Eaton Slips On Q4 Revenue Miss, Eyes Growth In 2025

Eaton Corporation ETN shares are trading lower on Friday after the company reported fourth-quarter 2024 results.

Revenue rose 5% year-over-year to $6.24 billion, missing the consensus of $6.34 billion.

Electrical Americas segment sales rose 9% YoY to $2.9 billion, aided by organic sales growth. Backlog at the end of the year rose 29% organically.

Electrical Global segment sales grew 4% to $1.6 billion in the quarter. Backlog increased 16% organically.

Notably, Hurricane Helene and labor strikes in the aerospace industry negatively impacted sales by about $80 million.

Segment margins reached 24.7%, an expansion of 190 basis points YoY. Adjusted EPS rose 11% Y/Y to $2.83, beating the consensus of $2.81.

Operating cash flow stood at $1.6 billion, and free cash flow came in at $1.3 billion in the quarter.

Craig Arnold, Eaton chairman and chief executive officer, said, “Our strong performance in 2024 was a result of robust demand and our team’s successful execution. We’re confident in that continued momentum into 2025 as Eaton is in a unique position to deliver differentiated performance amid powerful megatrends driving higher growth in our markets.”

Guidance: For 2025, Eaton projects organic growth of 7% – 9% and adjusted EPS of $11.80 – $12.20 vs. $12.00 consensus estimate.

For the first quarter, the company expects organic growth of 5.5% – 7.5% and adjusted EPS of $2.65 – $2.75, compared to the street view of $2.70.

Goldman Sachs analyst Joe Ritchie sees this as an inline fourth-quarter report.

However, with strong order performance and backlog, along with recent share weakness from DeepSeek news, the analyst anticipates that the stock will outperform today.

Price Action: ETN shares are down 0.71% at $324.79 at the last check Friday.

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