Summary
Eaton Corp plc (ETN) reported a net income of $866 million for the three months ended March 31, 2026, a decrease from $964 million in the prior year period. Diluted earnings per share also declined to $2.22 from $2.45. This decrease in profitability was primarily driven by higher interest expenses and intangible asset amortization, alongside increased acquisition and restructuring charges. Despite the lower net income, the company demonstrated robust top-line growth, with net sales increasing by 17% to $7.45 billion, largely fueled by significant acquisitions including Boyd Thermal and Ultra PCS Limited, as well as organic growth across its Electrical Americas, Electrical Global, and Aerospace segments. The company also announced its intention to spin off its Mobility business, expected to be completed by the end of Q1 2027, which is intended to be tax-free to shareholders.
Financial Highlights
52 data points| Revenue | $7.45B |
| Cost of Revenue | $4.80B |
| Gross Profit | $2.65B |
| R&D Expenses | $211.00M |
| SG&A Expenses | $1.27B |
| Net Income | $868.00M |
| EPS (Basic) | $2.23 |
| EPS (Diluted) | $2.22 |
| Shares Outstanding (Basic) | 388.20M |
| Shares Outstanding (Diluted) | 389.20M |
Key Highlights
- 1Net sales grew 17% year-over-year to $7.45 billion, driven by a combination of organic growth (10%) and significant acquisitions (4%).
- 2Net income attributable to Eaton ordinary shareholders decreased by 10% to $866 million, with diluted EPS falling to $2.22 from $2.45.
- 3Significant acquisitions were completed, including Boyd Thermal for $9.55 billion and Ultra PCS Limited for $1.53 billion, substantially increasing the company's asset base and goodwill.
- 4The company plans to spin off its Mobility business, aiming for completion by the end of the first quarter of 2027, which is expected to be tax-free to shareholders.
- 5Gross profit margin declined from 38.4% to 35.6%, attributed to a 400 basis point increase in commodity and wage inflation.
- 6Total corporate expenses increased by 69% to $583 million, primarily due to higher acquisition and divestiture costs, interest expense, and intangible asset amortization.
- 7The company substantially increased its debt financing in Q1 2026, issuing $8.5 billion in U.S. notes and €1.2 billion in Euro notes to fund its acquisitions.