ETN · Eaton Corporation plc

Eaton delivered a strong first quarter 2026, achieving record sales of $7.5 billion, a 17% increase year-over-year. This performance was underpinned by 10% organic sales growth, which exceeded the high end of the company's 5-7% guidance range, alongside contributions from acquisitions and foreign exchange. Adjusted earnings per share reached a first quarter record of $2.81, driven by robust demand across key markets. Segment margins came in at 22.7%, though this represented a 120 basis point decline from the prior year period.

The Electrical segment demonstrated exceptional momentum, with Electrical Americas posting a 42% increase in twelve-month rolling average orders and a 44% surge in backlog, largely attributed to data center demand. Electrical Global also performed well, with orders up 13% and backlog growth of 73%. The Aerospace segment achieved record operating margins of 26.7% and grew backlog by 28%. Conversely, the Mobility segment faced headwinds, with sales declining 2% and organic sales down 6%.

Strategically, the company significantly reshaped its portfolio by closing $11 billion in acquisitions during the quarter, including Boyd Thermal and Ultra PCS Limited, targeting high-growth markets. These actions, combined with the strong backlog, prompted management to raise full-year 2026 organic growth guidance to a range of 9-11%, up from 8% at the midpoint. The company also affirmed its outlook for the Mobility segment spin-off in Q1 2027. Operating cash flow was $507 million and free cash flow increased 245% to $314 million.