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Mar 31

Eaton Q1 2025 Earnings Report

Eaton reported record results in Q1 2025, with strong organic growth and segment margins.

Key Takeaways

Eaton delivered a robust Q1 2025, achieving record sales, net income, and adjusted EPS. Organic sales grew by 9%, exceeding expectations, and segment margins reached a first-quarter high of 23.9%.

Adjusted EPS reached a record $2.72, up 13% from Q1 2024

Organic sales growth was 9%, above the high end of guidance

Segment margins improved to a record 23.9%, up 80 bps YoY

Strong Aerospace and Electrical segment performance, while Vehicle sales declined

Total Revenue
$6.38B
Previous year: $5.94B
+7.3%
EPS
$2.72
Previous year: $2.4
+13.3%
Segment margins
23.9%
Previous year: 23.1%
+3.5%
Book-to-bill ratio
1.1
Cash and Equivalents
$1.78B
Previous year: $473M
+275.7%
Free Cash Flow
$91M
Previous year: $292M
-68.8%
Total Assets
$39.2B
Previous year: $38.5B
+1.7%

Eaton

Eaton

Eaton Revenue by Segment

Forward Guidance

Eaton raised its full-year guidance, expecting continued strong organic growth and improved margins.

Positive Outlook

  • Full-year EPS forecast raised to $10.29–$10.69
  • Adjusted EPS expected to reach $11.80–$12.20
  • Organic growth forecast increased to 7.5–9.5%
  • Segment margins expected to improve to 24.0–24.4%
  • Strong order backlog and demand in Electrical and Aerospace segments

Challenges Ahead

  • Vehicle segment posted a 15% revenue decline
  • Currency headwinds impacted sales by 2%
  • eMobility segment reported an operating loss due to ramp-up costs
  • Macroeconomic volatility remains a concern
  • Multi-year restructuring charges expected to continue through 2026