"We set a new record for sales, operating profit and margins. Organic sales growth increased to 14%, reflecting strength in data centers, commercial, and institutional and utility end markets."
— Craig Arnold, CEO
03Detailed Report
ETN
Eaton Corporation plc
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 30, 2026
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Executive Summary
Eaton Corporation plc reported record sales of $6.35 billion in Q3 2024, reflecting an 8% increase from the prior year, and adjusted EPS of $2.84, surpassing prior records by 15%. Despite facing challenges from Hurricane Helene and labor strikes in the aerospace industry, demand remains strong across key segments. Orders were robust, with Electrical Americas orders rising by 16%, and Aerospace orders increasing by 6%. Leadership expressed confidence in maintaining momentum through the end of the year and into 2025, driven by megatrends in energy transition and infrastructure investment. Management has raised guidance for segment margins and adjusted EPS for the year, positioning the company for continued growth, with increasing investments in capacity to meet future demands.
### Key Developments
- Record Adjusted EPS up by 15%, showcasing strong profitability.
- Electrical Americas segment achieved sales growth of 14%, pointing to resilience amidst external pressures.
- Backlog increased by 25%, specifically in electrical, indicating strong future sales potential and capacity needs.
Management highlighted that extraordinary events impacting revenue were temporary, and they expect demand metrics to remain ongoing as markets stabilize.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.35B
7.91%
-0.08%
Gross Profit
2.45B
11.38%
1.54%
Operating Income
1.26B
16.79%
3.45%
Net Income
1.01B
13.24%
1.61%
EPS
2.54
13.90%
2.01%
Key Financial Ratios
Gross Profit Margin
Fair
38.60%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
19.80%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
15.90%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.57%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.28%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
1.53
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.53
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
32.61x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
6.88x
Very high premium suggests asset-light business model or lofty expectations
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