Eaton Q3 Earnings Beat Estimates, Organic Sales Boost Revenues

Eaton Corporation ETN reported third-quarter 2025 earnings of $3.07 per share, which beat the Zacks Consensus Estimate by 0.3%. The bottom line increased 8.09% year over year and surpassed the company’s guidance of $2.58-$2.64. 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 $2.59 per share, up 2.4% from $2.53 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 26 cents for intangible assets amortization, 11 cents for the multi-year restructuring program and 11 cents related to acquisitions and divestitures.Eaton’s Q3 RevenuesTotal quarterly revenues were $6.98 billion, which improved 10% from the year-ago period. The year-over-year growth in sales was due to 7% increase in organic sales and 3% increase from contributions from acquired assets. Quarterly revenues were a tad lower than the Zacks Consensus Estimate of $7.05 billion.Eaton Corporation, PLC Price, Consensus and EPS Surprise Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC QuoteETN’s Segmental DetailsElectrical Americas’ total third-quarter sales were $3.4 billion, up 15% year over year. The rise was due to 9% increase in organic sales, 6% growth from acquired assets. Operating profit was $987 million, up 15% year over year.Electrical Global’s total sales were $1.72 billion, up 9.6% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 8% and positive currency translation added 2%. Operating profit was $353 million, up 16% year over year.Aerospace’s total sales were $1.08 billion, up 14.1% year over year. The metric was driven by positive currency translation of 1% and organic sales of 13%. Operating profit was $240 million, up 17% year over year.Vehicle’s total sales were $639 million, down 8.2% year over year, due to a 9% decline in organic sales. Operating profit was $113 million, down 13% year over year.eMobility segment’s total sales were $136 million, down 18.6% year over year, caused by a 20% decline in organic sales, partially offset by positive currency translation of 1%. Operating loss was $10 million against earnings of $2 million in the year-ago quarter.Highlights of ETN’s Q3 ReleaseSelling and administrative expenses were $1.1 billion, up 7.5% year over year.Research and development expenses were $203 million, down 1.9% from the year-ago quarter’s level.Interest expenses were $67 million, up 13.1% year over year.Eaton’s backlog, with orders, at the end of third-quarter 2025, increased 20% in Electrical Americas, 15% in Aerospace and 7% in Electric Global on a rolling 12-month basis.Financial Update of ETNAs of Sept. 30, 2025, the company’s cash was $0.33 billion, down from $0.55 billion as of Dec. 31, 2024.ETN’s long-term debt was $8.75 billion as of Sept. 30, 2025, up from $8.47 billion as of Dec. 31, 2024.Development After Third Quarter CloseEaton has signed an agreement to acquire the Boyd Thermal business of Boyd Corporation for $9.5 billion. This deal will expand Eaton’s existing data center portfolio and further expand its aerospace solution capabilities.Guidance of EatonEaton’s fourth-quarter 2025 earnings are expected in the range of $2.75-$2.95 per share. The company expects organic growth in the range of 10-12%.Eaton now expects adjusted earnings per share in the range of $11.97-$12.17 for 2025. 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 RankEaton has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other ReleasesA. O. Smith Corporation’s AOS third-quarter 2025 adjusted earnings of 94 cents per share beat the Zacks Consensus Estimate of 89 cents. The bottom line increased 15% 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 2.14% year over year.Chart Industries GTLS reported quarterly earnings of $2.78 per share, missing the Zacks Consensus Estimate of $3.01.The long-term earnings growth rate is pinned at 15.32%. The Zacks Consensus Estimate for 2025 earnings per share has increased 34.45% year over year.AZZ AZZ reported quarterly earnings of $1.55 per share, missing the Zacks Consensus Estimate of $1.56 by a penny.The Zacks Consensus Estimate for fiscal 2026 earnings per share has increased 15.19% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eaton Corporation, PLC (ETN): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report AZZ Inc. (AZZ): Free Stock Analysis Report Chart Industries, Inc. (GTLS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks