Eaton Q2 Earnings & Sales Beat Estimates, Organic Sales Rise Y/Y

Eaton Corporation ETN reported second-quarter 2025 earnings of $2.95 per share, which beat the Zacks Consensus Estimate by 1.03%.
 
The bottom line increased 8.05% year over year and surpassed the company’s guidance of $2.35-$2.45. The year-over-year rise was due to an improvement in organic sales volumes and sustained demand in the acceleration of orders.
 
GAAP earnings for the reported quarter were $2.51 per share, up 1.2% from $2.48 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 25 cents for intangible assets amortization, 5 cents for the multi-year restructuring program and 14 cents related to acquisitions and divestitures.

Eaton’s Q2 Revenues

Total quarterly revenues were $7.02 billion, which beat the Zacks Consensus Estimate of $6.92 billion by 1.4%.
 
The revenues increased 10.7% year over year. The year-over-year revenue increase was driven by an 8% rise in organic sales, a 2% contribution from acquisitions and a 1% boost from favorable currency translation.

Eaton Corporation, PLC Price, Consensus and EPS Surprise

 

Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote

ETN’s Segmental Details

Electrical Americas’ total second-quarter sales were $3.4 billion, up 16% year over year. The rise was due to increased organic sales, contributions from acquired assets. This was marginally offset by negative currency translation. Operating profit was $987 million, up 15% year over year.

Electrical Global’s total sales were $1.8 billion, up 9% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 9%. The metric was driven by positive currency translation along with strong organic sales volume. Operating profit was $353 million, up 16% year over year.

Aerospace’s total sales were $1.1 billion, up 13% year over year, due to organic sales growth of 13%. The metric was driven by positive currency translation of 2% and organic sales of 11%. Operating profit was $240 million, up 17% year over year.

Vehicle’s total sales were $663 million, down 8% year over year, due to a decline in organic sales. Operating profit was $113 million, down 13% year over year.

eMobility segment’s total sales were $182 million, down 4% year over year, caused by 7% decline in organic sales, partially offset by positive currency translation of 3%. Operating loss was $10 million against earnings of $2 million in the year-ago quarter.

Highlights of ETN’s Q2 Release

Selling and administrative expenses were $1.14 billion, up 12.5% year over year.

Research and development expenses were $192 million, down 2% from the year-ago quarter’s level.

Interest expenses were $71 million, up 144.8% year over year.

Eaton’s backlog, with orders, at the end of second-quarter 2025, increased 17% in Electrical Americas, 16% in Aerospace and 1% in Electric Global on a rolling 12-month basis.

Financial Update of ETN

As of June 30, 2025, the company’s cash was $0.39 billion, down from $0.55 billion as of Dec. 31, 2024.

ETN’s long-term debt was $8.75 billion as of June 30, 2025, up from $8.47 billion as of Dec. 31, 2024.

Guidance of Eaton

Eaton’s third-quarter 2025 earnings are expected in the range of $2.58-$2.64 per share. The company expects organic growth in the range of 8-9%.

Eaton now expects adjusted earnings per share in the range of $11.97-$12.17 for 2025, indicating an increase of 12% at the midpoint from the prior-year levels. The company anticipates organic sales growth for 2025 in the range of 8.5-9.5%. Eaton expects its segment margin to be in the range of 24.1-24.5%.

ETN’s Zacks Rank

Eaton has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

A. O. Smith Corporation’s AOS second-quarter 2025 adjusted earnings of $1.07 per share beat the Zacks Consensus Estimate of 97 cents. The bottom line increased 1% on a year-over-year basis.

The long-term (three to five years) earnings growth rate is pinned at 12%. The Zacks Consensus Estimate for 2025 earnings per share has increased 2.41% year over year.

Chart Industries GTLS reported quarterly earnings of $2.59 per share, missing the Zacks Consensus Estimate of $2.62, compared with $2.18 a year ago.

The long-term earnings growth rate is pinned at 15.32%. The Zacks Consensus Estimate for 2025 earnings per share has increased 35.05% year over year.

Energous Corporation WATT incurred a loss of 8 cents per share, which was narrower than the year-ago quarter loss of 73 cents.

The Zacks Consensus Estimate for 2025 earnings per share has increased 1.76% year over year.

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