Eaton Corp. plc: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 3 November 2026: press release. Guidance figures: 3 raised, 1 lowered, 4 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Sales rose 28% to $8.9 billion: Net sales were $8,947 million against $6,988 million a year earlier. Management attributed the increase to organic growth, acquisitions and currency. Source
• Full-year guidance raised: Full-year guidance was raised for organic growth and adjusted EPS, the segment margin range was kept, and the diluted EPS range was narrowed. Source
• Electrical Global sales up 58%: Electrical Global sales were $2.7 billion. Boyd Thermal added 31% to segment sales growth, and operating margin was 21.1%, up 200 basis points from the third quarter of 2025. Source
• Orders rose in all three segments: On a twelve-month rolling basis, orders rose in Electrical Americas, Electrical Global and Aerospace. Management said order dollars reached record levels in all three segments. Source
• Segment margin reached 25.3%: Segment margin was 25.3%, 30 basis points above the top of the guidance range and above the third quarter of 2025. Source
• COL Group acquisition agreed: Eaton agreed to pay €810 million ($921 million) for COL Group, a business with about 400 employees in Italy, to be reported in Electrical Global. Source
• Mobility separation restructured: Under the October 16 supplemental agreement, Mobility is split off to Eaton shareholders and merged with Dana, leaving Eaton shareholders owning 50.1% of the combined company. Source

“Our strong third quarter performance reflects the focus and discipline our teams have demonstrated all year as we expand capacity, strengthen execution and position the business to meet accelerating customer demand.”

Paulo Ruiz, Eaton chief executive officer

Guidance

What changed from last quarter

• Guidance raised: Full-year organic growth guidance raised to 13-15% from 11-13%. Source
• Guidance raised: Full-year adjusted EPS guidance raised to $13.70-$13.80 from $13.40-$13.60. Source
• New guidance: Fourth-quarter 2026 guidance given for organic growth, segment margins, EPS and adjusted EPS. Source
• Guidance lowered: Total estimated restructuring program charges reduced to $430 million from $475 million. Source
• Guidance raised: Expected restructuring mature-year benefits raised to $415 million from $375 million. Source
• New: Agreement signed on September 25, 2026 to acquire COL Group, an Italian medium-voltage electrical distribution business. Source
• New: Mobility separation restructured: supplemental letter agreement with Dana dated October 16, 2026, under which Mobility is split off and merged with Dana. Source

Results and growth drivers

• Sales rose 28% to $8.9 billion: Net sales were $8,947 million against $6,988 million a year earlier. Management attributed the increase to organic growth, acquisitions and currency. Source
• Organic growth was 19%: Organic sales grew 19%, acquisitions added 8% and foreign exchange added 1%. Organic growth was above the high end of the company's guidance range. Source
• Diluted and adjusted EPS: Diluted EPS was $2.77 against $2.59 a year earlier. Adjusted EPS was $3.68 against $3.07. Source
• Nine-month sales and earnings: Nine-month net sales were $24,929 million against $20,393 million. Nine-month diluted EPS was $7.10 against $7.54. Source
• Full-year guidance raised: Full-year guidance was raised for organic growth and adjusted EPS, the segment margin range was kept, and the diluted EPS range was narrowed. Source

Segment results

• Electrical Americas sales up 22% organically: Electrical Americas sales were $4.2 billion and operating profit $1.2 billion, up 20%. Operating margin was 29.8%, up 230 basis points sequentially. Source
• Electrical Global sales up 58%: Electrical Global sales were $2.7 billion. Boyd Thermal added 31% to segment sales growth, and operating margin was 21.1%, up 200 basis points from the third quarter of 2025. Source
• Aerospace sales up 11%: Aerospace sales were $1.2 billion, with organic growth of 6% and Ultra PCS adding 5%. Operating profit was $298 million, up 6%, and operating margin was 24.9%, down 100 basis points. Source
• Mobility sales and margin up: Mobility sales were $852 million with organic growth of 9%. Operating profit was $146 million, up 39%, and operating margin was 17.2%, up 370 basis points. Source

“Record orders grew sequentially, backlog continued to expand, and we remain well-positioned to help customers deliver on their critical power infrastructure investments.”

Paulo Ruiz, Eaton chief executive officer

Demand and the order book

• Orders rose in all three segments: On a twelve-month rolling basis, orders rose in Electrical Americas, Electrical Global and Aerospace. Management said order dollars reached record levels in all three segments. Source
• Backlog grew in Electrical and Aerospace: Total backlog grew year over year in both Electrical and Aerospace. Electrical Global backlog growth was higher at the end of September than at the end of June. Source
• Data center and utility demand cited: Management said the COL Group agreement is intended to support growing customer demand across data center and utility markets. Source

Margins and costs

• Segment margin reached 25.3%: Segment margin was 25.3%, 30 basis points above the top of the guidance range and above the third quarter of 2025. Source
• Cost of products sold rose: Cost of products sold was $5,842 million against $4,313 million. Selling and administrative expense was $1,278 million against $1,105 million. Source
• Net interest expense rose: Net interest expense was $198 million against $67 million a year earlier, and $505 million for nine months against $171 million. Source
• Adjustments excluded from adjusted EPS: Adjusted EPS excludes $0.62 of intangible amortization, $0.30 of acquisition and divestiture charges and $0.01 of restructuring income per share in the quarter. Source

“These results reinforce our confidence in the remainder of the year.”

Paulo Ruiz, Eaton chief executive officer

Cash and balance sheet

• Operating and free cash flow: Operating cash flow was $1.31 billion and free cash flow was $1.03 billion for the quarter. Source
• Debt rose from year-end: Long-term debt was $17,802 million at September 30, against $8,758 million at December 31. Short-term debt was $1,594 million, against $1 million. Source
• Cash and short-term investments: Cash was $528 million and short-term investments were $290 million at September 30, against $622 million and $181 million at December 31. Source

Portfolio changes and deals

• COL Group acquisition agreed: Eaton agreed to pay €810 million ($921 million) for COL Group, a business with about 400 employees in Italy, to be reported in Electrical Global. Source
• Mobility separation restructured: Under the October 16 supplemental agreement, Mobility is split off to Eaton shareholders and merged with Dana, leaving Eaton shareholders owning 50.1% of the combined company. Source
• Cash distribution before Mobility closing: Certain Eaton subsidiaries are to receive about $1.1 billion before completion, subject to adjustments and taxes. Eaton expects to use it consistent with its capital allocation framework. Source
• Mobility stays in continuing operations: Mobility remains a segment of Eaton and its results stay in continuing operations until the Transaction closes. Source

Capacity and investment

• Capacity investment supports growth: Management attributed higher segment margins to higher sales and improved performance, amid continued capacity investments to support growth. Source
• COL Group adds European capacity: The company described the COL Group agreement as expanding manufacturing capacity and power distribution capabilities in Europe. Source
• Capital expenditures for property: Capital expenditures for property, plant and equipment were $275 million in the quarter, against $253 million in the second quarter. Source

Coming up, as management said on 3 November 2026

• Mobility transaction closing expected: The Mobility transaction is expected to close in the first four months of 2027, subject to Dana stockholder approval. Source
• COL Group closing expected: The COL Group acquisition is expected to close in the first quarter of 2027. Source
• Fourth-quarter guidance issued: The company gave fourth-quarter 2026 guidance for organic growth, segment margins, EPS and adjusted EPS. Source
• Cash distribution to repay debt: Eaton expects to use the Mobility cash distribution consistent with its capital allocation framework, including repaying outstanding debt. Source

Figures management reported

Risks management discussed

• Regulatory: The Mobility transaction depends on Dana stockholder approval, regulatory approvals and customary closing conditions. Source
• Regulatory: The COL Group acquisition is subject to customary closing conditions and regulatory approvals. Source
• Financial: If the Mobility transaction is not completed, Eaton intends to separate Mobility through a spin-off instead. Source

Earlier plans management reported on

• Ahead: Management said organic growth and segment margins were above the high end of the guidance given earlier for the quarter. Source
• Not stated: The restructuring program is expected to be completed in 2026. Source
• Not stated: Mobility transaction closing timing is now the first four months of 2027, previously stated as the first quarter of 2027. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.