# Eaton Corp plc (ETN)

Informational only - not investment advice.

CIK: 0001551182
SIC: 3590 Misc Industrial & Commercial Machinery & Equipment
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3590 Misc Industrial & Commercial Machinery & Equipment](/industry/3590/)
Latest 10-K filed: 2026-02-26
SEC page: https://www.sec.gov/edgar/browse/?CIK=1551182
Filing source: https://www.sec.gov/Archives/edgar/data/1551182/000155118226000007/etn-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-26 · accession 0001551182-26-000007 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001551182.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 27,448,000,000 USD | 2025 | verified |
| Net income | 4,087,000,000 USD | 2025 | verified |
| Assets | 41,251,000,000 USD | 2025 | verified |
| Free cash flow | 3,553,000,000 USD | 2025 | computed |
| Net margin | 14.89% | 2025 | computed |
| Revenue YoY | +10.33% | 2025 | computed |
| ROE | 21.04% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ETN | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 14.9% | 7.7% | 81 | 110 |
| Revenue growth | 10.3% | 5.8% | 61 | 111 |
| FCF margin | 12.9% | 9.6% | 63 | 103 |
| ROE | 21.0% | 11.7% | 75 | 108 |
| ROA | 9.9% | 5.6% | 83 | 111 |
| Liabilities / equity | 1.12 | 1.10 | 52 | 108 |
| Current ratio | 1.32 | 2.02 | 22 | 110 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 35 Industrial And Commercial Machinery And Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 27448000000 | USD | 2025 | 2026-02-26 |
| Net income | 4087000000 | USD | 2025 | 2026-02-26 |
| Assets | 41251000000 | USD | 2025 | 2026-02-26 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001551182.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2011 | 2012 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  | 19,747,000,000 | 20,404,000,000 | 21,609,000,000 | 21,390,000,000 | 17,858,000,000 | 19,628,000,000 | 20,752,000,000 | 23,196,000,000 | 24,878,000,000 | 27,448,000,000 |
| Net income | 1,350,000,000 | 1,217,000,000 |  |  | 2,145,000,000 | 2,211,000,000 | 1,410,000,000 | 2,144,000,000 | 2,462,000,000 | 3,218,000,000 | 3,794,000,000 | 4,087,000,000 |
| Diluted EPS |  |  | 4.20 | 6.68 | 4.91 | 5.25 | 3.49 | 5.34 | 6.14 | 8.02 | 9.50 | 10.45 |
| Operating cash flow |  |  | 2,570,000,000 | 2,666,000,000 | 2,658,000,000 | 3,451,000,000 | 2,944,000,000 | 2,163,000,000 | 2,533,000,000 | 3,624,000,000 | 4,327,000,000 | 4,472,000,000 |
| Capital expenditures |  |  | 497,000,000 | 520,000,000 | 565,000,000 | 587,000,000 | 389,000,000 | 575,000,000 | 598,000,000 | 757,000,000 | 808,000,000 | 919,000,000 |
| Dividends paid |  |  | 1,037,000,000 | 1,068,000,000 | 1,149,000,000 | 1,201,000,000 | 1,175,000,000 | 1,219,000,000 | 1,299,000,000 | 1,379,000,000 | 1,500,000,000 | 1,626,000,000 |
| Share buybacks |  |  | 730,000,000 | 850,000,000 | 1,271,000,000 | 1,029,000,000 | 1,608,000,000 | 122,000,000 | 286,000,000 | 0.00 | 2,492,000,000 | 1,862,000,000 |
| Assets |  |  | 30,476,000,000 | 32,623,000,000 | 31,092,000,000 | 32,805,000,000 | 31,824,000,000 | 34,027,000,000 | 35,014,000,000 | 38,432,000,000 | 38,381,000,000 | 41,251,000,000 |
| Stockholders' equity |  |  | 14,954,000,000 | 17,251,000,000 | 16,107,000,000 | 16,082,000,000 | 14,930,000,000 | 16,413,000,000 | 17,038,000,000 | 19,036,000,000 | 18,488,000,000 | 19,425,000,000 |
| Cash and cash equivalents |  |  | 543,000,000 | 561,000,000 | 283,000,000 | 370,000,000 | 438,000,000 | 297,000,000 | 294,000,000 | 488,000,000 | 555,000,000 | 622,000,000 |
| Free cash flow |  |  | 2,073,000,000 | 2,146,000,000 | 2,093,000,000 | 2,864,000,000 | 2,555,000,000 | 1,588,000,000 | 1,935,000,000 | 2,867,000,000 | 3,519,000,000 | 3,553,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2011 | 2012 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  |  | 9.93% | 10.34% | 7.90% | 10.92% | 11.86% | 13.87% | 15.25% | 14.89% |
| Return on equity |  |  |  |  | 13.32% | 13.75% | 9.44% | 13.06% | 14.45% | 16.90% | 20.52% | 21.04% |
| Return on assets |  |  |  |  | 6.90% | 6.74% | 4.43% | 6.30% | 7.03% | 8.37% | 9.89% | 9.91% |
| Liabilities / equity |  |  | 1.04 |  | 0.93 | 1.04 | 1.13 | 1.07 | 1.06 | 1.02 | 1.08 | 1.12 |
| Current ratio |  |  | 1.28 | 1.64 | 1.47 | 1.70 | 1.56 | 1.04 | 1.38 | 1.51 | 1.50 | 1.32 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-31. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001551182.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 1.52 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 1.59 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.86 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 5,880,000,000 | 891,000,000 | 2.22 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 5,967,000,000 | 945,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 5,943,000,000 | 821,000,000 | 2.04 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 6,350,000,000 | 993,000,000 | 2.48 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 6,345,000,000 | 1,009,000,000 | 2.53 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 6,240,000,000 | 971,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 6,377,000,000 | 964,000,000 | 2.45 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 7,028,000,000 | 982,000,000 | 2.51 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 6,988,000,000 | 1,010,000,000 | 2.59 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 7,055,000,000 | 1,132,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 7,451,000,000 | 866,000,000 | 2.22 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 8,531,000,000 | 821,000,000 | 2.11 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ETN's latest 10-K: [/company/ETN/business/](/company/ETN/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ETN's latest 10-K: [/company/ETN/risk-factors/](/company/ETN/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1551182/000155118226000030/etn-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-31
Report date: 2026-06-30

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Amounts are in millions of dollars or shares unless indicated otherwise (per share data assume dilution). Columns and rows may not add and the sum of components may not equal total amounts reported due to rounding.

FORWARD-LOOKING STATEMENTS

This Form 10-Q Report contains “forward-looking statements” within the meaning of federal securities laws. These forward-looking statements are based upon management’s current expectations, predictions, estimates, assumptions and beliefs concerning future events and conditions and may discuss, among other things, litigation, expected capital expenditures, future dividend payments, anticipated share repurchases, liquidity, the successful integration of recent acquisitions, the anticipated separation and divestiture of the Mobility business, anticipated capital deployment, and expected restructuring program charges and benefits. These statements may also discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to the Company. These statements are not guarantees of future performance, and actual results may differ materially. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as “aim,” “anticipate,” “believe,” “could,” “develop,” “endeavor,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project” “seek,” “should,” “target,” “will,” “would” or other similar words, phrases or expressions. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this report. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside of our control.

There are certain factors that could cause actual results to differ materially from those in the forward-looking statements, including, among others: the impact of acquisitions, joint ventures, and investments and the integration of acquired entities; disruptions by natural disasters, labor strikes, wars, geopolitical instability and/or conflict, political unrest, terrorist activity, economic upheaval, or public health concerns that impact our production facilities; significant inflation or shortages of raw materials, energy, components, and/or labor, or similar challenges for our customers; reliance on suppliers to provide raw materials, components and services; the development and use of artificial intelligence in our business operations, including potential impacts on compliance with law and our reputation; service interruptions, data corruption, loss or impairment, network security and related operational impacts due to cybersecurity attacks; weather disruptions and regulatory, market and social reactions to such disruptions; our ability to identify, attract, develop, engage and retain qualified employees; our ability to complete the anticipated separation of our Mobility business and its merger with Dana or within the anticipated timeframe or at all; stock price and end market impacts due to technology disruptions; volatility of end markets; continued successful research, development and marketing of new or improved products; geopolitical, economic or other risks arising from worldwide or regional economic conditions; the global nature of Eaton’s business and exposure to economic and political instability, including war or armed conflict, changes in governmental laws, regulations and policies; changes in countries’ trade policies, including the imposition of sanctions or tariffs; changes in our tax rates or tax laws and regulations applicable to our business; rules, regulations, audits and investigations and related compliance risks associated with being a governmental contractor; our ability to protect our intellectual property; litigation and environmental regulations impacting our business; and the other risk factors discussed in Part I, Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other reports filed by the Company with the SEC. We disclaim any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.

COMPANY OVERVIEW

Eaton Corporation plc (Eaton or the Company) 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, machine building, residential, aerospace and mobility markets. We are capitalizing on the megatrends of the electrification, digitalization, and the reindustrialization of and growth of megaprojects in North America and increased global infrastructure spending, all of which are expanding our end markets and positioning Eaton for growth for years to come. We are strengthening our participation across the entire electrical power value chain and benefiting from momentum in the data center and utility end markets as well as a growth cycle in the commercial aerospace and defense markets. We are guided by our commitment to operate sustainably and with the highest ethical standards. Our work is helping to solve the world’s most urgent power management challenges and building a more sustainable society for people today and for future generations.

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.

26

Table of Contents

During the first quarter of 2026, Eaton re-segmented certain business segments due to a reorganization of the Company's businesses. The new segment is Mobility, which consists of the legacy Vehicle and eMobility segments. Historical segment information has been recast to reflect this change.

Portfolio Changes

The Company continues to actively manage its portfolio of businesses to deliver on its strategic objectives. The Company is focused on deploying its capital toward businesses that provide opportunities for above-market growth and strong returns, and that align with secular trends and its power management strategies. During 2025 and 2026, Eaton completed several transactions to strengthen its portfolio.

[[GREPCENT_TABLE]]
[["Acquisitions of businesses","","Date of acquisition","","Business segment"],["Fibrebond Corporation","","April 1, 2025","","Electrical Americas"],["A U.S. based designer and builder of pre-integrated modular power enclosures for data center, industrial, utility and communications customers."],["Resilient Power Systems, Inc.","","August 6, 2025","","Electrical Americas"],["A leading North American developer and manufacturer of innovative energy solutions, including solid-state transformer-based technology."],["Ultra PCS Limited","","January 23, 2026","","Aerospace"],["Producer of electronic controls, sensing, stores ejection and data processing solutions with operations in the U.K. and U.S."],["Boyd Thermal","","March 12, 2026","","Electrical Global"],["A U.S. based global leader in thermal components, systems, and ruggedized solutions for data center, aerospace and other end-markets."]]
[[/GREPCENT_TABLE]]

On January 26, 2026, Eaton announced its intention to separate its Mobility business segment from the rest of Eaton via a spin-off. On June 10, 2026, Eaton entered into definitive agreements with Dana Incorporated (Dana), whereby Eaton will separate the Mobility business and combine it with Dana in a Reverse Morris Trust (RMT) transaction (the separation and merger with and into Dana described below collectively referred to as the Transaction). As part of the Transaction, Eaton will distribute the Mobility business (other than certain assets and liabilities that will be sold directly to Dana in a concurrent asset sale) to Eaton shareholders through an exchange offer (split-off), in which Eaton shareholders will have the opportunity to tender their Eaton shares in exchange for shares of Mobility (USA) Corporation, a wholly owned subsidiary of Eaton (SpinCo), followed, if necessary, by a clean-up pro rata distribution. Immediately thereafter, a direct, wholly owned subsidiary of SpinCo will merge with and into Dana, with Dana surviving as a direct, wholly owned subsidiary of SpinCo. Following completion of the Transaction, Eaton shareholders are expected to own at least 50.1% of the combined company's outstanding shares. Eaton will also receive a cash distribution of approximately $1.1 billion prior to completion of the Transaction, subject to a customary cash and indebtedness adjustment and tax payments to various global jurisdictions and transaction related charges. Eaton expects to use the cash distribution consistent with its capital allocation framework, including repayment of outstanding indebtedness.

The RMT transaction is intended to be tax-free for U.S. federal income tax purposes to Eaton and Eaton’s shareholders and is expected to close in the first quarter of 2027, subject to Dana stockholder approval, regulatory approvals, and customary closing conditions. Until the Transaction closes, the Mobility business segment will continue to operate as a business segment of Eaton and its financial results reported in Eaton’s continuing operations. In the event the Transaction is not consummated, Eaton intends to separate its Mobility business segment in a spin-off.

Additional information related to acquisitions of businesses is presented in Note 2.

27

Table of Contents

RESULTS OF OPERATIONS

Non-GAAP Financial Measures

The following discussion of Consolidated Financial Results includes certain non-GAAP financial measures. These financial measures include adjusted earnings and adjusted earnings per ordinary share, each of which differs from the most directly comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of adjusted earnings and adjusted earnings per ordinary share to the most directly comparable GAAP measure is included in the Consolidated Financial Results table below. Management believes that these financial measures are useful to investors because they provide additional meaningful financial information that should be considered when assessing our business performance and trends, and they allow investors to more easily compare Eaton’s financial performance period to period. Management uses this information in monitoring and evaluating the on-going performance of Eaton.

Acquisition and Divestiture Charges

Eaton incurs integration charges and transaction costs to acquire and integrate businesses, and transaction, separation and other costs to divest and exit businesses. Eaton also recognizes gains and losses on the sale of businesses. A summary of these Corporate items is as follows:

[[GREPCENT_TABLE]]
[["","Three months ended June 30","","Six months ended June 30"],["(In millions except for per share data)","2026","","2025","","2026","","2025"],["Acquisition integration, divestiture charges and transaction costs","$","154","","","$","70","","","$","263","","","$","80"],["Income tax expense (benefit)","36","","","(16)","","","15","","","(19)"],["Total after income taxes","$","190","","","$","54","","","$","278","","","$","61"],["Per ordinary share - diluted","$","0.49","","","$","0.14","","","$","0.71","","","$","0.16"]]
[[/GREPCENT_TABLE]]

Acquisition integration, divestiture charges and transaction costs in 2026 and 2025 are primarily related to the following:

•The acquisitions of Fibrebond Corporation, Resilient Power Systems Inc., Ultra PCS Limited, Boyd Thermal, and Exertherm, the anticipated divestiture of the Mobility busin

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1551182/000155118226000007/etn-20251231.htm
Complete FY 2025 MD&A: /company/ETN/mda/fy2025/

Extracted from a later financial-section MD&A body after the formal Item 7 span was a short reference.
Confidence: high
Filing date: 2026-02-26
Report date: 2025-12-31

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Amounts are in millions of dollars or shares unless indicated otherwise (per share data assume dilution). Columns and rows may not add and the sum of components may not equal total amounts reported due to rounding.

COMPANY OVERVIEW

Eaton Corporation plc (Eaton or the Company) 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, machine building, residential, aerospace and mobility markets. We are capitalizing on the megatrends of the electrification, digitalization, and the reindustrialization of and growth of megaprojects in North America and increased global infrastructure spending, all of which are expanding our end markets and positioning Eaton for growth for years to come. We are strengthening our participation across the entire electrical power value chain and benefiting from momentum in the data center and utility end markets as well as a growth cycle in the commercial aerospace and defense markets. We are guided by our commitment to operate sustainably and with the highest ethical standards. Our work is helping to solve the world’s most urgent power management challenges and building a more sustainable society for people today and for future generations.

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.

During the first quarter of 2026, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The new reportable segment is Mobility, which consists of the legacy Vehicle and eMobility segments. Financial information for this new reportable segment has not been provided as the re-segmentation occurred subsequent to the year ended December 31, 2025. The Company expects to provide financial information for this new reportable segment in the Quarterly Report on Form 10-Q for the period ended March 31, 2026.

78

Table of Contents

Portfolio Changes

The Company continues to actively manage its portfolio of businesses to deliver on its strategic objectives. The Company is focused on deploying its capital toward businesses that provide opportunities for above-market growth, strong returns, and align with secular trends and its power management strategies. Over the past three years and continuing in 2026, Eaton completed several transactions to strengthen its portfolio.

[[GREPCENT_TABLE]]
[["Acquisitions of businesses and investments in associate companies","","Date of acquisition","","Business segment"],["Jiangsu Ryan Electrical Co. Ltd.","","April 23, 2023","","Electrical Global"],["A 49 percent stake in Jiangsu Ryan Electrical Co. Ltd., a manufacturer of power distribution and sub-transmission transformers in China."],["Exertherm","","May 20, 2024","","Electrical Americas"],["A U.K. based provider of thermal monitoring solutions for electrical equipment."],["NordicEPOD AS","","May 31, 2024","","Electrical Global"],["A 49 percent stake in NordicEPOD AS, which designs and assembles standardized power modules for data centers in the Nordic region."],["Fibrebond Corporation","","April 1, 2025","","Electrical Americas"],["A U.S. based designer and builder of pre-integrated modular power enclosures for data center, industrial, utility and communications customers."],["Resilient Power Systems, Inc.","","August 6, 2025","","Electrical Americas"],["A leading North American developer and manufacturer of innovative energy solutions, including solid-state transformer-based technology."],["Ultra PCS Limited","","January 23, 2026","","Aerospace"],["Producer of electronic controls, sensing, stores ejection and data processing solutions with operations in the U.K. and U.S."]]
[[/GREPCENT_TABLE]]

On November 2, 2025, Eaton signed an agreement to acquire Boyd Thermal, a U.S. based global leader in thermal components, systems, and ruggedized solutions for data center, aerospace and other end-markets. Boyd Thermal employs more than 5,000 people with manufacturing sites across North America, Asia, and Europe. Under the terms of the agreement, Eaton will pay $9.5 billion for Boyd Thermal. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the second quarter of 2026.

On January 26, 2026, Eaton announced its intention to pursue a spin-off of its Mobility business, which consists of its legacy Vehicle and eMobility operating segments, into an independent, publicly traded company. Eaton expects to complete the anticipated spin-off by the end of the first quarter of 2027, subject to customary legal and regulatory requirements and approvals, including final approval of the Company’s Board of Directors and effectiveness of a Form 10 registration statement filed with the Securities and Exchange Commission. The planned spin-off is expected to be completed in a manner that is tax-free to Eaton ordinary shareholders for U.S. federal income tax purposes.

Additional information related to acquisitions of businesses is presented in Note 2.

Summary of Results of Operations

A summary of Eaton’s Net sales, Net income attributable to Eaton ordinary shareholders, and Net income per share attributable to Eaton ordinary shareholders - diluted is as follows:

[[GREPCENT_TABLE]]
[["(In millions except for per share data)","2025","","2024","","2023"],["Net sales","$","27,448","","","$","24,878","","","$","23,196"],["Net income attributable to Eaton ordinary shareholders","4,087","","","3,794","","","3,218"],["Net income per share attributable to Eaton ordinary shareholders - diluted","$","10.45","","","$","9.50","","","$","8.02"]]
[[/GREPCENT_TABLE]]

79

Table of Contents

RESULTS OF OPERATIONS

Non-GAAP Financial Measures

The following discussion of Consolidated Financial Results includes certain non-GAAP financial measures. These financial measures include adjusted earnings and adjusted earnings per ordinary share, each of which differs from the most directly comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of adjusted earnings and adjusted earnings per ordinary share to the most directly comparable GAAP measure is included in the Consolidated Financial Results table below. Management believes that these financial measures are useful to investors because they provide additional meaningful financial information that should be considered when assessing our business performance and trends, and they allow investors to more easily compare Eaton’s financial performance period to period. Management uses this information in monitoring and evaluating the on-going performance of Eaton.

Acquisition and Divestiture Charges

Eaton incurs integration charges and transaction costs to acquire and integrate businesses, and transaction, separation and other costs to divest and exit businesses. Eaton also recognizes gains and losses on the sale of businesses. A summary of these Corporate items is as follows:

[[GREPCENT_TABLE]]
[["(In millions except for per share data)","","","","","2025","","2024","","2023"],["Acquisition integration, divestiture charges and transaction costs","","","","","$","183","","","$","36","","","$","54"],["Income tax benefit","","","","","38","","","10","","","15"],["Total after income taxes","","","","","$","145","","","$","26","","","$","39"],["Per ordinary share - diluted","","","","","$","0.37","","","$","0.06","","","$","0.10"]]
[[/GREPCENT_TABLE]]

Acquisition integration, divestiture charges and transaction costs in 2025 are primarily related to the following:

•The acquisitions of Fibrebond Corporation, Resilient Power Systems Inc., Ultra PCS Limited, and Exertherm, the expected acquisition of Boyd Thermal, transactions completed prior to 2023, and other charges to acquire and exit businesses.

•Employee transaction and retention award compensation expense related to the acquisition of Fibrebond of $82 million

•Employee incentive compensation expense related to the acquisition of Resilient of $10 million

Acquisition integration, divestiture charges and transaction costs in 2024 and 2023 are primarily related to acquisitions completed prior to 2023, and include other charges and income to acquire and exit businesses, and the reduction in fair value of contingent future consideration from the Green Motion SA acquisition. Costs in 2023 also include certain indemnity claims associated with the sale of 50% interest in the commercial vehicle automated transmission business in 2017.

Charges in 2025, 2024, and 2023 were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other expense (income) - net. In Business Segment Information in Note 18, the charges were included in Other expense - net.

Restructuring Programs

In the second quarter of 2020, Eaton initiated a multi-year restructuring program to reduce its cost structure and gain efficiencies in its business segments and at corporate in order to initially respond to declining market conditions brought on by the COVID-19 pandemic. Since the inception of the program, the Company incurred expenses of $199 million for workforce reductions and $184 million for plant closing and other costs, resulting in total charges of $382 million through December 31, 2023. This restructuring program was substantially complete at the end of 2023 and mature year benefits from the program of approximately $265 million were realized in 2024.

During the first quarter of 2024, Eaton implemented a multi-year restructuring program to accelerate opportunities to optimize its operations and global support structure. These actions will better align the Company's functions to support anticipated growth and drive greater effectiveness throughout the Company. Since the inception of the program, the Company has incurred charges of $335 million. This restructuring program is expected to be completed in 2026 and is expected to incur additional expenses related to workforce reductions of $102 million and plant closing and other costs of $38 million, resulting in total estimated charges of $475 million for the entire program. The Company expects mature year benefits of $375 million when the multi-year program is fully implemented.

Additional information related to these restructuring programs is presented in Note 16.

80

Table of Contents

Intangible Asset Amortization Expense

Intangible asset amortization expense is as follows:

[[GREPCENT_TABLE]]
[["(In millions except for per share data)","","","","","2025","","2024","","2023"],["Intangible asset amortization expense","","","","","$","486","","","$","425","","","$","450"],["Income tax benefit","","","","","101","","","91","","","98"],["Total after income taxes","","","","","$","384","","","$","335","","","$","353"],["Per ordinary share - diluted","","","","","$","0.99","","","$","0.84","","","$","0.89"]]
[[/GREPCENT_TABLE]]

Consolidated Financial Results

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ETN/mda/fy2025/
All MD&A years: /company/ETN/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ETN/mda/fy2024/): filed 2025-02-27; accession 0001551182-25-000006 (https://www.sec.gov/Archives/edgar/data/1551182/000155118225000006/etn-20241231.htm)
- [FY 2023 MD&A](/company/ETN/mda/fy2023/): filed 2024-02-29; accession 0001551182-24-000006 (https://www.sec.gov/Archives/edgar/data/1551182/000155118224000006/etn-20231231.htm)
- [FY 2022 MD&A](/company/ETN/mda/fy2022/): filed 2023-02-23; accession 0001551182-23-000004 (https://www.sec.gov/Archives/edgar/data/1551182/000155118223000004/etn-20221231.htm)
- [FY 2021 MD&A](/company/ETN/mda/fy2021/): filed 2022-02-23; accession 0001551182-22-000004 (https://www.sec.gov/Archives/edgar/data/1551182/000155118222000004/etn-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3590 Misc Industrial & Commercial Machinery & Equipment) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ETN.md · JSON record: /company/ETN.json · verified financials: /company/ETN/financials.json / /company/ETN/financials.csv · machine TOC for the whole site: /llms.txt