Eaton Reports Record Second Quarter 2026 Results, with Strong Organic Growth, Accelerating Orders and Backlog, and Raises Organic Growth Guidance
Intelligent power management company Eaton Corporation plc (NYSE:ETN) today announced that second quarter 2026 earnings per share were $2.11. Excluding charges of $0.50 per share related to intangible...
- Second quarter sales were up 21%, with organic sales growth of 14%, above the high end of guidance
- Twelve-month rolling average orders up 41% in Electrical Americas, with Electrical Global up 33% and Aerospace up 17%, driven by broad end-market strength
- Strong year-over-year total backlog growth of 43% in Electrical sector and 28% in Aerospace segment
- Second quarter segment margins of 23.1%, above the high end of guidance, with Electrical Americas margins improving 190 basis points sequentially
- Announced agreement to separate Mobility business through a Reverse Morris Trust transaction, expected to close in the first quarter of 2027 and be accretive to organic growth and margins upon closing
- Guidance for full year 2026 earnings per share expected to be between $10.36 and $10.56, up 0.1% at the midpoint over 2025, and raised adjusted earnings per share expected to be between $13.40 and $13.60, up 12% at the midpoint over 2025
DUBLIN: Intelligent power management company Eaton Corporation plc (NYSE:ETN) today announced that second quarter 2026 earnings per share were $2.11. Excluding charges of $0.50 per share related to intangible amortization, $0.49 per share related to acquisitions and divestitures, and $0.05 per share related to a multi-year restructuring program, adjusted earnings per share were $3.15, a second quarter record.
Sales in the quarter were $8.5 billion, a record and up 21% from the second quarter of 2025. The sales increase consisted of 14% growth in organic sales and 7% growth from acquisitions.
Segment margins were 23.1%, 10 basis points above the high end of the guidance range and down 80 basis points from the second quarter of 2025.
Operating cash flow was $1.1 billion, and free cash flow was $874 million, up 23% and 22%, respectively, over the same period in 2025.
Paulo Ruiz, Eaton chief executive officer, said, “Eaton accelerated its momentum in the second quarter and delivered record sales and solid earnings from strong organic growth. Our focus on disciplined execution led to sequential margin expansion, especially in Electrical Americas. While data centers remain a key growth driver, we are benefiting from robust demand across our end markets. Reflecting this strong performance and sustained demand, we are raising our full-year organic growth guidance and remain well-positioned to deliver on our commitments.”
In the quarter, the company also announced an agreement to separate its Mobility business through a Reverse Morris Trust transaction. This action represents the next step in Eaton’s ongoing portfolio transformation-further focusing the company on higher‑growth, higher‑margin Electrical and Aerospace businesses while positioning the company to drive long‑term value creation.
Guidance
For the full year 2026, the company anticipates:
- Organic growth of 11-13%
- Segment margins of 24.1-24.5%
- Earnings per share between $10.36 and $10.56
- Adjusted earnings per share between $13.40 and $13.60
For the third quarter of 2026, the company anticipates:
- Organic growth of 13.5-15.5%
- Segment margins of 24.6-25.0%
- Earnings per share between $2.77 and $2.87
- Adjusted earnings per share between $3.46 and $3.56
Business Segment Results
Sales for the Electrical Americas segment were a record $4.0 billion, up 18% organically from the second quarter of 2025. Operating profits were a record $1.1 billion, up 10% over the second quarter of 2025, and operating margins in the quarter were 27.5%, up 190 basis points sequentially.
The twelve-month rolling average of orders in the second quarter was up 41% organically. Total backlog at the end of June remained strong and was up 33% over June 2025.
Sales for the Electrical Global segment were a record $2.5 billion, up 44% from the second quarter of 2025. The sales increase consisted of 18% growth in organic sales, 25% contribution from Boyd Thermal in its first full quarter post-acquisition, and 1% growth from foreign exchange. Operating profits were a record $499 million, up 41% over the second quarter of 2025. Operating margins in the quarter were 19.8%, up 60 basis points sequentially.
The twelve-month rolling average of orders in the second quarter was up 33% organically. Total backlog at the end of June was up 103% over June 2025.
On a rolling twelve-month basis, the book-to-bill ratio for the Electrical businesses remained strong at 1.2.
Aerospace segment sales were a record $1.2 billion, up 13% from the second quarter of 2025. The sales increase consisted of 7% growth in organic sales and 6% growth from an acquisition. Operating profits were a second quarter record $278 million, up 16% over the second quarter of 2025. Operating margins of 22.8% were up 60 basis points over the second quarter of 2025.
The twelve-month rolling average of orders in the second quarter was up 17% organically. Total backlog at the end of June was up 28% over June 2025. On a rolling twelve-month basis, the book-to-bill ratio for the Aerospace segment increased to 1.2.
The Mobility segment posted sales of $841 million. Organic sales declined 2%, which was offset by 2% from positive currency translation. Operating profits were $109 million, up 7% from the second quarter of 2025. Operating margins in the quarter of 13.0% were up 90 basis points from the second quarter of 2025.
Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial and institutional, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we’re helping to solve the world’s most urgent power management challenges and building a more sustainable society for people today and generations to come.
Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of $27.4 billion in 2025, the company serves customers in 180 countries. For more information, visit www.eaton.com. Follow us on LinkedIn.
Notice of conference call: Eaton’s conference call to discuss its second quarter results is available to all interested parties today as a live audio webcast at 11 a.m. United States Eastern time at Eaton.com/investor under “Presentations.” This news release can also be accessed on that page. Also available on the website before the call will be a presentation on second quarter results, which will be covered during the call.
Forward-Looking Statements
This news release contains forward-looking statements concerning third quarter and full year 2026 earnings per share, adjusted earnings per share, organic growth and segment margins; impact of acquisitions and portfolio changes on near- and long-term financial results; anticipated multi-year restructuring program charges and savings; and the anticipated separation of the Mobility business. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside the company’s control. The following factors could cause actual results to differ materially from those in the forward-looking statements: the impact of acquisitions, joint ventures, and investments and the integration of acquired entities; disruptions by natural disasters, labor strikes, wars, geopolitical instability and/or conflict, political unrest, terrorist activity, economic upheaval, or public health concerns that impact our production facilities; significant inflation or shortages of raw materials, energy, components, and/or labor, or similar challenges for our customers; reliance on suppliers to provide raw materials, components and services; the development and use of artificial intelligence in our business operations, including potential impacts on compliance with law and our reputation; service interruptions, data corruption, loss or impairment, network security and related operational impacts due to cybersecurity attacks; weather disruptions and regulatory, market and social reactions to such disruptions; our ability to identify, attract, develop, engage and retain qualified employees; our ability to complete the anticipated separation of our Mobility business through a Reverse Morris Trust transaction or within the anticipated timeframe or at all; stock price and end market impacts due to technology disruptions; volatility of end markets; continued successful research, development and marketing of new or improved products; geopolitical, economic or other risks arising from worldwide or regional economic conditions; the global nature of Eaton’s business and exposure to economic and political instability, including war or armed conflict, changes in governmental laws, regulations and policies; changes in countries’ trade policies, including the imposition of sanctions or tariffs; changes in our tax rates or tax laws and regulations applicable to our business; rules, regulations, audits and investigations and related compliance risks associated with being a governmental contractor; our ability to protect our intellectual property; litigation and environmental regulations impacting our business; and the other risk factors discussed in Part I, Item 1A of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other reports filed by the company with the SEC. The company disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.
Financial Results
The company’s comparative financial results for the three months ended June 30, 2026, are available on the company’s website, http://www.eaton.com.
EATON CORPORATION plc |
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CONSOLIDATED STATEMENTS OF INCOME |
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| Three months ended |
| Six months ended | ||||||||||||
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(In millions except for per share data) |
| 2026 |
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| 2025 |
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| 2026 |
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| 2025 |
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Net sales | $ | 8,531 |
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| $ | 7,028 |
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| $ | 15,982 |
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| $ | 13,404 |
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Cost of products sold |
| 5,676 |
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| 4,431 |
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| 10,476 |
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| 8,361 |
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Selling and administrative expense |
| 1,236 |
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|
| 1,149 |
|
|
| 2,506 |
|
|
| 2,197 |
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Research and development expense |
| 227 |
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|
| 192 |
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|
| 437 |
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|
| 390 |
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Interest expense - net |
| 201 |
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|
| 71 |
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| 307 |
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| 103 |
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Other expense (income) - net |
| 47 |
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| (1 | ) |
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| 6 |
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| (10 | ) |
Income before income taxes |
| 1,144 |
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| 1,186 |
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| 2,251 |
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| 2,363 |
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Income tax expense |
| 321 |
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| 203 |
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| 561 |
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| 415 |
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Net income |
| 823 |
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| 982 |
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| 1,690 |
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| 1,947 |
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Less net income for noncontrolling interests |
| (1 | ) |
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| (1 | ) |
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| (3 | ) |
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| (2 | ) |
Net income attributable to Eaton ordinary shareholders | $ | 821 |
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| $ | 982 |
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| $ | 1,687 |
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| $ | 1,945 |
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Net income per share attributable to Eaton ordinary shareholders |
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Diluted | $ | 2.11 |
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| $ | 2.51 |
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| $ | 4.33 |
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| $ | 4.96 |
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Basic |
| 2.11 |
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| 2.52 |
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| 4.34 |
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| 4.97 |
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Weighted-average number of ordinary shares outstanding |
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Diluted |
| 389.5 |
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| 391.4 |
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| 389.4 |
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| 392.5 |
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Basic |
| 388.5 |
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| 390.3 |
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| 388.4 |
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| 391.2 |
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Reconciliation of net income attributable to Eaton ordinary shareholders to adjusted earnings |
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Net income attributable to Eaton ordinary shareholders | $ | 821 |
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| $ | 982 |
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| $ | 1,687 |
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| $ | 1,945 |
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Excluding acquisition and divestiture charges, after-tax |
| 190 |
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| 54 |
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| 278 |
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| 61 |
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Excluding restructuring program charges, after-tax |
| 19 |
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| 18 |
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| 49 |
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| 33 |
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Excluding intangible asset amortization expense, after-tax |
| 198 |
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| 101 |
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| 308 |
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| 185 |
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Adjusted earnings | $ | 1,228 |
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| $ | 1,155 |
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| $ | 2,322 |
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| $ | 2,225 |
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