Here’s what you need to know:
- Eaton achieved record 2025 sales of $27.4 billion, reflecting 10% year-over-year growth.
- Electrical and Aerospace performance offset double-digit organic sales declines in Vehicle and eMobility.
- The company projects 7% to 9% organic growth for 2026, driven by AI and infrastructure.
Eaton recently announced its fourth quarter and 2025 earnings, reporting sales in the quarter of $7.1 billion, up 13% over 2024, and overall 2025 sales of a record $27.4 billion, up 10% year over year.
The Q4 sales were mostly driven by organic growth, the company reports, with 9% of growth in organic sales, 2% growth from acquisitions and 2% growth from foreign exchange. Electric and aerospace were the strongest drivers for the company while its Vehicle and eMobility segments had tougher periods.
For the entire year, the company reports its sales increase consisted of 8% growth in organic sales and 2% growth from acquisitions.
Leadership commends business for strong performance
“In the fourth quarter, we continued to convert strong demand into accelerated orders and organic growth. Electrical and Aerospace were standout drivers,” says Paulo Ruiz, CEO. “Our solid performance in 2025 was driven by our Lead, Invest and Execute for Growth strategy, including key investments that expanded our capacity and capabilities.
[RELATED: Cummins reports Q4 earnings, offers optimism for 2026 sales]
He adds, “Our growing and diversified backlog provides us with extended visibility, enabling predictable financial performance and disciplined capital planning.”
Trucking segments weakest for the company
In its Vehicle segment, Eaton reported Q4 sales of $586 million, down 9% from the fourth quarter of 2024. The company reports organic sales declined 13%, which was partially offset by 4% from positive currency translation. Operating profits were $96 million, and operating margins in the quarter were 16.5%.
The soft performance comes just weeks after the company announced its intent to sell its mobility business units within the next year.
Additionally, eMobility segment sales were $125 million, down 15% from the fourth quarter of 2024. Organic sales declined 17%, which Eaton says was partially offset by 2% from positive currency translation. The segment recorded an operating profit of $10 million, and operating margins in the quarter were 7.8%.
Another strong year predicted in 2026
Looking ahead, the company anticipates organic growth of 5% to 7% in Q1, and total year growth of 7% to 9% for 2026.
The company’s operating cash flow for 2025 was $4.5 billion and free cash flow was $3.6 billion, both records and up 3% and 1%, respectively, over the same period in 2024.
“As we enter 2026, we are confident that this momentum positions us to capitalize on the significant opportunities ahead — from digitalization and AI to re-industrialization, infrastructure spending and growth in the aerospace markets — while continuing progress toward our 2030 targets and delivering value for our shareholders,” says Ruiz.
