth was 19%, acquisitions added 8% and foreign exchange added 1%.

Segment margins were 25.3%, which the company said was above the high end of its guidance range.

Segment results

Electrical Americas sales were $4.2 billion, up 22% organically, with operating profit of $1.2 billion and a margin of 29.8%. Electrical Global sales were $2.7 billion, up 58%, including a 31% contribution from Boyd Thermal. Its operating profit was $576 million, with a margin of 21.1%.

Aerospace sales were $1.2 billion, up 11%, with operating profit of $298 million and a margin of 24.9%. Mobility sales were $852 million, with operating profit of $146 million.

Orders, backlog and deals

The twelve-month rolling average of organic orders rose 39% in Electrical Americas, 51% in Electrical Global and 20% in Aerospace. Total backlog was up 46% in Electrical and 33% in Aerospace from a year earlier.

Eaton also agreed to acquire COL Group, a medium-voltage electrical distribution maker, for 810 million euros, or $921 million. The company expects the deal to close in the first quarter of 2027. Separately, the planned Reverse Morris Trust combination of its Mobility business with Dana is expected to close in the first four months of 2027.

Guidance

Eaton said it raised its organic growth guidance to 13% to 15% for full-year 2026. For full-year 2026, it expects adjusted EPS of $13.70 to $13.80, compared with the $13.60 consensus estimate, and GAAP EPS of $10.39 to $10.49.

For the fourth quarter, Eaton expects adjusted EPS of $4.05 to $4.15, compared with the $4.09 average analyst estimate. Analysts expected fourth-quarter revenue of $8.49 billion. The company's guidance for the quarter covers organic growth and margins, not revenue.

Eaton shares closed at $366.07 on Monday, Nov. 2, giving the company a market value of about $142.18 billion.