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Eaton's Q4 Earnings on Par With Estimates, Revenues Up Y/Y
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Key Takeaways
ETN delivered Q4 EPS of $3.33, matching estimates, while revenues rose 13.1% year over year to $7.05B.
Electrical Americas, Electrical Global and Aerospace posted double-digit sales growth.
Revenues up year over year, primarily due to strong growth in organic sales.
Eaton Corporation (ETN - Free Report) reported fourth-quarter 2025 earnings of $3.33 per share, in line with the Zacks Consensus Estimate for the quarter.
The bottom line increased 17.7% year over year and surpassed the company’s guidance of $2.75-$2.95.
GAAP earnings for the reported quarter were $2.91 per share, up 19% from $2.45 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 25 cents for intangible assets amortization, 7 cents for the multi-year restructuring program and 10 cents related to acquisitions and divestitures.
Adjusted earnings per share for 2025 were $12.07, up 12% year over year.
Eaton’s Q4 Revenues
Total quarterly revenues were $7.05 billion, which improved 13.1% from the year-ago period. The year-over-year growth in sales was due to 9% increase in organic sales, 2% increase from contributions from acquired assets and 2% growth from foreign exchange. Quarterly revenues were a tad lower than the Zacks Consensus Estimate of $7.1 billion.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
Electrical Americas’ total fourth-quarter sales were $3.5 billion, up 21% year over year. The rise was due to 15% increase in organic sales, 5% growth from acquired assets and 1% growth from foreign exchange. Operating profit was $1.04 billion, up 14% year over year.
Electrical Global’s total sales were $1.73 billion, up 10% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 6% and positive currency translation added 4%. Operating profit was $340 million, up 23% year over year.
Aerospace’s total sales were $1.11 billion, up 14% year over year. The metric was driven by positive currency translation of 2% and organic sales of 12%. Operating profit was $268 million, up 21% year over year.
Vehicle’s total sales were $586 million, down 9% year over year, due to a 13% decline in organic sales, offset by 4% increase from positive currency translation. Operating profit was $96 million, down 21% year over year.
eMobility segment’s total sales were $125 million, down 15% year over year, caused by a 17% decline in organic sales, partially offset by positive currency translation of 2%. Operating income was $10 million compared with $3 million in the year-ago quarter.
Highlights of ETN’s Q4 Release
Selling and administrative expenses were $1.01 billion, up 0.6% year over year.
Research and development expenses were $203 million, up 1% from the year-ago quarter’s level.
Interest expenses were $70 million, up 66.7% year over year.
Eaton’s backlog, at the end of fourth-quarter 2025, increased 31% in Electrical Americas, 16% in Aerospace and 19% in Electric Global on a rolling 12-month basis.
Financial Update of ETN
As of Dec. 31, 2025, the company’s cash was $0.62 billion, up from $0.55 billion as of Dec. 31, 2024.
ETN’s long-term debt was $8.75 billion as of Dec. 31, 2025, up from $8.47 billion as of Dec. 31, 2024.
Development After Q4
On Jan. 23, 2026, Eaton completed the acquisition of Ultra PCS Limited for $1.55 billion. Ultra PCS operates in both the United Kingdom and the United States and provides electronic controls, sensing, stores ejection, and data processing solutions for global aerospace customers. The business will be integrated into Eaton’s Aerospace segment.
On Jan. 26, 2026, Eaton announced its intention to spin-off the Mobility business, which consists of the Vehicle and eMobility operating segments, into an independent, publicly traded company. Eaton expects to complete the anticipated spin-off by the end of the first quarter of 2027, subject to customary legal and regulatory requirements and approvals.
Guidance of Eaton
Eaton’s first-quarter 2026 earnings are expected in the range of $2.65-$2.85 per share. The company expects organic growth in the range of 5-7%.
Eaton expects adjusted earnings per share in the range of $13-$13.50 for 2026. The company anticipates organic sales growth for 2026 in the range of 7-9%. Eaton expects its segment margin to be in the range of 24.6-25%.
A. O. Smith Corporation’s (AOS - Free Report) fourth-quarter 2025 adjusted earnings of 90 cents per share beat the Zacks Consensus Estimate of 84 cents. The bottom line increased 6% on a year-over-year basis.
The long-term (three to five years) earnings growth rate is pinned at 12%. The Zacks Consensus Estimate of $4.10 for 2026 earnings per share has increased 6.49% year over year.
ABB Ltd. (ABBNY - Free Report) reported quarterly earnings of 70 cents per share, beating the Zacks Consensus Estimate of 63 cents by 11.1%.
The long-term earnings growth rate is pinned at 12.41%. The Zacks Consensus Estimate for 2026 earnings per share has increased 22.89% year over year.
AZZ (AZZ - Free Report) reported quarterly earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.43 by 6.29%.
The Zacks Consensus Estimate for fiscal 2026 earnings per share has increased 16.35% year over year.
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Eaton's Q4 Earnings on Par With Estimates, Revenues Up Y/Y
Key Takeaways
Eaton Corporation (ETN - Free Report) reported fourth-quarter 2025 earnings of $3.33 per share, in line with the Zacks Consensus Estimate for the quarter.
The bottom line increased 17.7% year over year and surpassed the company’s guidance of $2.75-$2.95.
GAAP earnings for the reported quarter were $2.91 per share, up 19% from $2.45 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 25 cents for intangible assets amortization, 7 cents for the multi-year restructuring program and 10 cents related to acquisitions and divestitures.
Adjusted earnings per share for 2025 were $12.07, up 12% year over year.
Eaton’s Q4 Revenues
Total quarterly revenues were $7.05 billion, which improved 13.1% from the year-ago period. The year-over-year growth in sales was due to 9% increase in organic sales, 2% increase from contributions from acquired assets and 2% growth from foreign exchange. Quarterly revenues were a tad lower than the Zacks Consensus Estimate of $7.1 billion.
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 fourth-quarter sales were $3.5 billion, up 21% year over year. The rise was due to 15% increase in organic sales, 5% growth from acquired assets and 1% growth from foreign exchange. Operating profit was $1.04 billion, up 14% year over year.
Electrical Global’s total sales were $1.73 billion, up 10% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 6% and positive currency translation added 4%. Operating profit was $340 million, up 23% year over year.
Aerospace’s total sales were $1.11 billion, up 14% year over year. The metric was driven by positive currency translation of 2% and organic sales of 12%. Operating profit was $268 million, up 21% year over year.
Vehicle’s total sales were $586 million, down 9% year over year, due to a 13% decline in organic sales, offset by 4% increase from positive currency translation. Operating profit was $96 million, down 21% year over year.
eMobility segment’s total sales were $125 million, down 15% year over year, caused by a 17% decline in organic sales, partially offset by positive currency translation of 2%. Operating income was $10 million compared with $3 million in the year-ago quarter.
Highlights of ETN’s Q4 Release
Selling and administrative expenses were $1.01 billion, up 0.6% year over year.
Research and development expenses were $203 million, up 1% from the year-ago quarter’s level.
Interest expenses were $70 million, up 66.7% year over year.
Eaton’s backlog, at the end of fourth-quarter 2025, increased 31% in Electrical Americas, 16% in Aerospace and 19% in Electric Global on a rolling 12-month basis.
Financial Update of ETN
As of Dec. 31, 2025, the company’s cash was $0.62 billion, up from $0.55 billion as of Dec. 31, 2024.
ETN’s long-term debt was $8.75 billion as of Dec. 31, 2025, up from $8.47 billion as of Dec. 31, 2024.
Development After Q4
On Jan. 23, 2026, Eaton completed the acquisition of Ultra PCS Limited for $1.55 billion. Ultra PCS operates in both the United Kingdom and the United States and provides electronic controls, sensing, stores ejection, and data processing solutions for global aerospace customers. The business will be integrated into Eaton’s Aerospace segment.
On Jan. 26, 2026, Eaton announced its intention to spin-off the Mobility business, which consists of the Vehicle and eMobility operating segments, into an independent, publicly traded company. Eaton expects to complete the anticipated spin-off by the end of the first quarter of 2027, subject to customary legal and regulatory requirements and approvals.
Guidance of Eaton
Eaton’s first-quarter 2026 earnings are expected in the range of $2.65-$2.85 per share. The company expects organic growth in the range of 5-7%.
Eaton expects adjusted earnings per share in the range of $13-$13.50 for 2026. The company anticipates organic sales growth for 2026 in the range of 7-9%. Eaton expects its segment margin to be in the range of 24.6-25%.
ETN’s Zacks Rank
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
A. O. Smith Corporation’s (AOS - Free Report) fourth-quarter 2025 adjusted earnings of 90 cents per share beat the Zacks Consensus Estimate of 84 cents. The bottom line increased 6% on a year-over-year basis.
The long-term (three to five years) earnings growth rate is pinned at 12%. The Zacks Consensus Estimate of $4.10 for 2026 earnings per share has increased 6.49% year over year.
ABB Ltd. (ABBNY - Free Report) reported quarterly earnings of 70 cents per share, beating the Zacks Consensus Estimate of 63 cents by 11.1%.
The long-term earnings growth rate is pinned at 12.41%. The Zacks Consensus Estimate for 2026 earnings per share has increased 22.89% year over year.
AZZ (AZZ - Free Report) reported quarterly earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.43 by 6.29%.
The Zacks Consensus Estimate for fiscal 2026 earnings per share has increased 16.35% year over year.