Eaton Posts Record $8.9 Billion Quarter, With Organic Sales Up 19% Above Its Own Guidance
The power management company's record orders in all three segments came alongside full-year organic growth guidance of 13-15%.
Eaton, the power management company, said third-quarter sales hit a record $8.9 billion, up 28% from a year earlier, with organic growth of 19% running above the high end of its own guidance. The results, reported Tuesday in an 8-K, also carried record adjusted earnings per share of $3.68, against $3.07 a year earlier.
Orders and margins at records
The 28% sales gain split into 19% organic growth, 8% from acquisitions and 1% from currency. Standard earnings per share were $2.77, against $2.59 a year earlier. Segment margins, the share of sales kept as operating profit, reached a record 25.3%, 30 basis points above the top of guidance.
Twelve-month rolling organic orders rose 39% in Electrical Americas, 51% in Electrical Global and 20% in Aerospace, with order dollars at records in all three. Total backlog in Electrical Americas was up 33% from September 2025 and in Electrical Global up 121%, while Aerospace backlog rose 33%. The release's headline bullet cites 46% backlog growth for Electrical as a whole. Operating cash flow was $1.31 billion and free cash flow $1.03 billion.
CEO Paulo Ruiz said the company delivered organic growth and margins "above the high end of our guidance, driven by strong demand across our markets."
Eaton shares rose 7.17% to $392.31 in Tuesday trading as of 9:48 a.m. ET, from a prior close of $366.07.
Segment by segment
Eaton makes power management products for data center, utility, industrial, aerospace and mobility markets, and had revenues of $27.4 billion in 2025.
- Electrical Americas sales were a record $4.2 billion, up 22% organically, with a 29.8% operating margin, up 230 basis points from the prior quarter.
- Electrical Global sales were a record $2.7 billion, up 58%, including 27% organic growth and a 31% contribution from Boyd Thermal.
- Aerospace sales were a third-quarter record $1.2 billion, up 11%, though its 24.9% margin fell 100 basis points from a year earlier.
- Mobility sales were $852 million, with organic sales up 9%.
Deals and the debt behind them
Eaton has been buying its way deeper into the business. It bought Boyd Thermal for $9.55 billion on March 12 and Ultra PCS for $1.53 billion on January 23. Net interest expense rose to $198 million in the quarter from $67 million a year earlier, and long-term debt stood at $17.8 billion at September 30, against $8.8 billion at the end of 2025.
It also agreed to buy COL Group, an Italian maker of medium-voltage distribution equipment, for €810 million ($921 million at the September 30 exchange rate), with closing expected in the first quarter of 2027. Separately, Eaton plans to combine its Mobility business with Dana in a Reverse Morris Trust, a tax-advantaged separation, after which Eaton shareholders are expected to own 50.1% of the combined company. Closing is expected in the first four months of 2027.
For the fourth quarter, Eaton guided organic growth of 13-15% and adjusted earnings per share of $4.05 to $4.15; its full-year adjusted range is $13.70 to $13.80.
Sources
- 8-K Filing — Eaton Corp plc (ETN) — SEC EDGAR
- Exhibit etn09302026exhibit99.htm — Eaton Corp plc 8-K exhibit — SEC EDGAR
- Eaton rises as earnings beat estimates, data center demand fuels growth (ETN:NYSE) | Seeking Alpha — seekingalpha.com
- Eaton (ETN) Stock Looks Fairly Valued Despite Its 142% Run — Yahoo Finance
- Eaton Reports Record Third Quarter 2026 Results, with Strong Organic Growth, Accelerating Record Orders and Backlog; Raises Organic Growth Guidance — businesswire.com
