Eaton Corporation plc Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Eaton delivered record Q1 2026 performance with revenue of $7.5 billion (up 17% YoY) and record segment profit of $1.7 billion.
  • Adjusted EPS was $2.81, beating guidance midpoint by $0.06 and setting a Q1 record.
  • Rolling 12-month orders increased significantly across all segments: Electrical Americas +42%, Electrical Global +13%, Aerospace +13%.
  • Total company backlog reached record highs, supported by a rolling 12‑month book‑to‑bill of 1.2.
  • Data center demand remains the largest driver of growth, with data center orders up 240% YoY.

Key Quarterly Financial Highlights

  • Total Revenue: $7.5 billion (record; +17% vs Q1 2025)
  • Organic Growth: 10% overall; would have been ~12% excluding planned mobility business exit
  • Adjusted EPS: $2.81 (Q1 record; up from $2.44 in Q1 2025)
  • Free Cash Flow: Up 245% YoY

Segment Performance

Electrical Americas

  • Organic sales: +14%
  • Demand: extremely strong; negotiation pipeline up 81% YoY
  • Data center sales: +50%
  • Operating margin: 25.6% (temporarily pressured by input cost inflation and ramp‑up expenses)
  • Backlog: +44% YoY; orders up 60% YoY

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Operator: Thank you for standing by, and welcome to Eaton's First Quarter 2026 Earnings Results Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Yan Jin, Senior Vice President, Investor Relations. Please go ahead, sir. Yan Jin: Hey, good morning. Thank you all for joining us for Eaton's First Quarter 2026 Earnings Call. With me today are Paulo Ruiz, Chief Executive Officer; and Dave Foster, Executive Vice President and Chief Financial Officer. Our agenda today, including the opening remarks by Paulo, then I will turn it over to Dave who will highlight the company's performance in the first quarter. As we have done on our past calls, we'll be taking questions at the end of Paulo's closing commentary. The press release and the presentation we'll go through today, including reconciliations to non-GAAP measures have been posted on our website, and a replay of this webcast will be accessible on our website after the call. Before we begin, I would like to note that our comments today will include forward-looking statements with respect to sales, earnings and other matters. Our actual results may differ materially from our forecasted projections due to a wide range of risks and uncertainties that are described in our recent SEC filings. With that, I will turn it over to Paulo. Paulo Sternadt: Thanks, Yan, and thanks, everyone, for joining us. Starting on Page 3, I'm happy to report

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