Eaton Corporation plc Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Eaton Q2 2026 Earnings Summary

  • Revenue: Record $8.5 billion, +21% total (incl. +7 pts from acquisitions), +14% organic vs. prior year. Ex-Mobility, organic growth would have been +16%.
  • Adjusted EPS: $3.15 (Q2 record), exceeded guidance midpoint by $0.10; H1 2026 at $5.96 (H1 record). $0.25 segment profit beat vs. guidance, partially offset by $0.15 higher tax rate.
  • Margins: 23.1% (better than high end of guidance); Electrical Americas at 27.5% (+190 bps QoQ vs. Q1 2026, though -YoY due to temporary price/cost).
  • Other Metrics: Operating cash flow +23% YoY (Q2 record); total company book-to-bill 1.2 (Americas 1.3, Aerospace 1.2); backlog +43% YoY in Electrical.

Segment Performance Highlights

  • Electrical Americas: +18% organic sales (data centers ~+65%, plus machine OEM and commercial/institutional); margins 27.5% (+190 bps QoQ). Orders +41% (rolling 12-mo), book-to-bill 1.3. Capacity ramps delivering ~25% revenue/day growth since start of 2025 (+16% YoY, +8% Q2 vs. Q1).
  • Electrical Global: +44% total (+18% organic from data center/utility/machine OEM + 25% from Boyd acquisition); margins 19.8% (-30 bps YoY but +1 pt vs. expectations). Orders +33% (rolling 12-mo), backlog +103% YoY (+54% organic ex-Boyd).

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Operator: Thank you for standing by, and welcome to Eaton's Second Quarter 2026 Earnings Results Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Yan Jin, Senior Vice President of Investor Relations. Please go ahead. Yan Jin: Good morning. Thank you all for joining us for Eaton's Second Quarter 2026 Earnings Call. With me today are Paulo Ruiz, Chief Executive Officer; and Dave Foster, Executive Vice President and Chief Financial Officer. Our agenda today includes operating remarks by Paulo. Then he will turn it over to Dave, who will highlight the company's performance in the second quarter. As we have done in our past calls, we'll be taking questions at the end of Paulo's closing commentary. The press release and the presentation we'll go through today, including reconciliations to non-GAAP measures, have been posted on our website. And a replay of this webcast will be accessible on our website after the call. Before we begin, I would like to remind our comments today will include forward-looking statements with respect to revenue, earnings and other matters. Our actual results may differ materially from our forecasted projections due to a wide range of risks and uncertainties that are described in our recent SEC filings. With that, I will turn it over to Paulo. Paulo Sternadt: Thanks, Yan, and thanks, everyone, for joining us. Starting on Page 3, I'm happy to share the str

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