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Jun 30, 2024

Eaton Q2 2024 Earnings Report

Eaton reported record second quarter earnings in 2024, driven by strong orders and backlog growth.

Key Takeaways

Eaton reported a record second quarter in 2024, with earnings per share of $2.48, up 33% over 2023, and adjusted earnings per share of $2.73, up 24% over 2023. Sales were $6.4 billion, up 8% from the second quarter of 2023. The company raised its full year 2024 guidance for organic sales, segment margin, earnings per share, adjusted earnings per share and cash flow.

Record second quarter earnings per share of $2.48, up 33% over 2023, and record quarterly adjusted earnings per share of $2.73, up 24% over 2023

Record segment margins of 23.7%, 210 basis points above the second quarter of 2023

9% organic sales growth, above the high end of guidance, and strong backlog growth of 27% in Electrical and 14% in Aerospace

Raised full year 2024 organic sales, segment margin, earnings per share, adjusted earnings per share and cash flow guidance

Total Revenue
$6.35B
Previous year: $5.87B
+8.3%
EPS
$2.73
Previous year: $2.21
+23.5%
Segment margins
23.7%
Previous year: 21.6%
+9.7%
Gross Profit
$2.41B
Previous year: $2.12B
+13.7%
Cash and Equivalents
$540M
Previous year: $353M
+53.0%
Free Cash Flow
$759M
Previous year: $691M
+9.8%
Total Assets
$39.4B
Previous year: $36.8B
+7.1%

Eaton

Eaton

Eaton Revenue by Segment

Forward Guidance

The company is raising the following guidance for the full year 2024:

Positive Outlook

  • Organic growth from 7-9% to 8-9%
  • Segment margins from 22.8-23.2% to 23.3-23.7%
  • Earnings per share to between $9.38 and $9.48, up 18% at the midpoint over the prior year
  • Adjusted earnings per share to between $10.65 and $10.75, up 17% at the midpoint over the prior year
  • Operating cash flow raised $100 million and narrowed to between $4.2 billion to $4.4 billion, and free cash flow raised $100 million and narrowed to between $3.4 billion to $3.6 billion

Revenue & Expenses

Visualization of income flow from segment revenue to net income