"We generated a Q4 record for adjusted EPS of $2.83, up 11% from prior year," - Craig Arnold
— Craig Arnold
03Detailed Report
ETN
Eaton Corporation plc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 30, 2026
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Executive Summary
Eaton Corporation plc (ETN) concluded Q4 2024 with a record revenue of $6.24 billion, marking a 6% organic growth year-over-year. A remarkable adjusted EPS of $2.83 was achieved, reflecting an 11% increase over the previous year, underpinned by strong performance in Electrical Americas and robust market conditions despite setbacks from industry strikes and natural disasters. Management anticipates continued strength driven by megatrends such as data centers, which have seen a 29% increase in backlog, critical for sustaining growth momentum into 2025. Management reinforced this sentiment during the earnings call, with CEO Craig Arnold highlighting, "We expect another year of healthy end markets, strong organic growth, margin expansion, improving free cash flow and double-digit increases in adjusted EPS."
Key Performance Indicators
Revenue
Increasing
6.24B
QoQ: -1.65% | YoY: 4.58%
Gross Profit
Increasing
2.43B
38.93% margin
QoQ: -0.70% | YoY: 3.71%
Operating Income
Increasing
1.23B
QoQ: -2.70% | YoY: 13.64%
Net Income
Increasing
971.00M
QoQ: -3.77% | YoY: 2.75%
EPS
Increasing
2.46
QoQ: -3.15% | YoY: 3.80%
Revenue Trend
Margin Analysis
Financial Highlights
- Q4 2024 Revenue: $6.24B, +6% YoY
- Adjusted EPS: $2.83, +11% YoY
- Operating Margin: 24.7%, +190 bps YoY
- Free Cash Flow: $1.3B, +27% YoY
- Revenue Growth Drivers: Data Centers, Electrical Americas, Aerospace (despite strike impact)
- Backlog Growth: Electrical increasing by 29% YoY.
Year-over-year performance indicates a transition to a robust growth phase, driven by strategic investments and recovery from prior disruptions.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.24B
4.58%
-1.65%
Gross Profit
2.43B
3.71%
-0.70%
Operating Income
1.23B
13.64%
-2.70%
Net Income
971.00M
2.75%
-3.77%
EPS
2.46
3.80%
-3.15%
Key Financial Ratios
Gross Profit Margin
Fair
38.90%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
19.60%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
15.60%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.53%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.25%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
1.50
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
33.67x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
7.07x
Very high premium suggests asset-light business model or lofty expectations
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