"Given our Q1 results, we're raising our guidance for organic growth, segment margins and adjusted EPS for the year. On balance, we're very pleased with our start to the year."
— Craig Arnold, CEO
03Detailed Report
ETN
Eaton Corporation plc
Period
Q1 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 30, 2026
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Executive Summary
Eaton Corporation plc achieved record financial results for Q1 2024, posting revenues of $5.943 billion, an 8% increase year-over-year, alongside a notable 28% rise in diluted earnings per share (EPS) to $2.40. The strong performance was supported by substantial order growth in the Electrical segments, particularly in the Americas, where organic sales grew by 17%. Eaton's management expressed confidence in future growth, raising guidance on organic growth and segment margins due to underlying mega trends in infrastructure and technology. The retention of a robust $14.7 billion backlog across Electrical and Aerospace segments underscores Eaton's favorable position in a dynamic market. Investors are encouraged by these trends as the company pivots towards continued investment in capacity to meet rising demand, particularly in data centers and industrial sectors.
Key Performance Indicators
Revenue
Increasing
5.94B
QoQ: -0.40% | YoY: 8.39%
Gross Profit
Increasing
2.22B
37.32% margin
QoQ: -5.29% | YoY: 17.73%
Operating Income
Increasing
1.00B
QoQ: -7.24% | YoY: 23.30%
Net Income
Increasing
821.00M
QoQ: -13.12% | YoY: 28.68%
EPS
Increasing
2.05
QoQ: -13.50% | YoY: 28.13%
Revenue Trend
Margin Analysis
Financial Highlights
### Key Metrics Analysis
- Revenue: $5.943 billion, up 8% YoY (Q1 2023: $5.497 billion)
- Net Income: $821 million, up 28.68% YoY (Q1 2023: $638 million)
- Diluted EPS: $2.40, up 28% YoY (Q1 2023: $1.87)
- Gross Profit Margin: 37.3%, illustrating a solid profitability profile.
- Operating Income: $1 billion, up 23.3% YoY.
- Free Cash Flow: Recorded at $292 million, a significant 40% improvement YoY.
- Backlog Growth: Electrical backlog increased 31% YoY, highlighting sustained demand flow.
This analysis shows Eaton's consistent performance in maintaining profitable growth while expanding its operational base significantly in response to market demands.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.94B
8.39%
-0.40%
Gross Profit
2.22B
17.73%
-5.29%
Operating Income
1.00B
23.30%
-7.24%
Net Income
821.00M
28.68%
-13.12%
EPS
2.05
28.13%
-13.50%
Key Financial Ratios
Gross Profit Margin
Fair
37.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
16.80%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
13.80%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.13%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.26%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.56
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.51
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
38.00x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
6.47x
Very high premium suggests asset-light business model or lofty expectations
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