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Sep 30, 2024

Eaton Q3 2024 Earnings Report

Eaton reports record third quarter results driven by organic sales growth and strong segment performance.

Key Takeaways

Eaton reported a record third quarter with earnings per share of $2.53, up 14% over 2023, and adjusted earnings per share of $2.84, up 15% over 2023. Sales reached $6.3 billion, an 8% increase driven by organic sales growth. The company raised its full-year 2024 segment margin, earnings per share, and adjusted earnings per share guidance.

Third quarter earnings per share of $2.53, up 14% over 2023, and record quarterly adjusted earnings per share of $2.84, up 15% over 2023.

Record segment margins of 24.3%, 70 basis points above the third quarter of 2023.

8% organic sales growth, including approximately 50 basis points of headwinds from Hurricane Helene and labor strikes in the aerospace industry.

Strong backlog growth of 25% in Electrical and 14% in Aerospace.

Total Revenue
$6.35B
Previous year: $5.88B
+7.9%
EPS
$2.84
Previous year: $2.47
+15.0%
Segment margins
24.3%
Previous year: 23.6%
+3.0%
Gross Profit
$2.45B
Previous year: $2.2B
+11.4%
Cash and Equivalents
$1.99B
Previous year: $1.91B
+4.6%
Free Cash Flow
$1.13B
Previous year: $913M
+23.3%
Total Assets
$39.2B
Previous year: $37.3B
+5.2%

Eaton

Eaton

Eaton Revenue by Segment

Forward Guidance

For the full year 2024, the company is raising the following guidance:

Positive Outlook

  • Segment margins from 23.3-23.7% to 23.5-23.9%
  • Earnings per share to between $9.47 and $9.53, up 18% at the midpoint over the prior year
  • Adjusted earnings per share to between $10.75 and $10.81, up 18% at the midpoint over the prior year

Challenges Ahead

  • Organic growth of 6-7%
  • Segment margins of 23.6-24.0%
  • Earnings per share between $2.42 and $2.48
  • Adjusted earnings per share between $2.78 and $2.84

Revenue & Expenses

Visualization of income flow from segment revenue to net income