Eaton — 2026Q3 earnings

“Intelligent power management company Eaton Corporation plc (NYSE:ETN) today announced that second quarter 2026 earnings per share were $2.11. Excluding charges of $0.50 per share related to intangible amortization, $0.49 per share related to acquisitions and divestitures, and $0.05 per share related to a multi-year restructuring program, adjusted earnings per share were $3.15, a second quarter record.”

“Sales in the quarter were $8.5 billion, a record and up 21% from the second quarter of 2025. The sales increase consisted of 14% growth in organic sales and 7% growth from acquisitions.”

“Segment margins were 23.1%, 10 basis points above the high end of the guidance range and down 80 basis points from the second quarter of 2025.”

“Guidance for full year 2026 earnings per share expected to be between $10.36 and $10.56, up 0.1% at the midpoint over 2025, and raised adjusted earnings per share expected to be between $13.40 and $13.60, up 12% at the midpoint over 2025”

“Twelve-month rolling average orders up 41% in Electrical Americas, with Electrical Global up 33% and Aerospace up 17%, driven by broad end-market strength”

“The sales increase consisted of 18% growth in organic sales, 25% contribution from Boyd Thermal in its first full quarter post-acquisition, and 1% growth from foreign exchange.”

“Announced agreement to separate Mobility business through a Reverse Morris Trust transaction, expected to close in the first quarter of 2027 and be accretive to organic growth and margins upon closing”

“Before we move to the second question, operator, I just want to recognize that our IR team received a number of inbound calls regarding the IEEPA refund. So in respect to all of you, in order to make this call a bit more fluid, I'd rather address that upfront and clear the air. So I want to say that our impact in Q2 from the IEEPA refunds is less than $3 million, so it's less than $0.01 of EPS, right? And so it's a clearly operational beat when Dave talked about $0.25 beat, it's truly operational.”

“We generated a strong $0.25 segment profit beat versus our guidance that was partially offset by $0.15 from a higher tax rate.”

“If we talk -- look at H1 versus H2, some of you like to look at it that way. We'll be up 450 to 500 basis points. 300 basis points will come from price/cost relationship. All of our pricing actions have either been implemented in Q2 or early August. And then we'll get about 150 to 200 basis points from output and productivity.”

“On Slide 8, we highlight our Electrical Americas segment. Organic sales growth accelerated to 18%, driven primarily by strength in data centers, up about 65%, along with strong growth in machine OEM and commercial and institutional. We are pleased with our better-than-expected margins of 27.5%, 190 basis points higher than Q1, again, a reflection of our execute for growth strategy starting to work. From a year-over-year perspective, the majority of the margin decline was driven by temporary negative price/cost. With the pricing actions taken in Q2 and early Q3, we are confident this will return to a roughly neutral impact in the second half.”

“Total U.S. data center backlog has grown to 307 gigawatts or 15 years of backlog at 2025 build rates, up from 12 years in our last update. Only roughly 20% of this backlog converts near term. The majority will translate to 2028 and beyond deliveries”

“If you cut this by end market, we are getting a lot of traction in data center. So organic revenues were up 65% and much, much faster than the underlying market that is growing at 23%. So definitely gaining momentum, gaining share. And if you look also the traditional markets we had for this segment like machine OEM are also up more than 20%.”