Last year was a good one for Eaton. The power management company announced in its recent earnings call global sales of $27.4 billion in 2025, up 10% from 2024, driven by tremendous growth in its Electrical and Aerospace divisions.
But strong as the company’s year was overall, its top-line growth wasn’t evident everywhere.
Eaton’s Vehicle segment was down 9% in Q4 while its eMobility business slipped by 15%. And it was with those numbers center stage that CEO Paulo Ruiz and his leadership team shared during the call their intent to spin off Eaton’s Mobility operations (which include its automotive and commercial vehicle business) into a separate company.
During his presentation Feb. 3, Ruiz said separating the business is “the right move at the right time,” and will sharpen Eaton’s strategic focus, enabling it to advance its growth strategy “by prioritizing capital on higher-growth, higher-margin markets with more earnings consistency.”
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As for the offloaded operations, the Mobility unit represents $3 billion in global revenue, and by standing it up as a new business now Ruiz said the unit’s leadership team will be able to build on its strong historical performance and reputation in the automotive and commercial vehicle markets.
“The Mobility team has built a reputation that is highly valued in the market and recognized as a true innovation partner to its customers,” he said. “We expect Mobility to benefit from increased strategic focus to drive a more optimized capital allocation strategy, which will allow for more flexibility to pursue additional growth opportunities in the markets where it’s best-positioned.”
The company also notes by splitting its operations it will create two distinct investment profiles that position each company to unlock greater long-term value.
Normal business operations within Eaton’s Vehicle and eMobility units are expected to continue through the transaction, which Eaton hopes to complete in the first quarter of 2027.
Eaton did not respond to Trucks, Parts, Service requests for comment regarding long-term customer support, branding and product marketing, but stated more information about the divestiture would be available in the third quarter.
