Eaton Reports Record Second Quarter 2026 Results, with Strong Organic Growth, Accelerating Orders and Backlog, and Raises Organic Growth Guidance
August 17, 2026
Second quarter sales were up 21%, with organic sales growth of 14%, above the high end of guidance
- Twelve-month rolling average orders up 41% in Electrical Americas, with Electrical Global up 33% and Aerospace up 17%, driven by broad end-market strength
- Strong year-over-year total backlog growth of 43% in Electrical sector and 28% in Aerospace segment
- Second quarter segment margins of 23.1%, above the high end of guidance, with Electrical Americas margins improving 190 basis points sequentially
- Announced agreement to separate Mobility business through a Reverse Morris Trust transaction, expected to close in the first quarter of 2027 and be accretive to organic growth and margins upon closing
- Guidance for full year 2026 earnings per share expected to be between $10.36 and $10.56, up 0.1% at the midpoint over 2025, and raised adjusted earnings per share expected to be between $13.40 and $13.60, up 12% at the midpoint over 2025
Intelligent power management company Eaton Corporation plc (NYSE:ETN) announced that second quarter 2026 earnings per share were $2.11. Excluding charges of $0.50 per share related to intangible amortization, $0.49 per share related to acquisitions and divestitures, and $0.05 per share related to a multi-year restructuring program, adjusted earnings per share were $3.15, a second quarter record.
Sales in the quarter were $8.5 billion, a record and up 21% from the second quarter of 2025. The sales increase consisted of 14% growth in organic sales and 7% growth from acquisitions.
Segment margins were 23.1%, 10 basis points above the high end of the guidance range and down 80 basis points from the second quarter of 2025.
Operating cash flow was $1.1 billion, and free cash flow was $874 million, up 23% and 22%, respectively, over the same period in 2025.
Paulo Ruiz, Eaton chief executive officer, said, “Eaton accelerated its momentum in the second quarter and delivered record sales and solid earnings from strong organic growth. Our focus on disciplined execution led to sequential margin expansion, especially in Electrical Americas. While data centers remain a key growth driver, we are benefiting from robust demand across our end markets. Reflecting this strong performance and sustained demand, we are raising our full-year organic growth guidance and remain well-positioned to deliver on our commitments.”
In the quarter, the company also announced an agreement to separate its Mobility business through a Reverse Morris Trust transaction. This action represents the next step in Eaton’s ongoing portfolio transformation—further focusing the company on higher-growth, higher-margin Electrical and Aerospace businesses while positioning the company to drive long-term value creation.
Guidance
For the full year 2026, the company anticipates:
- Organic growth of 11-13%
- Segment margins of 24.1-24.5%
- Earnings per share between $10.36 and $10.56
- Adjusted earnings per share between $13.40 and $13.60
For the third quarter of 2026, the company anticipates:
- Organic growth of 13.5-15.5%
- Segment margins of 24.6-25.0%
- Earnings per share between $2.77 and $2.87 Eaton/Page 3
- Adjusted earnings per share between $3.46 and $3.56
Business Segment Results
Sales for the Electrical Americas segment were a record $4.0 billion, up 18% organically from the second quarter of 2025. Operating profits were a record $1.1 billion, up 10% over the second quarter of 2025, and operating margins in the quarter were 27.5%, up 190 basis points sequentially.
The twelve-month rolling average of orders in the second quarter was up 41% organically. Total backlog at the end of June remained strong and was up 33% over June 2025.
Sales for the Electrical Global segment were a record $2.5 billion, up 44% from the second quarter of 2025. The sales increase consisted of 18% growth in organic sales, 25% contribution from Boyd Thermal in its first full quarter post-acquisition, and 1% growth from foreign exchange. Operating profits were a record $499 million, up 41% over the second quarter of 2025. Operating margins in the quarter were 19.8%, up 60 basis points sequentially.
The twelve-month rolling average of orders in the second quarter was up 33% organically. Total backlog at the end of June was up 103% over June 2025. On a rolling twelve-month basis, the book-to-bill ratio for the Electrical businesses remained
strong at 1.2.
Aerospace segment sales were a record $1.2 billion, up 13% from the second quarter of 2025. The sales increase consisted of 7% growth in organic sales and 6% growth from an acquisition. Operating profits were a second quarter record $278 million, up 16% over the second quarter of 2025. Operating margins of 22.8% were up 60 basis points over the second quarter of 2025.
The twelve-month rolling average of orders in the second quarter was up 17% organically. Total backlog at the end of June was up 28% over June 2025. On a rolling twelve-month basis, the book-to-bill ratio for the Aerospace segment increased to 1.2.
The Mobility segment posted sales of $841 million. Organic sales declined 2%, which was offset by 2% from positive currency translation. Operating profits were $109 million, up 7% from the second quarter of 2025. Operating margins in the quarter of 13.0% were up 90 basis points from the second quarter of 2025.
About Eaton
Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. They make products for the data center, utility, industrial, commercial and institutional, machine building, residential, aerospace and mobility markets. They are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, they are helping to solve the world’s most urgent power management challenges and building a more sustainable society for people today and generations to come.
Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of $27.4 billion in 2025, the company serves customers in 180 countries.
More Information
For more information, visit www.eaton.com. Follow them on LinkedIn.
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