Eaton Reports Record Third Quarter 2026 Results, with Strong Organic Growth, Accelerating Record Orders and Backlog; Raises Organic Growth Guidance

Third quarter sales increased 28%, with organic sales growth of 19%, above the high end of guidance Twelve-month rolling average organic orders increased 39% in Electrical Americas, 51% in Electrical Global and 20% in Aerospace, with order dollars reaching record levels in all three segments, driven by broad end-market strength Strong year-over-year total backlog growth of 46% in Electrical and 33% in Aerospace Record segment margins of 25.3%, above the high end of guidance, with Electrical Americas margins improving 230 basis points sequentially Announced agreement to acquire COL Group, expanding manufacturing capacity and power distribution capabilities for data center and utility markets in Europe Full year 2026 earnings per share expected to be between $10.39 and $10.49; adjusted earnings per share expected to be between $13.70 and $13.80 DUBLIN--(BUSINESS WIRE)--Intelligent power management company Eaton Corporation plc (NYSE:ETN) today reported strong third quarter 2026 results, including earnings per share of $2.77. Adjusted earnings per share were a record of $3.68, excluding charges of $0.62 per share related to intangible amortization, $0.30 per share related to acquisitions and divestitures, and income of $0.01 per share related to a multi-year restructuring program. Sales in the quarter were a record $8.9 billion, up 28% from the third quarter of 2025. The sales increase consisted of 19% growth in organic sales, 8% growth from acquisitions, and 1% growth from foreign exchange. Segment margins were a record 25.3%, 30 basis points above both the high end of the guidance range and the third quarter of 2025, driven by higher sales and improved performance amid continued capacity investments to support growth. The Company continued to generate solid cash flow, supporting investment in growth initiatives while maintaining financial flexibility. Operating cash flow was $1.31 billion, and free cash flow was $1.03 billion. Paulo Ruiz, Eaton chief executive officer, said, “Our strong third quarter performance reflects the focus and discipline our teams have demonstrated all year as we expand capacity, strengthen execution and position the business to meet accelerating customer demand. We delivered organic growth and segment margins above the high end of our guidance, driven by strong demand across our markets and continued momentum across our Electrical businesses. Record orders grew sequentially, backlog continued to expand, and we remain well-positioned to help customers deliver on their critical power infrastructure investments. These results reinforce our confidence in the remainder of the year.” In the quarter, the company also announced an agreement to acquire COL Group, a leader in medium-voltage electrical distribution solutions, expanding the company’s European power distribution capabilities and manufacturing footprint and enhancing its ability to support growing customer demand across data center and utility markets. Guidance For the full year 2026, the company anticipates: Organic growth of 13-15% Segment margins of 24.1-24.5% Earnings per share between $10.39 and $10.49 Adjusted earnings per share between $13.70 and $13.80 For the fourth quarter of 2026, the company anticipates: Organic growth of 13-15% Segment margins of 25.4-25.8% Earnings per share between $3.28 and $3.38 Adjusted earnings per share between $4.05 and $4.15 Business Segment Results Demand remained robust across key end markets, as sales for the Electrical Americas segment were a record $4.2 billion, up 22% organically from the third quarter of 2025. Operating profits were a record $1.2 billion, up 20% over the third quarter of 2025, and operating margins in the quarter were 29.8%, up 230 basis points sequentially. The twelve-month rolling average of orders in the third quarter was up 39% organically. Total backlog at the end of September remained strong and was up 33% over September 2025. Sales for the Electrical Global segment were a record $2.7 billion, up 58% from the third quarter of 2025. The sales increase consisted of 27% growth in organic sales and 31% contribution from Boyd Thermal in its second full quarter post-acquisition. Operating profits were a record $576 million, up 75% over the third quarter of 2025. Operating margins in the quarter were 21.1%, up 200 basis points over the third quarter of 2025. The twelve-month rolling average of orders in the third quarter was up 51% organically. Total backlog at the end of September was up 121% over September 2025. On a rolling twelve-month basis, the book-to-bill ratio for the Electrical businesses remained strong at 1.2. Aerospace segment sales were a third quarter record $1.2 billion, up 11% from the third quarter of 2025. The sales increase consisted of 6% growth in organic sales and 5% growth from the Ultra PCS acquisition. Operating profits were a third quarter record $298 million, up 6% over the third quarter of 2025. Operating margins of 24.9% were down 100 basis points over the third quarter of 2025. The twelve-month rolling average of orders in the third quarter was up 20% organically. Total backlog at the end of September was up 33% over September 2025. On a rolling twelve-month basis, the book-to-bill ratio for the Aerospace segment remained strong at 1.2. The Mobility segment posted sales of $852 million. Organic sales increased 9%. Operating profits were $146 million, up 39% from the third quarter of 2025. Operating margins in the quarter of 17.2% were up 370 basis points from the third quarter of 2025. Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial and institutional, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we’re helping to solve the world’s most urgent power management challenges and building a more sustainable society for people today and generations to come. Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of $27.4 billion in 2025, the company serves customers in 180 countries. For more information, visit www.eaton.com. Follow us on LinkedIn. Notice of conference call: Eaton’s conference call to discuss its third quarter results is available to all interested parties today as a live audio webcast at 11 a.m. United States Eastern time at Eaton.com/investor under “Presentations.” This news release can also be accessed on that page. Also available on the website before the call will be a presentation on third quarter results, which will be covered during the call. Forward-Looking StatementsRead the full story here

Eaton Reports Record Third Quarter 2026 Results, with Strong Organic Growth, Accelerating Record Orders and Backlog; Raises Organic Growth Guidance

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