TLDR
- Q1 adjusted EPS rose 13% to a record $2.72
- Quarterly revenue reached a record $6.4 billion
- Organic growth hit 9%, led by electrical and aerospace units
- Vehicle segment sales dropped 15% amid weak auto markets
- 2025 organic growth outlook raised to 7.5%-9.5% range
Eaton Corp. plc (NYSE: ETN) stock closed at $299.71 on May 2, slipping 0.65% despite delivering record quarterly results.
Eaton posted adjusted earnings per share of $2.72, up 13% from last year, and revenue of $6.4 billion, setting a new company high. The electrical giant lifted its 2025 organic growth forecast by 50 basis points, signaling confidence in its core markets. Eaton will next report earnings between July 30 and August 4, 2025.
Electrical and Aerospace Segments Power Growth
Eaton’s growth story in Q1 was driven by strength in its Electrical Americas and aerospace divisions. Electrical Americas saw 13% organic sales growth, fueled by demand from data centers and utilities, while margins improved to 30%, up 80 basis points year-over-year. Electrical Global also posted 9% organic growth, benefiting from the machine OEM and utility sectors.
Aerospace was another bright spot, with 13% organic growth leading to all-time record sales and an operating margin of 23.1%. Eaton’s book-to-bill ratio remained strong at 1.1, and total company orders climbed 3% versus last quarter, supporting its raised growth forecast.
Eaton Corporation, $ETN, Q1-25. Results:
🔴 -1.9% Pre-Market ($295.86)📊 Adj. EPS: $2.72 🟢
💰 Revenue: $6.4B 🟢
📈 Net Income: $964M
🔎 Record Q1 performance driven by 9% organic sales growth and highest-ever segment margins at 23.9%. pic.twitter.com/LxOh8yZBRI— EarningsTime (@Earnings_Time) May 2, 2025
Vehicle Segment Drags Performance
While Eaton’s core businesses flourished, its Vehicle segment weighed on overall performance. Segment revenue fell 15%, including an 11% organic drop, reflecting weakness in commercial and internal combustion engine light vehicle markets. Eaton now expects a slight decline in ICE vehicle growth this year, revising its earlier projection for modest growth.
The vehicle unit’s operating margin stood at 15.5%, but the broader industry shift toward electrification and softening demand in legacy vehicle markets continues to pressure this segment. Eaton’s e-mobility business reported just 2% revenue growth, highlighting the gradual pace of EV-related gains.
Raised Outlook Despite Margin Pressures
Eaton reaffirmed its full-year adjusted EPS guidance of $11.80 to $12.20 and raised its 2025 organic growth outlook to a range of 7.5% to 9.5%. However, the company slightly trimmed its segment margin guidance by 40 basis points, citing the need for commercial adjustments to mitigate tariff impacts.
The Electrical Americas segment did see a 4% drop in orders on a rolling 12-month basis, mostly due to tough year-over-year comparisons with a large multiyear contract from Q1 2024. Despite these headwinds, Eaton’s record margins of 23.9% in Q1 aligned with its targets and underscore its strong operational execution.
With a solid backlog and rising demand in electrification and aerospace, Eaton appears well-positioned, though near-term challenges in vehicles and global trade dynamics bear watching.
