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Eaton Q1 Earnings and Revenues Surpass Estimates, Organic Sales Rise
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Eaton Corporation (ETN - Free Report) reported first-quarter 2025 earnings of $2.72 per share, which surpassed the Zacks Consensus Estimate by 0.7%. The bottom line increased around 13.3% year over year and was near the upper end of the guidance of $2.65-$2.75. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
GAAP earnings for the reported quarter were $2.45 per share, up 20.1% from $2.04 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 21 cents for intangible assets amortization, 4 cents for the restructuring program and 2 cents of gains from acquisitions and divestitures.
Eaton’s Q1 Revenues
Total quarterly revenues were $6.4 billion, which surpassed the Zacks Consensus Estimate of $6.27 billion by 2.2%. The figure increased 7.3% year over year. The first-quarter year-over-year revenue growth was driven by an organic sales rise and partially offset by negative currency translation.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
Electrical Americas’ total first-quarter sales were $3.01 billion, up 11.9% year over year. The rise was due to increased organic sales, marginally offset by negative currency translation. Operating profit was $904 million, up 15% year over year.
Electrical Global’s total sales were $1.6 billion, up 7% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 9%. The metric was offset by negative currency translation of 2%. Operating profit was $300 million, up 9% year over year.
Aerospace’s total sales were $979 million, up 12% year over year, driven by organic sales growth of 13%. The metric was offset by negative currency translation of 1%. Operating profit was $226 million, up 12% year over year.
Vehicle’s total sales were $617 million, down 15% year over year, due to an 11% decline in organic sales and negative currency translation of 4%. Operating profit was $96 million, down 17.2% year over year.
eMobility segment’s total sales were $162 million, up 2% year over year, caused by an increase in organic sales of 3%. The metric was offset by negative currency translation of 1%. Operating loss was $4 million due to launch costs incurred related to new programs expected to ramp up over the upcoming quarters.
Highlights of ETN’s Q1 Release
Selling and administrative expenses were $1,048 million, up 2.24% year over year.
Research and development expenses were $198 million, up 10.1% from the year-ago quarter’s level.
Interest expenses were $33 million, up 10% year over year.
Eaton’s backlog, with orders, at the end of first-quarter 2025, increased 6% in Electrical Americas, 16% in Aerospace and 5% in Electric Global on a rolling 12-month basis.
Financial Update of ETN
As of March 31, 2025, the company’s cash was $1.77 billion, up from $0.55 billion as of Dec. 31, 2024.
As of March 31, 2025, ETN’s long-term debt was $7.60 billion, down 10.3% from $8.47 billion as of Dec. 31, 2024.
Guidance of Eaton
Eaton’s second-quarter 2025 earnings are expected in the range of $2.35-$2.45 per share. The Zacks Consensus Estimate is pegged at $2.70 per share, which is higher than the midpoint of the company’s guidance. The company expects organic growth in the range of 6-8%.
Eaton now expects adjusted earnings per share in the range of $11.80-$12.20 for 2025, indicating an increase of 11% at the midpoint from the prior-year levels. The company anticipates organic sales growth for 2025 in the range of 7.5-9.5%. Eaton expects its segment margin to be in the range of 24-24.4%.
Chart Industries (GTLS - Free Report) came out with quarterly earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.84.
The long-term (three to five years) earnings growth rate of GTLS is pinned at 19%. The Zacks Consensus Estimate for 2025 and 2026 earnings per share reflects year-over-year growth of 43.9% and 21.77%, respectively.
A. O. Smith Corporation’s (AOS - Free Report) first-quarter 2025 adjusted earnings of 95 cents per share beat the Zacks Consensus Estimate of 90 cents.
The long-term earnings growth rate is pinned at 12%. The Zacks Consensus Estimate for 2025 earnings per share has remained unchanged year over year.
AZZ Inc. (AZZ - Free Report) came out with quarterly earnings of 98 cents per share, beating the Zacks Consensus Estimate of 95 cents. The Zacks Consensus Estimate for 2025 earnings per share reflects a year-over-year increase of 9.81%.
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Eaton Q1 Earnings and Revenues Surpass Estimates, Organic Sales Rise
Eaton Corporation (ETN - Free Report) reported first-quarter 2025 earnings of $2.72 per share, which surpassed the Zacks Consensus Estimate by 0.7%. The bottom line increased around 13.3% year over year and was near the upper end of the guidance of $2.65-$2.75. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
GAAP earnings for the reported quarter were $2.45 per share, up 20.1% from $2.04 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 21 cents for intangible assets amortization, 4 cents for the restructuring program and 2 cents of gains from acquisitions and divestitures.
Eaton’s Q1 Revenues
Total quarterly revenues were $6.4 billion, which surpassed the Zacks Consensus Estimate of $6.27 billion by 2.2%. The figure increased 7.3% year over year. The first-quarter year-over-year revenue growth was driven by an organic sales rise and partially offset by negative currency translation.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote
ETN’s Segmental Details
Electrical Americas’ total first-quarter sales were $3.01 billion, up 11.9% year over year. The rise was due to increased organic sales, marginally offset by negative currency translation. Operating profit was $904 million, up 15% year over year.
Electrical Global’s total sales were $1.6 billion, up 7% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 9%. The metric was offset by negative currency translation of 2%. Operating profit was $300 million, up 9% year over year.
Aerospace’s total sales were $979 million, up 12% year over year, driven by organic sales growth of 13%. The metric was offset by negative currency translation of 1%. Operating profit was $226 million, up 12% year over year.
Vehicle’s total sales were $617 million, down 15% year over year, due to an 11% decline in organic sales and negative currency translation of 4%. Operating profit was $96 million, down 17.2% year over year.
eMobility segment’s total sales were $162 million, up 2% year over year, caused by an increase in organic sales of 3%. The metric was offset by negative currency translation of 1%. Operating loss was $4 million due to launch costs incurred related to new programs expected to ramp up over the upcoming quarters.
Highlights of ETN’s Q1 Release
Selling and administrative expenses were $1,048 million, up 2.24% year over year.
Research and development expenses were $198 million, up 10.1% from the year-ago quarter’s level.
Interest expenses were $33 million, up 10% year over year.
Eaton’s backlog, with orders, at the end of first-quarter 2025, increased 6% in Electrical Americas, 16% in Aerospace and 5% in Electric Global on a rolling 12-month basis.
Financial Update of ETN
As of March 31, 2025, the company’s cash was $1.77 billion, up from $0.55 billion as of Dec. 31, 2024.
As of March 31, 2025, ETN’s long-term debt was $7.60 billion, down 10.3% from $8.47 billion as of Dec. 31, 2024.
Guidance of Eaton
Eaton’s second-quarter 2025 earnings are expected in the range of $2.35-$2.45 per share. The Zacks Consensus Estimate is pegged at $2.70 per share, which is higher than the midpoint of the company’s guidance. The company expects organic growth in the range of 6-8%.
Eaton now expects adjusted earnings per share in the range of $11.80-$12.20 for 2025, indicating an increase of 11% at the midpoint from the prior-year levels. The company anticipates organic sales growth for 2025 in the range of 7.5-9.5%. Eaton expects its segment margin to be in the range of 24-24.4%.
ETN’s Zacks Rank
Currently, Eaton has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
Chart Industries (GTLS - Free Report) came out with quarterly earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.84.
The long-term (three to five years) earnings growth rate of GTLS is pinned at 19%. The Zacks Consensus Estimate for 2025 and 2026 earnings per share reflects year-over-year growth of 43.9% and 21.77%, respectively.
A. O. Smith Corporation’s (AOS - Free Report) first-quarter 2025 adjusted earnings of 95 cents per share beat the Zacks Consensus Estimate of 90 cents.
The long-term earnings growth rate is pinned at 12%. The Zacks Consensus Estimate for 2025 earnings per share has remained unchanged year over year.
AZZ Inc. (AZZ - Free Report) came out with quarterly earnings of 98 cents per share, beating the Zacks Consensus Estimate of 95 cents. The Zacks Consensus Estimate for 2025 earnings per share reflects a year-over-year increase of 9.81%.