Eaton Corporation 8-K
PositiveEarningsGuidance raisedRestructuring
Surging Electrical Americas orders and stronger backlog support a raised FY2026 organic growth outlook of 9%-11%.
Filed 2026-05-05 07:00 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q1 2026 results with Q2 and FY2026 guidance. Sales rose 17%, including 10% organic growth, above the company’s 5%-7% outlook; Eaton raised its FY2026 organic growth outlook midpoint to 10% from 8% as orders and backlog strengthened.
Key Figures
| Metric | Q1 2026 |
|---|---|
| Revenue | $7.45B, +17% Y/Y |
| Segment margins | 22.7%, vs 23.9% |
| Segment operating profit | $1.69B, +11% Y/Y |
| Net income attributable to Eaton ordinary shareholders | $866M, -10% Y/Y |
| Diluted EPS | $2.22, vs $2.45 |
| Adjusted earnings per ordinary share, non-GAAP | $2.81, +3% Y/Y |
| Operating cash flow | $507M, +113% Y/Y |
| Free cash flow | $314M, +245% Y/Y |
- Electrical Americas’ 12-month rolling average orders rose 42%; orders in Electrical Global and Aerospace each rose 13%. Backlog grew 48% in the Electrical sector and 28% in Aerospace.
- Eaton closed $11B of strategic acquisitions: Boyd Thermal for $9.55B and Ultra PCS for $1.53B, each net of cash acquired.
- The multi-year restructuring program is expected to incur another $102M in costs ($78M workforce reductions; $24M plant closings and other costs), bringing estimated total charges to $475M; expected mature-year benefits are $375M.
Against earlier guidance
| Metric | Period | Earlier guidance | Actual |
|---|---|---|---|
| Organic sales growth | Q1 2026 | 5%-7% | 10% |
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Organic growth | FY2026 | 9%-11% | 8% midpoint | Raised |
| Segment margins | FY2026 | 24.1%-24.5% | — | — |
| Diluted EPS, GAAP | FY2026 | $10.88-$11.33 | — | — |
| Adjusted EPS, non-GAAP | FY2026 | $13.05-$13.50 | — | — |
| Organic growth | Q2 2026 | 9%-11% | — | — |
| Segment margins | Q2 2026 | 22.6%-23.0% | — | — |
| Diluted EPS, GAAP | Q2 2026 | $2.29-$2.39 | — | — |
| Adjusted EPS, non-GAAP | Q2 2026 | $3.00-$3.10 | — | — |
Investor Takeaways
- Watch whether strong Electrical orders and backlog convert into sales and margins against Q2 guidance.
- Eaton says it remains on track for the planned Mobility spin-off by the end of Q1 2027, subject to customary approvals and other conditions.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-20 17:17:10Z