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Mar 31, 2023

Eaton Q1 2023 Earnings Report

Eaton reported record earnings and segment margins, driven by strong organic sales growth and backlog.

Key Takeaways

Eaton Corporation reported a strong first quarter in 2023, with record earnings per share of $1.59 and adjusted earnings per share of $1.88, up 16% over the first quarter of 2022. Sales were $5.5 billion, up 13% from the first quarter of 2022, with 15% organic sales growth.

Record first quarter earnings per share of $1.59 and record first quarter adjusted earnings per share of $1.88, up 16% over 2022

Record first quarter segment margins of 19.7%, 90 basis points above the first quarter of 2022

15% organic sales growth, above the high end of guidance, and strong backlog growth of 39% in Electrical and 27% in Aerospace

Raised full year 2023 organic sales and adjusted earnings per share guidance

Total Revenue
$5.48B
Previous year: $4.84B
+13.2%
EPS
$1.88
Previous year: $1.62
+16.0%
Segment margins
19.7%
Previous year: 18.8%
+4.8%
Gross Profit
$1.88B
Previous year: $1.57B
+19.7%
Cash and Equivalents
$235M
Previous year: $237M
-0.8%
Free Cash Flow
$209M
Previous year: -$73M
-386.3%
Total Assets
$35.5B
Previous year: $35.2B
+0.9%

Eaton

Eaton

Eaton Revenue by Segment

Forward Guidance

For the full year 2023, the company is increasing its organic growth guidance from 7-9% to 9-11% and raising adjusted earnings per share to between $8.30 and $8.50, up $0.16 at the midpoint. For the second quarter of 2023, the company anticipates organic growth of 10-12% and adjusted earnings per share of between $2.04 and $2.14.

Positive Outlook

  • Increasing full year 2023 organic growth guidance from 7-9% to 9-11%
  • Raising adjusted earnings per share to between $8.30 and $8.50 for full year 2023
  • Anticipating organic growth of 10-12% for the second quarter of 2023
  • Expecting adjusted earnings per share of between $2.04 and $2.14 for the second quarter of 2023

Revenue & Expenses

Visualization of income flow from segment revenue to net income