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Jun 30, 2023
Eaton Q2 2023 Earnings Report
Reported record quarterly results with backlog growth and book-to-bill ratio.
Key Takeaways
Eaton reported record second-quarter earnings per share of $1.86 and record quarterly adjusted earnings per share of $2.21, up 18% over 2022. Sales for the quarter were $5.9 billion, up 13% from the second quarter of 2022, driven entirely by organic sales growth. The company raised its full year adjusted earnings per share guidance to between $8.65 and $8.85.
Record second quarter earnings per share of $1.86 and record quarterly adjusted earnings per share of $2.21, up 18% over 2022
13% organic sales growth, above the high end of guidance, record quarterly segment margins of 21.6%, 150 basis points above the second quarter of 2022 and a 33% incremental margin
Robust operating cash flow of $851 million, up 150%, and free cash flow of $691 million, up 244% versus prior year
Raised adjusted earnings per share guidance midpoint to $8.75 reflecting 16% growth over 2022
Eaton
Eaton
Eaton Revenue by Segment
Revenue by Segment
Electrical Americas Revenue
CapyFin.comElectrical Global Revenue
CapyFin.comAerospace Revenue
CapyFin.comVehicle Revenue
CapyFin.comeMobility Revenue
CapyFin.com Forward Guidance
For the third quarter of 2023, the company anticipates organic growth of 9-11% and adjusted earnings per share of between $2.27 and $2.37.
Positive Outlook
- Confident in achieving increased guidance for the year.
- Well positioned to capitalize on reindustrialization in North America and Europe.
- Benefiting from secular growth drivers of electrification.
- Benefiting from secular growth drivers of energy transition.
- Benefiting from secular growth drivers of digitalization.
Challenges Ahead
- Course of the COVID-19 pandemic globally and government actions related thereto.
- Geopolitical tensions.
- Unanticipated changes in the markets for the company’s business segments.
- Unanticipated downturns in business relationships with customers or their purchases from us.
- Competitive pressures on sales and pricing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income