Eaton Corporation 8-K

Summary

Q3 2026 results with Q4 and FY2026 guidance. Organic sales growth of 19% drove record sales of $8.95B, while record orders and expanding backlog in Electrical Americas and Electrical Global reflected continued customer demand.

Q4 organic growth guidance of 13%-15% compares with Q3’s 19%; segment-margin guidance of 25.4%-25.8% compares with 25.3%, and adjusted EPS guidance has a $4.10 midpoint, +11.4% Q/Q from $3.68. Eaton raised FY2026 organic growth guidance to 13%-15%.

Key Figures

• Electrical Americas sales rose 22% organically to $4.17B, with operating profit up 20% to $1.24B and margins at 29.8%, up 230 bp Q/Q. Electrical Global sales increased 58% to $2.73B, including 27% organic growth and a 31% contribution from Boyd Thermal; operating profit rose 75% to $576M.
• Twelve-month rolling average orders rose 39% in Electrical Americas, 51% in Electrical Global and 20% in Aerospace. Electrical backlog grew 46% Y/Y and Aerospace backlog 33%; rolling book-to-bill was 1.2 in both Electrical and Aerospace.
• Adjusted EPS excludes $0.62 per share of intangible amortization and $0.30 per share of acquisition and divestiture charges, partly offset by $0.01 per share of restructuring income. At 9/30/2026, cash was $528M and total debt was $20.1B, vs $9.90B at 12/31/2025.
• Eaton agreed to acquire COL Group, a provider of medium-voltage distribution solutions including SF₆-free switchgear, for €810M ($921M at the 9/30/2026 exchange rate); closing is expected in Q1 2027, subject to customary conditions and regulatory approvals. Separately, Eaton’s planned Mobility separation and combination with Dana is expected to close in the first four months of 2027, subject to approvals; Eaton shareholders are expected to own 50.1% of the combined company, and Eaton subsidiaries are expected to receive an ≈$1.1B cash distribution before closing.

Against earlier guidance (derived from earlier filings)

Guidance

Guidance changes, derived from earlier filings

Metric	Period	Earlier guidance	Guidance now	Change
Organic growth	FY2026	11%-13%	13%-15%	raised
Segment margins	FY2026	24.1%-24.5%	24.1%-24.5%	reaffirmed
GAAP diluted EPS	FY2026	$10.36-$10.56	$10.39-$10.49	narrowed (raised low end, lowered high end)
Non-GAAP adjusted EPS	FY2026	$13.40-$13.60	$13.70-$13.80	raised

Investor Takeaways

• Watch rolling order growth and backlog in Electrical and Aerospace; continued expansion would support Eaton’s outlook for customer demand.
• Watch for COL Group’s expected Q1 2027 closing and the Mobility transaction’s expected completion in the first four months of 2027; approvals and completion are key milestones.