Eaton Corporation plc Q4 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Headline Results

  • Q4 2025 revenue: $7.1B (organic growth 9%, versus ~12% excluding weak Vehicle and E‑Mobility).
  • Adjusted EPS: $3.33, up 18% year over year.
  • Segment margin: 24.9%, a Q4 record and up 20 bps year over year.
  • Backlog: Record $19.6B total, up 29% in Electrical and 16% in Aerospace compared to Q4 2024.
  • Book‑to‑bill above 1.2 for Q4, showing sustained demand strength.

Operational and Strategic Highlights

  • Electrical Americas orders up 16% on a rolling twelve‑month basis (versus 7% in Q3), with backlog reaching an all‑time high of $13.2B (up 31% year over year).
  • Aerospace orders up 11% on a twelve‑month basis; backlog up 16% year over year.
  • Data center business remains the largest and fastest‑growing demand driver:
    • Orders up ~200% year over year in 2025.
    • Sales up 40% vs Q4 2024.
    • U.S. large data center construction backlog equals ~11 years of 2025 build rates.
  • Eaton reaffirmed $13B in 2025 strategic investments, including acquisitions of FiberBond, Resilient Power Systems, UltraPCS, and the pending Boyd Terminal acquisition.
  • Company announced intent to spin off the Mobility business (Vehicle + E‑Mobility), creating a ~$3B revenue standalone entity.

Segment Performance

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Operator: Good day, and welcome to the Eaton Corporation plc Fourth Quarter 2025 Earnings Results. At this time, after the speakers' presentation, there will be a question and answer session. To remove yourself from the queue, please press star one one again. As a reminder, this call may be recorded. I would now like to turn the call over to Yan Jin, Senior Vice President of Investor Relations. Please go ahead. Yan Jin: Thank you all for joining us for Eaton Corporation plc's fourth quarter 2025 earnings call. With me today are Paulo Ruiz Sternadt, Chief Executive Officer, and Olivier Leonetti, Executive Vice President and Chief Financial Officer. Our agenda today includes opening remarks by Paulo, then he will turn it over to Olivier, who will highlight the company's performance in the fourth quarter. As we have done in 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 have been posted on our website. This presentation includes adjusted earnings per share and other non-GAAP measures, reconciled in the appendix. A webcast of this call is accessible on our website and it will be available for replay. I would like to remind you that our comments today will include statements related to the expected future results of the company and are therefore forward-looking statements. Our actual results may differ materially from our forecasted projections due to a wide range of risks and uncert

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