Eaton reported record second-quarter 2026 sales of $8.53 billion and adjusted diluted earnings per share of $3.15, driven by strong organic growth and acquisitions. GAAP diluted EPS for the quarter was $2.11 and net income attributable to shareholders was $821 million. The company raised its full-year 2026 adjusted EPS guidance to $13.40–$13.60 and expects organic growth of 11–13% for the year.

Financial Highlights

  • Revenue: Net sales of $8,531 million for the three months ended June 30, 2026 (record quarter).
  • Operating income: Total segment operating profit of $1,974 million for the quarter.
  • Net income: Net income attributable to Eaton ordinary shareholders of $821 million for the quarter; $1,687 million year-to-date.
  • Adjusted diluted EPS: Adjusted earnings per ordinary share (diluted) of $3.15 for Q2 2026; adjusted EPS guidance raised to $13.40–$13.60 for full year 2026.
  • Cash flow: Operating cash flow of $1,127 million and free cash flow of $874 million for the quarter.

Business Highlights

  • Strong organic demand: Organic sales growth for Q2 was 14%, with Electrical and Aerospace businesses benefiting from broad end-market strength, including data center demand.
  • Segment performance: Electrical Americas sales hit a record $3,951 million with operating margin of 27.5% and a 12-month rolling average of orders up 41% organically; Electrical Global sales were a record $2,517 million with orders up 33% organically.
  • Backlog and book-to-bill: Total backlog at end of June grew materially—Electrical sector backlog up 43% year-over-year and Electrical Global backlog up 103%—with a rolling 12-month book-to-bill of 1.2 for Electrical businesses.
  • Aerospace and Mobility: Aerospace posted record sales of $1,222 million with orders up 17% on a 12-month rolling basis; Mobility sales were $841 million with modest organic decline offset by currency translation.
  • Portfolio actions: Announced agreement to separate the Mobility business via a Reverse Morris Trust transaction with expected close in Q1 2027, intended to further focus the company on Electrical and Aerospace growth.

Original SEC Filing:

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.