Eaton Corporation an intelligent power management company, reported third-quarter 2024 earnings per share (EPS) of $2.53, up 14% year-over-year. Excluding certain charges and gains, adjusted EPS reached a record $2.84, marking a 15% increase from Q3 2023. Sales rose to $6.3 billion, an 8% increase, driven by organic growth. Segment margins hit a quarterly high at 24.3%, up 70 basis points, despite impacts from Hurricane Helene and aerospace industry strikes.
Operating cash flow and free cash flow were also record-breaking at $1.3 billion and $1.1 billion, up 15% and 23%, respectively. Chairman and CEO Craig Arnold praised the company’s performance, citing strong demand and increased backlog, with expectations for sustained momentum into 2025.
Updated Guidance for 2024
For full-year 2024, Eaton raised guidance for:
- Segment margins from 23.5-23.9%
- EPS between $9.47 and $9.53, up 18% at midpoint
- Adjusted EPS between $10.75 and $10.81, an 18% midpoint increase over 2023
Fourth-quarter projections include organic growth of 6-7% and EPS between $2.42 and $2.48.
Segment Highlights
- Electrical Americas: Record sales of $3.0 billion, up 14%, with operating margins of 30.1%.
- Electrical Global: Sales reached $1.6 billion, with 18.7% operating margins.
- Aerospace: Sales increased to $946 million, with a 24.4% operating margin.
- Vehicle: Sales decreased by 7% to $696 million, though margins improved to 19.4%.
- eMobility: Sales of $167 million marked a 2% increase, despite a small operating loss as the company ramps up new programs.
Founded in 1911 and listed on the NYSE, Eaton reported $23.2 billion in 2023 revenue and serves customers in over 160 countries. The company’s focus on electrification, digitalization, and sustainable energy is driving growth and addressing key power management challenges worldwide.
Conference Call: Eaton will host a webcast to discuss Q3 results at 11 a.m. Eastern today, with details and presentation materials available on its website.
This release includes forward-looking statements regarding Q4 and 2024 earnings, segment margins, and growth expectations for 2025, subject to risks and uncertainties outside the company’s control, such as supply chain disruptions, market changes, regulatory impacts, and economic conditions. Eaton does not assume any obligation to update these statements.
