Eaton posts $6.4 billion in Q1 sales as Craig Arnold plans retirement

Key Points

• Eaton posted $6.4 billion in Q1 revenue, a 7.3% increase from last year, with strong growth across Electrical and Aerospace divisions offsetting weakness in vehicles.
• Organic sales rose 9% year-over-year, fueling record results and prompting the company to raise its 2025 outlook despite ongoing macroeconomic uncertainty.
• Incoming CEO Paulo Ruiz credited the results to execution and demand for electrification.

Eaton Corp., an intelligent power management company led by outgoing Chairman and CEO Craig Arnold—one of the wealthiest Black executives in the U.S.—kicked off its 2025 fiscal year with record results, signaling strong momentum across its core segments despite global macroeconomic uncertainty. Arnold is set to retire on May 31, 2025.

The company posted net sales of $6.38 billion for the first quarter ended March 2025, a 7.3 percent increase from $5.94 billion a year earlier. The growth was driven by a 9 percent rise in organic sales, bolstered by robust performance in its Electrical Americas, Electrical Global, and Aerospace divisions. The surge reflects sustained demand for energy-efficient technologies and digital infrastructure solutions across key markets.

Key segment sales power Eaton’s quarterly growth

Eaton’s Electrical Americas division, the company’s top revenue contributor, generated a record $3 billion in first-quarter sales, marking an 11.9 percent increase from the same period in 2024. The gain was driven by strong organic growth of 13 percent, underscoring continued demand for commercial and industrial electrification solutions across North America.

The Electrical Global and Aerospace segments also delivered record results, with sales rising to $1.6 billion and $979 million, respectively—up 7 percent and 12 percent from a year earlier. The performance reflects Eaton’s growing global footprint and heightened demand in aviation, where backlogs climbed 16 percent as the sector accelerates investment in electrified systems.

Meanwhile, the Vehicle segment posted a 15 percent year-over-year decline in sales to $617 million, hurt by an 11 percent drop in organic sales and a 4 percent hit from unfavorable currency movements. Eaton aims to counter the segment’s weakness with operational adjustments and cost-efficiency measures to navigate ongoing softness in global vehicle demand.

Eaton raises 2025 outlook as Ruiz prepares to take helm

The Dublin-based intelligent power management company reported a record-breaking first quarter, with earnings per share surging 20 percent to $2.45 from $2.04 a year earlier. Adjusted EPS rose 13 percent to $2.72, while revenue climbed to an all-time high of $6.4 billion, fueled by 9 percent organic growth despite foreign exchange headwinds.

Incoming President and Chief Operating Officer Paulo Ruiz—who will succeed Craig Arnold as CEO by June 1—attributed the strong performance to robust demand across key segments and disciplined execution. “We’re pleased with our performance in the quarter, which reflects our team’s high standards and focus on delivering on our commitments,” Ruiz said.

Segment margins rose to a first-quarter record of 23.9 percent, up 80 basis points from the prior year, reflecting Eaton’s operational discipline and pricing strategies amid sustained demand in key markets. Ruiz said Eaton remains well-positioned to capture rising demand driven by global megatrends such as electrification and digitalization.

Arnold’s stake signals confidence as retirement nears

Craig Arnold, who has led Eaton since June 2016, will retire on May 31, 2025. He owns a 0.195 percent stake in the company—765,791 shares valued at $224.41 million—underscoring his long-term confidence in the electrical giant’s trajectory.

Eaton’s total assets rose 2.15 percent to $39.21 billion as of March 31, 2025, from $38.38 billion at year-end 2024. Shareholder equity edged up 0.09 percent to $18.55 billion. Bolstered by a solid first quarter, Eaton raised its full-year 2025 outlook. It now forecasts adjusted earnings per share between $11.80 and $12.20, up 11 percent at the midpoint from 2024. GAAP EPS is expected to reach $10.29 to $10.69, a 10 percent increase at the midpoint.